Wednesday 12th August 2020

Resource Clips

Athabasca Basin and beyond

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Kivalliq picks up historic northeastern Saskatchewan project

With Canada’s highest-grade deposit outside the Athabasca Basin, Nunavut explorer Kivalliq Energy TSXV:KIV has moved into Saskatchewan by acquiring the 146,813-hectare Genesis property. Announced January 13, the acquisition comes with “28 documented historic uranium showings and several uraniferous boulder trains.”

The property lies northeast of the Basin, 25 kilometres from Cameco’s Rabbit Lake mill, and extends 90 kilometres to the Manitoba border within the Western Wollaston Domain and the Wollaston-Mudjatik Transition Zone. “These zones host the majority of known Canadian uranium deposits and all of Canada’s operating uranium mines, which currently account for 15% of the world’s annual supply,” the company stated.

Kivalliq’s flagship Angilak project has a 2013 inferred resource that uses a 0.2% cutoff to show 2.83 million tonnes averaging 0.69% for 43.3 million pounds U3O8. The inferred category also contains 1.88 million ounces silver, 10.4 million pounds molybdenum and 15.6 million pounds copper.

The company announced another Nunavut acquisition in October.

Skyharbour to take over Canterra’s 60% JV share in Mann Lake

Skyharbour Resources TSXV:SYH expands its eastside Basin presence by picking up a 60% interest in Mann Lake currently held by Canterra Minerals TSXV:CTM subsidiary Triex Minerals Corp. Aben Resources TSXV:ABN holds the other 40%. The deal, announced January 16, has Skyharbour paying $15,000 and issuing a million shares. The project is subject to a 2.5% NSR, of which Skyharbour may buy three-fifths for $1.5 million. Mann Lake has seen over $3 million of exploration, including 5,400 metres of drilling and recent geophysics.

Last year Canterra sold several uranium properties to Zadar Ventures TSXV:ZAD. Aben, meanwhile, announced a shares-for-debt agreement with TerraLogic Exploration on January 14, as well as a proposed 1:10 reverse split.

Earlier this month Skyharbour, along with its three co-members of the Western Athabasca Syndicate, updated progress at their Preston Lake project.

Alpha to earn into Noka Resources’ Carpenter Lake

Skyharbour’s fellow syndicate member Noka Resources TSXV:NX has signed an option allowing Alpha Exploration TSXV:AEX to earn 60% of Noka’s Carpenter Lake property straddling the Basin’s south-central rim. The 20,637-hectare project shows “several high-priority geophysical targets associated with geochemical indicators for uranium mineralization,” according to Alpha’s January 14 release.

The agreement would have the Alpha Minerals spinout paying $50,000, issuing 400,000 shares and spending $1.25 million over three years. A third party holds a 5% underlying royalty, which Noka may reduce to 2% by issuing stock.

As operator, Alpha plans airborne VTEM and magnetic surveys as well as radon sampling this winter. In mid-December Alpha announced plans for its other projects.

Noka also announced a $500,000 private placement.

Denison closes Rockgate takeover, announces biggest exploration plans in years

A done deal, Denison Mines’ takeover of Rockgate Capital TSX:RGT went through via a plan of arrangement approved by Rockgate security-holders and a British Columbia court, the aggressor stated January 17. Read more about the takeover here and here.

Denison also announced the appointment of director Tae-hwan Kim, who replaces Eun-ho Cheong. Both work for KEPCO (Korea Electric Power Company), a major shareholder of Denison.

On the exploration front, the company said its 2014 programs, among the company’s most ambitious in several years, have begun. Some 13 projects will undergo nearly 60,000 metres of drilling. In all, a total of $21.2 million will be lavished on 19 projects, with Denison’s share coming to $15 million.

The company holds interests in 66 uranium exploration or development projects in Canada, Zambia, Namibia and Mongolia, 49 of them in the Athabasca. Denison’s flagship remains the 60%-held Wheeler River project, which will undergo geophysics and a 27,600-metre drill campaign over the winter and summer. Among last year’s achievements, Denison updated its Waterbury Lake resource and commissioned the McClean Lake mill.

The company has previously stated its intention to spin out its foreign assets to concentrate on the Athabasca.

Paladin reports resource update, quarterly report, mine refinancing

Paladin Energy TSX:PDN released a flurry of news last week, starting with the first resource update since 1999 for its Manyingee project in Western Australia. Using a 0.025% cutoff, the project’s five areas total:

Indicated: 8.37 million tonnes averaging 0.085% for 15.71 million pounds U3O8

Inferred: 5.41 million tonnes averaging 0.085% for 10.17 million pounds

Investment analysts specialising in uranium including Cantor Fitzgerald, Cormark Securities, Raymond James and Scotiabank have recently underscored the looming market imbalance in uranium demand and supply and the crucial imperative for higher sustainable incentive prices of at least US$70/lb to support new supply, virtually twice the current spot uranium price level.—Paladin Energy’s
quarterly report, January 15

The numbers show a minor reduction in the indicated category but an increase in the inferred portion, Paladin stated on January 13. Infill drilling later this year will try to upgrade some inferred pounds as well as find a location for in-situ recovery trials.

Among news from Paladin’s quarterly report released January 15 was record production of 1.43 million pounds from Langer Heinrich in Namibia. Kayelekera in Malawi gave up another 777,015 pounds, 8% below budget for the three-month period.

Addressing the commodity’s price outlook, the report said analysts at Cantor Fitzgerald, Cormark Securities, Raymond James and Scotiabank “have recently underscored the looming market imbalance in uranium demand and supply and the crucial imperative for higher sustainable incentive prices of at least US$70/lb to support new supply, virtually twice the current spot uranium price level.”

Two days later the company announced agreements with lenders to refinance its two mines with annual payments for 2014 reduced from US$53.8 million to $18.3 million, with a further reduction the following year.

NexGen gets two-year extension on Radio option

On January 16 NexGen Energy TSXV:NXE announced a two-year extension to its 70% earn-in on the northeastern Athabasca Radio project. The new agreement requires $10 million in remaining spending on the 847-hectare property by May 31, 2017. The three optioners also get a total of 5.71 million units at $0.35, with each unit consisting of one share and one warrant exercisable at $0.50.

The agreement allows NexGen to continue focusing on its PLS-vicinity Rook 1 project, which had assays released the previous week. The company has yet to report results from a nine-hole, 3,473-metre program at Radio.

U3O8 options out silica sand potential from Argentine uranium property

Silica sand could offer near-term cash flow for U3O8 Corp TSX:UWE. The company has granted an Argentine operator rights to extract frac sand from a 100-hectare portion of U3O8’s Carina uranium prospect. In return U3O8 gets cash option payments and a 7.5% gross royalty on production. “Frac sand production in the U.S. has increased almost 500% between 2009 and 2013 to 31 million tonnes per annum,” said U3O8 president/CEO Richard Spencer in the January 16 statement.

Negotiations continue on a JV with Petrominera Chubut S.E., an Argentine provincial mining company with concessions adjoining U3O8’s flagship Laguna Salada property, now undergoing a preliminary economic assessment. Both the JV and PEA are scheduled for Q1 completion.

Aldrin plans 3,000 metres at Triple M

Aldrin Resource TSXV:ALN released winter plans for its Triple M property on January 15. At least 3,000 metres will test basement conductors on the project’s PLS-adjacent southeastern block. Infill gravity and radon surveys will help refine targets. Work is scheduled to start in February.

VTEM flies over Makena project

A VTEM max electromagnetic survey has begun at Makena Resources’ TSXV:MKN PLS-vicinity project, the company reported January 15. Makena optioned a 50% interest in the 6,687-hectare property from CanAlaska Uranium TSXV:CVV last August.

Forum to sink 3,000 metres at Clearwater; Henday JV with Rio to get geophysics

Forum Uranium TSXV:FDC has slated its PLS-vicinity Clearwater project for an initial 12 to 15 holes totalling 3,000 metres, the company announced January 15. Drilling on the 9,910-hectare property is scheduled to begin in February. On the Basin’s east side, Forum’s 40%/60% Henday JV will get $150,000 worth of summer magnetic and EM surveys from project operator Rio Tinto NYE:RIO.

See previous uranium news updates:

Read analyst David Talbot’s insights about uranium and the Athabasca Basin in a global context.

Disclaimer: Lakeland Resources Inc is a client of OnPage Media Corp, the publisher of The principals of OnPage Media may hold shares in Lakeland Resources.

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