UC Resources Ltd. ("UC" or the "Company") (TSX VENTURE:UC) is
pleased to provide this information update to its shareholders,
stakeholders and interested parties.
On November 10th, 2011, UC Resources announced that it had
entered into a definitive agreement (the "Purchase Agreement") with
Freewest Resources Inc. ("Freewest"), a wholly owned subsidiary of
Cliffs Natural Resources Inc. (NYSE:CLF)(PARIS:CLF) ("Cliffs"), for
Freewest to acquire 100% of the UC owned 55% Joint Venture Interest
in the McFaulds Lake area property (the "Joint Venture Interest"),
subject to and in accordance with the Joint Venture Agreement dated
as of July 26, 2011 (the "Joint Venture Agreement") between KWG
Resources Inc. ("KWG"), Spider Resources Inc. (now named Cliffs
Chromite Far North Inc.), a wholly owned subsidiary of Cliffs
("Spider"), and UC.
Within the definitive agreement, the purchase price payable to
UC by Freewest is $6,000,000 CDN ($6 Million), payable by deposit
of $850,000 on the signing date followed by the balance on the
closing date.
On November 11th, 2011, UC received notice from Cliffs Chromite
Far North Inc. of an election to exercise their pre-emptive right
in accordance with the Joint Venture Agreement under the same terms
as the definitive purchase agreement.
On November 14th, 2011, KWG issued a press release that they
were "analyzing the matter carefully". As of today's date KWG has
not made their intention known, but in accordance with the Joint
Venture agreement, has 45 days from receipt of the notice of
November 10th, 2011 to participate in the pre-emptive right,
proportionally to its present interest in the joint venture.
UC Resources has received conditional approval on the definitive
purchase agreement from the TSX venture exchange on November 28th,
2011. UC Resources is awaiting the final outcome subject to the
pre-emptive rights and following that, the subjects of acceptance
and approval of the TSX Venture Exchange on the final ownership of
the Joint Venture Interest.
Assuming successful close of all conditions of the sale of
McFaulds Lake, the company will be enabled to press forward to its
major resource area of Mexico where the majority of its assets
exist, with a high level of focus and begin to leverage its
projects in Mexico for the benefit of shareholders.
La Yesca:
The La Yesca tailings mill runs 24/7 and the company came very
close to having the ability to be able to claim commercial
production, but then ran into equipment, temporary power grid and
flooding issues and other ongoing plant flow issues. These issues
have been addressed ongoing, but will be addressed substantially
through the injection of capital required to augment the flow
process at the mill to a more final production solution in the
first quarter of 2012. Following this period, the goal of the
company is to operate the mill at a consistent run rate of 200+
Tonnes per day, which will result in the type of long term revenue
run rates that will assist the company in achieving a number of
goals in a number of areas.
Xora:
The Xora claim is within approximately 1 Kilometre of the La
Yesca mill and is a significant exploration asset with an inferred
mineral resource of 11,730 tonnes grading 0.70 g/t gold and 619 g/t
silver. Within the Xora claim is the La Colorado mine, a past
producing gold and silver mine, tonnage mined is unknown. Lower
grade gold and silver found immediately east of the La Colorada
mine opening suggests that a zone of bulk mineable material may
exist on the property, within which there may be additional high
grade mineralization similar to the La Colorada vein. Mapping and
sampling of the Xora claim will commence in the first quarter of
2012 followed by drilling of the more interesting areas based on
the new sampling, mapping, and previous ground IP geophysics.
Assuming grades of success for silver and gold would allow for the
expansion and extension of materials supplied to the La Yesca
production mill site.
La Pinta: (Newly Acquired Property)
The La Pinta claims were issued to UC Resources on April 20,
2011 by the Secretary General of Mining in Mexico and consist of
three land packages totalling approximately 64 hectares. This land
package is again within 1 Kilometre of the La Yesca mill. It is a
virgin land package which will also be mapped and sampled prior to
drilling. As with the XORA claim the Pinta claim could provide
fresh mill feed to the La Yesca Mill.
Mar:
In May 2006, we followed up the Minera Silver Creek agreement by
adding the acquisition of the MAR Project, consisting of a property
concession amounting to approximately 10 square kilometers. The
property has a history of small scale mining activity and is easy
to access and develop. The property is approximately one hour away
from Guadalajara and has access from major roadways with excellent
access.
The Mar concession has substantial merit as a potential setting
for epithermal gold-silver deposits. Supporting evidence includes
the following:
-- The property is underlain by favourable Cretaceous-Tertiary andesite-
rhyolite volcanic stratigraphy. These rocks are host to numerous small
to large gold-silver deposits throughout the Sierra Madre Occidental
physiographic province of Mexico.
-- Major structural features (faults and lineaments) have been mapped in
the region and in the vicinity of the Mar concession. Some of these
features appear to be related to magnetic anomalies which may represent
Tertiary age plutons intruded into the volcanic sequence. If so, then in
addition to the mappable features, the intrusion of the pluton would
have caused micro-fracturing of the volcanic rocks which would act as
channel ways for mineralizing fluids. One such magnetic anomaly lies
just to the east of the Mar concession.
-- At least a portion of a past producing mine, Piedra Bola, lies within
the concession boundaries. The style of the occurrence - veins and vein
stockworks, the precious metals, base metals and trace metals present,
and the associated silica, sericite, hematite and argillite alteration,
all are consistent with the model for an epithermal precious metal
deposit.
-- There are several other known mineral silver - gold occurrences in the
immediate area of the Mar concession, several of which were past
producing mines. Silver appears to be equally important as gold. These
mineral occurrences are hosted within the Cretaceous to Tertiary age
andesite-rhyolite volcanic rock sequence.
-- Work by Consejo suggests that other mineralized vein structures may
exist within the vicinity of the main Piedra Bola vein. In addition,
assays for 7 of 8 samples collected were on average 0.133 g/t Au and
26.5 g/t Ag).
Copalquin:
The Copalquin property is a historically productive 7,000
hectare land package located in the North Western state of Durango
in Mexico. Previous drill programs at the Copalquin Project have
confirmed potentially economic mineralization at three main target
areas, Cometa, Refugio and La Soledad. All of the mineralized zones
that have been tested are open at depth and along strike and
clearly warrant additional drill testing.
It is important to note that in addition to the zones that have
been tested, available data suggests that the extent of the
epithermal system at Copalquin may be much larger than has
previously been recognized.
The company plans to resume a more detailed exploration program
after successful commercial production at La Yesca.
It should be noted that recent historical reported results
include 5.2 metres of mineralization averaging 45 g/tonne gold and
1,563 g/tonne silver during the Phase II drill program in 2006.
Drilling clearly showed that alteration and silicification
associated with the epithermal system is pervasive and extensive.
UC historical results also included 50 ounces/tonne silver and 1.4
ounces/tonne gold over 5 metre intersection at La Soledad.
In 2007, UC intersected 2.45 meters averaging 1.52 ounces per
tonne gold and 112.1 ounces per tonne silver at La Soledad.
Acquisitions:
With the focus on Mexico and the current condition of the
economy the company believes that excellent project/property
opportunities will arise. We are currently evaluating new projects.
UC Resources will have sufficient capital reserves to be able to
selectively choose those opportunities that will best suit the
company and its plan to acquiring near term production assets.
The Annual General Meeting of shareholders of UC Resources is to
be held at the 10th Floor - 595 Howe Street, on December 15, 2011
at 10:00 AM (Pacific Time). Gary Monaghan and Jim Voisin will be in
attendance and available to answer any questions of shareholders
and plans for 2012.
UC Resources is an active explorer and producer of precious
metals in Mexico.
On behalf of the Board of Directors,
Gary Monaghan, CEO
We seek safe harbour.
Investors are invited to visit the UC Resources IR Hub at
http://www.agoracom.com/ir/UCResources where they can post
questions and receive answers or review questions and answers
already posted by other investors. Alternatively, investors are
able to e-mail all questions and correspondence to UC@agoracom.com
where they can also request to be added to the investor e-mail list
to receive all future press releases and updates in real time.
This news release includes certain forward-looking statements or
information. All statements other than statements of historical
fact included in this release, including, without limitation,
statements relating to the terms of the Purchase Agreement and
other future plans, objectives or expectations of the Company are
forward-looking statements that involve various risks and
uncertainties. There can be no assurance that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Important factors that could cause actual results to differ
materially from the Company's plans or expectations include risks
relating to general economic, market or business conditions,
regulatory changes, timeliness of government or regulatory
approvals and other risks detailed herein and from time to time in
the filings made by the Company with securities regulators. The
Company expressly disclaims any intention or obligation to update
or revise any forward-looking statements whether as a result of new
information, future events or otherwise except as otherwise
required by applicable securities legislation.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
Contacts: UC Resources Ltd. Mr. Gary Monaghan CEO
1-778-478-9530monaghan@ucresources.netwww.ucresources.net
