May 12, 2011

Reva Amends terms of Radio Property Agreement

Further to its news release of February 8, 2011, the Company announces that it has reached an agreement to amend the terms of its option agreement to acquire an interest in the Radio Property in northern Saskatchewan.

As amended, the agreement provides that the Company will now have the option to acquire a 70% interest in the Radio Property rather than a 60% interest as initially agreed to. The cash consideration of $6,000,000 is also now to be paid in increments of $600,000 per annum over 10 years, as opposed to $6,000,000 upon TSX Venture Exchange approval as originally contemplated. Finally, the put option provided for under the original agreement whereby the vendors had the right to put the remaining interest in the Radio Property to the Company for shares has been cancelled. The remainder of the terms as disclosed in the February 8, 2011 news release continue to apply.

Closing of the option agreement continues to be subject to the acceptance of the TSX Venture Exchange.

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 mineralization is less than 1800 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 (2.3 km west), the Midwest (5.27km SW) and Midwest "A" (3.3 km SW) deposits, the Dawn Lake deposits (2.5 km SE), the JEB deposit (6 km east) and the Tamarack deposit (8 km south); the AREVA McClean Lake uranium mill is located 7 kilometres east of the Radio Property.

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;
  • the basement rocks on half the property are interpreted to be Wollaston Group metasediments,
  • structures on the property have similarities to those hosting uranium mineralization in the district,
  • there are some encouraging exploration results from the historical work, including elevated to anomalous values from geochemical surveys including uranium in lake sediments (5 ppm uranium over a background of 2.0 - most lakes on the property have greater than 2ppm U), and a 2002 airborne survey that outlined a broad conductive zone along the southeast boundary of the property.

In summary, the geological data and previous exploration results are encouraging and suggest that there is potential for uranium mineralization on the Radio property.

The Qualified Person having prepared the technical aspects of this news release is Mr. Allan McNutt, P.Geo.
For further information contact:
Douglas Scheving
604-685-6851
info@revaresources.com

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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