Unity Stakes Mitchell Lake Project, Athabasca Basin
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 09/14/11 -- Unity Energy Corp. (TSX VENTURE: UTY) ('Unity' or the 'Company') is pleased to announce that it has acquired through staking a prospective uranium exploration property known as the Mitchell Lake Property. The 2354 hectare claim is on the eastern edge of the Athabasca Basin, adjoining to the south, Cameco's Mitchell Lake Zone and 2.2km to the south, UEX's West Bear Deposit. Significant exploration projects in the immediate include UEX's Hidden Bay Project, Fission's Minor Bay Project, Pitchstone's Martin, as well as Projects controlled by Denison Mines and JNR Resources.
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The West Bear Deposit, located in the southernmost part of the Hidden Bay property, is a classic unconformity-hosted uranium deposit which is developed under shallow Athabasca sandstone cover above a conductive graphitic gneiss unit. The deposit occurs along a conductive, graphite-bearing gneiss unit where it intersects the overlying Athabasca sandstone along the southern margins of the Dwyer Dome. A N.I. 43-101 compliant Preliminary Feasibility Study (Golder Associates Ltd. 2010) of the West Bear Deposit gives a resource estimate to a Probable Mineral Reserve estimate of 1,492,261 pounds of U3O8 grading 0.94% U3O8 at a cut-off of 0.18% U3O8 which represents 96% of the mineral resource. The high conversion rate reflects the near-surface nature of the West Bear mineralization which is amenable to shallow, open-pit mining. The study also reports metallurgical testing resulting in an estimated overall uranium recovery of 95%.
The Mitchell Lake Zone lies just 400m south of Unity's Mitchell lake Project. In 1977, Noranda Exploration intersected downhole uranium mineralization; drill hole ML5-77 encountered uranium mineralization from 186.3 to 189.3 ft (56.8 to 57.7 m) depth. U3O8 content varied in grade from 0.12% to 0.04%. The intersection also contained minor Ni, Cu, and As values. This zone is currently controlled by Cameco Corporation. The Zone appears to be fault controlled, with notable magnetic and EM features located to the north, on Unity's ground. The Company plans to provide a more detailed analysis in the near term.
Under the terms of the staking agreement, Unity must within four years, complete a minimum of $2,500,000 of exploration expenditures on the Project. A 1.5% NSR has also been granted to the arm's length staker, which can be purchased at any time for $1,500,000.
'This is a tremendously exciting new project for Unity,' commented Anita Algie, President. 'The proximity to the West Bear Deposit and other compelling geological features could make Mitchell Lake a marquee exploration project for Unity.'
Dr. Peter Born P.Geo., the Company's Qualified Person and Director, has not reviewed the original drill logs, assays or core of historic drilling of the Mitchell Lake Zone or the West Bear Deposit. Geological and exploration information contained in this release is derived from sources believed to be credible.
On Behalf of the Board of Directors of Unity Energy Corp.
Anita Algie, B.Sc. Hon, President
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Unity Energy Corp.
Anita Algie, B.Sc. Hon
President
604-681-0004
www.unityenergycorp.com