WOODLAND HILLS, Calif., July 7, 2008 (PRIME NEWSWIRE) -- Strongbow Resources, Inc. (OTCBB:STBR), a uranium exploration and development company, through its CEO Darren Hayes, today announced that it has entered into a Memorandum of Understanding with Holloman Minerals, Ltd. of Perth, Australia to Farm-in up to 98% of seven (7) exploration license areas in the Frome Embayment near Lake Callabonna in South Australia covering an area of approximately 3,792 square kilometers (937,000 acres) known as the Cameron's Corner Palaeochannel Project (CCP Project). All of these areas are considered to be prospective for uranium and will form the basis for exploration activities.
The Company's initial focus will be to explore the CCP Project Area by stages. The first stage will be an airborne electromagnetic survey to map channels and structure throughout the region with infill in the areas where channels or structure are indicated from previous work. Based on the results from this airborne survey and interpretation of existing data, the Company expects to target favorable structural belts and channels for follow up drilling.
The Frome Embayment in South Australia is an area with world class uranium discovery potential, as evidenced by several large uranium projects in the region including the 'Beverley' and the 'Honeymoon' projects. These projects are hosted in Palaeochannels in tertiary sediments of the Frome Embayment. Beverley occurs close to where the Embayment overlaps the faulted boundary between two underlying basement blocks, the Curnamona Craton and the Mt Painter Terrane. Radioactive heat producing granitoids and uranium deposits in the older basement are thought to be the ultimate source of uranium. As they weather into younger formations, the radioactive granitoids and existing uranium deposits within the basement rocks of the Curnamona Craton and the Mount Painter Terrane form an ideal source for sandstone hosted Palaeochannels uranium deposits. At the CCP Project Area, channel systems of Tertiary age situated on the north east structural margin of the Craton hold potential for deposits of uranium similar to deposits at Beverley. This concept has not previously been recognized or tested by exploration drilling. In addition to the above, our direct neighbor to the south is Olympic Dam, the world's largest uranium deposit.
Darren Hayes, CEO, stated; "We feel very fortunate to have aligned ourselves with Holloman Minerals and feel we have positioned ourselves well geographically in the area."
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are subject to risks, uncertainties and assumptions and are identified by words such as "expects," "estimates," "projects," "anticipates," "believes," "could," and other similar words. All statements addressing operating performance, events, or developments that the Company expects or anticipates will occur in the future, including but not limited to statements relating to the Company's mineralized uranium materials, timing of receipt of mining permits, production capacity of mining operations planned for property acquisitions in Australia, planned dates for commencement of production at such properties, revenue, cash generation and profits are forward-looking statements. Because they are forward-looking, they should be evaluated in light of important risk factors and uncertainties. These risk factors and uncertainties include, but are not limited to, the spot price of uranium, weather conditions, operating conditions at the Company's mining projects, government regulation of the mining industry and the nuclear power industry, world-wide uranium supply and demand, availability of capital, timely receipt of mining and other permits from regulatory agents, and other factors which are more fully described in the Company's documents filed with the Securities and Exchange Commission. Should one or more of these risks or uncertainties materialize, or should any of the Company's underlying assumptions prove incorrect, actual results may vary materially from those currently anticipated. In addition, undue reliance should not be placed on the Company's forward-looking statements. Except as required by law, the Company disclaims any obligation to update or publicly announce any revisions to any of the forward-looking statements contained in this press release.