January
29, 2008
NEWS
RELEASE
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.
For
further information on Consolidated Abaddon Resources
Inc. (TSX-V: ABN), visit our Company’s web site at www.consolidatedabaddon.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
“Jim Pettit”
____________________________
JAMES
G. PETTIT
President
Issued and Outstanding
42.0 million shares
|