Western Uranium Forms Meryllion Minerals Corporation to Explore for Copper-Gold in South America
October 26 2010 - 8:30AM
Marketwired
Western Uranium Corporation (TSX VENTURE: WUC) (the "Company") is
pleased to announce that it has established a new corporate entity
to conduct exploration activities in South America. The new
company, Meryllion Minerals Corporation ("Meryllion"), is currently
a wholly-owned subsidiary of the Company and will be headed up by
Willem Fuchter, PhD PGeo, a geologist with worldwide experience in
gold and base metal exploration.
Meryllion has acquired an option to purchase the 14,000 hectare
Cerro Amarillo-Cajon Grande copper-gold property located in the
Malargue District, in the Province of Mendoza, Argentina. Under the
option agreement Meryllion has the exclusive right to engage in
exploration activities on the properties for up to 52 months before
exercising its option to acquire a 100% interest in the properties.
The option is exercisabeable by Meryllion at any time, however, so
long as the exploration program is ongoing, Meryllion will make
payments to the owners of the property, which payments will total
US$525,000 if the exploration program continues for at least 40
months. When the option is exercised, Meryllion will pay a final
purchase price of US$2,500,000. The owners of the property will
also be entitled to a 1% NSR in the event the properties are placed
into commercial production. The Cerro Amarillo - Cajon Grande
property is located at the southern end of the highly productive
Late Miocene - Pliocene magmatic arc that hosts the El Teniente and
Los Bronces porphyry giants in Chile. The yet-to-be tested property
has drill targets indicated by geophysics (IP and magnetics), and
contains a number of other unexplored prospective areas.
About Meryllion Minerals Corporation
The Company's board of directors recently approved management's
recommendation that the Company no longer focus exclusively on
uranium exploration in Canada and the United States. Given that
mandate, Meryllion was created by the Company to undertake
exploration programs in, and to acquire an interest in, South
American properties, with an emphasis on Argentina, Brazil and
Peru.
The Company has agreed to fund Meryllion with a minimum of US$2
million over the next two years with the goal of developing a
"property of merit" that will qualify for a TSX Venture Exchange
listing. Dr. Fuchter will head up the exploration effort with the
support of a technical team headquartered in Buenos Aires.
Immediately prior to the TSX Venture Exchange listing the
management team will own 10% of the listed company with the Company
holding the remaining 90%, not including any interim equity
financing.
Dr. Fuchter has over 25 years' experience working in mines and
on exploration projects in Africa, Asia, North and South America,
Europe, and the Middle East for both junior and major mining
companies, including Riofinex, Falconbridge Gold, Kinross, and
Ivanhoe Mines. He has degrees from Rhodes University in South
Africa and Queen's University in Canada, and is a registered
Professional Geoscientist in the Province of Ontario.
About the Cerro Amarillo-Cajon Grande Property
Cerro Amarillo-Cajon Grande is a gold-rich porphyry property
containing two partially explored mineralized porphyry systems and
four unexplored colour anomalies. The two porphyry occurrences are
known as Cerro Amarillo and Cajon Grande. The property is located
at a latitude of 35 degrees 16' 25" S and a longitude of 70 degrees
09' 22" approximately 25 kilometers due east of the Chilean border.
The prospect lies at an elevation of about 3,400 meters above sea
level in the foothills of the Cordillera.
The Cerro Amarillo occurrence contains a classical porphyry
system that includes stockwork-, disseminated-, skarn-, breccia-
and vein-styles of mineralization. Mineralization is typically
zoned. The central porphyry plug contains abundant "A" type
quartz-magnetite stockworks. Chalcopyrite occurs in the stockworks
and is disseminated in the altered intrusive. Fresh sulphides are
visible at surface. However, within the surrounding hydrothermal
breccia zone, deep weathering and abundant pyrite is expected to
result in an excellent supergene trap for copper and gold leached
from the central porphyry and the breccia itself. The skarns occur
in an almost perfect ring at the intersection between vertical
cylinder of breccia and the shallow dipping calcareous sediments.
At the current level of erosion, almost the entire ring is exposed
at surface. Garnet skarns are most abundant with lesser amounts of
epidote, sulphide, hematite and magnetite. Sparse peripheral veins
containing barite, hematite, galena and sphalerite occur out to a
radius of approximately 1km from the centre of the system. Previous
grab sampling indicates that these veins can contain high gold
grades, although their volume is limited. Ground magnetics and
alteration patterns suggest that there is potential for the system
to enlarge with depth.
The data collected to date indicate fertile gold-rich Cu-Mo-Au
porphyry systems located on the property situated at the southern
end of the El Teniente/Los Bronces belt which have not been
drill-tested. And with the advent of the austral summer, Meryllion
will be mounting an exploration campaign that is expected to lead
to first-stage drill testing of the Cerro Amarillo occurrence.
About the Company
Western Uranium Corporation is a mineral exploration company
with properties in Argentina, Nevada, and New Mexico and has
entered into an earn-in agreement with AuEx Ventures for the Baza
gold-copper project in Spain. The Company has its head office in
Vancouver, Canada; its executive management team is based in Reno,
Nevada.
On behalf of the Board of Western Uranium Corporation
Pamela J. Klessig, President & CEO
The TSX Venture Exchange has neither approved nor disapproved of
the contents of this press release. Neither the TSX Venture
Exchange nor its Regulation Services Provider (as such term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
Contacts: Western Uranium Corporation Pamela Klessig Chief
Executive Officer 775-827-3311 info@westernuranium.com
www.westernuraniumcorp.com
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