Tue Jan 29, 2008 Joint Venture Announced with Utah Uranium Corp. on Wild Claims, Drilling to commence Shortly
Vancouver, BC - Consolidated Abaddon Resources Inc. (TSX-V: ABN) (FWB: E2L) announces the signing of an Option and Joint Venture Agreement with Utah Uranium Corp. (OTCBB: UTUC) on the Wild Uranium Claims, located near Hanksville, Utah.
The Wild claims consist of 23 mineral claims located within the Henry Mountain Syncline of East Central Utah. The Henry Mountain Syncline is an enclosed structural basin within the Colorado Plateau of southeastern Utah that is entirely underlain by the massive uranium bearing Salt Wash sandstone member of the Morrison formation. The hydraulic migration of oxygenated water containing liberated uranium tends to flow down-dip within the formation into the trapped, oxygen free static water creating a zone of major ore concentration known as a roll-front environment.
Utah Uranium Corp. is in the process of permitting a drill program for the Wild claims. Historically, there were a number of drill holes made on the Wild property by Continental Oil Company in 1969. As part of their activities, down-hole logging was performed on these holes, revealing radioactive mineralization in 11 holes. It is the intention of the Company to drill in the vicinity of those previous holes in order to properly assess the uranium/vanadium content.
Pursuant to the terms of the Option Agreement, Consolidated Abaddon has been granted a right to earn a 50% interest in the Wild property by paying the sum of US$75,000, issue an aggregate of 300,000 common shares to Utah Uranium over the two year term of the Agreement, and fund an initial exploration program in the amount of US$300,000. Consolidated Abaddon has been granted a right to acquire a further 10% interest in the Wild property by carrying out a further $300,000 work program on the Wild property by December 31, 2008. Consolidated Abaddon will also be responsible for paying its proportionate share of remaining option payments ($120,000) pursuant to Utah Uranium's underlying option agreement with Christian (Ted) Murer ("Murer") and its proportionate share of the Bureau of Land Management annual fees associated with the Wild Property.
Upon completion of all expenditures, cash payments and share issuances, Consolidated Abaddon will be deemed to have earned a 60% interest in the Wild Uranium Claims, subject only to a 2% royalty on vanadium and 4% royalty on U308 reserved to Murer under the underlying option agreement. Murer has granted a right to purchase 2% of the 4% royalty for the sum of $3,000,000 at any time prior to June 1, 2009.
Upon any commercial production, Utah and Consolidated Abaddon will be required to pay Murer a $300,000 yearly minimum royalty commencing June 1, 2010.
The Option Agreement is subject to the acceptance of the TSX Venture Exchange.
Utah Uranium Corp. acquired the Wild claims from Christian (Ted) Murer P.Geo, whom the Company also purchased the Pinto claims from, and who conceptualized, discovered and currently holds a production royalty on the Tony M mine as a prospector geologist. Ted assembled the Wild uranium claim package using the same data and methodology.
The first discovery, known as the Tony M mine, was made in the 80's by Plateau Resources, a division of Michigan Light and Power and consists of 10,898,000 pounds U308. Subsequently, the Bullfrog mine was discovered adjacent and north of the Tony M mine by Imperial Oil Corporation, and consists of an additional 12,924,000 pounds U308. These mines are currently owned by Denison Mines Corp. and are collectively known as the Henry Mountains complex, one of the largest known uranium resources in the Colorado Plateau district.
About Utah Uranium Corp.
Utah Uranium Corp. is a Moab, Utah based junior exploration and development company focused on the acquisition of past producing underground uranium mines that can be brought back into production in the near term with a low capital expenditure within economic haul distances of the White Mesa Uranium Vanadium Mill in Blanding, Utah owned by Denison Mines Corp. The White Mesa Uranium Mill is currently the only operating uranium mill in the United States.
For further information on Utah Uranium Corp. (OTCBB: UTUC) visit their web site at www.utah-uranium.com.
About Consolidated Abaddon Resources Inc.
Consolidated Abaddon Resources Inc. is a Canadian uranium exploration company actively involved with the development of uranium properties in the ATHABASCA BASIN of northern Saskatchewan, SIMS BASIN of western Labrador, and the ALGOMA DISTRICT of northwestern Ontario. The Company is also developing a uranium properties east of Moab, Utah.
Property partners include Denison Mines Corp., Triex Minerals Corp., and Utah Uranium Corp.
ON BEHALF OF THE BOARD OF DIRECTORS
JAMES G. PETTIT
For further information contact myself or:
Consolidated Abaddon Resources Inc.
Toll Free: 800-567-8181
THE TSX VENTURE EXCHANGE AND FRANKFURT STOCK EXCHNAGE HAVE NOT REVIEWED AND DO NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended. All statements, other than statements of historical fact, included herein are forward-looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia Securities Commission and the United States Securities & Exchange Commission.
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