Black Hawk Exploration Finalizes Agreement on Alberta Sun Uranium Project
June 15, 2007 – Black Hawk Exploration (OTCBB:BHWX) is pleased to announce that Black Hawk and Firestone Ventures Inc. (FV: TSX-V;F5V: FSE) have signed a formal option agreement whereby Black Hawk may earn up to a 75% interest in Firestone’s Alberta Sun uranium project located in southwestern Alberta, Canada.
“With the spot price of uranium at record high levels, we are pleased to have acquired such a large land position in a very prospective area for roll-front uranium deposits,” says Andrew von Kursell, President of Black Hawk Exploration “The Alberta Sun uranium property was selected because of the large land package, favorable geology, known uranium deposit indicators, excellent access and the positive business climate in Alberta.”
“We are very pleased to work with Black Hawk Exploration on the Alberta Sun project,” says Lori Walton, President of Firestone Ventures Inc. “This agreement will ensure the advancement of the Alberta Sun project.”
The Alberta Sun uranium property (covering over 200,000 acres) is characterized by easy access across southern Alberta rangeland. Results of initial fieldwork on the project include scintillometer readings of up to 1250 cps (counts per second), visible alteration, shale beds and abundant hematite and carbonaceous material within sandstone. Composite grab samples of isolated organic debris material returned up to 7640 ppm uranium (0.901 U3O8). Grab rock samples (sandstone) from a separate area 40 km southeast returned 57 to 150 ppm uranium. Elevated vanadium, molybdenum, arsenic, and lead values, important indicators of sandstone-hosted uranium, occur at both areas.
A 2,384 line kilometer electromagnetic and magnetic airborne survey over four priority areas has been completed. TerraNotes Ltd. of Edmonton is carrying out initial analysis of the survey to be followed by sophisticated modeling of the dataset which should delineate high-priority areas for drilling.
Under the terms of the agreement, Black Hawk can earn a 60% interest by paying Firestone a total of $210,000 cash (completed) and issuing 135,000 shares on signing (completed) and paying an additional $70,000 cash, issuing 270,000 shares and incurring $700,000 in exploration expenditures over the next two years. Black Hawk can earn an additional 15% interest by paying Firestone $100,000, issuing Firestone 400,000 common shares and incurring another $1 million in exploration expenditures over the following two years. Firestone will retain a 1% net smelter royalty (“NSR”) of which 0.5% can be purchased by Black Hawk for $500,000 at any time. There is an additional 1% NSR to the underlying property owners.