London 09 May 2006. Cooper Minerals Inc. ("Cooper") on the 16th of February 2006 entered into a formal option agreement with Agricola Resources PLC ("Agricola"), to explore for uranium on Agricola's Paukkajanvaara uranium project in Finland. Terms of this agreement are outlined in a news release dated 2006-02-16.
The Paukkajanvaara uranium project is located in the Joensuu magistrate in eastern Finland. Joensuu is a major town with a population of approximately 65,000 inhabitants and is located 400 kilometres northeast of Helsinki. The mining town of Outokumpu is approximately 50 kilometres to the west.
The Finnish Government has recently decided to expand its nuclear energy production by building a fifth nuclear power plant. This will be one of the largest reactors ever built in Europe. Four nuclear power plants are currently in operation, these four reactors were brought into operation between 1977 and 1980: two 488 MWe WWER's at Loviisa, east of Helsinki, and two 840 MWe BWR's at Olkiluoto are currently operational. These four units currently account for 27% of Finland's electricity output. Finland currently imports all of its uranium requirements. In 2003, 549 tons of uranium was required for its four nuclear reactors. Uranium exploration companies active in Finland include, COGEMA, a major French uranium producer who has applied for uranium licenses in the south of Finland near Helsinki.
Under Finnish Mining Law, prospecting is considered to be a part of the so- called everyman's right, which is a special Nordic tradition, giving as a general rule, public access to all land, public or private. Geological observations and measurements, as well as limited sampling, can be carried out everywhere, provided no damage is done to the landowner's property or to the environment. Essentially two types of applications can be applied for, the claim reservation ("Varaus") which gives the holder a reasonable period of time (one year) to delimit the area of interest and to prepare his application for an exploration licence ("Valtaus") which has a 3 year validity and can be renewed. Under the terms of a claim reservation the licence holder has the exclusive right to apply for an exploration licence within the one-year period.
All of the ground previously held by Agricola under a claim reservation has now been applied for as a full exploration licence. In addition to this, further ground covering extensions to the area has also been taken out under a number of claim reservations. A second exploration company has recently become active in the area and has applied for ground in the vicinity of Agricola's current holdings.
The 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. The 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 deposit. 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 demonstrated a distinct response from the deposit itself, but the sampling also showed an equally strong response from a second 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 Cooper Minerals. 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.
Initially, Cooper intends to 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.
Cooper will shortly be appointing an exploration manger in Finland to supervise its exploration program.
Mike Magrum, PEng, a qualified person under National Instrument 43-101, has approved the technical content of this news release.
The Directors of the Issuer accept responsibility for the contents of this announcement.
Richard Newstone
Finance Director
Tuesday 9th May 2006
For further information contact :
Contact :
Dr. Robert Young, Chairman
Agricola Resources plc
Tel: +44 (0) 1353 648 931
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