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Northern Canadian Receives Research and Exploitation Agreement for
Samit Uranium Project, Mali
Vancouver, British Columbia – May 16, 2007 – Northern Canadian
Uranium Inc. (TSX Venture Exchange: NCA; Frankfurt Stock Exchange: N4I)
(the “Company”) is pleased to announce it has received an Establishment
Agreement (“Agreement”) from the Ministry of Mines and Energy of the
Republic of Mali for research and exploitation of the Samit uranium
project in northeastern Mali. The Agreement covers six uranium
occurrences that were discovered and drilled by Power Reactor and
Nuclear Fuel Development Corporation (“PNC”) in the 1970s. PNC, a
Japanese utility company, conducted drilling programs in each of the six
areas containing uranium mineralization and identified a small uranium
resource, just as the price of uranium plummeted. The property is
located in northeastern Mali, immediately west of the uranium producing
region of Niger. Northern Canadian completed initial sampling of four
prospect areas. Two areas contain uranium mineralization that warrants
immediate follow-up sampling. The B Zone and the E Zone contain uranium
mineralization at surface and at depth as reported from historic
drilling programs. The B Zone contains a northwest trending zone of
carbonate-hosted fluorapatite-cemented breccia, containing up to 0.085%
U3O8. The E Zone, located 6 kilometers northeast of the B Zone, contains
regolith-breccia material with up to 0.02% U3O8, as previously reported
by the Company.
Historic Work
PNC conducted extensive regional exploration programs from 1974-78
which identified a limestone plateau containing a 20 km x 20 km
concentration of uranium-bearing apacrete occurrences near the village
of Samit. The Samit uranium occurrences are hosted in Cretaceous to
Paleogene age marine sedimentary rocks that lie along the south flank of
the Adrar des Iforas Massif. The Adrar des Iforas Massif is similar in
age and composition to the Air Massif in Niger and is composed of
Precambrian gneisses and metasedimentary rocks that were intruded by an
early Pre-Cambrian to Cambrian age granitic batholith. PNC initially
drilled 39 shallow prospecting holes (135.32 m) followed by 13 deeper
holes (501 m) to determine the stratigraphy and controls on uranium
mineralization. In 1980-81, PNC drilled 361 additional core holes (3,084
m) to identify and outline the locations of deeper uranium bearing
apacrete occurrences. Historic records (non-NI 43-101 compliant)
indicate the uranium contents of the apacrete mineralization ranges from
0.0X % to 0.X%. A report submitted to the Ministry of Ministry of Mines
and Energy by PNC and translated from Japanese indicated “the uranium
reserves of the sector are only 200 tons U3O8 with an average content of
0.085% of U3O8”. The Company interprets this statement to indicate the
drill results identified a uranium resource which contains a total of
200 tons (~440,000 lbs) of U3O8 from mineralized rock containing an
average grade of 0.085% U3O8. This is not compliant with the
requirements of National Instrument 43-101 and is not a certified
estimate.
Management Discussion and Analysis
The Samit Plateau contains a large area containing uranium
mineralization that occurs in a very favorable, near surface geological
environment, hosted in limestone. The grades from the Company’s surface
sampling (up to 0.085% U3O8) are similar to deposit grades being
developed at Langer Heinrich in Namibia. Mineralization occurs at
surface and at depth, as indicated by historic reports. The Company will
determine the detailed distribution and control of the mineralization in
the upcoming exploration programs. The near surface location of
mineralization indicates the potential for low-cost mining if an
economic ore body is identified. These factors indicate the Samit
Project contains mineralization that is similar, in several respects, to
mineralization that is being exploited in other deposits in Africa. The
Samit Permit has potential to host a uranium deposit through expansion
of known deposits and discovery of new deposits along strike and at
depth. Based on historical results, uranium deposits may occur with
average grades ranging from 0.05 – 0.30% U3O8 located near-surface, and
may be amenable to in-situ leach extraction. The Company cautions that
these results are not compliant with National Instrument 43-101 and are
provided for informational purposes only. Actual results under NI 43-101
compliant categories may vary materially.
The Samit Agreement is the second stage of the exploration process
that is stipulated by the Mining Laws of the Republic of Mali. The
Company previously acquired a prospecting permit for this area covering
35,542 square kilometers (the Gao Permit). The Company completed an
evaluation of the Gao Permit area and identified the most prospective
areas containing uranium mineralization and applied for and received the
Samit Agreement. The Samit Establishment Agreement provides the Company
with the exclusive right to explore for and mine uranium in an area
containing 1000 square kilometers for a term of 30 years. The Company is
obligated to complete a work expenditure commitment of $180,000 during
the first year of the Agreement in order to maintain the Agreement. The
Company is granted extensive support for exploration and development
including but not limited to import and operating tax and duty holidays.
In the event that a viable deposit is identified and developed, the
Government is granted a 10% carried interest in the project, and is
granted the opportunity to purchase up to 10% additional interest in the
project.
The Company is in the process of applying for a second Establishment
Agreement for its Kidal Prospection Permit in Mali. The Company also has
submitted 8 exploration license applications in the country of Niger.
The Company is building a strong portfolio of uranium exploration
projects in West Africa, one of the world’s major uranium provinces.
Northern Canadian Uranium Inc. (NCA)
Northern Canadian Uranium is a Canadian public company focused on the
acquisition, exploration and development of uranium resources. The
Company’s exploration programs are headed by Keith Laskowski (MSc., VP
Exploration), a designated Qualified Person (NI 43-101) and a geologist
with over 28 years of exploration experience. NCA has a pipeline of
uranium projects, ranging from resource definition to grassroots
exploration. The Company is exploring the Collins Bay Extension project,
and the Canyon Coin project, located in the Athabasca Basin and six
uranium exploration projects in Wyoming and three projects in South
Dakota. The Elkhorn Project in Wyoming contains a 400,000 pound uranium
resource (NI 43-101) which is open for expansion. The Company also has
three properties in southwest Nevada and has acquired over 50,000 square
kilometers of uranium prospecting concessions in Mali, West Africa.
Forward Looking Statements
Some of the statements in this news release contain forward-looking
information, which involves inherent risk and uncertainty affecting the
business of Northern Canadian Minerals Inc. It is uncertain if further
exploration will result in discovery of an economic mineral resource on
any of the properties. Actual results may differ materially from those
currently anticipated in such statements
ON BEHALF OF THE BOARD OF DIRECTORS
“ Praveen K. Varshney ”
Praveen K. Varshney, C.A.
President
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