VANCOUVER, BRITISH COLUMBIA, November 30th, 2011 (MARKETWIRE via COMTEX) �
UC Resources Ltd. ("UC" or the �Company�) is pleased to provide this information update to its shareholders, stakeholders and interested parties.
On November 10th, 2011, UC Resources announced that it had entered into a definitive agreement (the �Purchase Agreement�) with Freewest Resources Inc. (�Freewest�), a wholly owned subsidiary of Cliffs Natural Resources Inc. (NYSE: CLF) (Paris: CLF) (�Cliffs�), for Freewest to acquire 100% of the UC owned 55% Joint Venture Interest in the McFaulds Lake area property (the �Joint Venture Interest�), subject to and in accordance with the Joint Venture Agreement dated as of July 26, 2011 (the �Joint Venture Agreement�) between KWG Resources Inc. (�KWG�), Spider Resources Inc. (now named Cliffs Chromite Far North Inc.), a wholly owned subsidiary of Cliffs (�Spider�), and UC.
Within the definitive agreement, the purchase price payable to UC by Freewest is $6,000,000 CDN ($6 Million), payable by deposit of $850,000 on the signing date followed by the balance on the closing date.
On November 11th, 2011, UC received notice from Cliffs Chromite Far North Inc. of an election to exercise their pre-emptive right in accordance with the Joint Venture Agreement under the same terms as the definitive purchase agreement.
On November 14th, 2011, KWG issued a press release that they were �analyzing the matter carefully�. As of today�s date KWG has not made their intention known, but in accordance with the Joint Venture agreement, has 45 days from receipt of the notice of November 10th, 2011 to participate in the pre-emptive right, proportionally to its present interest in the joint venture.
UC Resources has received conditional approval on the definitive purchase agreement from the TSX venture exchange on November 28th, 2011. UC Resources is awaiting the final outcome subject to the pre-emptive rights and following that, the subjects of acceptance and approval of the TSX Venture Exchange on the final ownership of the Joint Venture Interest.
Assuming successful close of all conditions of the sale of McFaulds Lake, the company will be enabled to press forward to its major resource area of Mexico where the majority of its assets exist, with a high level of focus and begin to leverage its projects in Mexico for the benefit of shareholders.
La Yesca:
The La Yesca tailings mill runs 24/7 and the company came very close to having the ability to be able to claim commercial production, but then ran into equipment, temporary power grid and flooding issues and other ongoing plant flow issues. These issues have been addressed ongoing, but will be addressed substantially through the injection of capital required to augment the flow process at the mill to a more final production solution in the first quarter of 2012. Following this period, the goal of the company is to operate the mill at a consistent run rate of 200+ Tonnes per day, which will result in the type of long term revenue run rates that will assist the company in achieving a number of goals in a number of areas.
Xora:
The Xora claim is within approximately 1 Kilometre of the La Yesca mill and is a significant exploration asset with an inferred mineral resource of 11,730 tonnes grading 0.70 g/t gold and 619 g/t silver. Within the Xora claim is the La Colorado mine, a past producing gold and silver mine, tonnage mined is unknown. Lower grade gold and silver found immediately east of the La Colorada mine opening suggests that a zone of bulk mineable material may exist on the property, within which there may be additional high grade mineralization similar to the La Colorada vein. Mapping and sampling of the Xora claim will commence in the first quarter of 2012 followed by drilling of the more interesting areas based on the new sampling, mapping, and previous ground IP geophysics. Assuming grades of success for silver and gold would allow for the expansion and extension of materials supplied to the La Yesca production mill site.
La Pinta: (Newly Acquired Property)
The La Pinta claims were issued to UC Resources on April 20, 2011 by the Secretary General of Mining in Mexico and consist of three land packages totalling approximately 64 hectares. This land package is again within 1 Kilometre of the La Yesca mill. It is a virgin land package which will also be mapped and sampled prior to drilling. As with the XORA claim the Pinta claim could provide fresh mill feed to the La Yesca Mill.
Mar:
In May 2006, we followed up the Minera Silver Creek agreement by adding the acquisition of the MAR Project, consisting of a property concession amounting to approximately 10 square kilometers. The property has a history of small scale mining activity and is easy to access and develop. The property is approximately one hour away from Guadalajara and has access from major roadways with excellent access.
The Mar concession has substantial merit as a potential setting for epithermal gold-silver deposits. Supporting evidence includes the following:
- The property is underlain by favourable Cretaceous-Tertiary andesite -rhyolite volcanic stratigraphy. These rocks are host to numerous small to large gold-silver deposits throughout the Sierra Madre Occidental physiographic province of Mexico.
- Major structural features (faults and lineaments) have been mapped in the region and in the vicinity of the Mar concession. Some of these features appear to be related to magnetic anomalies which may represent Tertiary age plutons intruded into the volcanic sequence. If so, then in addition to the mappable features, the intrusion of the pluton would have caused micro- fracturing of the volcanic rocks which would act as channel ways for mineralizing fluids. One such magnetic anomaly lies just to the east of the Mar concession.
- At least a portion of a past producing mine, Piedra Bola, lies within the concession boundaries. The style of the occurrence - veins and vein stockworks, the precious metals, base metals and trace metals present, and the associated silica, sericite, hematite and argillite alteration, all are consistent with the model for an epithermal precious metal deposit.
- There are several other known mineral silver - gold occurrences in the immediate area of the Mar concession, several of which were past producing mines. Silver appears to be equally important as gold. These mineral occurrences are hosted within the Cretaceous to Tertiary age andesite-rhyolite volcanic rock sequence.
- Work by Consejo suggests that other mineralized vein structures may exist within the vicinity of the main Piedra Bola vein. In addition, assays for 7 of 8 samples collected were on average 0.133 g/t Au and 26.5 g/t Ag).
Copalquin:
The Copalquin property is a historically productive 7,000 hectare land package located in the North Western state of Durango in Mexico. Previous drill programs at the Copalquin Project have confirmed potentially economic mineralization at three main target areas, Cometa, Refugio and La Soledad. All of the mineralized zones that have been tested are open at depth and along strike and clearly warrant additional drill testing.
It is important to note that in addition to the zones that have been tested, available data suggests that the extent of the epithermal system at Copalquin may be much larger than has previously been recognized.
The company plans to resume a more detailed exploration program after successful commercial production at La Yesca
It should be noted that recent historical reported results include 5.2 metres of mineralization averaging 45 g/tonne gold and 1,563 g/tonne silver during the Phase II drill program in 2006. Drilling clearly showed that alteration and silicification associated with the epithermal system is pervasive and extensive. UC historical results also included 50 ounces/tonne silver and 1.4 ounces/tonne gold over 5 metre intersection at La Soledad
In 2007, UC intersected 2.45 meters averaging 1.52 ounces per tonne gold and 112.1 ounces per tonne silver at La Soledad.
Acquisitions:
With the focus on Mexico and the current condition of the economy the company believes that excellent project/property opportunities will arise. We are currently evaluating new projects. UC Resources will have sufficient capital reserves to be able to selectively choose those opportunities that will best suit the company and its plan to acquiring near term production assets.
The Annual General Meeting of shareholders of UC Resources is to be held at the 10th Floor � 595 Howe Street, on December 15, 2011 at 10:00 AM (Pacific Time). Gary Monaghan and Jim Voisin will be in attendance and available to answer any questions of shareholders and plans for 2012.
UC Resources is an active explorer and producer of precious metals in Mexico.
On behalf of the Board of Directors,
Gary Monaghan, CEO
We seek safe harbour.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Investors are invited to visit the UC Resources IR Hub at http://www.agoracom.com/ir/UCResources where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to UC@agoracom.com where they can also request to be added to the investor e-mail list to receive all future press releases and updates in real time.
This news release includes certain forward-looking statements or information. All statements other than statements of historical fact included in this release, including, without limitation, statements relating to the terms of the Purchase Agreement and other future plans, objectives or expectations of the Company are forward-looking statements that involve various 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. Important factors that could cause actual results to differ materially from the Company's plans or expectations include risks relating to general economic, market or business conditions, regulatory changes, timeliness of government or regulatory approvals and other risks detailed herein and from time to time in the filings made by the Company with securities regulators. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise except as otherwise required by applicable securities legislation.
Contact:
UC Resources Ltd.
Mr. Gary Monaghan
CEO
1-778-478-9530
monaghan@ucresources.net
www.ucresources.net
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