VANCOUVER, Aug. 20 /CNW/ - International KRL Resources Corp. (TSX-V: IRK) (International KRL) and ESO Uranium Corp. (TSX-V: ESO) (the Company) are pleased to announce that the companies have signed an agreement that will set the stage for further exploration on the Cluff Lake area claim staked by International KRL in 2003. Under the agreement International KRL will transfer a further 30% interest in the claim to ESO which shall result in ESO having an 80% undivided interest in the property. ESO shall produce a bankable feasibility study with International KRL having a carried interest until the feasibility study is delivered at which time International KRL will have the choice to take on a 20% participating interest in a new company to operate the production facility or take on a 2% gross over-riding royalty for all uranium mineral products and a 2% net smelter returns royalty for all other metals. ESO will return all of its interest in any of the claim to International KRL upon a decision by ESO to terminate work thereon.
The International KRL claim lies within the Carswell Dome structure adjacent to the mining lease of the former producer, Cluff Lake, which mined 65 million pounds of uranium from shallow deposits with open pits and near surface underground operations. The deposits had an average grade of about 2.5% U(3)O(8) (5 lbs per s.ton) with significant gold byproduct.
Earlier work by Amok/Mokta on the International KRL Claim indicated the presence of radioactive boulder trains. These included a boulder with an assay of 16.9% U(3)O(8) and 2.9 g/t gold on the claim which is "up-ice" from the uranium orebodies mined on the adjacent Cluff Lake Mine lease. The ice movement dragged outcropping materials at the ice-bedrock interface towards the southwest from a shallow source to the northeast. Work carried out by ESO included airborne and ground geophysical surveys and radon surveys. These indicated important conductors and a magnetic structure that have not been drill tested in earlier work.
This area will be a subject of a high priority for the next phase of work.
For reference, the current spot price quoted by Uxc.com for uranium oxide is US$64.50 per pound of U(3)O(8), up from the June, 2008 low of $56/lb; an assay reported as 1.0% of U(3)O(8) is equal to 20 pounds of uranium oxide per short ton - the conversion of percent metal or metal oxide from percent to pounds per short ton is done by multiplying the % value by 20.
Statements contained in this news release that are not historical facts are forward-looking statements, which are subject to a number of known and unknown risks, uncertainness and other factors that may cause the actual results to differ materially from those anticipated in our forward looking statements. Although we believe that the expectations in our forward looking statements are reasonable, actual results may vary, and we cannot guarantee future results, levels of activity, performance or achievements.
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