Wed Sep 15, 2004 High Grade Uranium Intersected Adjacent to Max's Claims in the Northwest Territories
MAX Resource Corp. ("MAX") has been advised by Alberta Star Exploration Inc. (TSX-V:ASX; OTC BB: ASXSF) that Fronteer Development Group (TSX:FRG), as operator, has intersected high-grade uranium mineralization on their Longtom Lake property in the Bear province of Canada's Northwest Territories, immediately adjacent to MAX's Target 1 and Target 2 Claims, which are jointly held with Alberta Star.
Drilling conducted by Fronteer intersected:
1.68 per cent U3O8 over one metre at a downhole depth of 80 metres. This uranium intercept was part of a broader interval that returned 0.56 per cent U3O8 over three metres; and
0.16 per cent U3O8 over one metre was intersected at a depth of 51 metres in the same hole.
Previous drill campaigns by other operators focused on the copper-gold potential of the property but also intersected anomalous to high-grade uranium. Within a 300-metre radius of the new high-grade discovery, eight historic drill holes intersected uranium mineralization with indicated values ranging between:
0.21 per cent U3O8 over 0.6 metre at a downhole depth of 44.5 metres; and
0.48 per cent U3O8 over 1.5 metres at a downhole depth of 59 metres.
Based on recent drill hole results and historical records in the surrounding area, there are indications of a near-surface uranium system, that has both size and high-grade potential. The world average grade from producing uranium mines is 0.15 per cent U3O8.
Over the next decade, uranium supply is expected to fall short of demand and the current production shortfall is more than 300 million pounds. Spot uranium prices have risen from a cyclical low of $7.10 (U.S.) per pound in late 2000 to a recent 20 year-high price of $19.50/lb.
Fronteer has the option, subject to TSX Venture Exchange approval, to earn a 75% interest in the Longtom Lake property from Alberta Star by paying $15,000 in cash and spending an aggregate of $500,000 on exploration over three years. Fronteer will be the operator of the program during the earn-in period. Fronteer has, in turn, sub-optioned a 50% interest in the Longtom project to Northwestern Mineral Ventures Inc. (TSX-V:NWT) in exchange for Northwestern completing $5.0-million in exploration work by September, 2008. Based on the current and projected price of uranium, Northwestern's management team has asked Fronteer, as operator, to prepare a follow-up program on the Longtom property. This program is to explore and expand uranium targets over the course of the next year.
In January, 2003 MAX acquired a 50% interest in the Target 2 Claim, located adjacent to and immediately north and west of Alberta Star's Longtom Lake property located 350 kilometers northwest of Yellowknife. The Target 2 Claim is comprised of 2,530.8 hectares.
In April, 2003 MAX acquired a 50% in the Target 1 claim, comprising 1,781.9 acres adjacent to the west side of the Longtom Lake property. Subsequent to MAX acquiring its interests in the Target 1 and 2 Claims, the vendor sold the remaining 50% interest in both of these claims to Alberta Star.
More information on these properties is available at www.maxresource.com.
On behalf of the Board of Directors of MAX Resource Corp.
The contents of this news release have neither been approved nor disapproved by the TSX Venture Exchange.
This News Release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause MAX's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
You can view the Next News Releases item: Mon Apr 4, 2005, MAX Options Uranium Project at MacInnis Lake in Northwest Territories; Announces Private Placement of $400,000.
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