Saturday 19th September 2020

Resource Clips

Athabasca Basin and beyond

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Production would begin with 1.3 million pounds of uranium in year one and settle to an average 640,000 pounds over a decade of operation. Vanadium would average 960,000 pounds during that period.

U3O8 describes Laguna Salada mineralization as “contained in an unconsolidated, flat-lying sheet just below surface” that’s amenable to continuous surface mining. The project’s 2011 resource showed:

  • indicated: 47.3 million tonnes averaging 0.006% U3O8 and 0.055% vanadium pentoxide for 6.3 million pounds U3O8 and 57.1 million pounds V2O5

  • inferred: 20.8 million tonnes averaging 0.0085% U3O8 and 0.059% V2O5 for 3.8 million pounds U3O8 and 26.9 million pounds V2O5

The company’s immediate goal is to expand the resource into the La Susana area adjacently south of Laguna Salada.

The PEA positions U3O8 “among the few companies that could be in production heading into a sustained and growing global uranium supply deficit forecast to start in 2019,” stated president/CEO Richard Spencer. He also noted domestic demand in a country that currently relies on imported fuel. Argentina’s third reactor has just come onstream, deals were signed last month related to building a fourth and talks are underway about a fifth, he added.

U3O8 has previously reached PEA for its Colombian uranium-polymetallic project and holds a uranium resource in Guyana.

Declan options six more properties

An option announced August 5 would expand Declan Resources’ (TSXV:LAN) portfolio by about 58,600 hectares in northern Alberta and Saskatchewan. Collectively called the DR property group, the package includes Davidson River, approximately 26,300 hectares contiguously west of Aldrin Resource’s (TSXV:ALN) Triple M property. The Beatty River property, about 30 kilometres north, covers about 3,640 hectares and hosts a VTEM conductor several kilometres long.

Big Sandy Lake, an approximately 4,800-hectare property five kilometres east of the Basin, covers the up-ice extension of a boulder field with grades up to 4% U3O8.

Three other properties, Maurice Creek, Maybelle River and Rene Lake, are contiguous with the company’s existing projects.

The deal would cost Declan a total of $300,000 over three years, 7.5 million shares over two years and a 2.5% gross overriding royalty. A spending requirement for Davidson River would come to $500,000 a year for three years. Dahrouge Geological Consulting, headed by the vendor, would act as operator on the properties.

The deal doesn’t include rights to limestone, dolomite or building stone.

Some of the properties are subject to litigation between the vendor and Fission Uranium, its spinco Fission 3.0 TSXV:FUU and Fission Uranium’s predecessor, Fission Energy. Declan stated that should a constructive trust claim be awarded over part of the package, the company “will seek payment from the plaintiff which, at a minimum, is equal to the cash value of all cash payments, share payments and earn-in expenditures made by Declan” on that portion of the properties.

Last April Declan announced acquisitions in Saskatchewan and Wyoming.

Kivalliq begins summer work at Genesis

In the Western Wollaston Tectonic Domain northeast of the Basin, Phase 1 has begun at Kivalliq Energy’s (TSXV:KIV) Genesis project, the company announced August 7. Funded under an 85% option by Roughrider Exploration TSXV:REL, formerly Westham Resources, the campaign calls for 6,000 kilometres of airborne magnetics, electromagnetics and radiometrics. Eight areas of priority have been chosen on the 198,760-hectare property. A crew is also collecting 300 lake sediment samples to seek new uranium anomalies within those targets. Project operator Kivalliq expects the $1-million program to run until late September or early October.

Kivalliq’s flagship is its Angilak project in Nunavut, which holds the highest-grade uranium deposit outside the Athabasca Basin.

Northern Uranium to drill Northwest Manitoba

Northeast of Kivalliq/Roughrider’s Genesis lies Northern Uranium’s (TSXV:UNO) Northwest Manitoba project. On August 7 the company said it closed a $600,000 first tranche of a $2-million offering and was ready to drill the property’s Maguire Lake area.

Northern Uranium, formerly MPVC Inc, holds an 80% option on the property from CanAlaska Uranium TSXV:CVV. Diamond pioneer Chuck Fipke is an adviser to, and investor in, Northern.

Athabasca Nuclear options Wollaston NE property

An option on 81,000 hectares between Genesis and NW Manitoba would put Athabasca Nuclear TSXV:ASC in the same neck of the Wollaston woods. Announced August 6, the deal would cost $50,000 and 1.25 million shares. The agreement also provides a 1% production royalty to the vendor “and the assumption of a pre-existing 2% production royalty on the property.” The vendor holds the right to manage the property’s exploration “on competitive terms” for two years after closing.

Private placement to fund Forsys feasibility

Forsys Metals TSX:FSY offered a private placement up to $3.2 million on August 8. Proceeds will fund a feasibility study for the company’s Norasa project in Namibia and general working capital. The company says its largest shareholder, Leo Fund Managers, has committed to $2.12 million. The offer’s expected to close on or about August 15.

The feasibility has a Q1 2015 completion target.

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.

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