Kakanda Purchases “Tonka” Uranium Property in the Otish Basin of
Quebec
VANCOUVER (February 7, 2007) – Kakanda Resources Corp. (“Kakanda”) (TSXV:
KRC) is pleased to announce that it has signed an arms length Letter of Intent (“LOI”) to purchase 38
mineral claims (~2000 ha) in the Otish Basin Of Quebec. Under the terms of the LOI Kakanda has
agreed to pay $10,000 cash and issue 100,000 shares to the property vendor (the “Vendor”). The Vendor
will retain a two-part production royalty (the “Royalty”) consisting of a 2.0% Net Smelter Returns royalty
on smeltable materials and a 2.0% Gross Overriding Receipts royalty on diamonds. Kakanda will have
the right to buy back the first 1.0% of the Royalty from the Vendor for $1,000,000 and will have the right
of first refusal to purchase the remaining 1%.
The “Tonka” property covers approximately 7.5km of the south margins of the Otish Basin. The Otish
basin is being actively explored most notably at the Matoush Project where Strateco Resources Inc. has
recently announced drill hole intersections of up to 2.1 per cent U3O8 over 12.4 metres (Strateco Press
Release: December 22, 2006). The property is underlain primarily by sedimentary rocks of the Indicator
Formation and it straddles the unconformity contact with the underlying granitic complex. It offers
potential for classic unconformity-type uranium mineralization both below and above the unconformity
surface.
Unconformity-type uranium deposits are found in the Proterozoic Athabasca basin in Saskatchewan
which accounts for approximately one third of global uranium production and 15% of global reserves.
The uranium mineralization is epigenetic and occurs near the basal contact of sandstone overlying
crystalline basement rocks. Uranium is not confined to the sandstone but may also be concentrated in
fractured basement rocks below the unconformity. Mineralization is typically found within 200m above
and below the unconformity surface. The Matoush uranium mineralization is closely linked to a regional
fault that appears to have acted as a conduit for uranium-bearing fluids. The mineralization generally
occurs along the margins of the fault in a highly-fractured and altered environment adjacent to vertical
gabbro dykes emplaced within the fault. The uranium mineralization found at Matoush lies well above
the basin rim and resembles "Perched bodies" found above the McArthur River and Cigar Lake uranium
deposits in the Athabasca basin.
Kakanda plans to explore the Tonka property for unconformity-type uranium deposits both above and
below the basin unconformity surface as well as for Matoush fault-type uranium deposits well above the
basin rim. The first phase of exploration will include a high-definition magnetic and radiometric airborne
survey over the entire property in order to generate prospecting targets.
On Behalf of the Board,
Kakanda Resources Corp.
#204-700 Pender Street W
Vancouver, BC V6C 1G8
e-mail: steve.smith@telus.net
Telephone:
Facsimile:
604 642-0115
604 642-0116
“Steve Smith”
Steve Smith.
President
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
Statements in this release that are forward-looking are subject to various risks and uncertainties concerning the specific factors identified
above and in the corporation's periodic filings with the British Columbia Securities Commission and the U.S. Securities Exchange
Commission. Such information contained herein represents management's best judgment as of the date hereof based on information
currently available. The corporation does not intend to update this information and disclaims any legal liability to the contrary.
#204-700 Pender Street W
Vancouver, BC V6C 1G8
e-mail: steve.smith@telus.net
Telephone:
Facsimile:
604 642-0115
604 642-0116