by Greg Klein | August 27, 2014
The relatively recent understanding of some Athabasca Basin uranium deposits sheds new light on historic projects. With that in mind, Lakeland Resources TSXV:LK has expanded its Newnham Lake property to about 24,500 hectares, bringing into one package an area that’s seen extensive previous exploration—but work that predated current knowledge of the region’s deeper basement-style mineralization.
Announced August 27, the northeastern Basin property now includes “the entire folded and faulted, graphitic meta-pelite trend which was the subject of the historic work,” Lakeland stated. Over 140 drill holes tested the trend by 1984, focusing on the unconformity separating the sandstone from the basement rocks below. But most holes stopped less than 25 metres past the unconformity.
More recent discoveries have shown rich mineralization deeper into the basement. Last March Denison Mines TSX:DML heralded its Wheeler River project’s newly found Gryphon zone, with high-grade mineralization about 200 metres beneath the sub-Athabasca unconformity. This summer’s standout assay graded 21.2% U3O8 over 4.5 metres.
Nevertheless historic work at Newnham did show promise. Immediately below the unconformity, a 20-centimetre interval revealed 0.2% U3O8, along with high nickel, arsenic and lead values. Another hole found a 20-centimetre interval of 0.13% in the basement, while a third showed 0.038% over one metre directly above the unconformity.
Between 1997 and 2011, the property underwent ground and airborne geophysics, including an electromagnetic survey that identified drill targets yet to be tested. That recent work was conducted by JNR Resources when Rick Kusmirski served as president/CEO. Now he’s a Lakeland director and, as corporate communications manager Roger Leschuk says, “He sees unfinished business there.”
Newnham’s expansion comes through two separate deals. An option on three claims costs Lakeland up to $50,000 and one million shares, as well as a 1% gross overriding royalty, of which the company may buy half for $1 million. Spending commitments come up to $1.5 million over five years.
A purchase agreement on another portion of the expansion costs up to $50,000 and 750,000 shares, as well as a 3% GORR, of which Lakeland may buy a third for $1 million. As for the spending commitment, it comes to $1 million over five years, with a first-year requirement of $50,000.
Adding to a busy summer of news, Lakeland announced plans last week for its Star, Lazy Edward Bay and Fond du Lac projects, as well as the appointment of uranium veteran Steven Khan to the board of directors.
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