Aldershot Resources Ltd. ("Aldershot") through its wholly owned US subsidiary, Royal USA Inc. ("Royal"), is pleased to announce that they have completed the purchase of the Elkhorn and Alzada properties from NCA Nuclear Inc. (NCA Nuclear") and Kilgore Gold Company ("Kilgore Gold") both being wholly owned subsidiaries of Bayswater Uranium Corporation ("Bayswater").
Also included in the purchase was a large database of exploration data. Total expenditure for this purchase was $120,000.00 (USD) cash and 250,000 shares of Aldershot stock, which are subject to a hold period expiring on August 6, 2013.
The purchased properties will furnish a good beginning land position which can be expanded through the analysis and efficient use of Royal's newly acquired data. The data package also includes information outside the purchased properties. Royal's management team believes the data and related properties are well positioned to be developed and offer an opportunity to shorten the path to production.
Mike Leidich, Aldershot President and CEO said, "The purchase of these properties, located in the jurisdictionally favorable Wyoming Powder River Basin, should give Royal a very favorable base to build upon. The acquired comprehensive data coupled with our exploration expertise, has put our company in the enviable position of being able to supplement and confirm the results of the historical data to efficiently analyze the geology to determine the location and extent of roll front deposits at Elkhorn and Alzada."
The Elkhorn project in NE Wyoming and the Alzada project in SE Montana are in close proximity to each other. These projects have either historical or NI 43-101 compliant resources that are considered amenable to in-situ recovery ("ISR") based on favorable metallurgy and hydrology. The properties are the most promising of the previous owners much larger land holdings which were reduced due to economic considerations.
The database that was included in the ultimate purchase contains data on nearly 5,000 drill holes, plus hydrologic, water quality, metallurgical, and ISR amenability tests conducted during the 1970's and the 1980's, as well as hundreds of maps and cross sections. The database has been digitally compiled and is being analyzed.
Alzada Project, SE Montana
Bayswater acquired the Alzada Project through an amalgamation with Kilgore Minerals in 2007. Bayswater subsequently reduced its land holdings at the Alzada Project to only the purchased Acadia/Cochrane property.
The Acadia/Cochrane property covers a Kerr McGee roll front target that was previously drilled extensively in a close-spaced pattern. This roll front target occurs in the Fall River Sandstone of the Inyan Kara Group that has been traced for approximately 2.5 miles. At least 254 holes were drilled, mostly on 100 foot spacing along fences at 500 foot intervals. The mineralization occurs at approximately 1,450 feet below surface. The data package contains logs and other data for 333 boreholes on and near the mineralized roll front.
Historical data from the identified roll fronts at Acadia/Cochrane exhibit:
- Numerous historical resource areas that are open along strike in one or both directions which offer potential for defining extensions of the mineralized zones; and
- Areas of encouraging drill results not previously followed-up that could lead to further discoveries along the known roll fronts.
A large number of such targets have emerged from the preliminary data validation and assessment process. These targets provide potential for discovery of mineralized extensions and new mineralized zones.
The Acadia/Cochrane property has a historical resource of approximately 3.7 million pounds U3O8 in 2.1 million tons at a grade of 0.125% U3O8 with an average thickness of about 8 feet. (These are historical resources documented in a report by James R. Guilinger dated June 6, 2007 as amended October 17, 2007 filed on Sedar by Bayswater. Key assumptions, parameters, and methods used to prepare the historical estimates, other than those explicitly stated in Mr. Guilinger's report referenced above, are not known. A portion of the historical estimates were broken down into measured and indicated categories, the remaining historical estimates were not broken down into resource categories and no explanation of the differences is known. There is no more recent data available. Additional drilling and testing is required to determine a current classification as a mineral resource or reserve. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, and the issuer is not treating the historical resource as a current mineral resource.). Several areas for expanding the resource have been identified within the mineral lands held by Bayswater.
Elkhorn Project, NE Wyoming
The Elkhorn Project comprises two properties - designated as the Hauber Mine Area and Tract 41. The Hauber Mine Area property has a historical resource estimated at 501,000 lbs. U3O8 Indicated grading 0.18% e U3O8 in 139,000 tons; and 153,000 lbs. U3O8 Inferred grading 0.16% eU3O8 in 46,000 tons. (These are historical resources were stated as being 43-101 compliant resources on the Elkhorn Project, Wyoming in a report by Thomas C. Pool, P.E., of International Nuclear, Inc. dated January, 2010 entitled Technical Report of the Elkhorn Uranium Project for NCA Nuclear, Inc., a wholly owned subsidiary of Bayswater Uranium Corporation as filed on Sedar by Bayswater. The potential quality and grade is based upon Mr. Pool's report, but is conceptual in nature and there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources). These historical resources are adjacent to the former producing Hauber Mine.
The Tract 41 property covers a historical resource of 104,457 lbs. U3O8 grading 0.103% eU3O8 in 50,656 tons (Documented in Federal Resources 1973 historic reports in the Marriott Library Special Collection Archives at the University of Utah. Historical resources are non NI 43-101 compliant, are not being treated as mineral resources and are not to be relied upon. Key assumptions, parameters, and methods used to prepare the historical estimates, other than those explicitly stated in the reports referenced above, are not known. A portion of the historical estimates were broken down into measured and indicated categories, the remaining historical estimates were not broken down into resource categories and no explanation of the differences is known. There is no more recent data available. Additional drilling and testing is required to determine a current classification as a mineral resource or reserve. A qualified person has not done sufficient work to classify the historical estimate as current mineral resources, the issuer is not treating the historical estimate as current mineral resources).