Feb 08, 2011
Reva Acquires Option Over 60% Interest in Athabasca Basin Uranium Project in Saskatchewan
Mr. Douglas Scheving, president of Reva Resources Corp ("Reva" or the "Company") reports that Reva has acquired an option (the "Option") from three arms length individuals (the "Optionors") over a 60% interest in the Radio Property ("Radio" or the "Property"), a uranium property that comprises Mineral Claim Block MCSA 001 located 8 km north-northeast of Points North in northern Saskatchewan, and less than 7 km from all weather Highway 905.
The Radio property is 847 hectares in size and adjacent to the Hathor Exploration Ltd Midwest Northeast claims (Roughrider Project) in the eastern Athabasca Basin. The Roughrider uranium deposit is less than 1500 metres from the Reva -- Hathor claim boundary. There are also several uranium deposits and mineralized zones within a 10 km radius of the Radio Property including Fission Energy's J-Zone (3 km west), the Midwest (7km SW) and Midwest "A" (4 km SW) deposits, the Dawn Lake deposits (3 km SE), the JEB deposit (8 km east) and the Tamarack deposit (8 km south); the AREVA McClean Lake uranium mill is located 8 kilometres east of the Radio Property.
In order to exercise the Option over the 60% interest in the Property, the Company is to pay the Optionors $6,000,000 and issue them collectively such number of common shares of the Company as is equal to 30% of the issued and outstanding common shares of the Company following the completion of equity financings totaling $25,000,000. The Company is to incur a total of $25,000,000 of expenditures on Radio over 5 years, with $15,000,000 of such expenditures to be incurred within 3 years. Upon exercise of the Option, the Optionors may elect to enter into a 60/40 joint venture with Reva to further develop Radio, or alternatively, may put the remaining 40% interest in Radio to the Company in consideration for such number of shares of the Company as have a value, using the then market price of the Company's shares, as is equal to the then market capitalization of Reva, less the monies in its treasury at that time. The Radio property is subject to a 2% net smelter royalty together with a 2% gross overriding royalty on diamonds recovered, both in favour of the Optionors.
The Athabasca Basin is one of the world's most prolific high grade uranium districts and is host to many uranium deposits. Most of the uranium deposits in the eastern Athabasca Basin are localized at the intersection of northeasterly to easterly trending faults and the unconformity between the flat lying Athabasca sandstones and the underlying basement Wollaston Group metasedimentary rocks. Many of the deposits lie close to areas of higher magnetic response, usually caused by magnetite bearing Archean granitoid rocks in the basement to the Athabasca sandstones. The Radio property is underlain by approximately 200 metres of Athabasca Group sandstones. As interpreted from airborne magnetic surveys, the north half of the property has basement of magnetic granitoid gneisses, and the south half of the property (and probably the very northwest corner) have Wollaston Group metasediments as the basement. Structural trends identified on the Radio property are east-northeasterly, north-northeasterly, east-west, and northwesterly. These are similar to trends of structures hosting mineralization in the area; the Roughrider deposit is reported to be in part hosted by an east-west trending structure.
The Radio property was part of the Dawn Lake project from 1976 to 2003 and previous exploration work was conducted by Asamera Oil Corp (1976-1982) and Cameco Corp (1983 to 2003). Previous exploration work on the Property, as recorded in the Saskatchewan Ministry of Energy and Resources Assessment files, included airborne and ground geophysical surveys (magnetic, electromagnetic and radiometric data), geochemical surveys and prospecting. Relevant technical information is as follows;
In summary, the geological data and previous exploration results are encouraging and suggest that there is potential for uranium mineralization on the Radio property.
Mr. Allan McNutt, P.Geo has been retained by the Company to prepare a NI 43-101 Technical Report on the Radio property.
A finder's fee calculated in accordance with the policies of the TSX Venture exchange is payable in connection with the Option.
The Option agreement remains subject to the acceptance of the TSX Venture Exchange.
The Qualified Person having prepared the technical aspects of this news release is Mr. Allan McNutt, P.Geo.
For further information contact:
Neither the TSX Venture Exchange nor its Regulation Service Provider (as the terms is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
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