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October
26, 2007
NEWS
RELEASE
JOINT
VENTURE ANNOUNCED WITH UTAH URANIUM CORP. ON
PINTO
CLAIMS, DRILLING TO COMMENCE SHORTLY
Vancouver,
BC - Consolidated Abaddon Resources Inc. (TSX-V: ABN) (FWB:
E2L) announces the signing of an Option and Joint Venture Agreement with Utah
Uranium Corp. (OTCBB: UTUC) on the Pinto Uranium Claims, located near Hanksville, Utah.
Pursuant
to the terms of the Option Agreement, Consolidated Abaddon has been granted a
right to earn a 50% interest in the Pinto property by paying the sum of US$100,000,
issue 100,000 common shares to Utah Uranium, and fund an initial exploration
program in the amount of US$305,000. Consolidated Abaddon has been
granted a right to acquire a further 10% interest in the Pinto property by
carrying out a further $300,000 work program on the Pinto property by June 1,
2008. The Company will also be responsible for paying its proportionate
share of remaining option payments pursuant to Utah Uranium’s
underlying option agreement. The Company will be required to pay the
sum of $450,000 and the issue 420,000 common shares to Utah Uranium over the
remaining two and half year term of the underlying agreement. On
completion of all expenditures, cash payments and share issuances,
Consolidated Abaddon will be deemed to have earned up to a 60% interest in
the Pinto Uranium Claims.
The
Option Agreement is subject to the acceptance of the TSX Venture Exchange.
A
drill contract for the Pinto property has been awarded to Bob Shupe Drilling
of Moab, Utah. Drilling will commence in the
north-western section of the Pinto Claims. An initial 20 drill-hole work
program designed to test the massive Salt Wash member of the Morrison
formation has been proposed to explore the areas potential for roll-front
uranium mineralization.
Chip
samples from each hole will be examined by Company geologists and evaluated
with a Radiation Solutions Inc. RS-125 Scintillometer to determine uranium
mineralization. Mineralized material will then be sent to an ISO 9000
certified laboratory for analysis.
Jet
West Geophysical Services LLC has also been contracted to provide down-hole
Gamma Ray/SP/SPR geophysical logging of all holes. It is anticipated that
field crew mobilization will begin within the next 2 weeks, with drilling
operations commencing immediately thereafter.
About
the Pinto Claims
The
Pinto property covers 344 mineral claims, consisting of 6,800 acres in the
Henry Mountain Syncline of East Central Utah. The Henry Mountain Syncline is
an enclosed structural basin within the Colorado Plateau of southeastern Utah
that is entirely underlain by the massive uranium bearing Salt Wash sandstone
member of the Morrison formation. The hydraulic migration of oxygenated water
containing liberated uranium tends to flow down-dip within the formation into
the trapped, oxygen free static water creating a zone of major ore
concentration known as a roll-front environment.
The
first discovery, known as the Tony M Mine, was made in the 1980’s by
Plateau Resources, a division of Michigan Light and Power and contains 10,898,000 pounds
of U308. Subsequently, the Bullfrog Mine was
discovered adjacent and north of the Tony M Mine by Imperial Oil Corporation,
and contains an additional 12,924,000 pounds of U308.
These mines are now owned by Denison Mines Corp. and are collectively known
as the Henry Mountains complex, one of the largest known uranium resources in
the Colorado Plateau district.
Utah
Uranium Corp. acquired the Pinto Claims from Christian (Ted) Murer P.Geo, the
prospector geologist who conceptualized, discovered and currently holds a
production royalty on the Tony M Mine. Ted Murer has assembled the Pinto
Uranium Claims package using the same data and methodology. Based on area
extrapolations, the “Pinto Claims” could hold significant amounts
of uranium and vanadium.
About
Utah Uranium Corp.
Utah
Uranium Corp. is a Moab, Utah based junior exploration and development
company focused on the acquisition of past producing underground uranium
mines that can be brought back into production in the near term with a low
capital expenditure within economic haul distances of the White Mesa Uranium
Vanadium Mill in Blanding, Utah owned by Denison Mines Corp. The White Mesa
Uranium Mill is currently the only operating uranium mill in the United
States.
For
further information on Utah Uranium Corp. (OTCBB: UTUC) visit
their web site at www.utah-uranium.com
..
About
Consolidated Abaddon Resources Inc.
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.
Property
partners include Denison Mines Corp. and Triex Minerals Corp.
For
further information on Consolidated Abaddon Resources Inc. (TSX-V: ABN),
visit our Company’s web site at www.consolidatedabaddon.com.
ON
BEHALF OF THE BOARD OF DIRECTORS
“Jim Pettit”
____________________________
JAMES
G. PETTIT
President
Issued and Outstanding
36.1 million shares
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