UC Resources Ltd.
TSX VENTURE : UC

UC Resources Ltd.

March 10, 2009 11:00 ET

UC Announces Formal Signing of the Option Agreement for McFauld's East and West Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 10, 2009) - UC Resources (TSX VENTURE:UC) ("UC"), Spider Resources Inc. (TSX VENTURE:SPQ) ("Spider") and KWG Resources Inc. (TSX VENTURE:KWG) ("KWG") are pleased to announce the signing of the Option Agreement pertaining to the McFauld's East and West properties held jointly by Spider and KWG in the James Bay Lowlands area of Northern Ontario, known as the "The Ring of Fire" dated March 6, 2009.

The Option Agreement provides that UC Resources can earn up to 55% interest in these properties by expending a total of $4.5 million dollars prior to March 6, 2011. In addition UC is the operator of the exploration program during its' earn in, after which operatorship is dictated by the terms of a Joint Venture Agreement, where operatorship resides with the party holding the greatest interest in the project.

Under the terms of the Option Agreement, UC must spend $1 million dollars on exploration prior to March 6, 2008 to earn a 10% interest in the land package. In year two, UC must spend an additional $1 million dollars prior to March 6, 2009 to obtain an additional 15% of the property package. Both commitments have been completed by UC at this time for a completed 25% interest. UC has already received acknowledgement from Spider and KWG with regard to this vested interest.

Two additional increments of 15% each can be earned by UC. The company must spend $1.25 million prior to March 6, 2010 to earn an additional 15%, and spend a final $1.25 million prior to March 6, 2011 for a total of $4.5 million in expenditures and earned 55% interest. Significant progress on the year three option earn-in requirements has been made with UC very close to having earned a 40% interest.

To date, the parties have been operating under the guidelines of a Letter of Intent ("LOI") initially signed on March 6, 2007 and are pleased to formalize this LOI into an Option Agreement while simultaneously developing a Joint Venture Agreement which will come into effect as soon as the terms and conditions of the Option Agreement have been fulfilled.

As press released last week, the exploration work continues with the commencement of line cutting followed by a series of geophysical surveys including gravity and gradient magnetics on the McFauld's East block, with the outlook of designing a follow-up drill exploration program for chromite type deposits. This work program will entail 55 kilometers of line cutting on the northwest portion of the McFaulds East block, in the McFaulds Lake area that abuts Noront Resources Ltd. ("Noront") border. This program is designed to select future exploration drill targets focused on potential chromite and/or base metal occurrences.

The target area that is being assessed is believed to be an extension of Noront's Blackbird occurrences, Freewest Resources Canada Inc. ("Freewest") Black Thor/Black Label occurrences and the Spider/KWG JV-Freewest option Big Daddy Chrome occurrence. All these occurrences have provided very impressive grade and widths of chromite mineralization leading UC to believe this area of McFaulds East holds potential for additional chromite occurrences as per an interpretation of the a/b geophysics in this area which suggests continuity in the magnetic signature towards and onto the UC-Spider/KWG option property.

UC Resources is an active explorer of base metals and chromite in the McFaulds Lake area of the James Bay Lowlands, Ontario, plus an explorer and a very near term producer of precious metals in Mexico.

On behalf of the Board of Directors,

Jim Voisin, President & CEO

UC Resources Ltd.

We seek safe harbour.

Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.

Contact Information

  • UC Resources Ltd.
    Vancouver Head Office
    Toll Free: 1-800-366-8566 (Canada & USA) or (604) 681-7265
    (604) 608-6163 (FAX)
    Website: www.ucresources.net