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
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