Tribune Uranium Closes Financing, Opens a New Chapter at Reed Lake, Manitoba

                                                                                         

By Christina de Wit

Aesop, the ancient Greek fabulist, was known for his kernels of wisdom – usually aimed at children. He advised that “it is thrifty to prepare today for the wants of tomorrow,” and suggested that rewards come when you “put your shoulder to the wheel”. Even though the mining business is hardly child’s play, it’s obvious that Tribune Uranium Corp’s (TSX.V:TCB) management has integrated this age-old advice into its vision as it looks forward to a year of steady growth.

As per its December 13 news release, the company has completed a $1.5 million private placement in partnership with MineralsFields by issuing 1,428,571 flow-through units at a price of $1.05 per unit (subject to regulatory approval). Each unit consists of one common share and one transferable non-flow-through share warrant, good for one share at $1.40 over one year. The company will pay out an 8% cash finder’s fee.

This latest news comes on the heels of the company’s announcing plans for its 2008 exploration and drill program on its 100%-owned Quartz Claims, located northeast of Snow Lake, Manitoba in the Reed Lake District (within the Flin Flon–Snow Lake VMS Belt). The Quartz Claims are located near VMS Ventures Inc.’s (TSX.V:VMS) recent discovery hole, which runs 11.19% Cu over 10.5 m. The 2008 work program aims to verify historical drilling and to test EM conductor bodies within the Quartz Claims.

In preparation for the 2008 exploration program (set to begin in January), Tribune’s management has reviewed historical data on the property and has determined multiple high priority targets for testing. Management is presently designing a drill program to test these targets in the first quarter of this coming year. To date, the company has a reserved drill for the entire 2008 program, and has submitted all relevant permits to the Manitoba Ministry of Mines.

The Quartz Claims cover a 4,800 ft-long electromagnetic (EM) conductor which is interpreted to lie in a fold axis. According to the company’s website, historic drilling in the 1980s by Hudbay Minerals (TSX:HBM) intersected significant gold mineralization and alternation mineralization of the sort typically associated with VMS-style deposition. Previous drilling along the eastern end of the conductor has revealed intersections grading 0.64 oz/t Au over 4.2 ft and 0.43 oz/t Au over 4.5 ft. The western end contains two EM anomalies which have not yet been drilled. Given the geology and the discovery history of the area, it is thought that these two conductors might well host significant gold mineralization. The regional geology of the Reed Lake district mainly consists of mafic and felsic volcanic rocks, overlain by later sedimentaries– which are typical of the sort found in greenstone belts.

The Flin Flon-Snow Lake VMS belt is one of the world’s such Proterozoic greenstone belts– with over 20 producing and past-producing Cu-Zn-Au-Ag deposits. Examples of world-class deposits within greenstone belts include Flin Flon, Manitoba (Cu, Zn, Au, and Ag) with 60 million tonnes, and Kidd Creek, Ontario, (Cu, Pb, Zn, Au, and Ag) with 150 million tonnes. Aside from its sheer mineral wealth, Flin Flon-Snow Lake has the advantage of having excellent infrastructure– HudBay has mills at both Flin Flon and Snow Lake, as well as a copper smelter and a zinc plant at Flin Flon.


Tribune is also planning a drill program for its other Manitoba polymetallic project on its Green Claims south of Snow Lake, along the east shoreline of Blue Lake. The company’s website describes work so far as being “limited [to] historical drilling designed to test a strong UTEM response intersected 0.75% Cu over 46.9 feet and massive sulphide exhalite grading 3.12% Cu and 2.25% Zn over 1.3 feet. The significant copper and zinc mineralization is thought to be associated with a major hydrothermal alternation system.”

With these new beginnings come some happy endings– the company expects to wrap up its drill program on its joint-venture uranium project at Botham Lake in Saskatchewan’s Athabasca basin by the end of 2007. The program encompassed 4,000 meters of drilling over four uranium anomalies. The Botham Lake claims are adjacent to Cameco’s recent Centennial Zone uranium discovery, where 18% U3O8 over 5.3 m has been reported by Cameco. Results will be released as they become available.

The 2008 season is bound to be a barnburner for Tribune’s management and shareholders. Management has done all the right things in terms of laying a strong foundation for growth, and it reflects in the company’s tight share structure of approximately 31 million shares, fully diluted. Several structural elements point to a winning formula: cash in the treasury for its drilling programs, a strategically assembled uranium/polymetallic property portfolio with ground next to proven deposits in Manitoba and Saskatchewan – two of the most mining friendly and politically stable districts in the world – and highly anticipated drill results coming out of Botham Lake. The timing couldn’t be better as these factors are all underscored by a hyperactive bull market and a uranium supply shortage.

With all of these factors taken into account, it’s easy to see why TCB could well be on the verge of experiencing some healthy price gains in the near future. In this case, perhaps the story of the Hare and the Tortoise provides a good impetus for action– “slow but steady wins the race.”

This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.

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