Cash Minerals Ltd (TSX VENTURE: CHX) ("Cash Minerals" or the
"Company") is pleased to announce that it has entered into a Heads
of Agreement ("HOA") with East Asia Minerals Corporation (TSX
VENTURE: EAS) ("East Asia") to purchase a 100% interest in EAM
Exploration LLC, a wholly owned subsidiary of East Asia that owns a
portfolio of very prospective uranium properties in Mongolia.
The project portfolio includes seven properties, Ulaan Nuur,
Ingenii, Enger Ar, Sevsul Bulag, Hutul, Unegt and Bukht Uul,
totalling approximately 155,500ha (Figure 1). Three of the
properties, Ingenii, Ulaan Nuur, and Enger Ar have historic Soviet
uranium resources totalling approximately 25 million pounds of
uranium(1). Drilling by East Asia in 2006 and 2007 confirmed the
presence and grades of historical uranium intersections (See East
Asia Press Releases referred to below). Mineralization is open and
there is good potential to expand the mineralized zones and
delineate resources which are likely to be amenable to
In-Situ-Recovery (ISR).
Pursuant to the terms of the HOA, to complete the transaction,
Cash Minerals will pay to East Asia US$2,000,000 in cash upon
signature of the Definitive Agreement ("the Agreement") and issue
East Asia that number of common shares equal in value to
US$1,000,000 to be determined upon the date of entering into the
Agreement. The Company will grant a 1.5% Net Smelter Royalty (NSR)
to East Asia on all properties; a previously existing 1.5% NSR
applies to the Enger Ar property.
East Asia will also have the right to nominate one person for
election to the Board of Directors of Cash Minerals. The Company
has the right to utilize East Asia's Mongolian infrastructure,
including their office in Ulaanbaatar and technical and geological
staff, including the services of their Country Manager, as
required, for a period of one year (with rights to negotiate
extensions).
The transaction is subject to a 60-day satisfactory due
diligence period in the sole discretion of the Company, execution
of the Agreement and receipt of all required regulatory and
securities approvals, including the approval of the Mongolia NEA
(Nuclear Energy Agency) and the TSX Venture Exchange.
Cash Mineral's President & CEO, Doug Currie commented:
"Acquisition of East Asia's Mongolian uranium assets represents a
significant step towards rebuilding the Company. The portfolio
contains drill ready advanced uranium targets with historical
resources and demonstrated upside potential, which lowers our
exploration risk and accelerates our ability to add value to the
properties and for our shareholders." He added: "I am extremely
excited that we have been able to enter into this agreement and
look forward to working with East Asia's experienced uranium team
in Mongolia. We also welcome the opportunity to have a senior
representative of East Asia join the Cash Minerals Board of
Directors as their personal experience in Mongolia will be
invaluable to our future activities."
The Ulaan Nuur property, located 330 kilometres southeast of
Ulaanbaatar, was discovered in 1974 and is strategically located
near the Ulaanbaatar - Beijing rail line. Limited historical
drilling was conducted at Ulaan Nuur during the Soviet era,
resulting in the definition of at least nine shallow dipping,
tabular stratiform bodies of uranium mineralisation in Cretaceous
sandstones and volcanics, ranging in thickness from 0.1 to 3.5
metres and grading between 0.03 and 0.184% uranium. The
mineralisation was traced for 600 to 800 metres along strike and up
to 400 metres down dip, and was not closed off. The Soviets
calculated a projected resource(1) (P2 category) of 10,000 tonnes
(22 million pounds) of contained uranium for the Ulaan Nuur deposit
(L.D. Chirpov and G.G. Illin, 1973, Report No. 2410, "Report on the
prospecting-estimation works in the eastern part of Mongolia"). The
Soviet data indicates an average grade of 0.049% uranium,
representing a deposit of approximately 20 million tonnes. Evidence
of undocumented Soviet-era underground development was discovered
during East Asia's field reconnaissance and suggests that high
grade uranium potential exists.
The historic Ulaan Nuur data also provides evidence that the
project contains a potential ISL (in situ leach) environment. The
data reports that the "lower productive horizon" is hosted entirely
within uniformly shallow dipping and permeable sandstone, between
an overlying clay horizon and an unconformably underlying
conglomerate, which in turn overlies Proterozoic granite
gneiss.
ISL, in-situ leaching, also known as solution mining or ISR
(in-situ recovery), is a low cost uranium recovery process that can
remove the uranium from the ground without mining the ore. Liquids
to dissolve the uranium are pumped into the uranium bearing sands.
The uranium-rich solution is pumped back to surface and the uranium
is recovered. There is little surface disturbance and no tailings
or waste rock are generated. World-wide, about 20% of uranium
production is by ISL/ISR methods.
Drilling by East Asia in 2007 (4 holes - 1027m) to test across
and along strike from the historic Soviet mineralized trend
intersected four tabular, lens-like mineralized bodies, 150 to 300
metres wide, 50 to 100 metres long, with multiple intersections
ranging from 0.1m - 7.65m in thickness containing between 0.017% -
0.205% U3O8 within sulphide altered reduced sandstone (See East
Asia Press Releases dated 23/10/07, 7/11/07 and 27/11/07).
Significant intersections include:
---------------------------------------------------
Drill Hole From To Interval (m) Uranium
(m) (m) % U3O8
---------------------------------------------------
UN001 90.0 91.0 1.0 0.017
---------------------------------------------------
UN002 28.8 32.9 4.1 0.024
---------------------------------------------------
38.5 41.1 2.6 0.020
---------------------------------------------------
144.1 144.6 0.5 0.174
---------------------------------------------------
145.8 146.4 0.6 0.033
---------------------------------------------------
164.6 167.9 3.3 0.022
---------------------------------------------------
212.4 213.5 1.1 0.141
---------------------------------------------------
215.7 216.2 0.5 0.205
---------------------------------------------------
UN003 257.5 258.8 1.3 0.029
---------------------------------------------------
263.9 264.7 0.8 0.177
---------------------------------------------------
UN004 222.5 223.8 1.3 0.095
---------------------------------------------------
The mineralization is open in all directions.
Surface radiometric anomalies located by East Asia also require
follow-up.
The Ingenii property is located approximately 500km
south-southeast of Ulaanbaatar. The Ingenii-Nars Uranium Deposit
was discovered during Soviet exploration in 1978. (See East Asia
Press Release 3/07/07). Based on Soviet-era drilling and trenching,
the Ingenii-Nars Deposit continues northeast into the Ingenii
property where it remains open along strike.
The known Nars uranium mineralization, including both the
Ingenii and the Mys deposits, is traceable at surface for 11km. The
main Ingenii Deposit contains a Soviet-era, P1 category resource1
of approximately 1,000 tonnes (2.2 million pounds) of contained
uranium (U.V. Toitskii and V.A. Kaldishkin, 1978-1990, Geological
Report No. 2428, "Report on prospecting-estimation work in
Dornogobi Aimag"). The grade averages 0.042% U, calculated on an
average thickness of 3 metres and cut off grade of 0.02% U,
representing a deposit of approximately 2.4 million pounds. The
average grade of non-category drill intercepts is 0.052% U.
Soviet-era drilling on East Asia's Ingenii property portion of
the Ingenii Deposit includes four sections with several
intersections of 0.023 to 0.068% U up to 7 metres thick.
Mineralization at Ingenii is sub-horizontally dipping,
strata-discordant stack or roll-front type, and occurs at a depth
of 180 to 480 metres over a 100 to 400 metre wide zone, extending
for 4.5 kilometres. The mineralization is hosted by a 30 to 110
metre thick sequence of poorly consolidated sand and gravel beds,
inter-bedded with impermeable horizons of clay and argillaceous
silt, potentially amenable to ISL/ISR mining. This mineralization
remains open to the immediate northeast of the drilled resources at
the main Ingenii Deposit, where Soviet-era data suggests the
presence of another mineralized body that may be as large, or
larger, than the drilled portion of Ingenii-Nars.
East Asia completed a total of 1,440 metres in four diamond
drill holes (See East Asia Press Releases dated 27/7/07, 23/10/07
and 7/11/07). Two holes (IN001/1R, and IN002) tested historic
Soviet results along the south portion of the Ingenii-Nars
extension, and two others (IN003 and IN004) tested the northern
portion. Due to poor drilling conditions, core recovery was poor
and no downhole radiometric logging was possible. Most of
mineralization was washed out in the drilling process.
Nevertheless, East Asia reported intersections grading 0.023 -
0.068% U3O8 (See East Asia Press Release dated 1/08/07).
East Asia's geological and down-hole radiometric results
validated the historic data, encountering the stratigraphy and
radioactive horizons reported in the Soviet drill logs. Multiple
mineralized intersections were encountered within three main
horizontally lying horizons below 160 metres depth. The
mineralization occurs in sandstone and clay units and fine to
medium grained, unconsolidated sand with organic detritus. More
drilling is required to quantify the zone of mineralization and to
determine the full extent of the strike distance.
A 1,269km ground Gamma Ray Spectrometric survey was completed at
Ingenii in June, 2007. Two uranium anomalies were identified (See
East Asia Press Releases dated 1/08/07 and 7/11/07). One anomaly,
roughly 1km x 1km, is located approximately 10km northeast along
the mineralized trend of the historic P1 uranium resource in an
area not yet drilled. A subsequent field evaluation traced the
exposure of a shallow, 0.7m thick horizontal lying sandy-clay
horizon with carnotite, a distinctive yellow uranium mineral, which
assayed up to 0.05% uranium. The other anomaly, roughly 5km x 2km,
is in the northwest area of the property at what is interpreted as
the contact between bedrock and Quaternary sediments.
Exploration by East Asia also delineated substantial soil gas
geochemical anomalies on the property which correlate with surface
oxide uranium mineralization where assays of 0.02 - 0.263% U3O8
were obtained and the property has considerable upside exploration
potential.
Located 150 km southeast of Ulaanbaatar, the Enger Ar property
contains stratabound sediment-hosted uranium mineralization,
structurally controlled, steeply dipping hydrothermal uranium
mineralization in fractured and altered rhyolite volcanic rocks and
mineralization related to the contact between the overlying
sediments and volcanic basement rocks.
A modest historic Soviet resource(1) of approximately 400,000lbs
contained uranium at an estimated grade of 0.06 - 0.07% U3O8 (V. I.
Pogukai, 1985 -- 1989, Report of Prospecting - Estimation work for
Uranium Mineralization in Shivee Ovoo Volcano Tectonic Zone) was
drill tested by East Asia in 2006-2007.
Drilling by East Asia in 2006 was designed to confirm the
existence of uranium mineralization reported by historical Soviet
work. Results from the initial drill holes significantly improved
on grades and widths of the mineralization reported in the
historical Soviet exploration.
Significant intercepts included 2.5 metres of 0.232% U3O8 from
182.5 to 185.0m in hole ENDD002, 2.5 metres of 0.410% U3O8 from
128.5 metres to 131.0 metres in ENDD003, 1.0 metres of 0.086% U3O8
from 69.5 to 70.5m in hole ENDD004, and 13.5 metres of 0.108% U3O8
from 54.0 to 67.5m in hole ENDD005 (See East Asia Press Releases
26/06/06 and 6/07/06). The mineralization clearly remains open to
the east, west and at depth.
In 2007, East Asia completed additional drilling to continue
fences drilled in 2006 and to explore for extensions to the uranium
mineralization (See East Asia Press Releases dated 7/11/07 and
27/11/07).
Hole EN-2007-11, the initial hole of the 2007 campaign,
encountered 0.180% U3O8 over 9.3 metres, including 0.574% U3O8 over
2.0 metres, 0.143% U3O8 over 1.4 metres, and 0.282% U3O8 over 0.8
metres. Uranium mineralization occurs in an upper layer of Lower
Cretaceous lignite bearing sediments and in a lower zone of
sub-horizontal horizons in rhyolite associated with fracture
zones.
Hole EN-2007-13, collared 30 metres south along section and
up-dip of EN-2007-11, cut four mineralized intervals and remains
open up-dip. The first zone is related to a narrow lignite seam in
grey sediments, the second with a faulted contact between oxidized
grey sediments and rhyolite breccia, and the third and fourth in
fractured rhyolite.
Hole EN-2007-14 was collared in the southeast area of the
mineralized zone to test the remaining up-dip extensions to
multiple and strong uranium intersections encountered along section
EN-2006-01, 02 and 03. The hole encountered mineralization in
rhyolite with 2% disseminated pyrite. The mineralization continues
down-dip and remains open to the north of this four-hole
section.
The last hole of the 2007 follow-up program, EN-2007-15 in the
southwestern area of the mineralized zone encountered uranium
mineralization over 4 metres near the bedrock interface with
overburden, at a fault contact between oxidized grey sediments and
rhyolite breccia.
Significant results from drill holes ENDD003, 006 and 007 at
Enger are summarized below. (See East Asia Press Releases dated
6/07/06, 7/11/07 and 27/11/07):
---------------------------------------------------------------------
Drill Hole From To Interval Uranium
(m) (m) (m) % U3O8
---------------------------------------------------------------------
ENDD003 82.00 82.50 0.50 0.610
---------------------------------------------------------------------
123.50 124.00 0.50 0.330
---------------------------------------------------------------------
128.50 131.00 2.50 0.410
---------------------------------------------------------------------
147.50 148.50 1.00 0.105
---------------------------------------------------------------------
251.50 253.00 1.50 0.068
---------------------------------------------------------------------
262.50 263.00 0.50 0.120
---------------------------------------------------------------------
ENDD006 25.50 26.00 0.50 0.066
---------------------------------------------------------------------
191.50 192.00 0.50 0.084
---------------------------------------------------------------------
ENDD007 42.00 42.50 0.50 0.120
---------------------------------------------------------------------
49.50 50.50 1.00 0.150
---------------------------------------------------------------------
EN-2007-11 90.4 92.9 2.5 0.038
---------------------------------------------------------------------
104.5 113.8 9.3 0.180
---------------------------------------------------------------------
105.2 107.2 2.0 0.574
---------------------------------------------------------------------
107.8 109.2 1.4 0.143
---------------------------------------------------------------------
111.8 112.6 0.8 0.282
---------------------------------------------------------------------
EN-2007-13 41.5 42.0 0.5 0.024
---------------------------------------------------------------------
47.0 49.0 2.0 0.067
---------------------------------------------------------------------
55.0 55.5 0.5 0.041
---------------------------------------------------------------------
57.5 59.51 2.0 0.041
---------------------------------------------------------------------
EN-2007-14 99.0 100.0 1.0 0.022
---------------------------------------------------------------------
EN-2007-15 23.0 27.0 4.0 0.028
---------------------------------------------------------------------
East Asia also completed radiometric and ground magnetic surveys
and a soil gas geochemical survey. Several strong anomalies remain
untested and follow-up exploration is required.
Dr Sarah Palmer, Cash Mineral's Exploration Manager, is
currently in Mongolia completing a thorough review of detailed
technical information and working with East Asia's geologists to
complete a plan for the 2010 exploration program which will include
drilling of the above properties; it is hoped that drilling will
commence during July.
(1) "Historic Soviet resources", referred to herein, are
historical in nature, have not been verified, do not comply to CIM
Definition Standards on Mineral Resources and Reserves, 2005, as
incorporated in Canadian Securities Administrators' National
Instrument 43-101 (NI43-101) and are not considered current by
either Cash Minerals Ltd or East Asia Minerals Corporation.
Although the historical references are relevant to recognizing
potential, they should not be relied upon.
About Cash Minerals
Cash Minerals Ltd is a Canadian-based mineral exploration
company listed on the TSX Venture Exchange under the symbol "CHX"
with a focus on exploration for uranium. In the Yukon Territory,
Canada, the Company owns or is earning an interest in a portfolio
of advanced uranium exploration properties, including the Division
Mountain Coal Deposit, and owns a 100% interest in the Mike Lake
Gold Project.
Cash Minerals is in the process of revising and updating its
website which will be re-launched shortly.
For further information or to register for distribution for
future press releases, please contact Doug Currie.
Cautionary Note Regarding Forward-Looking Information
Mr Douglas A Currie, MAusIMM, President & CEO of Cash
Minerals Ltd, is the Qualified Person as defined by National
Instrument 43-101 who has reviewed the technical disclosure in this
press release. References to East Asia Minerals Corporation and
scientific results contained herein have been reviewed and approved
by Mr Lionel P Martin, P. Geo., COO of East Asia Minerals
Corporation and a Qualified Person as defined by National
Instrument 43-101.
This press release contains "forward looking information" within
the meaning of applicable Canadian securities legislation. Forward
looking information includes, but is not limited to, statements
with respect to the future financial or operating performance of
the Company, its subsidiaries and its projects, the terms of the
proposed acquisition, the timing of the completion of the proposed
acquisition and entering into of the Agreement, exploration
prospects, requirements for additional capital and regulatory
approvals. Generally, forward looking information can be identified
by the use of forward-looking terminology such as "plans",
"expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or state that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward-looking information is subject to known and
unknown risks, uncertainties and other factors that may cause the
actual results, level of activity, performance or achievements of
the Company to be materially different from those expressed or
implied by such forward-looking information, including but not
limited to: financing not being available at desired prices;
general business, economic, competitive, political and social
uncertainties; the actual results of current exploration
activities; timing and availability of external financing on
acceptable terms; conclusions of economic evaluations; competition;
future prices of mineral prices; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and
other risks of the mining industry; and, delays in obtaining
governmental approvals or required financing or in the completion
of activities. Although the Company has attempted to identify
important factors that could cause actual results to differ
materially from those contained in forward-looking information,
there may be other factors that cause results not to be as
anticipated, estimated or intended. There can be no assurance that
such information will prove to be accurate, as actual results and
future events could differ materially from those anticipated in
such statements. Accordingly, readers should not place undue
reliance on forward looking information. The Company does not
undertake to update any forward-looking information, except in
accordance with applicable securities laws.
To view the figure associated with this press release, please
visit the following link:
http://media3.marketwire.com/docs/mongolian.pdf
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.
Contacts: Cash Minerals Ltd Doug Currie President & CEO
info@cashminerals.com www.cashminerals.com
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