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May 16, 2007
News Release
ABADDON ACQUIRES PUKASKWA URANIUM PROPERTIES IN NW ONTARIO
Vancouver, BC - Consolidated Abaddon Resources Inc.
(TSX-V: ABN) (FWB: E2L) (“Consolidated Abaddon” or
“the Company”) is pleased to announce
that it has entered into an Option Agreement with Rubicon Minerals Corp.
(TSX: RMX) (“Rubicon”) for the acquisition of a 100%
interest in the Pukaskwa uranium properties totaling approximately 102,720
acres located in the Algoma Mineral District, Sault Ste. Marie Mining
Division, northwestern Ontario.
Pukaskwa Uranium Project Location Map:
http://www.consolidatedabaddon.com/i/maps/ABN-Pukaskwa-Area.jpg
The
Pukaskwa uranium properties consist of 4 claim blocks; Denis
Lake (23,360 acres), White River
(23,360 acres), Esnagi Lake (33,600 acres), and McCrea Lake
(19,520 acres). The claim areas staked were chosen based on the results of an
Airborne Gamma Ray and in-lake sediment surveys that clearly identifies 4
strong radiometric anomalies.
Pukaskwa Project Claims Map:
http://www.consolidatedabaddon.com/i/maps/ABN-Pukaskwa-Area-Map.jpg
The
Company's claims demonstrate potential for a major structural flexure marked
by a magnetic signature that correlates well with the radiometric anomalies.
The area is underlain by late Archean intrusive rocks, felsic volcanics and
sedimentary rocks of probable Proterozoic age.
Pukaskwa Project Gamma Ray Airborne Anomalies Map:
http://www.consolidatedabaddon.com/i/maps/ABN-Pukaskwa-airborne.jpg
Consolidated
Abaddon plans to conduct an extensive exploration program to prove out the
geology and resource potential of the area.
Rubicon
Minerals has granted to Consolidated Abaddon the exclusive right and option
to acquire an undivided 100% interest in the Pukaskwa uranium
properties for cash payments equivalent to
Rubicon’s cost of staking the properties (estimated to be approximately
$200,000) plus 10%, and further cash payments in the amount of $165,000 and
the issuance of 200,000 common shares of Consolidated Abaddon over the 4 year
term of the Option Agreement. The agreement is subject to a 2% net smelter
return royalty (NSR) in favour of Rubicon. Consolidated Abaddon may purchase
50% of the NSR for $1,000,000.
Rubicon
Minerals has retained a Back-In Right Agreement for the right to earn an
undivided 20% interest in and to the Pukaskwa uranium properties
within a period of 30 days following the first anniversary of the TSX Venture
Exchange approval by agreeing to pay an amount equivalent to 300% of the
amount of property expenditures incurred by the Company to that date.
The
Pukaskwa Properties Option
Agreement is subject to TSX Venture Exchange approval.
In other
news, Denison Mines has informed the Company that it will not be continuing
with its option agreement to acquire a 51% interest in the Company’s Sims Lake
property in western Labrador announced
February 23, 2006.
Also,
Consolidated Abaddon has elected to drop its Gabbro
Lake property in western Labrador, as the Company feels results to date do not
warrant further exploration.
Consolidated Abaddon Resources
Inc. is a Canadian uranium exploration company actively involved with the
development of uranium properties in the ATHABASCA
BASIN of northern Saskatchewan,
SIMS BASIN
of western Labrador, and the ALGOMA DISTRICT of northwestern Ontario.
In
the Athabasca Basin, property partners include
Denison Mines Corp. and Triex Minerals Corp.
For
further information on Consolidated Abaddon Resources Inc.
(TSX-V: ABN), visit the Company’s web site at www.consolidatedabaddon.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
“Don Huston”
____________________________
DONALD
C. HUSTON
Director
Issued and Outstanding
36.1 million shares
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