Solar Energy Limited (the “Company”) is pleased to announce that it has entered into an agreement with an arms’-length vendor by which the Company can earn a 100% interest in the West Carswell Property (the “Property”). The Property consists of two contiguous mineral dispositions, covering an area of ~2000 hectares, in the western Athabasca Basin, 8.3km west of the Cluff Lake Mine and 12.7km northwest of AREVA/UEX’s Shea Creek Project. Over 22 years, AREVA operated the Cluff Lake Mine and produced over 62M lbs of U3O8. The mine was decommissioned in 2002. The Athabasca Basin is the most productive uranium producing region in the world, producing approximately 1/3 of the world uranium each year.
The Company can earn a 100% interest in the property by paying $100,000 and issuing 2,000,000 common shares to the Vendor in year one. In addition, the company may issue 12,000,000 common shares over 48 months or 9,000,000 common shares with 12 months. The Company must also complete $2,500,000 in exploration expenditures within 24 months. A 1% NSR has also been granted to the Vendor, which may be purchased by the Company for $1,500,000.
The West Carswell Property is ~12 km northwest of UEX’s Shea Creek Project, the most advanced uranium project in the western Athabasca Basin. Shea Creek is host to three uranium deposits which have recently estimated N.I. 43-101 compliant resources. At a cut-off grade of 0.30% U3O8, Indicated mineral resources for the three Shea Creek deposits comprise 1,872,600 tonnes grading 1.54% U3O8 containing 63.57 million pounds of U3O8, and an additional 1,068,900 tonnes grading 1.04% U3O8 in the Inferred category containing 24.53 million pounds of U3O8.
The Company exploration strategy is focused on the fact that the northwest trending fault on which Shea Creek deposit was discovered trends onto the south easternmost part of the west Carswell Project. The northwest trending fault was identified by a MEGATEM survey, performed by Fugro for AREVA in 2006. In 2008, a ttransient magnetotelluric ground survey was conducted by EMpulse Geophysics Ltd. In agreement with previous airborne surveys, this survey detected a series of three or more NW-SE trending parallel subsurface conductors existing between 200-500m. In addition, below the conductors, between 700-1000m, was also found a large disc shaped conductor, roughly 3km in diameter. This anomaly profile strongly resembles the perched mineralization model discovered at Shea Creek.
Background on Shea Creek Project
Shea Creek is host to three uranium deposits which have recently estimated N.I. 43-101 compliant resources: Kianna, Anne and Colette. The following resource estimate for Shea Creek incorporates resources from the three deposits based on drilling information up to December 31, 2009. Mineralization encountered during the ongoing 2010 program is therefore not included.
At a cut-off grade of 0.30% U3O8, Indicated mineral resources for the three Shea Creek deposits comprise 1,872,600 tonnes grading 1.54% U3O8 containing 63.57 million pounds of U3O8, and an additional 1,068,900 tonnes grading 1.04% U3O8 in the Inferred category containing 24.53 million pounds of U3O8.
This estimate confirms Shea Creek as the largest undeveloped uranium resource in the Basin. It also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake.
The majority of the resources are from the Kianna and Anne Deposits, where a significant portion of the resources lie in basement rocks beneath the Athabasca unconformity. A breakdown of resources by deposit at cut-off grades of 0.30% U3O8 and 1.00% U3O8 is provided below:
Breakdown of the Contribution of Each Deposit at Shea Creek to
the Total Resources at a 0.30% U3O8
Cut-off
————————————————————————
Deposit Tonnes Grade U3O8 Tonnes Grade U3O8
U3O8 (lbs) U3O8 (lbs)
(%) (%)
——- ——— —– ———- ——— —– ———-
Kianna Indicated 713,000 1.442 22,665,000 Inferred 573,100 1.360 17,184,000
——- ——— —– ———- ——— —– ———-
Anne 484,500 2.368 25,295,000 299,300 0.674 4,448,000
——- ——— —– ———- ——— —– ———-
Colette 675,100 1.049 15,613,000 196,500 0.668 2,893,000
——- ——— —– ———- ——— —– ———-
TOTALS 1,872,600 1.540 63,572,000 1,068,900 1.041 24,525,000
——- ——— ——— —– ———- ——– ——— —– ———-
Breakdown of the Contribution of Each Deposit at Shea Creek to
the Total Resources at a 1.00% U3O8
Cut-off
——————————————————————–
Deposit Tonnes Grade U3O8 Tonnes Grade U3O8
U3O8 (lbs) U3O8 (lbs)
(%) (%)
——- ——- —– ———- ——- —– ———-
Kianna Indicated 297,400 2.687 17,621,000 Inferred 256,000 2.329 13,143,000
——- ——- —– ———- ——- —– ———-
Anne 232,300 4.321 22,130,000 43,100 1.402 1,332,000
——- ——- —– ———- ——- —– ———-
Colette 255,600 1.811 10,205,000 23,600 1.700 884,000
——- ——- —– ———- ——- —– ———-
TOTALS 785,200 2.885 49,948,000 322,700 2.159 15,360,000
——- ——— ——- —– ———- ——– ——- —– ———-
The Shea Creek resource estimate was prepared by K. Palmer, P.Geo., of Golder Associates Ltd., an independent Qualified Person as defined by N.I. 43-101, and was calculated using a minimum cut-off grade of 0.05% U3O8 utilizing a geostatistical-block model technique with ordinary kriging methods and the DATAMINE Studio 3 software package. The supporting Technical Report dated July 8, 2010 is available on SEDAR and on the UEX website.
AREVA and UEX intend to pursue advanced exploration and development of the Shea Creek Project with the development of one or two underground exploration shafts and related test mining facilities. AREVA has started the necessary studies for site characterization and base line studies for an initial exploration shaft. The proposed shaft location is between the Kianna and Anne Deposits to provide underground access to both deposits as well as the highly prospective corridor between them. Each of the proposed shafts will have a vertical depth of approximately 950 metres.
A number of statements contained in this press release may be considered to be forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Act of 1995. These forward-looking statements involve a number of risks and uncertainties, including timely development, and market acceptance of products and technologies, competitive market conditions, successful integration of acquisitions, and the ability to secure additional sources of financing. The actual results Solar may achieve could differ materially from any forward-looking statements due to such risks and uncertainties. Solar encourages the public to read the information provided here in conjunction with its most recent filings on Form 10KSB and Form 10QSB. Solar’s public filings may be viewed at www.sec.gov
SOURCE: Solar Energy Limited
Solar Energy Limited
Michael Gobuty, 760-773-1111
Chief Executive Officer
