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| | Thursday, July 12, 2007
Target Releases Historic Uranium Estimates For Shirley Basin Project And Increases Financing
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TARGET EXPLORATION AND MINING CORP. (TSX.V: TEM) (the "Company") is pleased to announce additional details on the uranium properties covered under its recent agreement to form The Bootheel Project, LLC ("the Project") with Ur-Energy Inc. (TSX: URE) whereby the Company may acquire a 75% participating interest in two uranium properties located in the Shirley Basin, Albany County, Wyoming, subject to regulatory approval (see June 8, 2007 press release). The Bootheel and Buck Point properties covered by the Project are located within the Shirley Basin and are comprised of 279 Federal Unpatented Mining Claims and two state leases totalling approximately 6,000 acres. The information in this press release is taken primarily from a report entitled "Technical Report on the Shirley Basin Uranium Properties, Wyoming," dated July 8, 2007 and submitted to the regulatory authorities for filing on SEDAR referenced under TEM.
Bootheel Property Details
The Bootheel property is located on the southeast edge of the Shirley Basin. Drilling by Kerr McGee Corporation, Cherokee Exploration Inc. (Cherokee), URADCO and others intersected significant uranium mineralization in sandstones at depths ranging from 150 to 600 feet. Grades and thickness range from 2 feet at 0.12% U3O8 to 22.5 feet at 0.071% U3O8. The known uranium zone on the property remains open for expansion.
In 1982, independent consultants, Nuclear Assurance Company, completed a Pre-Commercial Feasibility Study for Cherokee on the Bootheel Property. The following summarizes historic reserves and resources of individual zones within the property:
• Measured and Indicated Reserves 1,060,000 pounds at an average grade of 0.04% U3O8
• Measured and Indicated Resources of 469,500 pounds at an average grade of 0.075% U3O8
• Inferred Resources of 1,080,000 pounds at an average grade of 0.046% U3O8
• Geological Resources of 2,010,000 pounds -- (no grade stated)
As was industry standard for reporting in the 1980s, tonnages are not provided in the reports. Reserves are reported using a minimum grade of 0.02% U3O8 and a grade times thickness (GT) of 0.12. These resources are historical in nature and were compiled before the implementation of National Instrument 43-101 reporting standards. Investors are cautioned that recent independent verification of the data has not been performed and the Company has not completed sufficient exploration to verify the historical resource and reserve estimates. The categories of mineralization used are not those prescribed by the Canadian Institute of Mining, Metallurgy and Petroleum and stipulated in National Instrument 43-101 but would correspond to indicated and inferred resources under those guidelines. The Company is not treating the historical estimates as National Instrument 43-101 defined resources or reserves verified by a qualified person and the historical estimates should not be relied upon.
Cameco Corp. ("Cameco") acquired the Bootheel property in 1995 and carried out limited drilling and leach tests before abandoning the property in 1998 due to poor market conditions for uranium, which at that time had a spot price of approximately US$10.00 per pound. The drilling by Cameco confirmed the presence of significant uranium mineralization that had the potential to be recovered by in-situ recovery (ISR) mining methods. The current uranium spot price is US$135 per pound.
The Project has use of Ur-Energy's recently acquired extensive database of over 1,000 drill holes totalling in excess of 250,000 feet that includes the down-hole radiometric logs and other associated maps and reports on the properties. Data compilation, digitising, and computerised 3D geological modelling work will begin immediately. This work is scheduled to take several months and will be followed by a drill program to confirm the historical resources and test for expansion of the uranium zone(s).
Buck Point Property Details
The Buck Point area was explored by a joint venture comprised of Cherokee Exploration and Mobil Oil Corporation in the late 1970s. By analogy to Bootheel, the property is considered to have potential to host significant uranium mineralization. Following data compilation of the historic exploration work, the Company will design an exploration program to test the favourable stratigraphy down-dip from the known mineralization.
Stewart Wallis, P.Geo., President of the Company and a Qualified Person as defined by National Instrument 43-101, has reviewed and is responsible for the technical information contained in this news release.
Private Placement Financing
The Company announced a non-brokered private placement financing on June 8 2007 to raise aggregate gross proceeds of $2,500,000. The private placement size is being increased to aggregate gross proceeds of $3,805,500, consisting of 3,120,000 units at $1.00 and 685,500 FT units at $1.00, the terms of which are detailed in the Company's June 8 press release. The private placement remains subject to regulatory approval.
ON BEHALF OF THE BOARD
"Mark J Morabito"
Chief Executive Officer
Target Exploration & Mining Corp. -- Vancouver
T: 604-681-8030
F: 604-681-8039
E: greg@target-mining.com or dan@target-mining.com
www.target-mining.com
This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "US Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the US Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release contains "forward looking information" that is based on the Company's current expectations, estimates, forecasts and predictions. This forward looking information includes, among other things, statements with respect to exploration, mineralization, business plans, outlook and intended use of proceeds. The words "may", "would", "could", "should", "will", "likely", "expect", "anticipate", "intend", "estimate", "plan", "forecast", "project" and "believe" or other similar words and phrases are intended to identify forward looking information.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of the content of this News Release.
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