Wednesday 28th September 2016

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Athabasca Basin and beyond

Uranium news from Saskatchewan and elsewhere for July 13 to 19, 2013

by Greg Klein

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Step-out hole extends PLS zone by 15 metres

The first hole of Patterson Lake South’s summer program found 85.5 metres of “the most abundant off-scale mineralization of any hole drilled on the property,” stated Fission Uranium TSXV:FCU president/COO Ross McElroy. In dual announcements made July 18, Fission and 50/50 joint venture partner Alpha Minerals TSXV:AMW said scintillometer readings show the step-out extends the R390E zone 15 metres grid west. R390E is the middle of three zones along an 850-metre northeast-southwest trend.

Although its readings aren’t substitutes for assays, the scintillometer determines radioactivity by measuring gamma ray particles in counts per second, up to an off-scale reading of more than 9,999 cps. Results for PLS13-072 show:

Uranium news from Saskatchewan and elsewhere for July 13 to 19, 2013

Alpha/Fission’s $6.95-million summer drill program has begun,
with the first hole extending one zone by 15 metres.

  • <300 to >9,999 cps over 85.5 metres, starting at 62 metres in downhole depth
  • (including 1,100 to >9,999 cps over 16.5 metres)
  • (and including 5,000 to >9,999 cps over 6.9 metres)
  • (and including <300 to 8,600 cps over 5 metres)
  • (and including <300 to 720 cps over 2.5 metres).

Assays are pending. True widths weren’t available. Drilling on the hole was suspended due to mechanical failure. All PLS holes will get a radiometric probe to assess radioactivity more accurately.

Interestingly, the drill found no Devonian sandstone between the overburden and the basement bedrock, which started at 55.7 metres’ depth. “This may be a result of the RC rig casing past the overburden and bedrock contact, and so the presence or absence of Devonian sandstone is inconclusive,” stated Alpha’s news release. “Alternatively, the lack of Devonian sandstone and presence of shallower mineralization may indicate that the bedrock source of the high-grade uranium boulders is possibly approaching further to the west of PLS13-072. Other step-out drill holes may resolve this.”

The program uses two diamond rigs in addition to the reverse circulation drill. With a $6.95-million budget, the 44-hole, 11,000-metre drill campaign and ground geophysics surveys continue on the 31,000-hectare property two kilometres from Highway 955.

Fission applies for boulder-finding patent

Along with collaborator Special Projects Inc, Fission wants to patent the system used to discover the PLS high-grade uranium boulder field. Calling it “an invention entitled System and Method for Aerial Surveying or Mapping of Radioactive Deposits,” Fission announced the application on July 16.

The company explained that radiometric surveys can be affected by a number of variables including weather, topography and cosmic activity, as well as more controllable factors such as sensor height and aircraft speed. The invention “is particularly sensitive to addressing these variables,” Fission stated.

The news release didn’t specify the invention of new technology.

Forum extends Key Lake-area holdings

Towards the Athabasca Basin’s southeast corner, Forum Uranium TSXV:FDC picked up the Highrock South property, adding another 1,381 hectares to its Key Lake area holdings. The company’s July 17 announcement states the property “is a continuation of the prospective Key Lake/Black Forest conductive trend” that hosted Cameco Corp’s TSX:CCO former deposits and the geology “compares favourably” with PLS. Highrock South lies about 15 kilometres south of the world’s largest high-grade uranium mill.

Forum pays $2,500, issues 25,000 shares and grants a 2% NSR. The company holds six other projects totalling over 90,000 hectares in the area, as well as other projects in Saskatchewan and Nunavut’s Thelon Basin.

Brades moves into Athabasca Basin

Brades Resource TSXV:BRA marked its Saskatchewan entry with the Lorne Lake acquisition announced July 16. The approximately 39,450-hectare property shows “extensive regional faulting and lineaments and covers one of only three identified cross-cutting major fault structures located in the western Athabasca Basin,” as well as “favourable magnetic geophysical data,” the company stated.

In return, Brades will issue a total of 3.5 million shares to two vendors including Ryan Kalt, who will also get a 2% NSR. On closing the deal, Kalt becomes a company insider.

On July 19 Brades announced the appointment of Evany Hung as CFO, replacing Christopher Cherry. The company also holds the 14,133-hectare BRC porphyry copper-gold property in northwestern British Columbia.

Noka retains Dahrouge Geological Consulting

On July 18 Noka Resources TSXV:NX announced it retained Dahrouge Geological Consulting to manage and explore Noka’s Athabasca Basin properties. Dahrouge and its predecessor, Halferdahl & Associates, have over 40 years’ experience with mineral projects, including over 30 years in uranium, Noka stated. The announcement credited Jody Dahrouge and his team with “the conceptualization and acquisition of several uranium properties within the Athabasca Basin, most notably these include such projects as Waterbury Lake (J zone), Patterson Lake and in part Patterson Lake South.”

Noka’s properties include Clearwater and Athabasca North, as well as a 25% earn-in on the Western Athabasca Syndicate Project, a four-company strategic alliance with Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC and Lucky Strike Resources TSXV:LKY that’s exploring the PLS-area’s largest land package.

Read more about the Western Athabasca Syndicate Project.

Paladin reports quarterly revenue of $107.4 million, record production

Paladin Energy’s TSX:PDN quarterly report, released July 16, showed sales revenue for three months ending June 30 of US$107.4 million. The company sold 2.32 million pounds of uranium oxide (U3O8) at an average price of $46.22 a pound.

Both of the company’s mines achieved quarterly production records. Langer Heinrich in Namibia produced 1.35 million pounds U3O8 while Kayelekera in Malawi gave up 789,430 pounds for a combined 2.14 million pounds, up 8% from the previous quarter. Fiscal 2013 production met guidance with 8.25 million pounds. The fiscal 2014 forecast ranges from 8.3 million to 8.7 million pounds.

The company also stated it had cut production costs by 9% at Langer Heinrich and 24% at Kayelekera, compared with June 2012. Paladin has been negotiating the sale of a minority interest in Langer Heinrich.

As for the company’s other projects, its Michelin property in Labrador has more exploration planned for summer and a resource update scheduled for next quarter. At Western Australia’s Manyingee project, work continues on an updated resource and hydrogeological modelling. Exploration on its Agadez property in Niger, however, has been suspended following the May 23 terrorist attacks that hit a military barracks and a uranium mine operated by AREVA.

In April Paladin became sole owner of the Angela project in Northern Territory, with an inferred resource of 30.8 million pounds, after buying Cameco’s 50% interest. Paladin also holds other Australian properties.

Cameco wants Canada to allow foreign ownership, Paladin concurs

Cameco “has broken ranks with the Canadian government by taking the position that Australian companies should be able to wholly own uranium mines in the country,” reported Australia’s Financial Review (subscription required) on July 15. Not surprisingly the journal added that John Borshoff, managing director/CEO of Australia’s Paladin, “says Canada must heed the words of one of its biggest companies and prioritize lifting restrictions on foreign ownership.”

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