Yellowcake Mining Signs LOI for Option Agreement with AuEx for the Trinity Silver Project
Vancouver, BC, Canada, September 03, 2009 --(PR.com)-- Yellowcake Mining Inc (OTCBB: YCKM) (“YCMI” or the “Company”) is pleased to announce the signing of a letter of intent to enter into an Exploration Earn-in agreement with AuEx Ventures Inc., ("AuEx") (TSX:XUA) for the Trinity Silver property, located in Pershing County, Nevada. The property consists of 59 unpatented mining claims and 5,040 acres of fee land, about 5,800 acres in total. It is located about 25 miles northwest of the Rochester Silver Mine, one of the largest silver mines in the US and about 10 miles southeast of the Seven Troughs gold district.
Once the Earn In Agreement is executed, to be completed by November 1, 2009, Yellowcake can acquire an undivided 70% interest in the Trinity Silver property during a six-year period in consideration of i) total cash payments of $250,000, before November 1, 2009 for partial reimbursement of the Newmont buyout by AuEx and ii) a total of $5,000,000 in exploration expenditures by August 20, 2014, including a minimum of $500,000 in the first year (firm commitment). iii) on the 1st anniversary of the agreement, pay to AuEx a second payment of $250,000 fulfilling reimbursement to AuEx for completion of the Newmont buyout.
Yellowcake must spend a cumulative US$5,000,000 in exploration and development work on the property by August 20, 2014, in accordance with the following schedule:
Year 2: US$1,500,000 by August 20 2010
Year 3: US$2,500,000 by August 20 2011
Year 4: US$3,500,000 by August 20 2012
Year 5: US$4,500,000 by August 20 2013
Year 6: US$5,000,000 by August 20 2014 and,
Minimum work obligation $500,000 per year thereafter year 6
Yellowcake will be the operator of the joint venture and will arrange for the preparation of a NI 43-101 technical report.
William (“Bill”) Tafuri, President at Yellowcake stated, "Trinity represents an outstanding opportunity for Yellowcake to explore and develop a strong silver mineralized system and past producer with the view of realizing the large-scale, bulk mineable potential. Opportunities of this nature are few and far between and Trinity is a natural fit with Yellowcake's long-term strategic objective of moving into precious metals and developing a strong pipeline of projects in our focus area of the Western United States. This initial program will be to complete a NR 43-101 compliant technical report and resource estimate on the known deposit; to test the high grade silver mineralization below the Trinity mine that was confirmed by the AuEx drilling in 2006; and expand the known silver resource. There are excellent related targets on the property that need to be brought to the drilling stage.”
History
Silver mineralization was discovered at Trinity by U.S. Borax in 1981 and was subsequently explored under a joint venture between U.S. Borax and Santa Fe Pacific Gold Corp. from 1982 until 1986 leading to the development of the Trinity mine that was in production for just over two years. Only the oxide portion of the deposit was mined leaving the partially drilled out sulfide portion of the deposit in place. The property was subsequently explored further by Santa Fe Pacific Gold in the period 1990 to 1992. AuEx drilled 10 core holes in 2007 and 25 reverse circulation holes in 2008. The 2007 drilling verified the presence of high grade silver mineralization in the sulfide zone below the old Trinity mine. Mine Development Associates, a geologic and engineering consulting services firm, of Reno, NV, made a non 43-101 compliant resource estimate in April 2008.
About Yellowcake Mining, Inc.
Yellowcake Mining is a publicly held American Company whose shares trade on the OTC:BB. Yellowcake is focused on exploring and developing mineral properties located in the USA.. The Company is led by a highly skilled, experienced management team and board of directors with decades of success managing exploration and mining. The Company is committed to creating value for its shareholders by advancing its current projects and by acquiring properties. Yellowcake Mining offers investors a pure USA resource play, by a USA company, developing USA properties.
On behalf of the board of directors of Yellowcake Mining, Inc.
“William J. Tafuri”
William J. Tafuri, President and CEO
Legal Notice Regarding Forward Looking Statements
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Forward looking statements in this news release include that we can explore and develop a strong silver mineralized system and realize the large-scale, bulk mineable potential; that we can move into precious metals and develop a strong pipeline of projects in our focus area; that we can complete a NR 43-101 compliant technical report and resource estimate on the known deposit; that we can test the high grade silver mineralization below the Trinity mine and expand the known silver resource; and that there are excellent related targets on the property. Readers should refer to the risk disclosures outlined in the disclosure of junior exploration reporting company reports filed from time to time with the Securities and Exchange Commission (SEC).
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Once the Earn In Agreement is executed, to be completed by November 1, 2009, Yellowcake can acquire an undivided 70% interest in the Trinity Silver property during a six-year period in consideration of i) total cash payments of $250,000, before November 1, 2009 for partial reimbursement of the Newmont buyout by AuEx and ii) a total of $5,000,000 in exploration expenditures by August 20, 2014, including a minimum of $500,000 in the first year (firm commitment). iii) on the 1st anniversary of the agreement, pay to AuEx a second payment of $250,000 fulfilling reimbursement to AuEx for completion of the Newmont buyout.
Yellowcake must spend a cumulative US$5,000,000 in exploration and development work on the property by August 20, 2014, in accordance with the following schedule:
Year 2: US$1,500,000 by August 20 2010
Year 3: US$2,500,000 by August 20 2011
Year 4: US$3,500,000 by August 20 2012
Year 5: US$4,500,000 by August 20 2013
Year 6: US$5,000,000 by August 20 2014 and,
Minimum work obligation $500,000 per year thereafter year 6
Yellowcake will be the operator of the joint venture and will arrange for the preparation of a NI 43-101 technical report.
William (“Bill”) Tafuri, President at Yellowcake stated, "Trinity represents an outstanding opportunity for Yellowcake to explore and develop a strong silver mineralized system and past producer with the view of realizing the large-scale, bulk mineable potential. Opportunities of this nature are few and far between and Trinity is a natural fit with Yellowcake's long-term strategic objective of moving into precious metals and developing a strong pipeline of projects in our focus area of the Western United States. This initial program will be to complete a NR 43-101 compliant technical report and resource estimate on the known deposit; to test the high grade silver mineralization below the Trinity mine that was confirmed by the AuEx drilling in 2006; and expand the known silver resource. There are excellent related targets on the property that need to be brought to the drilling stage.”
History
Silver mineralization was discovered at Trinity by U.S. Borax in 1981 and was subsequently explored under a joint venture between U.S. Borax and Santa Fe Pacific Gold Corp. from 1982 until 1986 leading to the development of the Trinity mine that was in production for just over two years. Only the oxide portion of the deposit was mined leaving the partially drilled out sulfide portion of the deposit in place. The property was subsequently explored further by Santa Fe Pacific Gold in the period 1990 to 1992. AuEx drilled 10 core holes in 2007 and 25 reverse circulation holes in 2008. The 2007 drilling verified the presence of high grade silver mineralization in the sulfide zone below the old Trinity mine. Mine Development Associates, a geologic and engineering consulting services firm, of Reno, NV, made a non 43-101 compliant resource estimate in April 2008.
About Yellowcake Mining, Inc.
Yellowcake Mining is a publicly held American Company whose shares trade on the OTC:BB. Yellowcake is focused on exploring and developing mineral properties located in the USA.. The Company is led by a highly skilled, experienced management team and board of directors with decades of success managing exploration and mining. The Company is committed to creating value for its shareholders by advancing its current projects and by acquiring properties. Yellowcake Mining offers investors a pure USA resource play, by a USA company, developing USA properties.
On behalf of the board of directors of Yellowcake Mining, Inc.
“William J. Tafuri”
William J. Tafuri, President and CEO
Legal Notice Regarding Forward Looking Statements
This news release contains forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Forward looking statements in this news release include that we can explore and develop a strong silver mineralized system and realize the large-scale, bulk mineable potential; that we can move into precious metals and develop a strong pipeline of projects in our focus area; that we can complete a NR 43-101 compliant technical report and resource estimate on the known deposit; that we can test the high grade silver mineralization below the Trinity mine and expand the known silver resource; and that there are excellent related targets on the property. Readers should refer to the risk disclosures outlined in the disclosure of junior exploration reporting company reports filed from time to time with the Securities and Exchange Commission (SEC).
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Contact
Yellowcake Mining, Inc.
William J. Tafuri, P.Geo., Ph.D.
604.685.4048
www.yellowcakemining.com
Jamie Hyland, BComm.
Corporate Development
William J. Tafuri, P.Geo., Ph.D.
604.685.4048
www.yellowcakemining.com
Jamie Hyland, BComm.
Corporate Development
Contact
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