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Cline Mining Corporation TSX: CMK
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Cline Mining-Madagascar Uranium Property
VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 20, 2006) -
Not for distribution to U.S. newswire services or for dissemination in the United States.
Cline Mining Corporation (TSX:CMK) (the "Company") announces the acquisition of the uranium mineral rights from the Government of Madagascar in the Morondava Basin (the "Morondava Uranium Project") located in western Madagascar. The Madagascar Government, through its Agency OMNIS Corporation ("OMNIS"), will retain a 20% interest in the uranium project and Cline Mining Corporation will have the remaining 80% interest and management, all of which will be owned through shareholdings in Cline's Madagascar based subsidiary company, Uranium Corporation of Madagascar SARL (URAMAD).
The Morondava Uranium Project property area covers some 9,994 square kilometers and is located in the Morondava Basin, which is infilled and layered with sediments, most notably the Karoo formation that hosts uranium mineralization. The areas were previously identified and explored during the uranium cycles of 1956 to 1963 and 1979 to 1982 by the United Nations (PUND) and Madagascar Government agency (OMNIS) respectively. Later, the French uranium company Cogema took on large permits and continued regional exploration that terminated in the late 1990's with the down turn in uranium prices and demand. Cline has acquired the large data base for the Morondava Basin that includes extensive earlier airborne geophysical/radiometric surveys, drill logs of 790 drill holes (83,000 metres of drilling) that indicated uranium values and visible uranium mineralization associated with targets picked from 7,000 radioactive anomalies, recorded and plotted in the data base.
Cline plans to carry out a new state-of-the-art high-sensitive radiometric airborne geophysical survey over the previous surveyed area in order to confirm the reported 7,000 radioactive areas, as the previous radiometrics did not differentiate uranium from thorium and potassium. Cline now proposes to carry out the new work to identify uranium targets for follow-up drill testing. A power point presentation of the Morondava uranium project will be placed on the Cline website at www.clinemining.com.
Cline's management intends to consider ways in which the exploration, development and financing of the Morondava Uranium Project can be best accomplished in a manner that maximizes Cline shareholder value, including restructuring the ownership of the Morondava Uranium Project so that it is held by a separate public company owned by those Cline shareholders, who may so wish to participate.
Cline Mining Corporation is a mine development company focused on the exploration and development of metallurgical coal in Canada for the international seaborne coal trade market with interests in strategic mine minerals in Madagascar. The Company website is at www.clinemining.com. Shares of the company trade on the Toronto Stock Exchange under the symbol CMK.
Cline Mining Corporation
"Ken Bates"
Ken Bates, President and Chief Executive Officer
Head Office
530 Lasalle Boulevard
Sudbury, Ontario
P3A 1W9
Vancouver Office
650 West Georgia Street
Suite 2950, P.O. Box 11578
Vancouver, B.C.
V6B 4N8
For more information, please contact
Cline Mining CorporationKen Bates
CEO
(416) 830-0709
or
Cline Mining Corporation
Allan Taylor
CFO
(705) 560-8100
(705) 560-8521 (FAX)
or
Cline Mining Corporation
Gordon Gormley
COO
(604) 687-7789
(604) 687-7765 (FAX)
or
Cline Mining Corporation
Jonathan Buick
Investor Relations
(877) 748-0914
(416) 915-0915
www.clinemining.com
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