October 22, 2009 Universal Intersects Gold In 13 Of 14 Holes And Stakes Additional 2780 Acres
Vancouver, British Columbia, October 22, 2009 -- Universal Uranium Ltd. (TSX-V: UUL) (the "Company") is pleased to report the remaining drill results for the first phase drill program completed on its Tact project. The project is located in north-central Nevada within the Battle Mountain-Eureka Trend. Geologic mapping, surface sampling and drilling have confirmed the presence of a large epithermal system located within the boundaries of the Company's claim position.
Mineralization is localized along faults cutting quartz monzonite intrusive and Pennsylvanian aged sediments. The mineralized zones are characterized by quartz veining with associated clay gouge, carbonate and iron oxide alteration. The altered zones contain disseminated gold mineralization with moderate-to-deep oxidation. The above attributes lend themselves to low cost open pit, heap leach technology utilized by low grade gold deposits in the vicinity.
Recent work and historic data have defined at least nine targets within the 1780 acre property. Information was released on October 1, 2009 for the first four holes of the drill program. These holes tested the Southwest target in Section 2, an area defined by a series of mineralized low-angle faults. The remainder of the drill holes tested three additional targets.
The Company is encouraged with the results of the drilling to date, noting that all holes drilled except for T09-10 encountered significant gold in one or more intervals. Hole T09-10 was abandoned in alluvial fill before reaching bedrock.
Holes 5, 6 and 14 probed under a northerly trending gold-in-soil anomaly identified as the Southeast target. Holes 7, 8, 9, 11 and 12 investigated the Central target defined by several gold anomalies collected from soil and road cuts. Hole 10 tested the Southeast target in Section 12, but was abandoned before it encountered bedrock. Hole 13 tested the Northwest target defined by geophysics.
The following table summarizes the latest results of the drilling:
HOLE NUMBER
FROM METERS
TO METERS
INTERVAL
METERS
GOLD
GRAMS/TON
INTERVAL FEET
GOLD
OUNCES/TON
T09-5
109.7
111.2
1.5
0.21
5
0.006
118.9
125.0
6.1
0.20
20
0.006
T09-6
50.3
54.9
4.6
0.33
15
0.010
73.1
74.6
1.5
0.33
5
0.010
T09-7
0.0
1.5
1.5
0.40
5
0.011
6.1
7.6
1.5
0.46
5
0.013
59.4
62.5
3.1
0.78
10
0.023
147.8
150.9
3.1
0.61
10
0.018
T09-8
18.3
21.3
3.1
0.31
10
0.009
44.2
45.7
1.5
0.57
5
0.017
97.5
99.0
1.5
0.45
5
0.013
T09-9
4.5
7.6
3.1
0.36
10
0.010
109.7
118.9
9.1
0.42
30
0.012
Includes
112.8
117.4
4.6
0.66
15
0.020
T09-10
NSV
T09-11
16.8
24.4
7.6
0.32
25
0.009
includes
18.3
19.8
1.5
0.90
5
0.026
36.6
38.1
1.5
0.46
5
0.013
T09-12
24.4
25.9
1.5
0.47
5
0.014
32.0
36.6
4.6
0.65
15
0.019
53.3
59.4
6.1
0.37
20
0.011
71.6
74.7
4.6
0.52
10
0.015
T09-13
67.1
71.7
4.6
0.19
15
0.005
T09-14
44.2
45.7
1.5
0.45
5
0.013
During drilling additional ground was obtained by locating unpatented mining claims on available land to the south of the property. A further 2780 acres were acquired bringing the total acreage currently held to 4560 acres. The additional land is known to cover at least two areas of previously recognized gold mineralization. The Company intends to investigate these occurrences in the near future with a detailed mapping and sampling program.
"The Company believes the results of this wide spaced drill program provide evidence of a large epithermal system underlying the property. Considering the road cut sampling and drilling results from this recent work, the newly acquired land, and the location of the property (situated within a prolific area of gold production), the Company is enthusiastic about its ultimate success," said Universal's president and chairman, Ron Atlas. "Our geologists are examining the results to determine the next step in developing this very prospective property."
To ensure reliable results, the Company employs a stringent set of quality assurance and quality control procedures. These procedures include check samples randomly introduced in the laboratory and in the field and duplicate samples collected for reanalysis if necessary. A chain-of-custody program provides security from the time of sample collection on site to delivery at the assay laboratory. Sample preparation and analysis are performed by American Assay Laboratories Inc, an ISOIEC 17025 accredited laboratory, at their Sparks, Nevada facility.
Information with respect to the Tact property contained in this press release is approved by Bert W. Jeffries, PGeo, qualified person required under National Instrument 43-101.
Universal Uranium Ltd. (TSX-V: UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable 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.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas"
President & Chairman of the Board
For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour.
October 01, 2009 Univeral Intersects 1.61 Grams/Tonne Gold Over 3 Meters at Tact Property, Nevada
Vancouver, British Columbia, October 1, 2009 -- Universal Uranium Ltd. (TSX-V: UUL) (the "Company") is pleased to report surface sampling and drill results for the first four holes of its 14 hole drill program completed on its Tact gold project located in north-central Nevada within the Battle Mountain-Eureka Trend. Geologic mapping, surface sampling and drilling have confirmed the presence of a large epithermal mineral system located within the boundaries of the Company's claim position.
The mineralization is hosted in an atypical host rock, a quartz monzonite that may open a path to a new host rock for the district. The mineralized zones are characterized by quartz veining with associated carbonate and iron oxide alteration. The altered zones contain disseminated gold mineralization with moderate-to-deep oxidation. The above attributes lend themselves to low cost open pit, heap leach technology utilized by low grade gold deposits in the vicinity.
The Tact project represents an exciting, under-explored epithermal precious metals property within the highly productive Battle Mountain mining district. "Our Tact project provides the Company with excellent potential for a discovery of bulk mineable gold within one of the most prolific and concentrated gold trends in the world" said Universal's president and chairman Ron Atlas. "We will continue to evaluate the results of our exploration efforts as we receive our assays from the 14 hole drill program just completed."
Eighty-nine channel samples were collected from access roads throughout the project area. The sampling length varies from 1 foot wide (0.3 meters) to 60 feet in length (18.3 meters). Out of the 89 samples collected, 26 contained over 0.35 g/t gold with a high of 4.65 g/t over 13 feet (4 meters) in length. A true thickness cannot be determined at this time due to restricted exposures of bedrock.
Recent work combined with historic information has identified at least nine targets within the 1780 acre property. The first four holes of the company's drill program tested one of these targets, the southwest area, defined by a series of mineralized low-angle faults. This target was originally recognized from historic soil sampling that demonstrated an elongated anomaly approximately 3000 feet (914 meters) in length and 300 feet (91.4 meters) in width. Gold values in this anomaly ranged from lows of 0.1 g/t to a high of 4.6 g/t gold. The following summarizes the results of the drilling:
HoleNumber
Frommeters
Tometers
Intervalmeters
Goldgrams/ton
Intervalfeet
GoldOunces/ton
T09-1
57.9
69.6
10.7
0.35
35
0.010
T09-2
4.6
13.7
9.1
0.86
30
0.025
including
7.6
10.7
3.1
1.61
10
0.047
T09-3
118.9
125.0
6.1
0.39
20
0.011
T09-4
15.2
22.8
7.6
0.21
25
0.006
Drill holes T09-1 through T09-3 are wide spaced with over 450 feet (137 meters) between holes. Hole T09-4 is situated topographically below Hole T09-2 and was drilled at an angle under the mineralized interval encountered in T09-2. The intent of T09-4 was to intersect a near-vertical "feeder" source of mineralization at depth.
The Company believes the work completed to date, coupled with the presence of eight additional targets defined by geologic mapping, historic geophysical surveys, and geochemical sampling, provide evidence of a large epithermal system underlying the property. Considering the sampling and drilling results, and the location of the property (situated within a prolific area of gold production), the Company is enthusiastic over its chance of success on this project.
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-V: UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable 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.
ON BEHALF OF THE BOARD: (signed) "Ronald Atlas"
President & Chairman of the Board
For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour.
September 09, 2009 Drilling Underway on Universal's Nevada Gold Property
Vancouver, British Columbia, September 9, 2009 - Universal Uranium Ltd. (TSX: V- UUL) (the "Company") is pleased to report that its drilling program on its newly acquired Tact Project in Humboldt County Nevada is underway. Four holes have been completed for a total of 2,010 feet (612.8 meters). The program includes 15 to 20 reverse circulation drill holes from 15 permitted sites within the project boundary. The total program is estimated at 7,000 to 8,000 feet (2135 to 2439 meters). This program will test four separate targets previously defined by historic work. Three of the targets are surface gold anomalies with grades up to 4.5 g/t gold. The fourth target will test a pediment structure defined by geophysical surveys.
Construction of access roads for drilling has allowed mapping and sampling of additional altered zones. This process resulted in the collection of over 89 rock chip samples across altered fault zones exposed within the road cuts. The samples ranged from 2 to 35 feet (0.6 to 10.7 meters) true thickness across structural zones containing quartz and iron oxides. The mapping information and samples collected from these road cuts will provide three dimensional definition to mineralized zones when combined with drilling.
UUL's Tact property is favorably situated in Buffalo Valley approximately 4 miles (6.4 km) south and along trend with Newmont Mining's Lone Tree gold mine (2 million ounces), 2.5 miles (4 km) northwest of Mineral Ventures Gold Converse deposit (3.9 million ounces) and 6 miles (9.6 km) west of Barrick-Goldcorp's Marigold gold mine (4.5 million ounces).
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-V:UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable 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.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas"
President & Chairman of the Board
For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. The Company seeks Safe Harbour.
July 07, 2009 Universal Uranium To Acquire Nevada Gold Property
Vancouver, BC, July 7, 2009 - Universal Uranium Ltd. (TSX:V- 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 (<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-V: 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
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas"
President & Chairman of the Board
For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email:
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
May 13, 2009 Statement of Defence and Counterclaim Filed In Crosshair Action
Vancouver, British Columbia, May 13, 2009 -- Universal Uranium Ltd. (the "Company") announced that it has filed a Statement of Defence and Counterclaim in an action commenced by Crosshair Exploration & Mining Corp. ("Crosshair") in the B.C. Supreme Court. The Crosshair action seeks rescission of two agreements, one being a property purchase agreement under which Crosshair acquired the Company's mineral claims in the Central Mineral Belt in Labrador, and the other being a private placement agreement under which Crosshair purchased units of the Company.
The Company considers the Crosshair action to be without merit. The Company's Statement of Defence and Counterclaim denies that Crosshair is entitled to rescission of the two agreements and asserts that the Crosshair action was commenced for the purpose of artificially increasing the value of Crosshair's shares by halting the release from escrow of the Crosshair shares to which UUL is entitled under the property purchase agreement. The Statement of Defence and Counterclaim also asserts that the Crosshair action is an abuse of process and seeks damages for the loss of the Company's opportunity to market the Crosshair shares to which the Company is entitled.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
May 01, 2009 Action Against Universal Uranium
Vancouver, British Columbia, May 1, 2009 -- Universal Uranium Ltd. (the "Company") announced that it has been served with a Writ and Statement of Claim in an action commenced by Crosshair Exploration & Mining Corp. ("Crosshair") in the B.C. Supreme Court. The Crosshair action seeks rescission of a property purchase agreement dated July 29, 2008 under which Crosshair acquired the Company's interest in approximately 4,741 mineral claims situated in the Central Mineral Belt in Labrador. It also seeks rescission of a July 29, 2008 private placement agreement under which Crosshair purchased 2,222,222 units of the Company, each consisting of one common share and one common share purchase warrant. The action also claims certain ancillary relief.
Further information on the property purchase agreement and the private placement agreement is contained in the Company's press release issued July 30, 2008.
The Company considers the Crosshair action to be without merit and will vigorously defend this action. The Company also intends to file a counterclaim against Crosshair seeking damages and other relief.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
April 29, 2009 Results of Annual General Meeting
Vancouver, British Columbia, April 29, 2009 -- Universal Uranium Ltd. (the "Company") is pleased to announce that its shareholders have approved all resolutions presented to them at the annual general meeting of the Company held on April 29, 2009. The shareholders re-elected five directors to the board, Ronald Atlas (also Chairman of the Board & President), Steven Chan, Corry Silbernagel, John Hite and Richard Walters. The shareholders also reappointed De Visser Gray, Chartered Accountants, as the Company's auditors and ratified and approved the Company's 10% rolling stock option plan and ancillary matters thereto, including the re pricing of certain stock options to directors and officers as previously announced in the Company's press release of February 26, 2009.
The Company also announced that it has granted incentive stock options in the aggregate amount of 775,000 shares to directors, officers, consultant and employees of the Company at a price of $0.15 per share. The options are exercisable for a period of five years, ending on April 29, 2014, and are subject to the requirements of the TSX Venture Exchange.
The Company is also proposing the amendment of 1,150,000 warrants issued pursuant to its private placement completed last March 2008 (see press release dated March 20, 2008). Subject to regulatory approvals, the exercise price of the warrants will be amended from $0.45 per share to $0.15 per share. All other terms and conditions remain unchanged. There are no insiders among the outstanding warrant holders.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board
For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
February 26, 2009 Stock Options Amended
Vancouver, British Columbia, February 26, 2009-- Universal Uranium Ltd. announced that it has re-priced 3,420,000 stock options granted to directors, officers, employees and consultants, ranging in price from $0.20 to $0.71, to $0.15 per share. All other terms and conditions of the options remain unchanged.
Universal Uranium Ltd. (TSX-V:UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable 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.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas," President & Chairman of the Board
For further information contact:
William Galine
Executive Vice President
Telephone: (604) 662-3903
Email: bgaline@universaluranium.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
September 30, 2008 Universal Uranium Receives Preliminary Assessment On St. Georges Bay Property
Vancouver, British Columbia, September 30, 2008 - Universal Uranium Ltd. (TSX:V-UUL) (the "Company") is pleased to report that North Rim Exploration Ltd. has completed a Preliminary Resource Assessment Study (the "Study") on the Company's 100% owned St. Georges Subbasin Project, located in western Newfoundland.
The study concludes that the project warrants being advanced and recommends additional work to be conducted in the form of ground truthing, ground gravity surveys and possible drill testing based on gravity features. It also reports that the property not only has potash potential but also potential for uranium, coal and other base metals.
North Rim geologists will visit Pasadena, NL in late October in order to document the cores of the historical drill holes in the area and try to locate the coal occurrences that are in the historic data as being on the property.
Highlights of the Preliminary Assessment Report:
-The St. Georges Subbasin is an extension of the larger Carboniferous-age Maritime Basin that underlies most of Nova Scotia, New Brunswick and Prince Edward Island (See Figure 3 available at www.universaluranium.com). The evaporite-bearing formations in Newfoundland are believed to be similar in age to potash-producing formations in the Moncton Subbasin of New Brunswick, which is also part of the Maritime Basin. The potash mine in the Moncton Subbsain, the Sussex Mine, is currently operated by the Potash Corporation of Saskatchewan and produces approximately 800,000 tonnes of potash a day. This demonstrates that the company's claims cover an area with the geological potential to host a potash deposit (See Figure 3 www.universaluranium.com).
-Sylvinite and caranallite mineralization have been reported and confirmed from drill holes in the general St. Georges Subbasin of western Newfoundland. The closest drill hole to the Universal property is the St. Fintans occurrence which is located approximately 10 to 15 kilometers from the western boundary of the company's licenses and reported grades as high as 9.1% K2O. Both sylvite and carnallite were reported to be present (See Figure 1 www.universaluranium.com). The most extensive drilling was done at Fischells Brook which is located approximately 20km northeast from the Universal property and reported grades as high as 15.3% K20. The highest grade intersection in this area was 4.1m averaging 13.2% K2O and the thickest intersection was 7.8m of 7.95% K2O (See Figure 1). These observations indicate it is reasonable to expect the discovery of additional sylvinite and caranallite within the St. Georges Subbasin.
-The highest prospectivity for potash mineralization in the St. Georges Subbasin is coincident with the lower Codroy Group Sediments. This Codroy group is present on a substantial part of the Universal property. Further ground work on the licenses, specifically within the regions marked by the highlighted area on Figure 9, could result in the discovery of evaporite minerals that may include sylvinite and carnallite.
-The St. Georges Subbasin is a metallogenically interesting area with regional indications of several other mineral commodities (Figure 7 www.universaluranium.com), including coal, uranium and base metals. There are currently reports of coal beds (Figure 9) encountered in the vicinity of the Universal licenses so particular attention will be paid to identifying the potential presence of a coal resource. The potential for economic concentrations of other minerals will also not be discounted during the work program as there are reports indicating base metal potential in the Codroy-Anguille contact area (Figure 9).
The Study, dated September 15th, 2008 and entitled "Bay St. Georges Subbasin Western Newfoundland - Preliminary Resource Assessment Study" will be filed on www.sedar.com and available for viewing on the company's website www.universaluranium.com. The study was prepared by Sandra J. Foster, P.Geo., and Stephen Halabura, P. Geo. of North Rim Exploration Limited (NREL), a geological consulting company based in Saskatoon, Saskatchewan. Mr. Halabura and Ms. Foster are both independent qualified persons as defined by NI 43-101.
Universal Uranium Ltd. (TSX-V:UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable 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.
ON BEHALF OF THE BOARD:
(signed) "Ronald Atlas,"
President & Chairman of the Board
For further information contact:
Taylor Little, Investor Relations
Telephone: (604) 662-3903
Email:
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
The Company seeks Safe Harbour.
July 30, 2008 Universal Announces Closing Of Sale Of Labrador Uranium Property To Crosshair
Vancouver, British Columbia, July 30, 2008-- Universal Uranium Ltd. (TSX-V: UUL) is pleased to announce that it has closed on the agreement with Crosshair Exploration ("Crosshair") to acquire all of Universal's 60% interest in its Central Mineral Belt (CMB), Labrador, uranium project, consisting of approximately 4,737 claims and including the Two Time uranium deposit, which sits outside the Labrador Inuit Land area.
The Two Time Zone is the most advanced prospect within Universal's 1,184 square kilometre land holdings in the CMB and is a joint venture partnership with Silver Spruce Resources ("Silver Spruce"), whereby Silver Spruce retains a 40% ownership. Crosshair will be the operator of the project. The Two Time Zone has an existing NI 43-101 compliant indicated resource of 2.33 million pounds of uranium (U3O8) (1.82 million tonnes grading 0.058% U3O8) and an additional inferred resource of 3.73 million pounds of U3O8 (3.16 million tonnes grading 0.053% U3O8).
"The sale of this property to Crosshair will prove extremely beneficial to both parties. The shares of Crosshair received by Universal will give us a large position in the future of the entire property. Crosshair is better equipped to deal with the complexities of developing this property and has the geological staff and expertise to advance this discovery to production", says Ron Atlas, President of Universal. "The 2% NSR allows Universal to participate directly in the profit potential of the property. The private placement made in Universal by Crosshair will allow Universal to concentrate its efforts on its Potash property in Saskatchewan, and on the acquisition of additional attractive mineral prospects currently under review."
"We are pleased that the acquisition is complete and we look forward to expanding the Two Time Zone and also advancing a number of exciting discoveries in the area to the drill ready stage", says Mark Morabito, CEO of Crosshair. "Together with our C Zone -- Armstrong corridor, Crosshair now controls the only two 43-101 uranium deposits in the western portion of the CMB and both are outside the Labrador Inuit Land area."
The Two Time Zone has a current strike length of 475 metres (m) and remains open along strike and to depth. The Two Time Zone is located approximately 17 km northwest of Crosshair's C Zone. Significant uranium drill intercepts include:
0.052% U3O8 over 107 m including
0.11% U3O8 over 30 m in CMB-07-6
0.042% U3O8 over 109 m including
0.10% U3O8 over 32 m in CMB-07-14
The complete resource estimate can be found in the NI 43-101 report entitled Technical Report on the CMBNW Property, Labrador, Canada dated June 12, 2008, as filed on SEDAR on June 13, 2008 by both Universal and Silver Spruce.
Acquisition Details
As consideration for Universal's interest in the Property, Crosshair paid to Universal CDN$500,000 and issued 10,000,000 common shares and 7,500,000 warrants. Each warrant entitles Universal to purchase an additional common share in the capital of Crosshair at CDN$1.00 per share for a period of three years from Closing subject to early expiry in the event that the average trading price of Crosshair's common shares exceeds CDN$2.00 for a period of 20 days while the warrants are outstanding. The securities issued to Universal are subject to escrow for two years following the Closing, to be released in equal tranches in three month intervals. Universal will grant Crosshair's management a voting proxy over any Crosshair shares it holds or acquires on exercise of the warrants. These escrow and voting provisions will expire if Universal distributes the securities to its shareholders. Universal will retain a 2% net smelter return royalty on its 60% interest in the Property, 0.5% of which may be purchased by Crosshair for CDN$1,000,000.
Crosshair has also purchased, by way of private placement, 2,222,222 units of Universal at a price of CDN$0.45 per unit. Each unit consists of one common share of Universal and one share purchase warrant entitling Crosshair to purchase an additional common share of Universal at a price of CDN$0.65 per Universal Warrant for a period of 24 months.
Universal Uranium Ltd. (TSX-V: UUL) is a publicly held Canadian exploration company focused on acquiring, exploring and developing mineral properties located in favorable 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.
ON BEHALF OF THE BOARD: For further information contact:
(signed) "Ronald Atlas," President & Chairman of the Board
