IBI receives progress report on Ugandan licences

 

2009-06-24 11:43 ET - News Release

Mr. Gary Fitchett reports

IBI AFFILIATE GREY CROWN RESOURCES RECEIVES REPORT ON SOIL SAMPLING PROGRAM

IBI Corp.\'s affiliate company, Grey Crown Resources Limited, a currently private gold exploration and mining company focused on Uganda, has received a progress and status report from WGMA Consults, on a soil sampling exploration program it is conducting on certain Grey Crown properties in eastern Uganda.

The soil sampling program to date involves two of the company\'s exploration licences (ELs) and is part of an overall exploration program contemplated for Grey Crown\'s 11 exploration licence areas.

WGMA collected 206 samples, including rock samples over ELs 0438 and 0410, and has delivered the samples to the laboratory of Busitema Mining Cie Ltd., a wholly owned subsidiary of Grey Crown, for initial analysis and sample preparation prior to selected samples being forwarded to a certified independent laboratory for repeat analysis. The area of coverage, from which the samples were obtained, is about 16 square kilometres on EL 0438, and about 17 square kilometres on EL 0410, for a total of about 33 square kilometres.

In selecting the target areas for initial sampling, consideration was given to sampling work done by previous parties and documented in reports made available to WGMA.

WGMA indicates that although the soil-sampling program performed to date is regarded as successful, pending sample analysis results, it has been conducted during the peak of the rainy season and WGMA has recommended that additional samples be taken during the dry season.

Prior to, and in preparation for the fieldwork outlined above, a desk study was prepared and a reconnaissance visit was conducted by WGMA. The reconnaissance visit was conducted in order to acquaint WGMA with the general geography and geology of the area as well as to introduce the field team to the administrative officers in the area, including the district environmental officer, in the areas where the ELs are located. Proposed transportation methods were also reviewed and the suitability of proposed sampling methods was determined.

The desk study was compiled to aid in developing a preliminary strategic approach for identification and prioritization of potential targets/geological structures/areas to be covered by the planned soil sampling program in a streamlined manner that ensures relevance and significance of sampling, and to aid other contemplated future exploration and mining activities. Regarding soil sampling, one of the objectives of the desk study was to enable strategic planning of each ELs\' sampling approach, method and grid geometry in a specific approach that targets key potential geological structures or areas.

The desk study process entailed literature review of reports, data and analytical studies of a wide range of thematic maps, that is, topographical, geological, geophysical (airborne and land-based surveys), and various geological maps based on field and airborne geophysical surveys.

Note on future exploration

Certain of Grey Crown\'s planned soil sampling and the previously announced induced polarization survey (as reported in Stockwatch March 23, 2009) work are to be rescheduled and/or replanned by the company pending resolution, which is anticipated to involve the government of Uganda, of certain land and compensation issues pertaining to some areas within the company\'s exploration and mining licences.

The contents of this news release have been reviewed and approved by Dr. James Misener, PEng, IBI\'s qualified person.

IBI corporation overview

Uranium

Following a decision to focus on high-value minerals exploration and development in Uganda and east Africa, IBI sold its Namekara vermiculite mine in Uganda to Rio Tinto for $5-million (U.S.) in March, 2007, with final closing in March, 2008. IBI subsequently has focused primarily on developing opportunities for the exploration and development of uranium in Uganda and Tanzania. IBI\'s prospective uranium land portfolio consists of approximately 2,882 square kilometres in Uganda and Tanzania, and the company is seeking to add more uranium lands.

The company is currently preparing a proposal for the government of Uganda for a private/public partnership between IBI and the government of Uganda for the exploration and development of IBI\'s prospective uranium lands toward the goal of creating a nuclear electrical power generation program for Uganda.

Gold

IBI has accelerated its program of investing in promising gold opportunities, most notably through its current 29-per-cent ownership position in Grey Crown Resources. Grey Crown owns and operates the producing Tira gold mine in Uganda and has also built a prospective gold lands portfolio of 1,242 square kilometres in the southeast Uganda greenstone belt. The southeast Uganda greenstone belt is considered to be an extension of the Lake Victoria greenstone belt where several prominent majors, including Barrick Gold and AngloGold Ashanti, are currently producing gold from proven reserves.

General

In February, 2009, IBI entered into a joint venture agreement with Venus Capital Resources Limited in which IBI holds a 20-per-cent carried interest in 12 exploration licence properties consisting of 3,442 square kilometres, and regarding which, Venus is the project operator. The properties are contemplated for uranium, gold and rare earth minerals exploration.

We seek Safe Harbor.