Uranium news from Saskatchewan and elsewhere for July 19 to 25, 2014
by Greg Klein
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3.78% U3O8 over 49 metres helps Fission build Patterson Lake South
High grades and wide intervals at relatively shallow depths continue to characterize Fission Uranium’s (TSXV:FCU) Patterson Lake South. Of eight holes released July 21, all showed mineralization, six substantially. Three standout assays boasted 3.78% U3O8 over 49 metres, 3.96% over 40 metres and 5.34% over 25.5 metres. The entire octet came from R780E, the middle and largest of five zones along a 2.24-kilometre potential strike that remains open to the east and west. Some highlights include:
- 0.53% uranium oxide (U3O8) over 51 metres, starting at 110 metres in downhole depth
- (including 2.36% over 5.5 metres)
- 0.48% over 12.5 metres, starting at 191.5 metres
- (including 1.27% over 4 metres)
- 1.62% over 2 metres, starting at 162 metres
- 0.86% over 2.5 metres, starting at 187 metres
- 0.64% over 4.5 metres, starting at 244 metres
- (including 2.81% over 1 metre)
- 0.81% over 8 metres, starting at 87.5 metres
- (including 3.65% over 1.5 metres)
- 5.34% over 25.5 metres, starting at 102.5 metres
- (including 15.81% over 5 metres)
- (and including 8.4% over 4 metres)
- 1.24% over 3.5 metres, starting at 151 metres
- 2.61% over 13 metres, starting at 157 metres
- (including 20.04% over 1.5 metres)
- 2.17% over 2.5 metres, starting at 175.5 metres
- 3.96% over 40 metres, starting at 95 metres
- (including 10.35% over 14 metres)
- 0.11% over 6.5 metres, starting at 209 metres
- 0.42% over 10.5 metres, starting at 233.5 metres
- (including 3.07% over 1 metre)
- 3.78% over 49 metres, starting at 109.5 metres
- (including 9.34% over 10 metres)
- (and including 26.32% over 1 metre)
- (and including 9% over 3.5 metres)
- 1.16% over 5 metres, starting at 221 metres
True widths weren’t provided.
PLS14-199, along with the previously released PLS14-189 which included 1.93% over 15 metres, sits on the eastern edge of R780E. Their assays prompted Fission to suggest the possibility of closing a 75-metre gap between R780E and R1155E to the east. R780E currently has a strike length of about 855 metres.
While laboratory boffins analyze the final two dozen holes from last winter’s 92, Fission’s field crew continues with a 63-hole, 20,330-metre summer campaign. About 30% of the program will be exploration. But the priority is to delineate a maiden resource scheduled for December.
Ur-Energy reports 8.81 million pounds eU3O8 M&I at Shirley Basin
Ur-Energy TSX:URE released a resource estimate on July 22 for what it calls a “well-defined, high-grade uranium roll front deposit at very favourable production depths.” In the vicinity of the company’s Lost Creek in-situ recovery operation, the Wyoming property came with Ur-Energy’s discount acquisition of Pathfinder Mines. The resource was broken down into two areas:
- measured: 1.06 million tonnes averaging 0.28% for 6.57 million pounds uranium oxide-equivalent (eU3O8)
- indicated: 413,674 tonnes averaging 0.12% for 1.08 million pounds
- measured: 176,900 tonnes averaging 0.24% for 947,000 pounds
- indicated: 84,367 tonnes averaging 0.11% for 214,000 pounds
The M&I total for both areas comes to 8.81 million pounds eU3O8.
The estimate was based on approximately 3,200 historic holes totalling about 366,000 metres sunk before 1992 and on Ur-Energy’s confirmation drilling that finished last May. Resources start at an average depth of about 95 metres. The company stated it’s “moving at a rapid pace to advance the data collection programs necessary to support amendment applications to the existing mining permits and licences.”
The previous week Ur-Energy announced its Lost Creek plant recovered 116,707 pounds U3O8 in Q2. The company set its Q3 production target at 200,000 pounds.
Two new properties expand Lakeland Resources’ Basin-area portfolio
Two more acquisitions announced July 21 solidify Lakeland Resources’ (TSXV:LK) position as one of the largest landholders in and around the 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 new potential 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.
When we do see that price turnaround that’s been forecast for 2015, we expect to see more joint venture interest in our projects. There’s not a whole hell of a lot of ground left to be had.—Jonathan Armes, president/CEO
of Lakeland Resources
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.
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.
As uranium continues to struggle near record-low prices 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.”
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