West Perth-based iron ore and gold explorer Royal Resources Ltd and US-based Lynx2 LLC have extended the option period on establishment of a formal joint venture by one month to November 1, Royal has announced.
West Perth-based iron ore and gold explorer Royal Resources Ltd and US-based Lynx2 LLC have extended the option period on establishment of a formal joint venture by one month to November 1, Royal has announced.
The full text of a Royal announcement is pasted below
In April 2007 the Company entered into an Option and Joint Venture Agreement ("Lynx JVA") with Lynx2 LLC ("Lynx2") of Salt Lake City, Utah, USA (announced on 4 April 2007) whereby the Agreement granted the Company a 6 month option period expiring on 1 October 2007 to enter into a formal joint venture.
The Company wishes to advise that Lynx2 has agreed pursuant to a Letter Agreement dated 20 September 2007 to grant the Company an extension of time from 1 October 2007 until the 1 November 2007 to enable the Company to finalise the necessary documentation to enter into a formal joint venture.
The purpose of the Lynx JVA is to identify, assess and acquire uranium projects for exploration and development principally within the USA. Since the Company entered into the Lynx JVA in April 2007 this ongoing objective has already resulted in the staking of four significant uranium projects and the entry into a second option (farm-in) and joint venture agreement.
Current Uranium Projects
The Egnar, Wray Mesa and La Sal projects of western Colorado and eastern Utah (staked pursuant to the Lynx JVA) are located on the Colorado Plateau within the Uravan Mineral Belt, one of the oldest uranium mining districts of the USA. The Uravan has approximately 1,200 historic mines that have produced over 63 million pounds of uranium within Colorado.
The Egnar project (announced on 3 August 2007) consists of 748 unpatented lode mining claims covering some 63 square kilometres and is located in the vicinity of over 10 major underground mines and numerous open cut operations. The past production records are difficult to locate but the average mined grades for the whole Uravan Mineral belt is 5.5lbs/tonne U3O8. The entire Egnar project area is underlain by the highly prospective Salt Wash sandstone member, the host for all the major uranium mines in the region.
The Wray Mesa project (announced on 17 August 2007), located 30 kilometres north-west of Egnar, consists of 622 unpatented lode mining claims covering some 52 square kilometres. The project is in the same geological setting as the Egnar project, the claims being underlain by the Salt Wash sandstone member and in the vicinity of a number of historical uranium mines and within approximately 120 kilometres of the operating White Mesa uranium mill.
Typically, Colorado Plateau deposits are comprised of uranium-vanadium ores with production grades of 3.3lbs/tonne to 6.6lbs/tonne U3O8 and 33lbs to 110lbs/tonne V2O5 occurring within clustered deposits scattered across broad favourable horizons mainly in the Salt Wash sandstone member of the (Jurassic) Morrison Formation or in the basal conglomerates of the (Triassic) Chinle Formation.
The La Sal project (announced on 30 August 2007), located approximately 7 kilometres north-west of Wray Mesa, consists of 580 unpatented lode mining claims. The geological setting and prospectivity of the La Sal project are similar to those of the nearby Wray Mesa and Egnar projects.
The fourth project area, the Thirtynine Mile Volcanic Field (announced on 10 September 2007), is located in the Tallahassee Creek area, approximately 130 kilometres south-west of Denver, Colorado and 25 kilometres north-west of the Cotter Corporation uranium mill. The project (staked pursuant to the Canon City JVA) consists of 106 unpatented lode mining claims covering some 10 square kilometres. The main claim block is situated a few kilometres along strike and down channel from the 30 million lbs Hansen uranium deposit and the 42 million lbs Taylor Ranch uranium resource. The project contains the highly prospective Tallahassee Creek Conglomerate, the host for a number of small but high grade (4.4lbs-6.6lbs/tonne U3O8) old uranium mines in the district.
Future Programs
The Company, through the Lynx JVA and the Canon City JVA, has three geologists identifying, assessing and staking uranium projects in Colorado, Utah and Wyoming in the USA. The property staking program is expected to continue for the remainder of 2007. In addition to project staking, negotiations have also commenced with various parties to acquire advanced uranium projects in Colorado and Wyoming. Securing a uranium resource will be a strong focus for the parties during the remainder of 2007.
Now that an extensive and highly prospective group of claims has been staked, Lynx2 is currently planning to commence exploration on the first project staked, the Egnar claim block. The initial exploration will involve a shallow seismic survey followed by a percussion drilling program. The target will be the uranium mineralized sandstone channels within the Salt Wash formation. The ground geophysics is scheduled to commence in October with drilling in November-December 2007.
