LONDON 4TH JULY 2006. Agricola Resources PLC ("Agricola"), the OFEX-traded resource company involved in uranium exploration, is pleased to report that ground exploration surveys including radon soil gas sampling using Alphatrack detectors will be commencing in early July in the Paukkajanvaara project area (Agricola Resources/Cooper Minerals Joint Venture) in the Joensuu Magistrate in the county of Eastern Finland. The project area covers 90 exploration claims with a total area of 8 200 hectares and a northerly extension area of reservation claims covering 4 500 hectares. The survey area is centred on the Paukkajanvaara uranium mine, which has been the only previously operated uranium mine in Finland. Limited ground surveys by Agricola in 2005 have confirmed high radon values associated with the mine site and also outlined potential anomalies in the surroundings of the mine.
The present surveys will be comprised of wide grid line radon sampling across potential geological structures extending to the north and south of the mine.
Detailed line sampling will be carried out within earlier outlined radon anomalies and within selected anomalies obtained from airborne geophysical data (radiometrics and magnetics) The aim of the ground surveys is to direct a subsequent drilling campaign for possible uranium deposits within the project area. This is expected to begin when the results of the radon surveys are obtained in September-October.
Agricola will conduct the survey on behalf of the Agricola-Cooper Joint Venture. Radon soil gas sampling will be conducted over the Energy Ridge Permits by Agricola once the Paukkanvaara sampling has been completed.
The Directors of the Issuer accept responsibility for the content of this announcement.
For further information contact :-
Dr Robert Young +44 (0) 1353 649 701
Agricola Resources PLC
TECHNICAL BACKGROUND:
The exploration claims at Paukkajanvaara cover the only previously operated uranium mine in Finland. Test mining in 1960 and 1961 by the Finnish company Atomienergia Oy at Paukkajanvaara produced about 30 tonnes of yellowcake (U3O8) from 30,700 tonnes of ore assaying 0.12 per cent U3O8. The Paukkajanvaara uranium deposit is located at the north-end of the lake, Paukkajarvi in the Eno municipality of the Eastern Finland county.
The complete project area is well served with high-quality tarred roads; it is sparsely populated and is in general characterized by flat-lying forested areas. A railway line is located about five kilometres from the property.
The uranium mineralisation at Paukkajanvaara occurs in a Lower Jatulian orthoquartzite, which in some places outcrops, hence explaining the high-grade uraniferous boulders found down-ice from the ore-body. This orthoquartzite unit discordantly overlies the pre-Svecokarelian basement complex, with an intervening basal formation. Conglomerates with quartz pebbles occur below the orthoquartzite and as intercalations in it. A sericite quartzite then underlies the conglomerate. The Jatulian formation is penetrated by numerous meta-dolerite dykes, which also cut the basement complex. The basement is a granite-gneiss. The uranium mineralisation at Paukkajanvaara is restricted to the quartzite, the quartz pebble conglomerate and the sericite quartzite where they are in contact with the vertical/dipping meta-dolerite.
The depth extent of the mineralisation is unknown as the previous trial mining operations carried out in 60's stopped in the sericite quartzites, still in mineralisation. This mineralisation may extent well into the basement complex.
At Paukkajanvaara, uranophane is the dominant uranium mineral. Other uranium minerals include meta-autunite, gummite and pitchblende. The uranium mineralisation occurs as disseminations and fracture fillings. Magnetite and hematite are associated with the mineralisation. It appears that the Paukkajanvaara Uranium deposit is a primary chemical precipitate of uranium and vanadium in Jatulian quartzites. This then underwent a secondary enrichment under hydrothermal conditions through the action of the albite dolerite intruding into the quartzite. The uranium mineralization at Paukkajanvaara shows similarities to the well-known "unconformity-type" uranium deposits. The meta-dolerites strike across the area in northwest-southeast direction.
Geological mapping and radon work were carried in the area by Outokumpu Oy in 1980. These results show a distinct radon anomaly along the western edge of the lake, Paukkajarvi.
Geochemical till sampling for uranium at Paukkajanvaara by the GSF demonstrated a distinct response from the deposit itself, but the sampling also showed an equally strong response from a second unknown source located to the east of the main deposit. This eastern area was one of the locations examined by Agricola using radon detectors. This area together with three other areas returned distinct radon anomalies. These results together with the original work carried out by Outokumpu Oy will form the basis of the radon survey to be undertaken shortly by Agricola/Cooper JV. As part of this program Cooper has already purchased 2000 radon detectors from Alphatrack, a supply company based in Vancouver. The deployment of these detectors at Paukkajanvaara will commence shortly.
An examination of the aeromagnetics covering the area shows a clear association between a magnetic high feature and the mineralised unit. This magnetic high can be traced to the northwest for a distance of over 30 kilometres.
Mineralised boulders have also been identified along this trend. Claim reservations along the trend have been applied for by Agricola and if awarded will become part of the joint venture.
The Agricola/Cooper JV will also carry out a complete literature search through the Geological Survey of Finland ("GSF") archives and to examine and assay any core samples from the Paukkajanvaara uranium deposit that are currently stored with the GSF. Digital airborne geophysical data (magnetics and radiometrics) for the entire area will also be purchased from the GSF.
One of the main priorities of the forthcoming exploration work is to delineate the extent of the mineralisation in and around the main deposit at Paukkajanvaara and to look for other uranium occurrences to the east and northwest. It is hoped that the mineralised unit may be traced using ground magnetics.
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