LAS VEGAS, May 11, 2007 (PRIME NEWSWIRE) -- CanAm Uranium Corp. ("CanAm" or the "Company") (OTCBB:CAUI) is pleased to announce the completion of six drill holes to test the Halo property, including description of other targets included in CanAm Uranium Corp's option agreement. It is important to note, the current price of Uranium is $120 per pound as of May 7 2007, up $7 since the release of this information by Operator El Nino Ventures.
El Nino and CanAm released assay results for the first four drill holes. Best results to date have been achieved in DDH H-4, the upper hole on the second or easternmost section drilled. Eight radioactive pegmatite dikes were intersected within an interval of 24 metres. Assays/width ranged from 0.01 per cent uranium oxide (U3O8) (0.2 pound per ton) over 0.11 m to 0.31 per cent U3O8 (6.2 pounds per ton) over 1.52 metres. Average weighted grade of the dikes was 0.09 per cent U3O8 (1.8 pounds per ton) with a cumulative width of 8.9 metres. Anomalous amounts of certain heavy rare earth elements have been noted. In Sample 8027 from DDH H-4, 18 grams per tonne (g/t) scandium was reported along with 0.10 per cent U3O8 (two pounds per ton) across an interval of 1.31 metres.
Details include:
* First round of drilling on Halo confirms historical results by intercepting average grade of 0.09 per cent (1.6 pounds) U3O8 over 8.9 metres (34 feet), including 0.31 per cent U3O8 (6.2 pounds per ton) over 1.52 metres; * drill program continues on second of seven other known historical targets; * Bancroft is home to four past-producing mines between 1956 and 1982; * total past production of the camp was over 14 million pounds; * El Nino is the project operator; and * drilling continues and trenching program to begin for six other projects.
2007 Objectives
The objective of the second phase of drilling will be to define 43-101-compliant reserves, expand the length and depth of the project, and reconfirm historical values. Reserve estimates in 1957 were 472,000 tons, grading 0.112 per cent (2.24 pounds per ton U3O8). No exploration has been done over the last 30 years due to lower uranium prices.
Second Drill Target
The drill is currently being moved to the second target which is the Amalgamated Rare Earth project (ARE). Between 1952 and 1957, diamond drilling and underground development identified three zones of uranium mineralization in pegmatite, and a shaft was sunk on the Main zone to 440 feet, with a total of 5,871 feet of underground development completed at three levels. In 1957, the resource was estimated at 292,444 tons at a grade of 0.095 per cent (1.9 pounds per ton) -- not compliant with 43-101.
Other Targets
Silver Crater, Baumhour, Campbell Occurrence
This property is composed of five claims totaling approximately 1,789 acres, and is located in Faraday township. Three uranium showings have been found on this property. The first is a 200-foot-long exposure, with uranium-bearing pegmatites one foot to five feet wide and 20 feet long. The second showing consists of uranium-bearing pegmatites six feet to 18 feet wide and 170 feet long. The third is a discontinuous pegmatite dike which is at least 300 feet long. A total of 15,452 feet of surface diamond drilling on the showings was conducted between 1954 and 1956 and 1967 to 1969, as well as trenching. Geology and geophysics were conducted in 1975 to 1977, with drill core samples averaging 0.06 per cent (1.2 pounds per ton) U3O8, and a best assay of 0.31 per cent (6.2 pounds per ton) over six feet.
Empire B prospect
Located in Monmouth and Cardiff township, this property represents three claim units totaling approximately 1,087 acres. From 1954 to 1955, geophysics and 26 diamond drill holes (12,509 feet) were completed, and a further 11 diamond drill holes (6,922 feet) were completed between 1968 to 1970. Prospecting for fluorite occurred during the periods of 1971 to 1975 and 1976 to 1977, and geophysics and 12 diamond drill holes (6,560 feet) were also completed. Past drilling indicated 2,179,166 tons of U3O8, grading 0.036 per cent (0.726 pound per ton), not compliant with 43-101. It occurs in the southwest part of the claim group in Monmouth township.
Saranac
Two claims have been staked on this property, totaling approximately 691 acres, located in Monmouth township. From 1954 to 1956, a 150-foot open cut comprising 32 drill holes for 7,286 feet was done by Saranac Uranium Mines Ltd., and in 1973 a geological survey and four drill holes for 643 feet were completed by Imperial Oil Ltd. The most recent work on the property was a scintillometre survey by Imperial Oil in 1975. Drill core samples on the property assayed from 0.018 per cent to 0.36 per cent U3O8 (0.36 pound per ton to 7.2 pounds per ton) and a grab sample over a 1,500-foot zone of 15 per cent to 20 per cent zircon mineralization assayed 0.298 per cent U3O8.
McLean, Hogan Occurrence
This property consists of two claims (approximately 691 acres) located in Cardiff township. Trenches on the property expose a complex of mica metamorphic pyroxenite, hornblende gneiss, pegmatite, leucogranite and patches of marble, striking north and dipping east. Activity began on the property in 1953, with 11 trenches created by E.T. Hogan, and additional short drill holes by Cope Lake Mines Ltd. In 1954 to 1955, scintillometre and geological surveys were conducted, as well as bulk sampling and 69 diamond drill holes totaling 1,585 feet, by Anuwon Uranium Mines. Further surveys were conducted in 1968 by Cope Lake Mines, and in 1975, two diamond drill holes of 332 feet were completed by Canadian Nickel Company. Grab samples assayed 0.019 per cent to 0.540 per cent U3O8 (2.62 pounds per ton to 10.8 pounds per ton) and the best bulk sample assayed 0.10 per cent U3O8.
Canada Radium Occurrence
This property is composed of three claims of approximately 840 acres and is located in both Cardiff and Faraday townships. Work on this property began as early as 1936, when Canada Radium Corp. sunk a 400-foot shaft with levels of 125 feet to 375 feet. It also conducted 1,810 feet of lateral work. Between 1939 and 1942, 200 tons of feldspar pegmatite was milled at a separate mill. From 1954 to 1955, geological surveys were conducted, as well as 90 diamond drill holes totaling 43,184 feet. During this period, five radioactive zones, the largest over 400 feet long, were outlined by diamond drilling. Further drilling in 1968 to 1969 of three diamond drill holes for 869 feet by Cam Mines Ltd. intersected numerous narrow uraniferous pegmatites which assayed up to 0.116 per cent U3O8 (2.32 pounds per ton) over one foot. The last work to be done on the property was a radon gas survey by Kerr Addison Mines Ltd. Two additional claims, totaling approximately 296 acres, were staked on this property under this option agreement, in addition to the six claims discussed above.
Option Agreement Signed
As reported in Stockwatch news Nov. 2, 2006, El Nino entered in an option agreement with Boulder Creek Explorations, now CanAm Uranium, a company incorporated under the laws of Nevada. This agreement will finance the Bancroft properties through the next stages of exploration. Under the terms of this agreement, El Nino will receive 275,000 shares of CanAm Uranium and cash payments totaling $125,000. CanAm Uranium can earn in a 60-per-cent interest by committing $1 million over the next two years and could earn up to 80 per cent of the project by issuing an additional 300,000 shares and spending an additional $1.5 million.
El Nino will remain the operator for the first two years of this agreement and will receive a management fee of 10 per cent of exploration expenditures and cash payments of $40,000 a year for the second year and $20,000 per year thereafter.
CanAm is currently financing a $500,000, 3,900-metre drilling program to extend historic reserves on the two developed properties of the eight, the Halo property in Cardiff township and the Amalgamated Rare Earth No. 2 property, 10 kilometres to the southwest in Monmouth township. The drill programs on the two properties have been designed to test the uranium and rare earth element potential in drill sections spaced at 60-metre intervals down to depths of 1,000 feet (305 metres).
The drill is currently being moved to the Amalgamated Rare Earth No. 2 property. This property was developed underground on three levels from a 440-foot three-compartment vertical shaft in 1956. The current program will test beneath and along strike from the underground workings to depths of 1,000 feet (305 m).
Forward-Looking Statements
Statements in this press release may be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend" and similar expressions, as they relate to the company or its management, identify forward-looking statements. These statements are based on current expectations, estimates and projections about the company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and probably will, differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above. In addition, such statements could be affected by risks and uncertainties related to the exploration for and development of mineralized material, product demand, market and customer acceptance, competition, pricing and development difficulties, as well as general industry and market conditions and growth rates and general economic conditions. Any forward-looking statements speak only as of the date on which they are made, and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. Information on CanAm's website does not constitute a part of this release.
About Us
CanAm Uranium Corp. is a Nevada incorporated junior resource company with a corporate objective focused on the strategic acquisition and development of exploration properties in well-known prolific mining areas, especially known for Uranium, of Canada, Southern Africa, Australia and the United States. CanAm Uranium Corp has optioned over 136,825 acres of claims collectively within the Saskatchewan Athabasca Basin, Ontario and British Columbia, with significant interest in prolific Uranium mining areas. http://www.CanAmUranium.com