Uranerz Energy Corporation: Acquisition of Excalibur Wyoming Uranium Properties
Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to announce that it has entered into an Option and Purchase Agreement with Excalibur Industries ("Excalibur") on six mineral properties located in the Powder River Basin of Northeast Wyoming. The six mineral properties are comprised of forty-four (44) unpatented lode mining claims containing significant drill-indicated uranium resources.
Excalibur is a United States public company (corporation) on inactive status. In its annual report for the fiscal year ended May 31, 2005 Excalibur reported total indicated uranium resource estimates for the six properties as 5,921,000 pounds, with potential uranium resources for the six properties as 16,600,000 pounds.
Uranerz has a three-year Option Period on these properties. In addition to a royalty on uranium production, the Agreement requires that Uranerz make an advance royalty payment to Excalibur, which Uranerz has already done, and commit to make certain minimum project development expenditures during the Option Period. Uranerz can terminate the Agreement at any time during the Option Period. At such time that Uranerz has spent the required amount of development expenditures, Uranerz can conclude the Option Period and 100% ownership of the six properties will be transferred to Uranerz. The information for these properties in the form of drill hole logs and constructed cross sections is available to Uranerz with these property transactions. Uranerz may also have access to similar information of over 12,000 electric and lithologic drill hole logs from 6.4 million feet of drilling on uranium properties throughout the Powder River Basin.
During the Option Period Uranerz is to perform additional exploration to verify the quantity of uranium resources. Detailed evaluation on these properties has already been initiated and preliminary development activity in the form of environmental licensing and permitting of one or more of the properties is planned to start in early 2006.
Uranerz has previously staked several groups of contiguous federal mining claims and now has twelve projects in the Powder River and Great Divide Basins of Wyoming. Each of these projects has drill-indicated uranium present. In addition to these unpatented lode mining claim properties, the company has Wyoming state mineral leases on an additional 14,200 acres in the Powder River and Great Divide Basins. At least two of these state mineral leases are known to contain uranium. Based on historical exploration information, including rotary drill and gamma logging information, Uranerz believes that it now has total potential uranium resources in Wyoming of over 30 million pounds measured as U3O8.
Glenn Catchpole, the president and CEO of Uranerz, stated that, "Our company is delighted to have concluded this agreement with Excalibur Industries. It is a win-win situation for both companies that provides a substantial increase in Uranerz' uranium resource base in Wyoming. Additionally, the access to the Excalibur data base and their company's brain trust dating back to uranium exploration in Wyoming in the 1950's, 60's and 70's will be invaluable to our orebody delineation and commercial development activities in the Powder River Basin."
Uranerz Energy Corporation: Acquisition of Wyoming Uranium Properties
Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to announce that it has purchased from a private party several contiguous federal mining claims located in the Powder River Basin of Wyoming, USA. Uranerz has previously staked several other contiguous federal mining claims in the Powder River Basin and the Company now has approximately 1,980 acres of federal mining claims in this area. This new acquisition has known uranium resources and has the potential of being mined by the low cost in-situ leach mining method.
This property is a portion of one of six projects Uranerz Energy has in the Powder River and Great Divide Basins of Wyoming. Uranerz owns a total of some 4,300 acres of mining claims in these two basins. Each of these six projects has drill-indicated uranium present. In addition to these unpatented lode mining claim properties, the company has Wyoming state mineral leases on an additional 14,200 acres in the Powder River and Great Divide Basins. At least two of these state mineral leases are known to contain uranium. Uranerz Energy continues to acquire quality uranium properties through acquisition, claim staking and leasing.
These uranium resources on properties located in the Powder River Basin occur in sands of the Eocene-age Wasatch Formation. The uranium resources occur in typical Powder River Basin-type geochemical roll fronts at the interface of reduced and oxidized areas of the host sandstone units. Evidence of mineralization was originally from electric logs and cross sections correlated by previous geologists.
George Hartman, the Vice-President of Mining for Uranerz, stated that "the Powder River Basin has some of the highest uranium grade deposits in Wyoming that are amenable to in-situ leach mining methods. We are excited about the potential of our projects to generate near-term uranium production." Other companies active in the Basin include Power Resources Inc., a wholly-owned subsidiary of Cameco, the largest producer of primary uranium in the world, and Cogema, the second-largest producer of uranium in the world.
Triex Minerals Joint Ventures Uranerz Energy's Cochrane River Project
Uranerz Energy Corporation ("Uranerz") (OTCBB:URNZ)(FWB:U9E) is pleased to announce that it has signed an agreement to joint venture its Cochrane River property located in northern Saskatchewan, Canada, with Triex Minerals Corporation ("Triex").
The Cochrane River property consists of two Mineral Prospecting Permits with a combined total area of 67,480 ha (166,747 acres) located in northern Saskatchewan, northeast of the Athabasca Basin. The Athabasca Basin is considered one of the most favourable places in the world for exploring and mining uranium. It extends for some 425 kilometers east-west x 220 kilometers north-south, and hosts several world class uranium deposits (McArthur River, Cigar Lake, Eagle Point, and others). These deposits are typically very high grade, with average grades exceeding 1% U3O8 in most of the deposits. In some notable cases such as at McArthur River and Cigar Lake the deposits may average up to 23% U3O8, with grades occasionally exceeding 50% U3O8. These deposits occur at and around the contact between western Wollaston Group metasediments and overlying Athabasca Group sandstone units, and are generally termed unconformity-type deposits. Although much of the uranium ore is generally hosted by the overlying Athabasca Group sandstones, significant uranium mineralization commonly extends vertically beneath into the Wollaston Group rocks. This is particularly evident at the McArthur River deposit, where the majority of the uranium ore and the highest grades of mineralization occur in the underlying basement rocks.
The Cochrane River property is strategically located along the Wollaston belt, on trend with the highest-grade deposits in the Basin. Cameco Corporation's Eagle Point Mine is located approximately 80 kilometres to the southeast. The Cochrane River property was likely overlain by Athabasca Group sandstones for a significant portion of its geological history. Unconformity-type uranium deposits could have formed within the property at that time. Although now eroded to below the level of Athabasca Group coverage, any underlying basement-hosted or root zones of mineralization should be preserved. These are the targets of the present exploration program at the Cochrane River property.
The strengthening of uranium prices since early 2004 has renewed interest in the Athabasca Basin and the surrounding region. The spot price for Uranium (U3O8) has steadily increased from its low of US$7.10 per pound at the end of 2000 to its current price of US$33.25 per pound, an increase of over 360%. Industry experts are forecasting a global uranium shortage of 45,000 tonnes over the next decade.
A compilation and analysis of prior work has been prepared by Robertshaw Geophysics Ltd. of Saskatoon, Saskatchewan. Previous exploration on the Cochrane River property has identified several electromagnetic conductors. Triex has initiated a detailed, helicopter-borne DIGHEM V geophysical survey to include four grid areas on the Cochrane River permits. This survey will be flown over grid areas selected from previous exploration results based on the location of known mineral occurrences, geochemical anomalies and previously defined conductors, as well as the location of major structural zones from recent airborne magnetic surveys. There are numerous reported uranium occurrences within the project area. Follow-up ground geophysics is proposed to be conducted during the first quarter of 2006, with follow-up prospecting, mapping and geochemistry to be conducted during the summer of 2006.
Triex can earn a 60% interest in the Cochrane River property by making payments to Uranerz of $75,000 and spending $1,500,000 on the property by May 1, 2008. After completing the 60% earn-in phase, Triex can elect to earn an additional 10% interest in the project by spending an additional $1,500,000 by November 1, 2009.
Uranerz Energy Corporation is a natural resource company engaged in the acquisition, exploration and development of properties in the uranium sector. The Company has an experienced team of mining executives to drive its success, many of whom are former senior management and employees of the original Uranerz Exploration and Mining group of companies. The Company also has an Advisory Board that consists entirely of ex-Uranerz Exploration and Mining professionals. Uranerz Exploration and Mining was acquired by Cameco in 1998.
Glenn Catchpole, the president of Uranerz, stated that "the joint venturing of the exploration on the Cochrane River project will allow Uranerz to focus on its more advanced projects, many of which have known uranium resources and have the potential of being mined by the low cost in-situ leach mining method."
ON BEHALF OF THE BOARD Glenn Catchpole, President and CEO
This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are:
(i) the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;
(ii) the inability of the Company to achieve the financing required to pursue the acquisition of exploration of any new mineral properties;
(iii) the inability of the Company to raise the financing necessary to conduct exploration or development of its properties; and
(iv) the presence of commercial mineralization on its properties.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.
Uranerz Energy Corporation (OTC Bulletin Board:URNZ message board) (FRANKFURT:U9E)
Uranerz Energy Corporation
Investor Relations
(604) 689-1659 or Toll Free: 1-877-662-8308
Fax: (604) 689-1722
www.uranerz.com
