Thu Oct 1, 2009 New Rare Earth Occurrence Identified Near Kiggavik Uranium Deposit in Nunavut; $800,000 Financing Arranged
Vancouver, B.C. October 1, 2009. Forum Uranium Corp. (FDC: TSX-V) is pleased to announce that it has discovered a new rare earth element occurrence upon review of its uranium geochemical databases in Saskatchewan and Nunavut. Subsequent follow-up exploration during this past summer exploration season has resulted in the identification of alkaline intrusive rocks outcropping over a 10 km by 10 km area located 13 kilometres southeast of Areva's Kiggavik uranium deposit in Nunavut. The "Nutaaq" area (Inuktitut for "Something New") is 100% owned by Forum, subject to a 2% net smelter royalty to Nunavut Tunngavik Inc. Forum is also pleased to announce that it has arranged an $800,000 financing of the Company.
Approximately 900 grab samples were collected over the Company's North Thelon Project during uranium exploration conducted by Forum in 2007 and 2008. Of the 255 samples collected in the Nutaaq area, 155 samples grade from 0.1% to 3.8% total rare earth oxides (TREO). These rare earth elements are accompanied by elevated levels of zirconium, niobium and tantalum. A selected list of rare earth assays is shown below in Table 1.
During the 2009 field season, further geological mapping and sampling at Nutaaq was conducted for geochemical, petrographic and mineralogical analysis to better determine the nature of the rare earth mineralization. Samples from this program have been sent to the Saskatchewan Research Council (SRC) for complete analysis of rare earth elements by SRC's Rare Element Analysis Package. The percentage distribution of light and heavy rare earth elements, as a percentage of total rare earth elements will be determined once these results are received by month end. Forum anticipates that further exploration for rare earth deposits on the property will be conducted as part of its uranium exploration program in 2010.
Table 1: Rare earth and rare metal oxide values (%) from selected Nutaaq area uranium prospecting samples. All values are derived from ICP-OES total digestion analysis.
Sample
Number
50042
55250
50170
50575
50583
Light
Rare Earth Elements (%)
La2O3
0.960
0.931
0.982
0.246
0.103
Ce2O3
1.569
1.593
1.091
0.523
0.206
Pr2O3
0.205
0.167
0.159
0.046
0.018
Nd2O3
0.598
0.582
0.515
0.196
0.076
Pm2O3
+
+
+
+
+
Sm2O3
0.086
0.084
0.062
0.025
0.015
Heavy
Rare Earth Elements (%)
Eu2O3
0.021
0.018
0.016
0.006
0.006
Gd2O3
0.063
0.036
0.034
0.017
0.018
Tb2O3
0.010
0.003
0.004
0.006
0.009
Dy2O3
0.041
0.010
0.014
0.007
0.023
Ho2O3
0.007
0.001
0.004
-
0.006
Er2O3
0.021
0.006
0.008
0.005
0.016
Tm2O3
*
*
*
*
*
Yb2O3
0.012
0.001
0.004
0.001
0.021
Lu2O3
*
*
*
*
*
Y2O3
0.217
0.023
0.055
0.027
0.165
Total
Rare Earth Oxides (TREO) %
3.809
3.455
2.949
1.106
0.682
Other
Rare Metal Oxides (%)
ZrO2
0.034
0.031
0.065
0.197
4.822
Nb2O5
0.031
0.024
0.035
0.006
0.295
Ta2O5
0.000
0.001
0.000
0.001
0.019
+ Not analyzed. Promethium (Pm) is not a naturally
occuring element and so is not included in exploration assay suites.
* Not analyzed. As these samples were originally uranium prospecting
samples they were processed at the Geoanalytical Laboratory of the
Saskatchewan Research Council utilizing their "Multi Element Uranium
Exploration Package ICP 1" which does not include all of the rare
earth elements. Future REE prospecting samples will be analyzed
for the complete suite.
- Values below detection limits of the "Multi Element Uranium Exploration
Package ICP 1"
Ken Wheatley, P.Geo. (Saskatchewan and Nunavut), Forum's Vice President, Exploration is the Qualified Person that has reviewed the contents of this news release.
Financing Terms
Forum has arranged a non-brokered private placement for up to 10,000,000 units at a price of $0.08 per unit. Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant is exercisable into one common share at a price of $0.20 per share for a period of eighteen months from the closing date of the financing. If the closing price of the common shares is higher than $0.40 for a period of 20 consecutive trading days at any time after four months and one day after the closing date, the Company can accelerate the exercise of the warrants on the 30th day after the Company gives notice of such acceleration. The proceeds will be used for the exploration of its mineral properties and for general working capital. Finders' fees of 6% of the total gross proceeds of the offering shall be payable in common shares of the Company at a price of $0.08 per share and 6% of the total number of units sold in finder's warrants, exercisable at a price of $0.08 per finders warrant into one unit for a period of eighteen months. The securities are subject to a four month hold period and regulatory approvals.
About Forum Uranium
Forum Uranium Corp. is a Canadian-based energy company with a focus on the acquisition, exploration and development of Canadian uranium projects in the Athabasca Basin, Saskatchewan and the Thelon Basin, Nunavut. Forum has assembled a highly experienced team of exploration professionals with a track record of mine discoveries for unconformity-style uranium deposits in Canada. The Company has a strategy to discover near surface uranium deposits nearby existing infrastructure by exploring on its 100% owned properties and through strategic partnerships and joint ventures.
ON BEHALF OF THE BOARD
Richard J. Mazur, P.Geo.
President & CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For further information contact:
Rick Mazur
President & CEO
Tel: 604-630-1585
Or Mark Prosser
Corporate Communications
FORUM URANIUM CORP.
910-475 Howe Street
Vancouver, BC V6C 2B3
Tel: 604-638-3947
Fax: 604-662-8429
Email:
Website: www.forumuranium.com
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