Titan Uranium Inc.
TSX VENTURE : TUE
FRANKFURT : T4X
January 27, 2009 16:20 ET
Titan Uranium Inc. Announces Cdn $7.6 Million Exploration Program for 2009
SASKATOON, SASKATCHEWAN--(Marketwire - Jan. 27, 2009) - Titan Uranium Inc. ("Titan" or the "Company") (TSX VENTURE:TUE)(FRANKFURT:T4X), a North American generative explorer, is pleased to announce the Company's 2009 exploration plans in the Athabasca and Thelon Basins. Exploration expenditures are anticipated to total Cdn $7.6 million and include funding for 11,000 metres of diamond drilling. Partners of Titan will contribute Cdn $6.8 million towards the 2009 exploration expenditures. Titan will be the operator of each project. Drilling will commence on each of the projects during the first quarter of 2009.
"Titan will be an active explorer in 2009," stated President Brian Reilly. "Titan is fortunate to have strategic partners that understand exploration timelines and are prepared to finance substantive programs in bad markets as well as good. This has enabled the Company to access funding to advance projects while conserving our treasury in these uncertain financial markets. The fundamentals of the uranium market remain positive and Titan will continue to be an active player."
Virgin Trend Project
The Virgin Trend Project is the subject of an agreement between Titan and Japan Oil, Gas and Metals National Corporation ("JOGMEC") wherein JOGMEC can earn a 50% undivided interest in the project by funding Cdn $9 million in exploration expenditures over a three year period beginning May 2008 (Titan Uranium Inc. PR, May 23, 2008). Titan signed a contract with Quest Canada Drilling Ltd. to provide a minimum of 3,500 metres of diamond drilling on the project. Drill targets were defined using JOGMEC's state-of-the art, deep-penetrating Squitem system. Historical drilling on the project is restricted to a small area at the very north end of the project. The Virgin Trend Project is located along the trace of the Virgin River Shear Zone/Dufferin Lake/Black Lake Fault, which is an extensive regional fault system with repeated movement during the period of the Athabasca sandstone deposition and uranium mineralization. The southern portion of the Virgin Trend Project neighbours Cameco Corp./Formation Capital Corp.'s Virgin River property that hosts the Centennial deposit where hole VR-27W2 intersected 12.76% U3O8 over 10.3 metres (Formation Capital Corp. PR, March 7, 2008).
Sand Hill Lake Project
The Sand Hill Lake Project is the subject of an agreement between Titan and Vale Exploration Canada Inc. ("VEC"), a wholly-owned subsidiary of Companhia Vale do Rio Doce ("Vale") (NYSE:RIO), the world's second largest mining company by market capitalization. Vale can earn a 60% undivided interest in the project by funding Cdn $12 million in exploration over a five year period beginning April 2008 (Titan Uranium Inc. PR, April 11, 2008). Ground geophysics and approximately 3,500 metres of diamond drilling are planned on the project. Titan has drilled 3,794 metres in 22 holes on the project to date, and drilling has intersected extensive alteration, anomalous pathfinder elements and elevated uranium. The Sand Hill Lake Project is located 5 km from Cameco Corp./Formation Capital Corp.'s Centennial deposit.
Border Block Project
The Border Block Project is the subject of an agreement between Titan and JOGMEC wherein JOGMEC can earn a 50% undivided interest in the project by funding Cdn $6 million in exploration over a four year period beginning November 2008 (Titan Uranium Inc. PR, November 12, 2008). Titan has signed a contract with Aggressive Drilling Ltd. to provide a minimum of 1,000 metres of diamond drilling on the project during the first two months of 2009. The Border Block Project is underlain by rocks interpreted to be correlative with those in the Shea Creek area located 40 kilometers to the north where AREVA Resources Canada Inc. and partner UEX Corp. have intersected significant uranium mineralization in the Anne, Collette and Kianna deposits (UEX Corp. PR, January 12, 2009). On the adjacent Smart Lake property, Purepoint Uranium Group Inc. is earning an interest from property owner Cameco Corp. Purepoint recently announced significant results from their drilling program on the Smart Lake property and committed an additional $450,000 to continue drilling (Purepoint Uranium Group Inc. PR, November 4, 2008).
In addition to the planned drilling described above, Titan's 2009 exploration program in the Athabasca Basin includes airborne and ground geophysical surveys on some of the Company's properties which are not subject to option agreements.
Titan's Thelon property is the subject of an option agreement with Mega Uranium Ltd. ("Mega") (TSX:MGA). Mega has fulfilled its earn-in obligations for a 51% working interest in the property with its contribution of Cdn $5 million in exploration expenditures in 2007 and 2008. Titan and Mega plan to maintain their Thelon property position and all exploration data will be compiled, reviewed and interpreted during 2009 in order to plan future work.
J. Allan McNutt, P.Geo., M.A.Sc., is Titan's Qualified Person (as defined by National Instrument 43-101) for uranium projects and is responsible for the technical information contained in this release.
About Titan Uranium Inc.
Titan's growth strategy is driven by advancing exploration projects to discovery in the proven Athabasca and prospective Thelon basins. Titan has gained market recognition for its ability to attract strategic partners to participate in exploration on its properties by virtue of its 1.5 million acre land position and technical expertise. In 2008, Japan Oil, Gas and Metals National Corporation (JOGMEC) signed two letters of agreement with Titan to explore the Company's Virgin Trend and Border Block projects as an element of its mandate to seek a stable supply of natural resources for Japan. In April 2008, Vale Exploration Canada Inc. (VEC), a wholly-owned subsidiary of Companhia Vale do Rio Doce (Vale), the world's second-largest mining company by market capitalization, signed an agreement with Titan on the Sand Hill Lake/Rook II project. Titan also has a major joint venture project underway in the Thelon Basin with Mega Uranium Ltd. Additional partnerships are at the planning stage.
Partners of Titan have the option to expend Cdn $22.5 million in exploration programs managed by Titan between 2009 and 2012. The partners can earn a portion of Titan's interest in these strategically located properties in the Athabasca and Thelon basins. Optionees of Titan properties spent Cdn $6 million on exploration programs managed by Titan in 2008.
Titan is well-financed and ideally positioned to emerge as a pre-eminent explorer in the uranium industry. Based in Saskatoon, Saskatchewan, Titan boasts proven senior leadership, a highly experienced technical team and a dominant land position in Canada's world-class uranium districts.
ON BEHALF OF TITAN URANIUM INC.
Brian A. Reilly, President
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact, included in this release, including, without limitation, statements regarding potential mineralization and reserves, exploration results, and future plans and objectives of Titan Uranium, are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Titan Uranium's expectations are exploration risks detailed herein and from time to time in the filings made by Titan Uranium with securities regulators.
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.