Hinterland Metals Inc. (TSXV: HMI) (“Hinterland”) is pleased to announce that it has signed a Letter of Intent (“LOI”) with Kakanda Resources Corp. (“Kakanda”) whereby Hinterland will transfer 50% of its interest in the 112-claim Euro property to Kakanda and Kakanda will transfer 50% of its 38-claim Tonka property to Hinterland. The companies will then form a 50/50 joint venture (the “Otish Joint Venture”) to perform exploration on the two properties and to acquire additional uranium claims in the Otish Basin. The LOI is subject to approval of the respective Boards of Hinterland and Kakanda and execution within 60 days of a formal joint venture agreement. Mark Fekete, President, CEO and Director of Hinterland holds a royalty interest in the Tonka property and accordingly will abstain from voting.
The Otish basin is being actively explored most notably at the Matoush Project where Strateco Resources Inc. has recently announced drill hole intersections of up to 2.13% U3O8 over 15.2m (Strateco Press Release: February 20, 2007). Unconformity-type uranium deposits are found in the Proterozoic Athabasca basin in Saskatchewan which accounts for approximately one-third of global uranium production and 15% of global reserves. The uranium mineralization is epigenetic and occurs near the basal contact of sandstone overlying crystalline basement rocks. Uranium is not confined to the sandstone but may also be concentrated in fractured basement rocks below the unconformity. Mineralization is typically found within 200m above and below the unconformity surface. The Matoush fault-type uranium mineralization is closely linked to a regional fault that appears to have acted as conduit for uranium-bearing fluids. The mineralization generally occurs along the margins of the fault in a highly-fractured and altered environment adjacent to vertical gabbro dykes emplaced within the fault. The uranium mineralization found at Matoush lies well above the basin rim and resembles "Perched bodies" found above the McArthur River and Cigar Lake uranium deposits in the Athabasca basin.
The Euro property covers the southwest margins of the Paskwati Proterozoic sedimentary basin which is an outlier located 45km southwest of the main Otish basin. The Tonka property is underlain primarily by sedimentary rocks of the Indicator Lake Formation and it straddles the unconformity contact with the underlying granitic complex along the southern margin of the basin. It is also cut by a major northeast-trending fault. Both properties offer potential for classic unconformity-type uranium mineralization both below and above the unconformity surface as well as the fault-type found at Matoush. The Otish Joint Venture intends to begin exploration with high-definition magnetic and radiometric airborne surveys over the properties in order to generate prospecting targets.
Investors are invited to visit the Hinterland IR Hub at http://www.agoracom.com/IR/Hinterland where they can post questions and receive answers or review questions and answers already posted by other investors. Alternatively, investors are able to e-mail all questions and correspondence to HMI@agoracom.com where they can also request addition to the investor e-mail list to receive all future press releases and updates in real time. Mark Fekete, P.Geo is the designated “qualified person” as defined in Section 1.2 in and for the purposes of National Instrument 43-101 responsible for the preparation of this release.
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For more information please contact:
Mark Fekete, President at Toll Free 1-877-874-8182
Website: http://www.hinterlandmetals.com
AGORACOM Investor Relations
http://www.agoracom.com/IR/Hinterland
HMI@Agoracom.com
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. This release contains forward-looking statements reflecting the Company’s objectives, estimates and expectations for the Euro project. These statements are identified by the use of verbs such as "estimate", "believe", "anticipate", "intend", "expect", "plan", "may", "should", "will", and the negative thereof or other variations thereon or comparable terminology. By their very nature, these types of statements involve risk and uncertainty. Consequently, results could differ materially from the Company’s projections or expectations
