VAL-D'OR, QC, June 10 /CNW Telbec/ - Abitex Resources Inc. (TSX-V: ABE) (the "Company"; "ABITEX") is very pleased to announce the signing of a Letter of Agreement with AREVA Resources Canada ("AREVA"), a wholly owned subsidiary of AREVA and SOQUEM INC. ("SOQUEM"), a wholly owned subsidiary of Societe generale de financement du Quebec (SGF). The Letter of Agreement specifies the terms by which AREVA and SOQUEM grant ABITEX an option to acquire a 50% interest in the "L" uranium property located in the Otish Mountains area of Quebec. AREVA and SOQUEM are equal owners of the property which hosts the "L" uranium deposit discovered and defined by AREVA almost 25 years ago and which hosts a historical resource of over 5,900,000 pounds U3O8. The agreement is subject to the approval of regulatory authorities.
In order to acquire a 50% interest in the "L" property, ABITEX must:
- Issue 2 000 000 common shares of ABITEX to both AREVA and SOQUEM upon
signing of the agreement and its approval by regulatory authorities.
- Complete minimum exploration expenditures of CA$ 20,000,000 and submit
a pre-feasibility study no later than December 31, 2011.
ABITEX will also grant AREVA and SOQUEM the right to participate in future
equity financings of the Company in order to individually retain a 5% interest
in the Company's shareholdings. ABITEX will also issue 800 000 common shares
of the Company to both AREVA and SOQUEM in the event a previously announced
proposed acquisition of Central Uranium Corporation is completed (April 9,
2008 Press Release).
ABITEX will be the Operator during the Option period. AREVA and SOQUEM
will each retain a 25% interest in the property in the event ABITEX acquires a
50% interest. Thereafter, all three parties will participate on a pro-rata
basis to expenditures on the property according to a joint venture agreement
of which ABITEX will be the Operator. In the event a deposit is brought into
production on the property, ABITEX has agreed to sell its entire share of
uranium production to AREVA which has in return agreed to acquire the entire
production.
The "L" property is located in the central eastern area of the Otish
Mountains region, approximately 350 km north-east of Chibougamau, Quebec. The
Otish sedimentary basin was the focus of extensive uranium exploration in the
period 1975-1985. Following the discovery in 1980 of high grade uranium
boulders, the "L" deposit was discovered by AREVA (then SERU Nucleaire Canada
Ltee) on the property in 1981. Polymetallic uraniferous mineralization was
encountered in drilling over a strike length of 1.7 km. Approximately 92 drill
holes totalling 10,375 metres were completed on the property between 1981 and
1985. A main lense was defined in the eastern sector of the property. This
lense was systematically drilled at 50 metre spacing in 1982 and 1983 and a
uranium resource estimate based on 46 holes totalling 5,263 metres gave the
following results:
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Conversion
SERU (AREVA) 1983 (eU3O8(equal sign)1,1792 (x) eU)
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Tonnes Grade Grade Pounds
Historical eU metal % eU metal Tonnes % eU3O8 eU3O8
Resource -------------------------------------------------------------
2 289 0,595 385 000 0,70 5 938 000
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eU (equal sign) equivalent Uranium (ST-22 probe readings converted to
equivalent uranium tenors)
The above historical resource estimate was completed in 1983 by SERU Nucleaire Canada Ltee and is taken from a report titled "Projets Monts Otish: Evaluation des reserves de la partie orientale de la zone 'L' " submitted to the Quebec Ministry of Natural Resources for work assessment purposes (GM 57680). The resources may not conform to modern estimation methodologies and NI 43-101 information disclosure standards. They are therefore historical in nature and cannot be relied upon. Additional drilling is required to re-evaluate and confirm these resources as per modern standards.
The main lense of the "L" deposit is located less than 100 metres below surface. It is sub-horizontal and extends for over 600 metres in length by a few tens of metres in height and width. The uranium mineralization occurs at the contact between sedimentary units and a gabbro intrusive which is injected into the sediments. ABITEX believes the potential for discovery and definition of additional resources on the property is excellent. The above resources did not include high grade zones which occur directly above the deposit. The potential at depth was not evaluated in the past and the lateral extensions along strike over more than a kilometre were drilled at a wide spacing. All these targets require further drilling for the purpose of systematic evaluation.
ABITEX is already in the planning and preparation stages for a significant drill program which will begin as soon as possible. Two drills will be mobilized in order to complete the definition of the main lense at 25 metre spacing before year's end. This will be followed by a new resource estimate as per NI 43-101. Priority targets peripheral to the known deposit will also be tested. A number of other field programs and studies will also be initiated this year in order to respect the option schedule, in particular authorizations and permitting requests for the planned advanced exploration programs which will comprise an underground development program, bulk sampling of representative mineralized material and metallurgical tests.
ABITEX is very pleased to be able to announce this agreement and is proud to be associated with both AREVA and SOQUEM in the advancement of the "L" uranium project towards development and possible production. Based in Val d'Or in the center of Quebec's historic mining region, Abitex will use its expertise, experience and privileged contacts in the industry to advance this project as quickly as possible.
About AREVA
AREVA Canada Resources is a subsidiary of the AREVA group, a world leader in the exploration, production and transformation of uranium. AREVA is present in 43 countries and employs 65 000 people, including its subsidiary AREVA QUEBEC located in Joliette.
About SOQUEM
SOQUEM is a wholly owned subsidiary of Societe generale de financement du Quebec ("SGF"). SGF is an industrial development capital company whose mission is to realize economic development projects, notably in the industrial sector, in collaboration with its partners and in conformity with the economic development policies of the government of Quebec.
About ABITEX
Abitex Resources Inc. is an exploration company based in Val d'Or, Quebec which has a diverse portfolio of exploration projects in Eastern Canada, two of which have historical gold and nickel resources. The Company is in the process of re-focusing its exploration activities towards uranium through its proposed acquisition of Central Uranium Corporation and an option to acquire a 50% interest in the "L" uranium deposit which hosts a historical resource of almost 6M pounds. As of April 30, 2008, ABITEX had 19 074 838 shares outstanding. The shares of the Company are traded on the Canadian Venture Exchange (TSX-V) under the symbol ABE.
On behalf of
Abitex Resources Inc.
"Yves Rougerie"
President & CEO
The technical information in this release has been reviewed by Yves Rougerie. P.Geo., President and CEO of Abitex. Mr Rougerie is a Qualified Person as defined by National Instrument 43-101.
The TSX Venture Exchange has not reviewed and does not accept the
responsibility for the adequacy or accuracy of the content of this
release.
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