Aussies buy Labrador uranium miner

Australian miner Paladin Energy Ltd (TSX:PDN)(ASX:PDN) announced Friday that it has concluded a definitive agreement for the purchase of the uranium assets of Aurora Energy Resources Inc.. Aurora was a wholly owned subsidiary of Fronteer Gold (TSX:FRG)(NYSE Amex:FRG).

Aurora Energy holds title to significant uranium assets within the highly prospective Central Mineral Belt in Labrador, including the Michelin deposit as well as the Jacques Lake, Rainbow, Nash, Inda and Gear deposits and has secured the most prospective ground within the CMB.

Paladin will pay Fronteer Cdn$260.87 million for Aurora through the issuance of new shares in Paladin.

According to a news release, “Paladin considers the CMB to be one of the few remaining, underexplored uranium districts globally and this acquisition not only provides Paladin with a noteworthy mid-term development asset but also offers an excellent opportunity for both significant new discoveries and expansions of the existing deposits. This highly strategic transaction fulfils Paladin's long held ambition to expand its footprint into Canada, a leading country in uranium mining, both in terms of resources and its stable political and business environment, providing the Company with an important new platform from which to plan its continued growth.”

Paladin plans to continue further testing and exploration to define the size of the assets it now holds. John Borshoff, managing director and CEO of Paladin said that the company intends “to advance these assets and will commit to regional target identification and testing upon resolution of the current uranium mining moratorium, which was put in place by the Nunatsiavut Government to provide the necessary time to complete a Land Use Plan and Environmental Protection legislation, both on track for completion by March 2011. The goal will be to advance towards a definitive economic study and district development plan once a sufficient resource base has been defined thus benefiting Paladin shareholders, our customers and the stakeholders of Nunatsiavut and Newfoundland and Labrador.”

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Frontier to buy out Aurora Energy

Frontier announced Monday it will buy up the remaining common shares in Aurora Energy that Frontier doesn’t already own.  Aurora’s share prices have dropped like a stone in recent weeks.

Aurora’s main asset is uranium in central Labrador.

In light of some comments made in the legislature recently, someone at Aurora might want to reconsider titling the page of their website “Our Assets”:

In reading the documents that have been accumulated by the government as they brought themselves to the point of writing this bill, it surprised me to read some documents – I don’t suppose it surprised me, but it upsets me to read some documents in which, for example, Abitibi-Consolidated has been claiming ownership of the land and ownership of the water. No, they never owned it. They had a lease that allowed them to use it and the lease was renewed, but it is not ownership.

Whose assets are they again?

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Monroe options Altius uranium prospects in Newfoundland

From the company news release:

Monroe Minerals Inc. (TSX VENTURE:MMX) ("Monroe") announced today that it has entered into option agreements with Altius Resources Inc. ("Altius") allowing it to earn up to a 60% interest in the Boxey Point and Berry Hill uranium properties, located in Newfoundland, Canada.

Monroe President and CEO Derek Moran commented: "We are pleased to expand our relationship with Altius and to focus Monroe's growing uranium division in Newfoundland and Labrador, with obvious logistical benefits. We shall announce our 2008 program later this quarter and meanwhile we continue to review new projects both in Canada and on the African continent."

The Boxey Point property totals thirty-six claims and is 900 hectares in size. It is located in the Fortune Bay area along the southern coast of Newfoundland, between and a little south of the Coomb's Cove and English Harbour West settlements. The property is about 600 km by road from St Johns. A recent soil sampling program yielded elevated uranium results and two rock samples tested 738 ppm and 1,498 ppm uranium (0.09 to 0.18% U3O8) respectively. There is also remarkable alteration of the sedimentary strata on the property. The expected deposit type could be similar to the conglomerate-hosted uranium prospects that exist at the Beaverdell deposits in southern B.C. or the former Midnite/Blackhawk Mine near Spokane, Washington. For example, from 1955 to 1981 the Midnite mine produced about 11.6 million pounds of U3O8 from 2.63 million tonnes of ore with an average grade of about 0.2% U3O8.

The Berry Hill property totals fifty-seven claims and is 1,425 hectares in size. It is located on the Burin Peninsula about 160 km due west or 235 km by road from St. Johns. The Berry Hill property is a conceptual play based on fluorite occurrences and a number of stream sediment, lake sediment and till samples with elevated concentrations of one or more of uranium, molybdenum and fluorine. The expected deposit type is a granitic-hosted uranium deposit such as the Rossing mine in Namibia, Radium Hill in South Australia or Johan-Beetz uranium prospect in Quebec. Granite-hosted uranium deposits tend to be relatively low grade (e.g., less than 0.1% U3O8), although they can be very large. The Rossing deposit in Namibia, for example, has been in production since 1976, has a uranium grade ranging from about 0.018 to 0.042% U3O8, and in 2006 produced about 7% of world uranium production (http://www.rossing.com/rossingmine.htm).

Monroe may earn a 60% interest in the Boxey Point property over four years by spending $1,000,000 on exploration, including a minimum first year commitment of $100,000, and making share payments to Altius of 2,000,000 Monroe shares, including 400,000 shares on signing and 1,600,000 shares divided equally over four years to be paid on each anniversary of the agreement.

Monroe may earn a 60% interest in the Berry Hill property over four years by spending $475,000 on exploration, including a minimum first year commitment of $50,000, and making share payments to Altius of 500,000 Monroe shares, including 100,000 shares on signing and 400,000 shares divided equally over four years to be paid on each anniversary of the agreement.

The earning under each project is independent of whether earning occurs under the other. Upon Monroe fulfilling its earn-in obligations, the parties will form a 60:40 joint venture, with each partner contributing its pro-rata share of future expenditures. If either party dilutes its interest to less than 10% in the joint venture, its interest shall be converted to a royalty of 1.0% of gross uranium sales.

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