re: ---> rrs will find uranium!!!!
Range joins uranium rush Jesse Riseborough
Thursday, April 07, 2005
THE recent love for uranium continues unabated with embattled junior Range Resources the latest to enter the fray by announcing a heads of agreement to acquire an option allowing it to earn a 50.1% stake in the Corachapi uranium prospect in Peru.
Under the terms of the agreement Range will pay Yono Nominees a non-refundable $200,000 to complete a formal due diligence over the property. If successful and subject to share holder approval, Range will then issue 80 million shares and 80 million 5c options to Yono for the option to acquire the 50.1% interest.
Range Resources director Arthur Ioannou told MiningNews the company can then spend $US130,000 to acquire an initial 10% interest, before spending a total of $US720,000 for the additional 40.1% interest.
"We haven't really given them [the market] a lot of detail yet because we need to complete the due diligence. There is a lot of information that is already there but unfortunately it is in another language and we didn't want to take the risk of interpreting it unless it was done by someone who was fully qualified," Ioannou said.
"So there is going to be a lot of information that is going to come out over the next four weeks and it is going to be very exciting."
Corachapi is located in the district of Corani, 1600km from Lima, with significant uranium mineralisation said to occur on a plateau sitting almost 5000m above sea level. Range said the deposit is surrounded by tenements currently the focus of uranium exploration by two Canadian companies, Vena Resources and Minerals Corp.
Earlier this month Vena Resources said it had mobilised three exploration teams to start confirmatory exploration on 78 uranium targets at its Peruvian project which coverts a total of 14,000 hectares.
Range said its project contains two zones of mineralisation known as Cornisa Oeste, 1.2km long and 250m wide, and Quebrada Coral, 1.6km long and 200m wide.
The company said the deposit was initially discovered by the Peruvian Institute for Nuclear Energy more than 30 years ago. Previous exploration was said to have included drilling, various evaluation studies and a heap-leaching test, while non-JORC standard reserve calculations have been undertaken by the current concession holder.
The company described the acquisition as timely given the current world market for uranium adding the project had the potential to add significant value to the company.
Shares in Range slumped earlier this year after it announced disappointing results from its Forrestania nickel project in Western Australia. The share price went from a high of just over 5c in December to 2c earlier this month, with the stock closing today at 2.8c.
RRS Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
