LAS VEGAS, May 29, 2007 (PRIME NEWSWIRE) -- CanAm Uranium Corp. ("CanAm" or the "Company") (OTCBB:CAUI), is pleased to announce that on May 28th, 2007, the Company agreed to proceed with the acquisition of a 100% interest in the Don McCarthy Claim, (the "Claim"), located in the Athabasca Basin from Geomode Mineral Exploration Ltd. ("Geomode"), expanding CanAm Uranium Corp's property holdings to 146,925 acres of claims collectively.
The Don McCarthy Claim is a single 4087-hectare claim (10100 acres), previously controlled by International Uranium Corp/Denison Mines Corp., which still has a significant presence in the area. The Claim is considered to be a high priority target due to its proximity to large, high-grade uranium mines and its potential to host similar mineralization. The Claim is located on the eastern edge of the Athabasca Basin, approximately 15.8 miles (25.5km) southeast of Cigar Lake and 25.5 miles (41km) east of the McArthur River Mine (Cameco/Cogema), the largest, high-grade uranium mine in the world (reserves of 389.1 million lbs with an average grade of 24.3% U3O8 and producing 18.7 million lbs per annum).
Highlights for the due diligence summary by Dr. Peter Born P.Geo., from information provided by the vendor, include:
-- The location is in close proximity to the McArthur River and Cigar Lake Mines, both are world class uranium deposits.
-- Scattered uranium and arsenic anomalies occur in several locations, all within the Athabasca Basin, some 9km from the eastern margin. Presumably, there is a regolith along the contact with the underlying basement rocks.
-- A Northeast trending anomalous magnetic feature (high derivative values) may be indicating a high magnetic source in the basement rocks underlying the local sandstone/conglomerates.
There are several reasons for acquiring the Don McCarthy claims, not the least of which is its proximity to several world-class uranium mines. We also know that the basement regolith below the unconformity is mineralized with uranium at numerous locations along this eastern edge of the Athabasca basin. In addition, there are several geochemical anomalies of Arsenic/Uranium on the Claim, and at least one northeast trending airborne anomaly, namely a derivative magnetic anomaly. Also, IUC-Denison/JNR Resources' South Cigar and North Wedge are neighboring exploration properties. In the spring of 2004, JNR and Denison completed a 243-kilometre airborne GEOTEM survey over the South Cigar Property. This survey outlined a number of features including a conductive zone interpreted to represent a deep-seated basement conductor.
"We are excited to have a land package within the Athabasca Basin that could present surprising results for the Company based on its location and proximity to known mines and deposits. It is well known that the basement regolith below the unconformity is mineralized with uranium at numerous locations along this eastern edge of the Athabasca basin, and therefore, we are optimistic with regards to this acquisition. We believe CanAm could attract joint venture partners in the region with this asset," says Ryan Gibson, CEO of CanAm Uranium Corp.
To earn a 100% interest in the Don McCarthy Claim, CanAm is required to pay an aggregate of US$400,000 and issue 3,000,000 common shares to the vendor over three years. First year commitments require the issuance of 2,000,000 common shares and payment of $100,000, of which $50,000 is due upon closing (paid) and $50,000 is to be paid on or before December 22, 2007. The balance of commitments calls for the payment of $100,000 and 500,000 shares on or before May 25th, 2008, and the payment of $200,000 and 500,000 shares on or before May 25th, 2009. A one percent (1%) NSR has been reserved in favor of the vendor, which can be purchased by CanAm for $3,000,000.
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", "could" 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 146,925 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