by Greg Klein | July 21, 2014
Uranium still struggles near record-low prices but Lakeland Resources TSXV:LK sees this as an opportune time to pick up additional properties. Two new acquisitions announced July 21 solidify the company’s position as one of the largest landholders in and around Saskatchewan’s Athabasca Basin. Both projects benefit from previous exploration but show greater potential with more recent methodology.
The 20,218-hectare Newnham Lake property sits contiguous to Lakeland’s Karen Lake project around the Basin’s northeastern rim. Depth to the basement rock is expected to be from zero to around 100 metres, the company stated.
Newnham Lake covers parts of a roughly 25-kilometre-long folded and faulted conductive trend that attracted over 140 drill holes by 1984. But, following the understanding of the time, most holes stopped less than 25 metres past the sub-Athabasca unconformity. More recent knowledge of the Basin’s basement-hosted unconformity-style deposits brings a new perspective to the project.
Previous work did show extensive alteration and anomalous geochemistry along with highly anomalous uranium, nickel and other pathfinders. Several targets remain to be tested.
Historic lake and stream sediment samples from Karen Lake, a Lakeland property contiguously northeast, also revealed uranium, nickel and other pathfinders. Historic overburden samples showed over 1% uranium.
They’re compiling all the historic data and reinterpreting it in view of what we know today. It’s an interesting dynamic to see the guys, old and young, bantering about. It brings new ideas on how to approach things.—Jonathan Armes, president/CEO
of Lakeland Resources
Southeast of Newnham and just beyond the Basin, the approximately 21,000-hectare Hatchet Lake sits east of Lakeland’s Fond du Lac property. Although Hatchet covers part of an interpreted extension of the same basement graphitic meta-sedimentary basin, it’s seen little exploration.
Lakeland president/CEO Jonathan Armes sees this as “a good time to get value for money, advance projects to the drill-ready stage and ideally secure partners to take them to the next level.”
“When we do see that price turnaround that’s been forecast for 2015, we expect to see more joint venture interest in our projects,” he adds. “There’s not a whole hell of a lot of ground left to be had. When companies come back to the table, they’re going to have to partner up. That’s the kind of opportunity we’ll be looking for.”
Helping evaluate the properties are Lakeland advisers with long experience in the Basin. Richard Kusmirski is a veteran of Cameco Corp TSX:CCO and JNR Resources, which became a Denison Mines TSX:DML acquisition. John Gingerich’s background includes Noranda and Eldorado Nuclear, a predecessor of Cameco. They’re working with a new generation of geos from Dahrouge Geological Consulting that includes Lakeland director Neil McCallum.
“They’re compiling all the historic data and reinterpreting it in view of what we know today,” Armes says. “It’s an interesting dynamic to see the guys, old and young, bantering about. It brings new ideas on how to approach things.”
Lakeland may earn a 100% interest in Newnham Lake by paying $100,000 and issuing 2.5 million shares over two years. The vendor retains a 2.5% gross overriding royalty with a 1% buyback provision. Hatchet Lake goes for $13,500, 500,000 shares and a 2.5% GORR, again with a 1% buyback.
The company remains cashed up with approximately $2.5 million in the till, Armes points out. “In the meantime we’ll have some exploration news coming this summer.”
Disclaimer: Lakeland Resources Inc is a client of OnPage Media Corp, the publisher of ResourceClips.com. The principals of OnPage Media may hold shares in Lakeland Resources.