Highlights
Royal USA Inc, a wholly owned subsidiary of Aldershot Resources Ltd., will purchase all of the stock of Royal Uranium Inc. through a loan agreement with Royal Resources Ltd.
The purchase includes:
- The Burro Project - containing 100% ownership of 65 lode mining claims. Historical results of exploration holes drilled in 2006 showed mineralization ranging from 1.0 ft @ 0.04% U3O8to 5.5 ft @ 0.52% U3O8, or up to 10 lbs uranium oxide per ton.
- The Bordeaux Creek Project - containing a 9,700 acre ISR greenfield project near Cameco Corporation’s Crow Butte ISR Uranium Project near Chadron, NE. Royal USA Inc. is currently earning-in to the Bordeaux Creek Partner LLC joint venture
Aldershot Resources Ltd. (TSX.V-ALZ) (“Aldershot” or the “Company”) through Royal USA Inc., a wholly owned subsidiary of Aldershot has agreed to purchase 100% of the stock of Royal Uranium Inc., a wholly owned subsidiary of Royal Resources Ltd. for US$160,000. The financing for this purchase will be through a loan from Royal Resources Ltd. (Lender) in the amount of AU$170,000 and Aldershot can request advances to the loan. The terms of the loan are: 1) the loan shall be repaid in full when called by the Lender; 2) the interest is to be paid based on a 90 day bank bill swap rate + 4 % per year, and calculated quarterly and accumulated, and the interest shall be paid when called by the Lender. Completion of the acquisition of Royal Uranium Inc. remains subject to acceptance from the TSX Venture Exchange. Royal Resources Ltd. holds approximately 42% of the issued and outstanding shares of the Company.
The purchase includes the Burro Project and the Bordeaux Creek Project. The inclusion of these two properties will significantly improve Aldershot’s already extensive pipeline of projects.
The Burro Project is located in Disappointment Valley, San Miguel County, Colorado, approximately 18 miles northeast of Egnar Colorado. The area is commonly referred to as the Slick Rock Mining District, a part of the Uravan Mineral Belt. The target for the project is high grade uranium and vanadium mineralization within the Salt Wash Member of the Morrison Formation.
Immediately adjacent to the property on the northeast is the Sunday Mine complex, currently owned and operated by Denison Mines Corp. This area has produced approximately 1.5 million pounds of uranium and approximately 10.0 million pounds of vanadium. Similarly, the Burro Mine to the southwest was continuously operated from 1949 to the 1980s by Union Carbide Nuclear Corporation (UCN) (references to UCN also include its successor, Umetco Minerals Corp) and historical records state that from 1949 to August 1973, the adjacent property produced 468,905 tons at 0.24% U3O8 and 1.51% V2O5 (2,250,744 pounds U3O8 and 14,160,931 pounds V2O5) (Lyons, 1973). These mines ceased production due to depressed metal prices; not depletion of the resources.
Between February 6, 2006 and March 2, 2006, the previous owners, Plateau Resources Limited, Inc.(PRL) drilled seventeen boreholes on the Burro Project to investigate the continuation of mineralization from the two historical mines. In the February 2006 report prepared by PRL, nine of the seventeen exploration holes showed mineralization ranging from 1.0 ft @ 0.04% U3O8 to 5.5 ft @ 0.52% U3O8.
Adjacent to the Burro Project are two Department of Energy Leases, Tracts C-SR-13A (Cotter Corporation) and C-SR-13 (Eagle Mining Inc.), which lie immediately west and south from the Burro Mine that have had relatively little exploration and production.
UCN's 1991 Mine Reserve Summary Report identifies the un-mined resources attributable to both the Burro Mine and Sunday Complex, and UCN's Ore Reserves summaries for C-SR-13 (1984) identify un-mined resources on the DOE lease tracts (Table 2).
The historical resource estimates are relevant because they indicate that mineralization may exist in the area. The table uses categories different from those used in 43-101and the key assumptions, parameters and methods used for determining the historical estimate are not known.
A qualified person has not done sufficient work to classify the historical estimates disclosed above as current mineral resources or mineral reserves. The Company is not treating the above historical estimates as current mineral resources or mineral reserves.
The Bordeaux Creek Project is located east of Chadron, Nebraska. A joint venture was created between Bordeaux Creek Resources LLC ( a private company) and Royal Uranium Inc (to be acquired by Royal USA Inc) resulting in the formation of Bordeaux Creek Partners LLC (“BCP”). Two of the principals, Fred Groth and Tom Pool, put together, amongst others, the package on the Lost Creek and Lost Soldier projects sold to Ur-Energy in 2004 for $20 million.
Royal USA Inc. is the manager and has a clear path to earn in to a 90% interest with an option for 100% ownership.
The project is located in an area with the same stratigraphy as the nearby Crow Butte ISR Uranium Mine owned and operated by Cameco Corporation, with a permit to produce up to 1 million lbs per year. The mine started up as an in-situ recovery operation in 1991, at a time of record low uranium prices. The total production under Cameco Corporation ownership (2002-2011) was 7.6 million pounds.
BCP is targeting an area that has a favorable basement topography which may be a repetition to that seen at the Crow Butte Mine. The main features of this project are:
- A large scale blue sky uranium project
- High uranium grade analogue compared to most ISR operations
- A sound geological model
This is a grass roots exploration project with little or no historical drilling – a pristine target which has resulted in a very low initial cost. BCP currently controls 9,673 acres, all of which is on private land. Additional properties are being evaluated and may be leased in the future.
Mike Leidich, Aldershot’s COO stated, “The acquisition of Royal Uranium Inc not only extends our resource potential in the Colorado Plateau, but more importantly, adds the potential of a very large ISR property in mining friendly Nebraska.”
Michael G. Leidich is a Qualified Person as defined by National Instrument 43-101 and has reviewed and approved the content of this press release
About Royal USA Inc.
Aldershot’s wholly owned U.S. subsidiary, Royal USA Inc. is a mineral exploration and development company focused on mineral resources in the western United States of America. Royal USA has a very active exploration program utilizing advanced geophysical methods to be followed by extensive drilling campaigns.
About Aldershot Resources Ltd.
Aldershot Resources, based in Vancouver, Canada, is a mineral exploration company with uranium properties in the United States, Australia and Zambia. Shares of the Company are listed for trading on the TSX Venture Exchange. There are 156,492,975 shares outstanding.
FOR AND ON BEHALF OF THE BOARD
ALDERSHOT RESOURCES LTD
signed: “Michael G. Leidich, P.E.”
Michael G. Leidich
Chief Operating Officer
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and “Forward Looking Information” within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information 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 the Company's expectations are disclosed in the Company's documents filed from time-to-time with the British Columbia, Alberta and Ontario Securities Commissions.
FOR FURTHER INFORMATION PLEASE CONTACT:
Aldershot Resources Ltd
Michael G. Leidich
Chief Operating Officer
(303) 955-5820
Email: [email protected] or [email protected]
Website: www.aldershotresources.com