Aurora Energy Resources Inc. ("the Company" or "Aurora") (TSX: AXU)
is pleased to announce that it has secured a strategic addition to
its assets through a deal with Pacific Ridge Exploration Ltd.
("Pacific Ridge") (TSX VENTURE: PEX) on a uranium exploration and
development opportunity in the Baker Basin of Nunavut, Canada.
"Since 2006, we have been looking globally for opportunities to
continue building our pipeline of uranium projects. The Baker Basin
property is a perfect addition to our evolving portfolio, as it
accelerates our corporate strategy to discover and develop great
assets in the best locations to be ready for the world's
ever-increasing need for uranium," said Dr. Mark O'Dea, Aurora's
Deputy Chairman.
The property provides the potential to build significant value
not only in a short timeframe, but at an excellent entry cost and
in a jurisdiction with clearly defined policies on exploration and
mining. It will complement Aurora's ongoing work and investment in
Labrador, where the Company remains committed to advancing its
world-class Michelin Project.
The Baker Basin property is located 65 kilometres south of the
town of Baker Lake, Nunavut, near Areva's Kiggavik-Sissons Project,
which has a resource estimate of 148 million pounds of U3O8 (based
on Areva's December 3, 2007 news release, "Kiggavik Uranium
Feasibility Study in Nunavut to Proceed"(i)). A map of the area can
be viewed at:
http://www.aurora-energy.ca/files/BakerBasinAreaMap.jpg.
Key attributes of this new property are as follows:
- The property covers 96,000 hectares (370 sq. miles) and boasts
attractive near-surface significant uranium mineralization.
- The property includes 5 targets with drill-indicated
mineralization, with at least 15 target areas yet to be
drill-tested.
- Drilling highlights from the Lucky-7 Zone and K7 Zone returned
17.3 metres of 0.30% U3O8 and 11.5 metres of 0.31% U3O8,
respectively. A complete listing of Pacific Ridge's drill results
for 2006 and 2007 can be viewed at:
http://www.aurora-energy.ca/files/PR_06-07_DrillResults.JPG.
- The prospects occur along a 60-kilometre length of the
southern boundary of the Baker Lake sedimentary basin, a favorable
setting for high-grade uranium occurrences.
- It is located 65 kilometres from the deep sea port of Baker
Lake, with ocean access to Hudson Bay and the railhead at
Churchill, Manitoba via ship.
Aurora's management team believes Baker Basin holds
opportunities for rapid growth and resource definition, and the
Company is currently developing plans for an extensive airborne
geophysical survey.
TERMS OF THE AGREEMENT
Under the terms of the agreement, Aurora, as operator, can earn
an initial 51% interest by spending C$15 million on exploration
over three years and by immediately subscribing to a private
placement for two million shares of Pacific Ridge priced at $0.17
per share.
Upon earning its initial 51% interest, Aurora has the option to
either earn an additional 14% by completing a pre-feasibility study
by the end of 2013, or Aurora may continue as operator through a
joint venture with Pacific Ridge (Aurora with a 51% interest and
Pacific Ridge with a 49% interest). Upon Aurora completing a
pre-feasibility study, Kivalliq Energy Corp ("Kivalliq"), a recent
spin-out company from Kaminak, shall be entitled to exercise a
back-in right to acquire a 20% interest in the project from Pacific
Ridge.
Thereafter, Aurora with a 65% interest, shall continue as
operator in a joint venture with Kivalliq at a 20% interest and
Pacific Ridge at a 15% interest, each interest subject to straight
line dilution. Under the back-in terms, Kivalliq will be obligated
to pay 40% of the total costs of the project incurred to that date,
with the reimbursement distributed to Aurora and Pacific Ridge.
"We are pleased to be working with Pacific Ridge and Kivalliq,"
said Dr. O'Dea. "Pacific Ridge's technical strengths have seen them
significantly expand the resource potential of the property over
the past two years, while Kivalliq's success in assembling the land
package speaks to its local experience and solid reputation in the
region."
EXPLORATION HISTORY
The Baker Basin property's uranium potential was first
recognized in the late 1960s by Pan Ocean Oil Ltd, and was later
explored by New Continental, Cominco and Noranda in the 1970s and
early 1980s. These companies conducted prospecting, mapping,
geophysics and limited diamond drilling, resulting in the discovery
of 20 individual uranium prospects. Kaminak Gold Corporation
("Kaminak") later assembled a land package to further investigate
these prospects, the same land package now at the centre of
Aurora's deal with Pacific Ridge. In 2006, Pacific Ridge entered
into an option agreement with Kaminak on the Baker Basin property
and began exploring, quickly making several new discoveries.
2008 LABRADOR WORK PROGRAM
Aurora's 2008 work program in Labrador includes 11,250 metre
infill drill program and 3,750 metre geotechnical, environmental
and metallurgical drill program, development of a tailings
management plan, pre-engineering work, and a training program
designed to enhance employment opportunities for North Coast
Labrador residents during the exploration, development and
operations phases of the Michelin Project.
Recently, Aurora has also announced several key events in the
development of the Company. These announcements include:
- Bruce Dumville, formerly General Manager at Xstrata and
Falconbridge, joining Aurora as President and CEO;
- Chesley Andersen, formerly senior negotiator and secretary to
the executive council of the Nunatsiavut government in Labrador,
joining the Company as VP-Labrador Affairs; and
- The establishment of the Michelin Project Community Panel,
which will be a vehicle for the exchange of information on Michelin
Project matters between North Coast community representatives and
the Company.
LIQUIDITY
Aurora has no debt and approximately $107 million in cash that
is fully liquid and held with a large commercial Canadian bank.
ABOUT AURORA
Aurora is a uranium exploration and development company and is
committed to responsible development, which includes community
consultation, lasting local benefits and the highest standards of
safety, health, and environmental protection.
(i)Areva's Kiggavik resource estimate has not been independently
verified by Aurora.
Aurora's strategy, plans or future financial or operating
performance and other statements that express management's
expectations or estimates of future performance are
"forward-looking" statements. The words "believe", "expect"',
"will", "anticipate", "contemplate", "budget", "target',
"continue", "may", "intend" and similar expressions identify
forward looking-statements. All statements contained herein, other
than statements of historical fact contained herein, constitute
"forward-looking statements". Such forward-looking statements,
including but not limited to, those with respect to the timing and
amount of estimated future resources and resource conversion rates,
future operations, project costs and production, potential for
expansion of resources and potential size of future exploration
programs, grades and widths and potential timing of receipt of
permits and classification of future mineral resources, and
potential for future benefits, involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievement of Aurora to be materially different
from any future results, performance or achievements expressed or
implied by such forward-looking statements. Such factors include,
among others, risks related to the actual results of current
exploration activities, conclusions of economic evaluations,
uncertainty in the estimation of mineralization and mineral
resources, changes in project parameters as plans continue to be
refined, future prices of uranium, environmental risks and hazards,
increased infrastructure and/or operating costs, labor and
employment matters, and government regulation as well as those
factors discussed in the section entitled "Risk Factors" in
Aurora's most recent Annual Information Form available on SEDAR at
www.sedar.com. Although Aurora has attempted to identify important
factors that could cause actual results to differ materially, there
may be other factors that cause results not to be as anticipated,
estimated or intended. There can be no assurance that such
statements will prove to be accurate as actual results and future
events could differ materially from those anticipated in such
statements. Aurora disclaims any intention or obligation to update
or revise any forward-looking statements, whether as a result of
new information, future events or otherwise. Accordingly, readers
should not place undue reliance on forward-looking statements.
Contacts: Aurora Energy Resources Inc. Andrea Marshall Media and
Government Relations (709) 726-2223 Aurora Energy Resources Inc.
Don Falconer VP, Corporate Development (416) 362-5556 Website:
www.aurora-energy.ca
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