Aldershot Signs Letter of Intent to Purchase NCA Nuclear and Kilgore Gold’s Elkhorn & Alzada Properties
February 14, 2013 (Source: Aldershot Resources Ltd) Vancouver, BC — Aldershot Resources Ltd. (TSX.V-ALZ) through its wholly owned US subsidiary, Royal USA Inc., is pleased to announce they have entered into a Letter of Intent with NCA Nuclear Inc. and Kilgore Gold Company both being wholly owned subsidiaries of Bayswater Uranium Corporation to purchase the Elkhorn and Alzada properties and the associated exploration data for $120,000.00 (USD) cash and 250,000 shares of Aldershot stock – transaction subject to due diligence by Royal, TSX Venture Exchange approval, and the execution of a definitive agreement with NCA Nuclear and Kilgore Gold.
The LOI provides Royal with a path to acquire the Properties and utilize Royal’s analytics to supplement and confirm the results of the historical data. Royal’s acquisition selection process identified properties as being in jurisdictions favorable to granting permits for suitable mining operations. Royal’s management team believes the Properties are well positioned to be developed and offer an opportunity to shorten the path to production.
Mike Leidich, Aldershot President and CEO said, “The Powder River Basin has some of the most assessable uranium in the United States. The comprehensive data set that we’ll acquire with these properties will enable us to more economically determine the location and extent of any roll front deposits at Elkhorn and Alzada.”
The Elkhorn project is located in NE Wyoming and the Alzada project is located in SE Montana. The projects are in close proximity to each other and can be explored and developed in tandem because of the potential economic synergy gained by combining their mining operations. These projects have either historical or NI 43-101 compliant resources that are considered amenable to in-situ recovery (“ISR”) based on favorable metallurgy and hydrology. The Properties are the most promising of what was previously a much larger land holding but was reduced due to economic considerations.
The database that would be included in the ultimate purchase contains original borehole geophysical and lithological logs for nearly 5,000 drill holes, plus hydrologic, water quality, metallurgical, and ISR amenability tests conducted during the 1970’s and the 1980’s, as well as hundreds of maps and cross sections. The database has been digitally compiled and is ready for analysis.
Alzada Project, SE Montana
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Bayswater acquired the Alzada Project through an amalgamation with Kilgore Minerals in 2007. Bayswater subsequently reduced its land holdings at the Alzada Project to only the Acadia/Cochrane property which is included in the LOI.
The Acadia/Cochrane property covers a Kerr McGee roll front target that was previously drilled extensively in a close-spaced pattern. This roll front target occurs in the Fall River Sandstone of the Inyan Kara Group that has been traced for approximately 2.5 miles. At least 254 holes were drilled, mostly on 100 foot spacing along fences at 500 foot intervals. The mineralization occurs at approximately 1,450 feet below surface. The data package contains logs and other data for 333 boreholes on and near the mineralized roll front.
Historical data from the identified roll fronts at Acadia/Cochrane exhibit:
- Numerous historical resource areas that are open along strike in one or both directions which offer potential for defining extensions of the mineralized zones; and
- Areas of encouraging drill results not previously followed-up that could lead to further discoveries along the known roll fronts.
A large number of such targets have emerged from the preliminary data validation and assessment process. These targets provide potential for discovery of mineralized extensions and new mineralized zones.
The Acadia/Cochrane property has a historical resource of approximately 3.7 million pounds U3O8 in 2.1 million tons at a grade of 0.125% U3O8 with an average thickness of about 8 feet. (These are historical resources and are non NI 43-101 compliant. These are not being treated as mineral resources and not to be relied upon as documented in a report by James R. Guilinger dated June 6, 2007 as amended October 17, 2007 filed on Sedar by Bayswater. Key assumptions, parameters, and methods used to prepare the historical estimates, other than those explicitly stated in Mr. Guilinger’s report referenced above, are not known. A portion of the historical estimates were broken down into measured and indicated categories, the remaining historical estimates were not broken down into resource categories and no explanation of the differences is known. There is no more recent data available. Additional drilling and testing is required to determine a current classification as a mineral resource or reserve. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve and Royal is not treating the historical resource as a current mineral resource.). Several areas for expanding the resource have been identified within the mineral lands held by Bayswater.
Elkhorn Project, NE Wyoming
The Elkhorn Project comprises two properties—the Hauber Mine Area (Including Section 4-KI) and Tract 41. The Hauber Mine Area property covers NI 43-101 compliant resources estimated at 501,000 lbs U3O8 Indicated grading 0.18% e U3O8 in 139,000 tons and 153,000 lbs. U3O8 Inferred grading 0.16% eU3O8 in 46,000 tons (NI 43-101 compliant resources on the Elkhorn Project, Wyoming are documented in a report by Thomas C. Pool, P.E., of International Nuclear, Inc. dated January, 2010 entitled Technical Report of the Elkhorn Uranium Project for NCA Nuclear, Inc., a wholly owned subsidiary of Bayswater Uranium Corporation as filed on Sedar by Bayswater. The potential quality and grade is based upon Mr. Pool’s report, but is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.). These resources are adjacent to the former producing Hauber Mine.
The Tract 41 property covers a historical resource of 104,457 lbs. U3O8 grading 0.103% eU3O8 in 50,656 tons (Documented in Federal Resources 1973 historic reports in the Marriott Library Special Collection Archives at the University of Utah. Historical resources are non NI 43-101 compliant, are not being treated as mineral resources and are not to be relied upon. Key assumptions, parameters, and methods used to prepare the historical estimates, other than those explicitly stated in the reports referenced above, are not known. A portion of the historical estimates were broken down into measured and indicated categories, the remaining historical estimates were not broken down into resource categories and no explanation of the differences is known. There is no more recent data available. Additional drilling and testing is required to determine a current classification as a mineral resource or reserve. A qualified person has not done sufficient work to classify the historical estimate as a current mineral resource or mineral reserve and Royal is not treating the historical resource as a current mineral resource.).
Royal is a mineral exploration and development company focused on mineral resources in the United States of America. Royal utilizes an acquisition selection process that ensures each property takes advantage of Aldershot’s skilled analytics, jurisdictional awareness, and close industry relationships to shorten the path to production.
Royal recently completed a very successful project at its Sage Plain Project. Royal initiated an exploration project in the Sage Plain area located approximately 15 miles east of Monticello, Utah. Royal then partnered with Energy Fuels Resources (“EFR”) to form the Colorado Plateau Partners LLC. Royal was the manager of the Sage Plain Project through the exploration portion of development. As was previously reported, the Sage Plain Project is in the permitting phase and was recently sold to EFR. About Aldershot Resources Ltd.
Aldershot Resources Ltd., based in Vancouver, Canada, is a mineral exploration company with a portfolio of uranium and vanadium properties in the United States and Australia. Shares of the Company are listed for trading on the TSX Venture Exchange and there are 159,492,975 shares outstanding.
Qualified Person Statement
Michael G. Leidich, P.E., a qualified person as defined in NI 43-101, has reviewed and approved this news release but has not verified the data disclosed above, nor done any sampling, analytical, or test data underlying the information or opinions contained in the disclosures included in this Press Release.
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