| ||October 31, 2006|
Drilling Program Set For Hermitage Uranium Project
| ||COMMANDER RESOURCES LTD. (CMD-TSX Venture) reports that the Company's Board of Directors has approved an initial 3,000 metre drill program on the Company's Hermitage uranium project in southern Newfoundland. This represents the first-ever drilling on the property. The primary purpose of the initial program is to define the key stratigraphic and structural setting of the main uranium occurrence areas. |
The program is scheduled to begin in mid-November and continue into the winter; an available contractor has been selected. A break will occur for the Christmas period after which drilling will re-commence early in the New Year as weather allows. Since this is the initial drill test on the property, several target areas will be drilled to generate more focused follow-up by a subsequent program if warranted.
A first pass drill test will be made on the following target areas: Doucette, He2, Blue Hills Main, Troy's Pond and ST-129. Prospecting and channel samples with numerous values greater than 0.10% U3O8 and up to 3% U3O8 have been received from these areas. The specific priority targets have been highlighted from the surface work completed to date, but most of the property is overburden covered so new targets may be generated as exploration continues. Summary information on each area can be found on the Company's website, the highlights of which will be summarized in a release when drilling commences.
Drill targets have been selected based on a combination of surface prospects, radiometric survey data, magnetics, resistivity, soil sampling and alpha track surveying. The latter technique, used to detect uranium-bearing bedrock hidden beneath overburden cover, detected very strong anomalies in the Doucette, He2 and Blue Hills Main areas.
Channel sample results from Troy's Pond and ST-129 and prospecting samples from several areas including the newly acquired Quinlan option are awaited and will be released when available. Further Alpha-track survey lines are currently being completed in the He2, He1, He18A area as well as in covered areas in the ST-129 and Troy's Pond showing areas.
Larry Pilgrim, PGeo was recently hired by the Company as a Senior Project Geologist to supervise the Hermitage drilling and exploration program. Mr. Pilgrim was previously Senior Exploration Geologist for Richmont Mines in Newfoundland and was formerly Chief Mine Geologist at the past-producing Hammerdown Mine which was owned and operated by Richmont. Mr. Pilgrim has an extensive background in managing large exploration and development projects, including two years of uranium exploration experience.
The Company's encouragement in this project has increased significantly for the following reasons:
- High value commodity with excellent fundamentals and future growth potential - current spot price for uranium is $55 per pound U3O8 and predicted to go much higher.
- Prospective geology in an area where the Company has a large land position at a manageable cost - The property holdings and rights cover a strike length of more than 100 kilometres totalling approximately 447,300 acres (180,400 hectares) covering a large Paleozoic sedimentary-volcanic basin in a major structural suture zone that is intruded and underlain by radiogenic, uranium-bearing granites. Uranium is hosted mainly in sediments and volcanics and is both stratabound and stratiform within the bedding. There has been no previous drilling.
- Grade and resource potential - The property area is over 90% covered by thin overburden and so outcrop exposure is limited. Prospecting and surface sampling to date has identified 24 uranium occurrences in this mostly-covered area. Fourteen of these were discovered by the Company's prospecting crew since late 2005, seven of which were made with the assistance of the airborne radiometric survey flown in 2006. Numerous uranium prospects in outcrop and boulders occur that are locally high grade, containing up to 3.1% U3O8. The average grade of the world's producing uranium mines is 0.15% U3O8. The opportunity here is for a near-surface open-pittable bulk tonnage uranium resource.
- Good Pedigree - Previous work was done by Shell Canada and the Central Electricity Generating Board (CEGB) in the early 1980's - they recommended additional work but the uranium price fell.
- Location and Infrastructure - One of the main selling points of the project, the property is 50 kilometres from a sea port in a favourable mining jurisdiction, and has a paved highway and power line running through the centre. There is an excellent mining culture in the province and a good local labour pool.
- Control and leverage - The Company is the dominant land holder in the belt and to our knowledge holds controlling interests in all of the currently known uranium prospects.
Bernard Kahlert, P.Eng, V.P. Exploration is the Company's Qualified Person under N.I. 43-101 for the Hermitage Project.
About Commander Resources Ltd.
Commander Resources Ltd. is a Canadian junior exploration company with control of one of the largest new gold districts in Canada and a new uranium belt in Newfoundland. Commander's underlying mission is to generate or acquire quality opportunities and add significant shareholder value through discovery of mineral deposits, leveraged partnerships, and/or sale of assets.
On Behalf of the Board of Directors,
Kenneth E. Leigh
For further information, please call:
Cathy DiVito, Corporate Communications
Commander Resources Ltd.
Telephone (604) 685-5254 Toll Free Canada/U.S.: 1-800-667-7866
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this news release.
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