Universal Uranium Ltd.

Universal Uranium Ltd.

July 07, 2009 09:00 ET

Universal Uranium to Acquire Nevada Gold Property

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 7, 2009) - Universal Uranium Ltd. (TSX VENTURE:UUL) ("Universal Uranium") announces that it has entered into an agreement with Nevada Mine Properties II, Inc. ("NMP"), a private Nevada corporation, to acquire a 100% interest in NMP's Tact - Buff property (the "Property") located in the prolific Battle Mountain Mining District, Nevada. The Property is comprised of 98 claims totalling 1760 acres and is situated in Humboldt County approximately 30 miles southeast of Winnemucca.

Property Details

The Property is located in Buffalo Valley approximately 5 miles southwest of Newmont Mining's Lone Tree gold mine Complex (2 million ounces mined) and 3 miles northwest of Newmont's Converse deposit (4.5 million ounce resource). Other nearby gold mines in operation include the Marigold Complex (over 4.25 million ounces) operated as a joint venture between Barrick Gold Corp. and Goldcorp Inc. (see map at www.universaluranium.com).

The project area contains host rocks identical to the above mentioned mines and previous work has outlined gold in outcrop, within soil grids, limited drilling programs.

Gold mineralization identified within the property boundary occurs in strongly stockworked-brecciated limonite shears and quartz veining in structurally prepared areas within the Havallah sediments and within a quartz monzonite intrusive. A soil sampling program spaced on 30 by 130 meters covers an area over one square mile. The soil grid contains large areas of +0.1 g/t gold. Numerous +1 g/t gold values up to 4.6 g/t have been identified. A shallow drilling program (less than 30 meters) tested various, easily accessible portions of the soil grid with results to 0.014 oz/ton Au over 15 meters. None of this work has been followed up leaving most +0.1 g/t gold anomalies untested.

"While Universal remains committed to prospecting Uranium properties, the identification of this gold opportunity proved to be too tempting to let pass. The property's data has been reviewed by two top geologists and both have given us favourable reports," says Ron Atlas, President of Universal. "We have retained Bernard Stannus, a mining engineer who has considerable gold experience and who also helped bring Inca Pacific's Magistral Copper Project in Peru to its bankable feasibility and permitting stage. Bernard has agreed to consult for Universal."

In consideration, Universal Uranium has agreed to pay US$7,500 upon execution of the agreement and a total of US$302,500 in Advanced Royalty Payments in the first 8 years with automatic extensions over the next 12 years. Universal Uranium reserves the right to purchase 100% ownership of the Property at anytime by paying US$2 million less any Advance Royalty Payments.

Other considerations include issuing a total of 500,000 Universal shares to NMP over a two year period and the option to buydown a 3% NSR to 1% for US$3 million.

Universal has sufficient cash to proceed with drilling and plans to apply for drill permits and mobilize drill crews as soon as possible to proceed with an initial drilling program of up to 12 holes.

Information with respect to the Tact - Buff properties contained in this press release is approved by Bert W. Jeffries, PGeo, qualified person required under National Instrument 43-101.

Universal Uranium Ltd. (TSX VENTURE:UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favourable geo-political climates. The company is led by a highly skilled, experienced board and management team with significant successes in managing early stage mineral exploration companies.


Ronald Atlas, President & Chairman of the Board

Standard & Poor's Listed

Issued Share Capital: 47,084,068

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information