White Canyon has purchased 74 mineral tenements in Red Canyon, - Acquired tenements consolidate company's landholding at Red Canyon following recent purchases of tenements from Uranium One in Utah, USA, - Company now holds 90% of Red Canyon, containing in excess of 6,000m of buried river channels, the host lithology for roll front uranium deposits in the White Canyon district, and - Tenements hold extensions to existing mineralisation on existing Company owned projects.
Utah based uranium, White Canyon Uranium Limited /quotes/comstock/11v!wu (CA:WU 0.13, 0.00, 0.00%) (ASX: WCU) ("White Canyon" or "the Company") is pleased to announce that it has negotiated the purchase of 74 mineral tenements in the White Canyon district, referred to as the Yellow Parrot project, from a private prospecting syndicate.
White Canyon undertook an option over these tenements, announced on December 16, 2009 with a 60 day due diligence period. The Company successfully completed its due diligence on the project; however the acquisition was delayed by the sudden death of Mr Devern Dickerson, a member of the syndicate.
The purchase of the 74 tenements is a cash (US$40,000) and securities (690,024 ordinary shares) transaction for a combined value of US$200,000 and further consolidates the Company's project areas at Red Canyon (Daneros, Lark Royal, Radium King, Spook and Maybe). This acquisition increases the Company's landholding in Utah from 14,000 acres to approximately 15,500 acres with in excess of 1,450 additional acres at Red Canyon. The transaction is subject to the TSX Venture Exchange approval.
Combined with the recent purchase of 93 tenements from Uranium One (March 22) the Company has secured more than 90% of Red Canyon, containing in excess of 6,000m of buried river channels, the host lithology for roll front uranium deposits in the White Canyon district (Figure 2).
To view the Figure 2: Red Canyon map, please visit the following link: http://media3.marketwire.com/docs/wufig2419.pdf
An additional 2,000 to 4,000m of inferred river channels exist within the Radium King and Maybe tenements. Only 1,000m (approximate) of these channels have been drill tested and it should be noted that the mineralisation currently being mined at Daneros is only over a 500m length of river channel (Figure 1).
To view the Figure 1: Daneros Ore Body map, please visit the following link: http://media3.marketwire.com/docs/wufig419.pdf
The addition of the Yellow Parrot claims will allow the Company to expand its operations in the Red Canyon with the comfort of knowing that the extensions of the known mineralisation and the projected mineralisation in its area of operations has been secured under 100% ownership by the Company.
About White Canyon Uranium:
White Canyon is a US focussed uranium producer holding 100% interest in the advanced Thompson, Daneros, Lark Royal, Geitus, Blue Jay and Marcy Look Projects in south-east Utah, comprising of over 12,000 acres of mining claims and mineral leases. The projects contain historically defined high grade uranium deposits, however the deposits are not JORC or 43-101 compliant.