Saturday 22nd October 2016

Resource Clips

Athabasca Basin and beyond

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Mega amasses more Macusani shares

With a decision pending on the Azincourt/Macusani LOI, Mega Uranium TSX:MGA spent July 4 stocking up on Macusani stock. With 3.57 million shares and an equal number of warrants, Mega bought about 4.2% of Macusani’s outstanding shares.

The purchase was part of a first-tranche private placement that brought Macusani $573,000 at $0.07 per unit, with each unit consisting of one share and one warrant. Mega is controlled by an insider of Macusani, which continues to market the balance of its $1-million offering.

Including previously purchased shares and warrants, Mega and its joint actors would hold about 10.2% of Macusani if all warrants were exercised. Under those circumstances Mega’s direct holdings would come to about 8.4% of Macusani.

In January Mega picked up about 11.5% of Bayswater Uranium’s (TSXV:BYU) outstanding shares.

Forsys advances Namibian project toward feasibility

With completion slated for Q1 2015, a feasibility study is underway for the Norasa project’s Valencia deposit in central Namibia, Forsys Metals TSX:FSY announced July 7. A pre-feas filed in March used a uranium price of $68 per pound and an 8% discount rate to calculate a post-tax net present value of US$410 million and a 36% internal rate of return. The initial capex came to $392 million, with payback in three years and a 12.5-year mine life.

Last February the company reported a 30% increase in total reserves for the project’s Valencia Main and Namibplaas deposits.

Fifty kilometres south of Norasa, the sale of a 25% JV stake in Paladin Energy’s (TSX:PDN) Langer Heinrich mine to a subsidiary of China National Nuclear Corp has met all regulatory approvals, Paladin stated June 30. A signing ceremony for the US$190-million deal takes place in Perth on July 23.

Namibia also hosts the Rossing mine. A partnership of Rio Tinto NYE:RIO (68.6%), Iran (15%), South Africa (10%) and Namibia (3%), it’s one of the world’s largest open pit uranium operations. Chinese-owned Taurus Minerals has another Namibian mine, Husab, scheduled for production in late 2015.

Forum options Clearwater to Uracan

Under a letter of intent announced July 8, Uracan Resources TSXV:URC may earn up to 70% of Forum Uranium’s (TSXV:FDC) PLS-adjacent Clearwater project. Preliminary results from a nine-hole, 2,310-metre drill program were released in April, while more detailed results are pending. “Ample exploration potential remains to be tested throughout the property with numerous geophysical targets remaining to be drill-tested,” the companies stated.

An initial 51% interest would cost Uracan 300,000 shares and 150,000 warrants on signing, as well as $3 million in exploration over three years. The LOI calls for a firm year-one commitment of $500,000.

An additional 19% would require another $3 million over two further years. Forum retains a 2% NSR, half of which Uracan may buy for $1 million. Forum remains project operator until Uracan earns 51%, after which the latter may become operator.

Two weeks earlier Uracan announced an agreement to reduce its spending commitment on the company’s Black Lake earn-in with UEX Corp TSX:UEX in return for shares. In early May Forum released initial drill results from its Northwest Athabasca project, in which the company shares a 64% interest with NexGen. Other JV partners on that project are Cameco Corp TSX:CCO (23.5%) and AREVA Resources Canada (12.5%). Forum holds additional interests in the northeastern Basin and Nunavut.

Glenmark contracts Ford Lake field program

Proceeding with a project acquired last September, on July 9 Glenmark Capital TSXV:GLM announced it engaged Urania Resource Corp to conduct field work at the eastern Basin’s Ford Lake project. The target area was identified by previous magnetic data. On July 4 Glenmark offered a private placement up to $1 million.

The company, formerly Abbastar Resources, got a 100% option on the 6,358-hectare property for $560,000 over three years, $2.5 million in exploration over four years and a 1% NSR.

Skyharbour, Aben plan Mann Lake geophysics

On July 8 Skyharbour Resources TSXV:SYH and Aben Resources TSXV:ABN announced ground electromagnetics would begin next month on their 60%/40% Mann Lake JV. The survey will focus on a two-kilometre-long aeromagnetic low that coincides with possible basement conductor trends suggested by previous surveys. The companies hope to find conductors proximal to next door’s Mann Lake discovery, held 52.5% by Cameco, 17.5% by AREVA Resources Canada and 30% by Denison Mines TSX:DML after the latter company took out International Enexco.

In May Skyharbour acquired two properties from Denison. On July 10 Aben announced 2014 exploration plans for its Justin gold-silver-tungsten project in the southeastern Yukon.

Energy Fuels sells non-core uranium-vanadium assets

On July 3 Energy Fuels TSX:EFR announced definitive agreements to sell several non-core assets in the southwestern U.S. to a group of private investors. Included are resources totalling approximately 4.8 million pounds U3O8 measured and indicated, as well as inferred and historic uranium and vanadium resources.

The merchandise also includes the proposed Piñon Ridge uranium-vanadium mill in Colorado, “the first new uranium mill to be licensed in the U.S. in over 30 years,” Energy Fuels stated. “However, with the acquisition of the White Mesa mill in 2012, the company no longer needs to construct the Piñon Ridge project in order to meet its planned production.”

The price will total about US$2.05 million in cash, promissory notes and the purchasers’ assumption of debt. Among other requirements, the buyers will also assume all reclamation obligations and replace all reclamation bonds for Piñon Ridge, which total about $700,000.

Energy Fuels expects “to continue our asset rationalization efforts, which may include the sale of additional properties in the future,” stated president/CEO Stephen Antony.

In May Energy Fuels stated it would put White Mesa, the only conventional uranium mill operating in the U.S., on standby in August. The company intends to rely on inventory and spot market purchases to cut production.

In brief…

Effective June 27 MPVC Inc has been trading as Northern Uranium Corp, still under the ticker TSXV:UNO. A week earlier the company identified numerous drill targets for its Northwest Manitoba project and offered a $2-million private placement.

On June 30 Powertech Uranium TSX:PWE shareholders approved a merger with Azarga Resources (previously reported here and here) to create Azarga Uranium. The companies expect to close the agreement by July 31. In May Powertech announced the U.S Nuclear Regulatory Commission had restored the company’s Dewey-Burdock ISR development licence in South Dakota. Earlier that month Powertech filed a resource estimate for the Kyzyl Ompul licence in Kyrgyzstan, held 80% by Azarga.

Also on June 30, CanAlaska Uranium TSXV:CVV announced closing of a $1.8-million sale of its Kasmere South project in Manitoba to the privately held East Resource. Following a number of CanAlaska divestments, the company stated it’s fully funded for two years and will pursue “rapid exploration of its core Japanese and Korean joint ventures at West MacArthur and Cree East, within the Athabasca Basin.”

See previous uranium news roundups:

Read expert commentary:

Thomas Drolet discusses nuclear power from a global point of view.

Thomas Drolet discusses Fukushima and nuclear energy’s outlook.

Tom Hope discusses uranium’s predicament and promise.

David Talbot discusses the metal’s challenges and potential, and the Athabasca Basin.

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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