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| | October 03, 2006
Powertech Purchases Historic Uranium Resources in Colorado
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| | POWERTECH URANIUM CORP. ("Powertech" or the "Company"), is pleased to announce it has purchased from Anadarko Land Corp., an affiliate of Anadarko Petroleum Corporation (Anadarko-NYSE-APC), approximately 5,760 acres of uranium mineral rights in Weld County, Colorado (the "Centennial Project"). The Centennial Project was discovered and evaluated by Rocky Mountain Energy Company (RME), a predecessor of Anadarko. This evaluation consisted of drilling, geologic interpretation, hydrology studies, assaying and mine planning.
Historic Resources
In ten years of exploration on the Centennial Project, formerly land granted to Union Pacific Railroad, RME completed over 3,000 drill holes, totaling approximately one million feet of drilling. This drilling outlined several uranium deposits, with total estimated uranium resources of 9,581,000 pounds U3O8. This estimate comes from several geological reports produced by RME between 1980 and 1984. These uranium deposits were discovered along 15 miles of oxidation/reduction boundaries (roll fronts) in two separate sands of the Fox Hill Formation. These deposits range in depth from 120 feet to 620 feet have an average grade of 0.07% U3O8. James Bonner, VP Exploration of Powertech, managed the exploration of this project for RME when the majority of these resources were delineated. "Our detailed knowledge of the deposits and the characteristics of the resource indicate this project meets the company's development criteria. This knowledge gave us the confidence to aggressively pursue this acquisition" says Mr. Bonner.
A qualified person (as that term is defined in National Instrument 43-101) has not done sufficient work to classify the historical estimate on the Centennial Project as a current mineral resource or mineral reserve. Powertech is not treating the historical estimate as a current mineral resource or mineral reserve as defined in National Instrument 43-101 and the historical estimate should not be relied upon. Powertech has obtained the entire technical database related to the one million feet of drilling and intends to perform a NI-43-101 compliant study on the Centennial Project.
Terms of Agreement
As consideration of the purchase of the Anadarko uranium mineral rights, Powertech will make an initial cash payment of US$1,000,000, eight installment payments of US$250,000 per annum, and a lump sum payment of US$1,500,000 upon receipt of all regulatory permits and licenses allowing production of uranium from the Centennial Project. Powertech has also agreed to a minimum annual work commitment of US$200,000 until uranium is produced from the Centennial Project and to pay a royalty of 5% to 6% of the value of the uranium and byproduct mined from the Centennial Project.
Richard F. Clement, Jr., President/CEO of Powertech, says "We are extremely pleased to have reached an agreement with Anadarko. Opportunities such as this are rare, and we look forward to initiating activities leading to the further development of this project."
Powertech Uranium Corp. is a mineral exploration and development company that holds the Dewey Burdock Uranium Deposit in South Dakota, and the Dewey Terrace Exploration Project in Wyoming, and the Centennial Project in Colorado, USA.
POWERTECH URANIUM CORP.
Per: "Richard F. Clement"
Richard F. Clement Jr.,
President & CEO
For further information, please contact:
Thomas A. Doyle, CFO
Phone: (604) 685-9181
Email: info@powertechuranium.com
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release. |
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