VANCOUVER, British Columbia, Jan. 17, 2007 (PRIME NEWSWIRE) -- Harp Sangha, CEO / President of Douglas Lake Minerals Inc. (OTCBB:DLKM), announced the company has successfully acquired four Tanzanian uranium properties that cover an area of approximately 500 square kilometres.
Two of the properties are located in Northern Tanzania in the Babati region. Initial reports provided by DLKM's geological consultants, Geosource Explorer, have determined that these two deposits are 'surficial' -- much the same as the Yeelirrie Deposit in Western Australia, which is estimated to contain 52,000 metric tonnes of uranium oxide.
The other two properties are located in the Njombe District in southern Tanzania. Initial reports by Geosource Explorer indicate the southern deposit geology is similar to that of the Rossing Deposit in Namibia, Southwestern Africa. The Rossing Deposit hosts the fifth largest uranium deposit in the world, generating 8% of the entire global production. This mine consists of an enormous open pit low grade operation where the pit now measures 3 km long, 1 km wide, and 300 meters deep.
"We worked very hard to acquire these four prime uranium properties. With the price of uranium being very bullish, we're excited about these new additions to our company," stated Harp Sangha. "As a royalty-based company, our next task is to source a capable joint-venture partner with a track record in developing uranium properties."
Worldwide demand for uranium is 40% ahead of supply
After nearly doubling last year, the price of uranium appears poised to continue its bull run in 2007 as demand for the fuel continues to outstrip supply, analysts say. "It's a commodity that has for years been under a lot of pressure from excess supply and now the seeds have been sown and we're beginning to see the flip side of that," said RBC Capital Markets analyst Adam Schatzker, who has forecast the price will average US$100 per pound in 2007."
Though hedge funds and other speculators are beginning to move into the uranium market, Mr. Schatzker said the biggest driver to the recent increase in price is a shortfall in supply and growing demand. New nuclear power plants are being built in China and other parts of the world, while few new major deposits have been developed, leading to demand that is 40 per cent ahead of current supply. (Source Canadian Press and RBC Capital Markets)
About Douglas Lake Minerals, A Royalty-Based Company
Our vision at Douglas Lake Minerals is to focus on exploring and developing gold, copper, nickel, uranium and diamond mining opportunities in Tanzania, a country with vast amounts of undeveloped mineral-rich natural resources. We are exploring and developing our large portfolio of prospecting concessions through royalty-based joint venture partnerships. Our strategy is to provide investors with considerable upside potential while minimizing future shareholder dilution through our royalty partnerships (www.douglaslakeminerals.com).
NOTE: No Exchange has either approved or disapproved the information contained herein. This news release many contain forward-looking statements based on assumptions and judgments of management regarding future events or results that may prove to be inaccurate as a result of exploration and risk factors beyond its control; and actual results may differ materially from expected results. The Company will not update forward-looking statements as conditions change. Factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's quarterly and other periodic filings with the SEC.