COMPLETION OF AQUISITION FOR LONE
STAR URANIUM PROJECTS
- Australian-American Mining Corporation Limited completes the acquisitionof the Lone Star Joint Venture (“JV”) which includes a number of leaseduranium projects in the state of Texas, United States of America (“USA”).
- The major project of the JV, the North Trend project, was drilled out in the 1960’s by Union Carbide and has significant potential based on historical data for uranium. Exploration target is 3-4 million pounds U3O8 (See Note (1) in the attached release)
- Highly experienced technical team to work on the JV.
- JV partner Lone Star LLC to receive 5 million shares in AIW, will have a 10% free carry in all projects under the JV and have further incentives to earn AIW shares based on proving up JORC /NI 43-101 resources on the various uranium projects identified and developed by the JV.
Australian-American Mining Corporation Limited (‘the Company’) today announces the completion of a JV agreement with Lone Star LLC (‘Lone Star’) which involves the acquisition, exploration and development of a number of uranium properties in the State of Texas in the USA.
Under the JV agreement Uranium Company of Texas (“UCT”) has been established as a 90% owned subsidiary of the Company and Lone Star will be free carried to the remaining 10%. The Company is the Manager of the JV. Lone Star personnel will work for the JV and will be responsible for identifying and acquiring leasehold properties with a track record of being drilled out and with historic drilling results. One such property, the North Trend project, has been identified and leased on a five plus five year lease arrangement. Permits are currently being acquired for a drilling programme aimed at identifying a resource, and it is hoped that this will commence in the next two months.
Under the JV agreement Lone Star receives shares in the Company based on the acquisition of these projects and on proving up JORC/NI 43-101 resources at the various uranium projects under the JV. As consideration for entering into the JV agreement, Lone Star being are entitled to 5 million shares in the Company which are to be issued immediately. These shares will be escrowed for a period of 6 months.
Under the JV agreement UCT will employ as contractors four of Lone Star’s technical staff including Mr Chet Nichols (geologist) who managed much of the drilling on the identified projects for Union Carbide in the 1960’s and 1970’s. Their experience in uranium exploration and development and their specific knowledge of this area and these projects is significant and will be a great asset to the Company. The projects are sandstone roll front style uranium mineralisation ranging in depths from 150 feet to 200+ feet. Down-hole gamma logging identified the grade of uranium ranging from 0.12 to 0.15 U308.
The deposits are amenable to In Situ Recovery (“ISR”) methods, utilising a semi – portable resin adsorption plant to recover the uranium and then transport it to a processing facility. Discussions have been held with parties who own a uranium recovery processing plant fully licensed to produce yellow cake, and is within trucking distance.
The JV has also identified a number of other projects with considerable mineralisation potential based on historic drilling and data and is in the process of negotiating with the land owners over leasing terms. The Company hopes to be in a position to announce further acquisitions in the very near future.
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