Vancouver – Broadening its foray into the uranium field, the recently remonikered Trigon Uranium (TEL-V, TELWF-O) is moving to grab six past producing uranium mines in the White Canyon mining district of Utahs San Juan County.
The Kelowna-based junior signed a letter of intent with Shumway Brothers Mining of Utah and other parties to acquire the Blue Lizard, White Canyon No. 1, Yankee Girl, Saddle, Giveaway and Blind Luck mines.
The mines all operated until the early-to-mid-1980s when uranium prices slumped significantly prompting their closure. U.S. Government data reports the mines cumulatively produced more than 70,000 tonnes of ore averaging 0.24% U3O8 prior to 1970 although subsequent output was not available.
The Yankee Girl mine is adjacent to SXR Uranium Ones (SXR-T, SXRFF-O) recently acquired Radium King mine reported to have produced about 857,000 lbs. of U3O8 up to 1970.
Trigon is looking to hunt down additional uranium resources in and around the past producers by using previously defined zones as a pathfinder.
Under its letter of intent, Trigon will pay a non-refundable fee of US$25,000 and issue 50,000 shares to the vendors and will have 120-day exclusivity during its due diligence.
In late-2006 the company acquired a significant land position in southeastern Utah to boost the area around its Henry Mountains uranium project to more than 70 sq. km. Trigon also holds the Marysville uranium project in south-central Utah.
Shares of Trigon got a 16% market boost on the March 7th announcement, closing up 12 at 86 apiece on trading volume of 3.6 million. With its 52.2-million shares outstanding the junior posts a $45-million market capitalization and has a 52-week trading range of 20-to-$1.32.
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