Sydney, June 23, 2008 AEST (ABN Newswire) - Crossland Uranium Mines Ltd (ASX:CUX) is pleased to advise that Crosscontinental Uranium Ltd (XCO), an unlisted company incorporated in Canada and owned 50% by Crossland, and 50% by Pancontinental Uranium Corp (CVE:PUC) has signed a Joint Venture Agreement with Southern Cross Exploration NL (ASX:SXX) and Longreach Oil Ltd (ASX:LGO) regarding the Oursi Project in Burkina Faso. SXX (and LGO indirectly) hold two granted permits for uranium exploration: "Tin Dioulaf" No 07-205 and "Agalsa" No 07-209 located in north eastern Burkina Faso.
Crosscontinental will be manager and operator of the Joint Venture.
The essential terms of the Agreement are summarised as follows:
- XCO must complete a detailed airborne geophysical survey within the first nine months of the agreement before it can withdraw.
- XCO can earn up to 35% interest in the tenements by completing expenditure of $150,000, which includes reimbursement of some acquisition costs.
- XCO can increase its interest to 50% by completing total expenditure of $500,000 within the first three years of the agreement.
- When XCO earns a 50% interest then SXX and/or LGO can elect severally to participate in further expenditure with their respective 37.5% and 12.5% interests, or reduce to 15% and 5% interests respectively, free carried to the definition of a JORC- compliant Resource, completion of a favourable bankable feasibility study (BFS) and Decision to Mine.
- At Decision to Mine each of SXX and LGO can elect severally to either participate in further expenditure in proportion to its interest at that stage or convert its participating interest to an NSR royalty (1.5% for SXX, and 0.5% for LGO).
The Oursi Project tenements cover a combined area of 500 square kilometres and include a 50 kilometre strike length of an unconformity structure that is considered to be prospective for uranium deposits (See Picture). A known uranium mineralisation occurrence is located 50 kilometres along strike and west of the Oursi tenements. It is intended that the project is operated by Crosscontinental Burkina Sarl, a wholly- owned subsidiary of XCO. Initial aerial inspection of the title has been completed. There is no existing detailed airborne radiometric survey coverage over the area and XCO is currently seeking a contractor to undertake such a survey over the tenements. This survey is expected to commence as soon as a suitable contractor can be engaged, necessary approvals are in place and weather permits.
Crosscontinental has lodged applications in its own right that cover a number of targets for uranium in Burkina Faso, a West African republic that has favourable settings for certain types of uranium deposits that do not appear to have been intensively explored in the past.
Note:
The review of exploration activities and results contained in this report are based on information compiled by Geoffrey S Eupene CP, a Fellow of the Australasian Institute of Mining and Metallurgy. He is a director of the Company and a full time employee of Eupene Exploration Enterprises Pty Ltd. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration, and to the activity which he is undertaking to qualify as a Competent Person as defined in the December 2004 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Geoffrey S Eupene has consented to the inclusion in this report of the matters based on his information in the form and context in which it appears.
Contact
PHONE: +61 (02) 9957 3199
FACSIMILE: +61 (02) 9954 4011
EMAIL: cux@crosslanduranium.com.au
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