VANCOUVER, Aug. 11 /CNW/ - Logan Resources Ltd (TSX-V:LGR), Logan, and ESO Uranium Corporation (TSX-V: ESO), (ESO), are pleased to announce that the companies have signed an agreement that will set the stage for further exploration on the Cluff Lake area claims staked by Logan in 2003. Under the agreement Logan will transfer a further 30% interest in the claims to ESO which shall result in ESO having an 80% undivided interest in the property. ESO shall produce a bankable feasibility study with Logan having a carried interest until the feasibility study is delivered at which time Logan 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 claims to Logan upon a decision by ESO to terminate work thereon.
The Logan claims lie within the Carswell Dome structure about 12 km north of the former producer, Cluff Lake, which mined about 65 million pounds of uranium from shallow deposits with open pits and near surface underground operations. The deposits had an average grade of about 0.73% U(3)O(8) (14.6 lbs per s.ton) with significant gold byproduct.
Drilling was carried out by ESO in 2006 on the Gorilla Lake zone where work in 1981 by Amok had returned drill core values in their CAR 425 drill hole of 0.89% U(3)O(8) (17.8 lbs/s.ton) over 2.6 meters of core length.
The ESO holes encountered extensions to the known mineralization with two adjacent holes reporting as:
CLU No.01 with 0.46% U(3)O(8) (9.2 lbs/s.ton) over 1.5 meters from 174.0 to 175.5 meters drill interval. CLU No. 07 had two mineralized intervals. The upper interval from 153 meters to 160 meters (7 meters of drill interval) returned 0.17% U(3)O(8) (3.4 lbs/s.ton), including 0.82% U(3)O(8) (16.4 lbs/s.ton) over 1 meter. The lower interval assayed at 0.2% U(3)O(8) (4lbs/s.ton) over 2.0 meters from 175.0 meters to 177.0 meters.
Logan Resources Ltd. is a mineral exploration company that specializes in acquiring, exploring and advancing early-stage Canadian mineral properties. For more information on the Company's diversified property portfolio and the Company, please visit www.loganresources.ca, www.sedar.com and www.sec.gov websites.
The measured intervals quoted here are not necessarily equivalent to true widths as the attitudes of the mineralization are not yet known.
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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information contained herein.