Wildhorse Energy Limited (Wildhorse Energy) has signed a cooperation agreement with Mecsek-Öko and MECSEKÉRC with the objective of developing the Mecsek Hills uranium project area in southern Hungary, which includes Wildhorse Energy's Pécs uranium project. This agreement relates to all the uranium resources in Mecsek region.
Discussions regarding a formal development agreement are expected to take place following the completion of the upcoming Wildhorse Energy exploration drilling program at Mecsek Hills, due to commence in November 2009.
Mecsek-Öko and Mecsekérc are the Hungarian mining agencies that hold the mining concession which covers the areas covering the historical uranium mine that produced 46m lb of uranium metal prior to its closure in 1997, which joins the Western boundary of the Wildhorse Energy Pécs and Abaliget licences.
Mecsek Hills Uranium Project Area
The Mecsek Hills Project Area covers Wildhorse Energy’s Pécs uranium project (Pécs and Abaliget licenses), and includes the former uranium mine (mining concession) which contains extensive unmined material adjoining the western boundary of Wildhorse Energy’s Pécs project area. These zones to the west of Pécs are held by Mecsek-Öko are shallower, and offer potential access through uranium bearing sandstones on the mining concession into Wildhorse Energy’s area of exisitng JORC resource at Pécs. These uranium bearing sandstones underlay the entire Mecsek Hills project area. The current JORC inferred resource at Pécs is 17MT at 0.08% U3O8 for 30Mlbs of U3O8,, with an Exploration Target for the total Mecsek Hills project area of 90 to 120mlbs of contained U3O8, with a grade range of 0.08-0.12%.
The next stage of the Wildhorse Energy work program is to finalise the current technical review of the project area, which includes the verification and digitisation of the historical drilling dataset that covers the Pécs and Abaliget licenses. Over 400 historical exploration drill holes exist in the project area and have provided the basis for the current Exploration Target for the Mecsek Hills Project Area. Wildhorse Energy expects to commence its new drilling program in November with the aim to verify the integrity of the historical data set and increase the current JORC inferred resource at Pécs of 30Mlbs of U3O8 at 0.08%.