Solitaire Minerals Corp.
TSX VENTURE : SLT

Solitaire Minerals Corp.

February 01, 2011 09:00 ET

Solitaire's Partner Terra Ventures Inc. Receives Permits to Drill Uranium Properties Adjoining Denison's Phoenix High-Grade Uranium Discovery, Athabasca Basin

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 1, 2011) - Solitaire Minerals Corp. (TSX VENTURE:SLT) (Solitaire) reports that Terra Ventures Inc. (TSX VENTURE:TAS) ("Terra") has received permits for its planned surface exploration and diamond drilling programs on the Wheeler River uranium properties, adjoining the Denison Mines property and the Phoenix Zone, in the Athabasca Basin of Saskatchewan.

Terra has the option to earn up to a 95% interest in three dispositions, from Solitaire, known as C-4, C-5 and C-6, with an aggregate area of 4,011 acres (1,624 hectares) adjoining the northwest side of the Wheeler River property of Denison Mines Corp. (TSX:DML) (60 percent), Cameco Corp. (TSX:CCO) (30 percent) and JCU (Canada) Exploration Co. (10 percent). Denison has announced an indicated mineral resource for its Phoenix Zone of 35.6 million pounds of U3O8, with a grade of 18.0% U3O8. The Phoenix B Zone has an additional inferred resource of 3.8 million pounds grading 7.3% U3O8. Denison has announced a 70-hole, three-rig diamond drilling program for 2011 to expand the resource and explore additional targets.

The highlights of the properties are:

  • Property lies midway between the McArthur River mine and the former producing Key Lake mine;
  • Several conductors defined by previous airborne EM surveys;
  • Extensive clay alteration found in boulder sampling;
  • Uranium and pathfinder element geochemical anomalies in boulder sampling;
  • Quartzite ridge in basement rocks was defined by previous diamond drilling on the C-5 property; similar quartzite ridges at the Phoenix Zone and the McArthur River mine are believed to localize uranium deposition

Terra plans to carry out line cutting, resistivity, gravity and 2-D seismic surveys over the next two months to refine the target areas, followed by a late winter diamond drilling program.

The three properties lie on a structural corridor located along a belt of Aphebian metasediments in the subAthabasca basement. Previous airborne EM surveys have defined conductors on the C-4 and C-5 blocks. Previous drilling in the area has resulted in the recognition of a broad zone of clay alteration of the type that is always associated with unconformity-type uranium mineralization in the Athabasca basin. There is also evidence from prior drilling that a quartzite ridge in the basement, similar to that which appears to be at least partially responsible for localizing the giant McArthur River orebody and the Phoenix zones, is present on the C-5 block.

The McArthur River uranium mine owned by Cameco (70 per cent) and AREVA Resources Canada (30 per cent) is mining an orebody with estimated proven and probable reserves of approximately 334 million pounds of U3O8 grading 19.53% U3O8, a measured and indicated resource of 30 million pounds of U3O8, an inferred resource of 159 million pounds of U3O8, and past production of 171.2 million pounds of U3O8 (Cameco 2009 annual report). This uranium deposit (approximate size of 700 million pounds of U3O8) is the world's largest high-grade uranium mine.

Terms of Option Agreement

Upon regulatory approval, Terra has already paid $100,000 and issued 100,000 shares to Solitaire. In order to acquire an initial 55% interest, on or before December 31, 2011 Terra must pay Solitaire an additional $100,000, issue an additional 50,000 shares and incur at least $1,000,000 in exploration expenditures on the properties. Upon the exercise of this initial option, Terra will have the right to increase its interest to 75% on or before December 31, 2012 by paying an additional $150,000, issuing an additional 50,000 shares and incurring an additional $1,000,000 in expenditures. For a period of five years after the exercise of this second option, Terra may increase its interest to 95% by paying Solitaire $5,000,000, whereupon Solitaire's remaining 5% interest will be converted into a production carried interest.

Terra currently holds a 2% Net Smelter Returns Royalty on the properties.

Technical information in this news release has been prepared and/or revised by Mike Magrum, P.Eng., Director and Qualified Person as defined in NI 43-101 for Terra.

About Solitaire Minerals Corp.

Solitaire Minerals Corp. (TSX VENTURE:SLT) is a diversified Junior Canadian Mineral Exploration Company with a specific focus on precious and base metal properties in North America.

For additional information please contact Solitaire Minerals Corp. or visit www.solitaireminerals.com.

On Behalf of the Board of Directors

SOLITAIRE MINERALS CORP.

Charles Desjardins, President and Director

Cautionary note:

This report contains forward looking statements. Resource estimates, unless specifically noted, are considered speculative. Any and all other resource or reserve estimates are historical in nature, and should not be relied upon. By their nature, forward looking statements involve risk and uncertainties because they relate to events and depend on factors that will or may occur in the future. Actual results may vary depending upon exploration activities, industry production, commodity demand and pricing, currency exchange rates, and, but not limited to, general economic factors. Cautionary Note to US investors: The U.S. Securities and Exchange Commission specifically prohibits the use of certain terms, such as "reserves" unless such figures are based upon actual production or formation tests and can be shown to be economically and legally producible under existing economic and operating conditions.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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