Spey Resources Options Utah Vanadium-Uranium Project
Vancouver, British Columbia--(Newsfile Corp. - January 15, 2019) - Spey Resources Corp. (CSE: SPEY) ("Spey" or the "Company") is pleased to announce that it has entered into an Option Agreement (the "Agreement") with Geoxplor Corp. ("Geoxplor") of Arizona, USA., to acquire a 100% interest in the Uravan Vanadium-Uranium Project (the "Property") located in the La Sal area, San Juan County, Utah, USA, approximately 40 miles southeast of the city of Moab. The Company had targeted the Property for acquisition due to the increasing global demand for vanadium.
The Uravan Project is located within the La Sal Mining District where historic production of both uranium and vanadium has taken place from 1915 to date. Production of uranium and vanadium is currently being carried out by the only producer in the district, Energy Fuels Inc.*, where mineralized zones carrying lower grade uranium with much higher grades of vanadium are targeted. Although adjoining Energy Fuels' properties, Spey's Property remains virtually unexplored for vanadium, with only minor historical prospecting, pitting and radon surveys having been completed.
The 33 lode claims making up the Property are underlain by the Morrison Formation sandstone consisting of a complex assemblage of lenses and sedimentary channel fill. Vanadium zones of potential economic interest can be formed by selective impregnation of sandstone, absorption by shale material and replacement of fossilized plant material. Vanadium-bearing hydrous mica can be in-part disseminated rather uniformly throughout the sandstone and concentrated in sheets along bedding plains. Mineralized zones elsewhere in the Morrison Formation have historically been known to have well defined limits. Production stopes at several nearby historic mines varied greatly in lateral dimensions up to 90m wide by 180m long, with a thickness of 0.5m to over 5.0m. Previously mined zones are lens shaped and graded upwards of 1.5% V2O5 (Carter, W.D., Gualtier, J.L., USGS Paper 508, Geology and Uranium-Vanadium Deposits of the La Sal Quadrangle, 1965 and Kovschak and Nyland, 1981.).
*(see Energy Fuels Inc. News Release dated 2019-01-07)
Vanadium is typically associated with uranium in the Morrison Formation sandstone. Spey will explore for vanadium-uranium bearing zones by conducting a detailed radon survey across the Property in order to generate drill targets. Anomalies identified will be tested by recovering samples from depth by shallow drilling to delineate grade and tonnage within the Uravan project.
Spey secures the right to acquire a 100% interest in the Uravan Property by completing the following:
(i) paying Geoxplor a total of US$310,000 cash in 4 annual installments; and,
(ii) issuing an aggregate of 3,500,000 common shares in 5 installments in the capital stock of the Company within 4 years of the date of filing of the Agreement with the Canadian Securities Exchange ("CSE").
An additional payment of US$1,000,000, either in cash or common shares of the Company at Spey's election, will be paid on or before the date of any commercial production, at a per share price equal to the volume weighted average trading price of the Company's common shares on the CSE for 5 days prior to the date written notice of the election is provided to Geoxplor.
Upon Spey earning a 100% interest in the Property, Geoxplor shall be entitled to a 2.0% Net Smelter Return Royalty ("NSR") payable upon commercial production from the Property. Spey has the right to purchase three quarters of the NSR (leaving Geoxplor with a 0.5% NSR) by making payments totaling US$1,500,000 at anytime.
Subject to the approval of the CSE, Spey may pay a finder's fee of US$10,000.00 in connection with the option to an arm's length party.
Stock Option Correction
The Company would also like to correct the details of the issuance of stock options to David Thornley-Hall as previously announced in its News Release dated January 10, 2018. The Company has granted 224,000 incentive stock options (not 240,000 stock options as disclosed in the January 10, 2019 news release) to Mr. Thornley-Hall. The options are exercisable for a period of five years at an exercise price of $0.10 per common share. The incentive options were granted in accordance with the Company's stock option plan.
On behalf of the Board of Directors of
SPEY RESOURCES CORP.
David Thornley-Hall, President
(Neither the CSE nor its regulation service providers accept responsibility for the adequacy or accuracy of this release.)
Derrick Strickland, P.Geo., a consulting geologist, is a Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mining Projects and has reviewed and approved the technical disclosure in this news release.
CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS:
This news release may contain forward-looking information within the meaning of applicable securities laws ("forward-looking statements"). Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects," "plans," "anticipates," "believes," "intends," "estimates," 'projects," "potential" and similar expressions, or that events or conditions "will," "would," "may," "could" or "should" occur. Information inferred from the interpretation of drilling and other sampling results may also be deemed to be forward-looking statements, as it constitutes a prediction of what might be found to be present when and if a project is actually developed. These forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those reflected in the forward-looking statements, including, without limitation: risks related to fluctuations in metal prices; uncertainties related to raising sufficient financing to fund the planned work in a timely manner and on acceptable terms; changes in planned work resulting from weather, logistical, technical or other factors; the possibility that results of work will not fulfill expectations and realize the perceived potential of the Company's properties; risk of accidents, equipment breakdowns and labour disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in the work program; the risk of environmental contamination or damage resulting from Spey's operations and other risks and uncertainties. Any forward-looking statement speaks only as of the date it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise.