Mon Sep 14, 2009 Consolidated Abaddon to Earn 100% Interest in a Lithium Property and a Rare Earth Property
Vancouver, BC - Consolidated Abaddon Resources Inc. (TSX-V: ABN) (FWB: E2L) (the "Company") announces that it has entered into a Property Option Agreement with Mr. Robert Fairservice of Thunder Bay, Ontario (the "Optionor") for an option to acquire a 100% interest in a lithium property and a rare earth property.
The Raleigh Lake lithium property is located in the Raleigh Township of Kenora Mining Division and the Selwyn Lake rare earth (REE) property is located in the Selwyn Lake Township of the Thunder Bay Mining Division, Province of Ontario.
Raleigh Lake lithium bearing pegmatites have been known in the area since the 1960's. Provincial government mapping in the 1990's identified a 'Pegmatite Field' trending through the area. A modest drilling program by Avalon Ventures Ltd. in 1999 and 2000 defined several stacked shallow dipping (20-30 degrees) tantalum-lithium bearing dikes in several drill holes. Thicknesses ranged from1 to 8 metres and were shown to continue 450 metres down dip. Drill holes were relatively shallow and broadly spaced. The pegmatites appear very uniform at the spacing used and occur in volcanic rock flanking granitic intrusions. Only 4 to 5 shallow holes were drilled on the Raleigh Lake property. Historic data available in the Ontario Government geological files reflect certain intersections below.
Hole # RL 99-01 0.56 % Li (lithium) over 3.2 metres
Hole # RL 99-04 1.00 % Li over 4.1 metres
Hole # RL 99-05 1.50 % Li over 6.9 metres
Abaddon plans to complete a magnetometer survey immediately over the 560 acres comprising the Raleigh Lake claims. The data will be used to identify structural zones where more significant 'ground preparation' may have resulted in increased volumes of pegmatite. The Company intends to proceed with a 2009 winter diamond drill program.
Abaddon has also acquired an option on the Selwyn Lake rare earth claims covering a large and strong REE, Fe, Mo, Th, U3O8 lake sediment anomaly. The anomaly was identified in 1996 by the Ontario Geological Survey and confirmed with further sampling in 2002.
The property includes 13 claim blocks covering 1219 hectares covering the anomaly. The property is accessible by road and lies 4 kilometres from a railroad.
The multi element (REE) Rare Earth Element anomaly includes 10 lakes on 3 drainage systems. The Selwyn Lake anomaly is similar in size and element association to the lake sediment anomaly at Strange Lake (REE) Rare Earth Element project of Quest Uranium in Labrador. The Selwyn Lake sediment anomaly is located astride a splay in a regional structural zone that has been the focus of earlier granitic intrusives. The area has potential for rare earth or molybdenum pegmatites or Olympic Dam style mineralization. There has been limited reported exploration in the area.
A program of prospecting, soil and till sampling is planned this fall for the Selwyn Lake property.
Pursuant to the terms of the Option Agreement, the Company will be granted an option to acquire a 100% interest in the Raleigh Lake and the Selwyn Lake claim blocks by paying an aggregate of $30,000, issuing a total of 150,000 common shares and incurring and paying for exploration expenditures of $250,000 over the 3 year term of the Option Agreement:
The mineral claims are subject to a 2% net smelter return royalty (the "NSR"). The Company may purchase 50% of the NSR by the payment to the Optionor of the sum of $500,000.
The above transaction is subject to regulatory approval.
About Consolidated Abaddon Resources Inc.:
Consolidated Abaddon Resources Inc. is a Canadian exploration company actively involved with the development of uranium and lithium properties in the Athabasca Basin of northern Saskatchewan and in northwestern Ontario.
Property partners include Denison Mines Corp., and Triex Minerals 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
NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS NEWS RELEASE.
This news release may contain certain "Forward-Looking Statements" that may involve a number of 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. For a more detailed discussion of such risks and other factors, refer to the Company's filings with Canadian Securities regulators available on www.sedar.com .
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