2006 News Releases
Update from Mega's Mongolian Partner, UGL Enterprises Ltd.
Vancouver B.C., February 10, 2006 - UGL Enterprises Ltd (TSXV: UGS) ("UGL") is pleased to provide the following operations overview for its Mongolian energy and metals properties, in addition to outlining the Company's vision for 2006. Additional information can also be viewed at www.uglenterprises.com/letter.html
UGL remains committed to becoming a major source of energy for Asia through acquisition, exploration and development of resource properties. Advancements to the Company's Ulaan Ovoo coal project may lead to production as early as this year. Ulaan Ovoo's reported 78 million tonne inferred coal resource is being independently evaluated by Behre Dolbear & Company (USA), who have been retained to bring the resource calculation into compliance with NI 43-101. Behre Dolbear's reports will include resource and deposit calculations and digitization, and modeling of the resource.
Ulaan Ovoo's low-sulphur, high-volatile bituminous coal is amenable to power generation. The near surface resource is believed suitable for open pit production. The project has been issued a transferable 55 year mining license with 45- year extension by the Mongolian government. UGL continues in its marketing discussions with coal end-users in the region for anticipated production.
UGL is well positioned to take advantage of its strong pipeline of projects in Mongolia, with:
A very experienced management team is in place, with over 5 years in Mongolia;
Financing capability, with over $ 8 million raised since 2002, and
Extremely prospective project positions, with 78 million tons bituminous coal, 18 advanced uranium properties totaling 3700 sq. km., and 9 gold and copper properties on 104,677 hectares.
The following chronology contains the key factors and events that have brought UGL to its current status holding a significant energy resource pool in the very heart of Asia.
November 22, 2005: UGL signed an agreement to acquire the Ulaan Ovoo coal project. Acquisition of the Ulaan Ovoo coal project sends a clear message about UGL's determination to be a significant energy supplier to Asia. Ulaan Ovoo has a reported 78 million tons of bituminous coal north of the fault. The south part of the project area, which remains incompletely explored, is speculated to have an exploration target of comparable potential size. Bituminous coal is the primary fuel for the thermal generation of electricity fetching prices ranging from U.S.$30 to U.S. $50 per ton. One of the extremely attractive aspects of Ulaan Ovoo (aside from 78 million tons of coal) is its transferable 55 year mining license, with a 45 year extension option. This long-term license significantly shortens the project's time-to-production horizon, which is planned to be instigated upon completion of Behre Dolbear's 43-101 report, scoping, pre-feasibility, and marketing studies. Ulaan Ovoo will take our Company to a level beyond junior exploration making UGL a root source of energy supply in Asia. Unlike other energy resource suppliers who must deal with the myriad logistics of getting their production to Asian markets, UGL's energy resource supply is open pitable - and right in the very heart of energy thirsty Asian markets.
December 12, 2005: UGL announced the completion of five Russian language reports commissioned by UGL on 8 of UGL's Mongolian uranium properties, which have been joint ventured with Mega Uranium Ltd. The five reports cover the Jargalan, Elgen, Naidal, Maikhan, Modot Del, Adag Usnii, Shorvog Gol, and Khashaat properties. A sixth report on Baganurat is in the final stages of preparation. The reports were prepared under the direction of senior Russian uranium geologists, some of whom participated in joint Soviet-Mongolian uranium exploration in Mongolia in the 1980s and 1990s. The reports are extensive and include Russian information pertaining to geography, known uranium occurrences, historical drilling and trenching. The reports also recommend potential drill targets and provide general recommendations for areas for exploration expansion.
November 8, 2005: UGL optioned 80% of the Argalant high-grade gold and copper project (2090 ha.) in western Mongolia. Drilling is commencing immediately. The Argalant property has an extensive work history, with $250,000 previously spent on the project by other junior explorers. The property is contained within a large volcanogenic massive sulfide belt that has the potential to host many Cu–Au–Ag deposits. The property has two significant prospects: the Ovoot prospect which has surface sampling assays ranging from 0.77 to 11.0 g/t gold and 1.81 % to 10.32% copper; and the Gozgor prospect, which hosts several gold and copper mineralized quartz veins with numerous historical pits partially tracing the mineralization. Assays from grab sampling returned values of 5.0 g/t to 191.0 g/t gold.
July 12, 2005: UGL entered a uranium joint venture with Mega Uranium Ltd. (TSX: MGA, formerly Maple Minerals) for the exploration of UGL's 18 uranium properties. Mega Uranium is funding all exploration expenses. This strategic alliance brought more than just funding; Mega Uranium brings some of the world's premiere uranium technical exploration personnel to UGL as added value. UGL remains the operator.
On April 11, 2005: UGL closed a $2.9 million institutional private placement. UGL is now 25% institutionally owned by Sprott Asset Management and Pinetree Capital Fund.
On February 23, 2005: UGL acquired 100% ownership of the Baganurat uranium property (13,446 ha.) Two Russian exploration programs were conducted on Baganurat in 1982 and 1987. Russian conclusion reports indicate a significant uranium reserve reported in pounds and Russian records indicate a zone of uranium mineralization 3.5 km. long and 2-3 metres deep. This data has yet to be tested and substantiated by the Company.
January 10, 2005: UGL acquired 100% ownership of the Maikhan uranium property (2500 ha.). Previous Russian fieldwork reports include mapping and sampling programs and 11,700 metres of trenching that was verified as part of 2005's uranium exploration Russian data also reports a 5 km. long uranium zone trending NW.
November 17, 2004: UGL acquired 100% ownership of the Naidal uranium property (39.810 ha.). Naidal is located in Mongolia's Dornod aimag (province) which also hosts two of Mongolia's largest uranium discoveries; the Gurvanbulag and the Dornod, with over 40 million pounds of uranium each. The Naidal property has only been explored to a depth 10 metres.
May 20, 2004: UGL begins its 2004 Mongolian drilling season. Our company drilled over 5000 metres and struck two discoveries, announced July 5, 2004.
January 29, 2004: UGL closed $3.35 million in private placement financings.
We expect 2006 will be a breakout year for UGL Enterprises and its shareholders. For Q1 2006 UGL has contracted Behre Dolbear, Minerals Industry Consultants based in New York since 1911, to generate a NI 43-101 report and scoping study on the Ulaan Ovoo coal project. This report will be followed by a drill program on Ulaan Ovoo to verify historical data and expand the resource further. Q1 2006 will also see significant exploration on our uranium portfolio including geophysics, radiometric and radon surveys, and drilling on priority projects.
UGL Enterprises Ltd. is a junior resource company trading on the TSX-Venture Exchange under the trading symbol "UGS". UGL has 18 uranium properties, 9 gold and copper exploration projects, and has recently contracted to acquire the Ulaan Ovoo Coal project, all located in Mongolia. UGL has a strategic alliance with Mega Uranium Ltd. to jointly develop its uranium assets, and with Mine Info Ltd., a leading Mongolian exploration service company. UGL has a full time office in Mongolia's capital, Ulaanbaatar.
For further information:
Paul McKenzie (Director): Telephone 604.779.8550
Email: email@example.com Web: www.uglenterprises.com
European Investor Inquiries can be directed to:
Fuller Fletcher & Associates Ltd. of London, UK
Tel: +44 (0) 20 7256 5204 Email: firstname.lastname@example.org
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
Forward-Looking Statements: Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in the Corporation's periodic filings with Canadian Securities Regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. The companies do not assume the obligation to update any forward-looking statement.