| ||Tue Feb 27, 2007|
Forum Uranium Proposes To Acquire Advanced Stage Uranium Project Near Midwest Lake Mine
| ||Vancouver, BC. February 27, 2007. Forum Uranium Corp. (FDC: TSX-V) is pleased to announce that it has entered into a Letter of Intent to acquire a 100% interest in the Henday project for a consideration of 3 million common shares of the Company and a 2% NSR. The 7,204 hectare Henday property, strategically located 10 kilometres (km) northeast of the Midwest Lake mine project currently under development by AREVA/Denison, is along the trend hosting the Midwest Lake (41 million lbs. U3O8 at an average grade of 5.5%) and the Dawn Lake (13 million lbs. U3O8 at an average grade of 1.7%) uranium deposits.|
Rick Mazur, P.Geo., President & CEO stated, "The Henday project fits with Forum's exploration model in search for shallow deposits with good infrastructure. The project is extremely well located geologically in an area of the Wollaston trend where a number of economic deposits are located. The property is within 20 km of AREVA's McClean Lake mill in the eastern Athabasca Basin. The Henday project is an advanced stage project that complements Forum's other 100% owned Athabasca exploration projects in the Key Lake mine and Maurice Bay deposit areas. We plan to aggressively explore the Henday property, as it has exceptional potential for a shallow, high grade uranium deposit."
Thirty-two widely-spaced drill holes, comprising 7,576 metres (m) were completed from 2000 to 2005 in a first phase drill campaign over a 10 km by 10 km area. Significant hydrothermal alteration and low grade uranium mineralization were encountered in sandstone and basement rocks in several drill holes and encouraging results were obtained from surface boulder sampling programs. One intercept of 0.21% over 4 m in Athabasca sandstone at the unconformity and 10 other holes with anomalous uranium have been intersected in association with electromagnetic conductive trends, strong clay alteration and anomalous uranium and boron geochemistry. The drilling to date clearly indicates that the uranium mineralizing processes, which led to the creation of several uranium deposits in the region, were also active within the Henday claims. A work program for this summer with follow-up drilling in the winter of 2008 is planned.
Highlights of the Henday project are:
• $1.7 million dollars has been spent on electromagnetic and gravity surveys, sandstone boulder exploration and 7,576 m of diamond drilling of the property. The quality of work on the Henday property since 1999 is exceptional, as it was directed by ex-Uranerz Exploration and Mining Ltd. uranium geologists Klaus Lehnert-Thiel and Fritz Hopfengartner.
• The mineralization is shallow - the unconformity is at an average depth of 160 m, ranging from 125 m to 220 m.
• Uranium mineralization ranges from 12.4 ppm U to 0.21% U3O8 in both sandstone and basement rocks.
• Uranium mineralization is associated with nickel and cobalt, a similar association as at Midwest Lake.
• The average penetration of drilling into the basement is only to a depth of 50 metres. Alteration of the basement rocks indicates potential for basement hosted deposits that has not been thoroughly tested from the drilling to date.
• 8 conductive trends totalling 45 line kilometres have been outlined on the property from ground electromagnetic surveys that identify prospective graphitic rocks in basement rocks that are associated with all uranium deposits in the region.
• Strongly developed clay (illite and dravite) alteration and anomalous boron geochemistry are evident in the drillholes and are associated with these conductive trends.
• A total of 234 sandstone boulder samples were collected that identified anomalies of clay alteration, uranium and boron in the area of six conductive trends in the northeast of the property.
• One of these conductive trends continues on to AREVA's ground to the east where the Mallen Lake showing, located a few hundred metres from the property boundary, has drill intercepts of 5.9% U3O8 over 0.3 m and 2.5% U3O8 over 0.3 m in basement rocks.
Forum has entered into a Letter of Intent with Uranium Holdings Corporation ("UHC"), a private company organized to hold 100% title to the Henday property. Forum will acquire all of UHC's title to the Henday property in consideration for 3 million Forum common shares ("Shares") and a 2% Net Smelter Royalty ("NSR"). The common shares will be restricted from trading such that 750,000 Shares will be tradeable 4 months following the Closing Date and a further 750,000 Shares will be tradeable every 6 months thereafter, subject to a covenant of Forum to use reasonable commercial efforts to an early release of some or all of the Shares on mutually acceptable terms. Forum also has the right to purchase one-half of the NSR from UHC for US$1 million. A finders fee of 150,000 shares will also be paid by Forum in connection with this transaction. A Closing Date of March 15, 2007 is anticipated, subject to the execution of a definitive agreement and acceptance of the transaction by the TSX Venture Exchange.
Richard Mazur, P.Geo., President & CEO and Dr. Boen Tan, P.Geo. (Saskatchewan), Chief Geologist of Forum Uranium Corp. are the Qualified Persons that have reviewed the contents of this news release.
About Forum Uranium
Forum Uranium Corp. is a Canadian-based energy company with a focus on the acquisition, exploration and development of uranium projects. The Company has a 100% interest in over 160,000 hectares of uranium exploration properties, a 65% operating interest in the Costigan Lake Joint Venture with partner NVI Mining (Breakwater Resources) and a 50% operating interest in the Haultain River Joint Venture with partner Hathor Exploration in the prolific Athabasca Basin, Saskatchewan. Forum also has a 50% operating interest in the North Thelon Joint Venture with partner Superior Diamonds in over 100,000 hectares of prospective ground nearby AREVA's 130 million pound U3O8 Kiggavik uranium deposit in the Thelon Basin, Nunavut Territory.
ON BEHALF OF THE BOARD
Richard J. Mazur, P.Geo.
President & CEO
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
For further information contact:
Manager of Corporate Communications
FORUM URANIUM CORP.
910-475 Howe Street
Vancouver, BC V6C 2B3
You can view the Next News Releases item: Wed Mar 7, 2007, Forum Announces Stock Option Grant
You can view the Previous News Releases item: Tue Feb 20, 2007, Forum Uranium Completes Orchid Lake Drilling; Moves To Hobo
You can return to the main News Releases page, or press the Back button on your browser.