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Posts tagged ‘Alpha Minerals Inc (AMW)’

Athabasca Basin and beyond

December 7th, 2013

Uranium news from Saskatchewan and elsewhere for November 30 to December 6, 2013

by Greg Klein

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Introducing the Alpha Minerals spinco—Alpha Exploration Inc

With court blessing announced December 2 for the Alpha Minerals TSXV:AMW takeover by Fission Uranium TSXV:FCU, the deal faces just one more approval, this one from the TSXV. That was expected, but not announced, on December 6. Alpha’s spinco, Alpha Exploration Inc (anticipated ticker TSXV:AEX) gets about $3 million cash and all non-Patterson Lake South assets, including properties in Ontario and British Columbia as well as Saskatchewan. Each Alpha Minerals share fetches 5.725 Fission shares and one-half spinco share. Since December 3 Alpha Minerals shares have no longer traded with spinco shares attached.

The current Alpha Minerals board and management will “substantially” move into AEX positions.

Court approval for Fission Uranium’s spinco—tentatively titled Fission 3.0 to also commemorate Fission Uranium’s predecessor and Denison Mines’ TSX:DML acquisition Fission Energy—was announced the previous week. Each Fission Uranium shareholder gets one share of post-arrangement Fission Uranium as well as a share of the Fission spinout, expected to start trading December 10.

Having obtained full PLS ownership from its 50/50 joint venture ally, Fission Uranium has undoubtedly caught the attention of much bigger takeout artists.

Read more about the takeover.

Read more about uranium merger-and-acquisition activity.

Lakeland/Declan Resources JV accelerates work, strengthens their positions

In this market you have to work with strong partners. You have to collaborate and be a bit creative. We’re fortunate to work with people like Declan president Wayne Tisdale’s team and the financial connections they can bring.—Ryan Fletcher, director of Lakeland Resources

A new team of Lakeland Resources TSXV:LK and Declan Resources TSXV:LAN means an accelerated winter drill program for their Gibbon’s Creek flagship as well as the opportunity to put additional work into other Basin-area projects.

Declan’s first-year commitment will inject another $1.25 million into Gibbon’s, a 12,771-hectare north-central Basin property that already underwent over $3 million of work prior to last fall’s field campaign by Lakeland. Declan may earn 50% of the project by spending that $1.25 million, paying Lakeland $100,000 and issuing two million shares in 12 months. Over four years Declan may obtain a 70% interest for a total of $1.5 million in cash, 11 million shares and $6.5 million in spending.

The agreement further demonstrates Declan’s new direction, following its acquisitions in September and October of the 9,000-hectare Patterson Lake Northeast and 50,000-hectare Firebag River properties.

Declan’s commitment also allows Lakeland to ramp up its campaign for two other north-central Basin properties, South Pine and Perch Lake. Work on all those properties will be managed by Dahrouge Geological Consulting, led by PLS and Waterbury Lake veteran Jody Dahrouge.

Field results from Lakeland’s fall campaign are pending, while new appointments are anticipated from Declan.

Read more about the Lakeland/Declan JV and their other projects.

Read more about Lakeland Resources here and here.

Macusani claims low-cost uranium potential in Peruvian PEA

Macusani Yellowcake TSXV:YEL presented its case for a low-grade but potentially low-cost uranium mining operation in Peru with a preliminary economic assessment released December 5. The company envisions both open pit and underground operations with “a low stripping ratio in the open pit operations, anticipated low acid consumption and high process plant recoveries expected to be achieved in a short period of time.”

Uranium news from Saskatchewan and elsewhere for November 30 to December 6, 2013

The under-explored Macusani plateau shows considerable
uranium potential, according to the eponymous Macusani Yellowcake.

The report, using U.S. dollars, uses an 8% discount rate to calculate a $417-million after-tax net present value with a 32.4% internal rate of return. Those numbers assume a long-term price of $65 a pound uranium oxide (U3O8).

Initial capital expenditures would come to $331 million to build the mine and a plant processing 8.5 million tonnes per year. Total sustaining capital costs for the 10-year lifespan would reach $228 million. Payback would take 3.5 years.

Life of mine cash costs would average $20.57 a pound but, Macusani emphasized, years one to five would average $19.45, “placing it in the lowest quartile in the world using 2012 production figures.” Those first five years would produce an average 5.17 million pounds annually which would, were it operating now, rank the mine the world’s sixth largest, the company maintained. The 10-year average would be 4.3 million pounds.

The project, on the Macusani plateau in southeastern Peru, features multiple deposits, some adjacent to each other, others a few to several kilometres apart. The December 5 news release once again claimed last August’s resource update showed a 167% increase in measured and indicated categories. But there was no increase in the measured category. In fact measured pounds equal less than 1% of the M&I total.

Calling the project potentially “one of the lowest-cost uranium producers in the world,” Macusani CEO Laurence Stefan added, “The PEA demonstrates that the Macusani plateau has significant potential to become a major uranium-producing district, considering that only small areas have been explored to date.”

The company expects to begin pre-feasibility work in 2014.

NexGen announces initial geophysical results for Rook 1

An airborne radiometric survey over the PLS-vicinity Rook 1 project found at least five zones with elevated readings, NexGen Energy TSXV:NXE reported on December 2. Two of the zones are “proximal” to last summer’s drilling and could provide targets for another program beginning in January. Additionally aeromagnetic data identified regional and local basement structures.

The company will pursue the source of the elevated radiometrics next summer through ground radiometric surveying, mapping and sampling. Meanwhile the current data from 5,772 line-kilometres of high-resolution magnetic, very low frequency and radiometric surveys undergoes more comprehensive analysis.

Still to come are assays from NexGen’s nine-hole, 3,473-metre campaign at the eastside Basin Radio project, where the company holds a 70% option two kilometres east of Rio Tinto’s NYE:RIO Roughrider deposits. Having raised $5 million in late August, NexGen stated it’s still well-financed.

More near-surface, district-wide potential found in Argentina, says U3O8

In mid-November U3O8 Corp TSX:UWE said a discovery roughly 40 kilometres northeast of its Laguna Salada deposit could indicate district-scale potential. On December 4 the company stated another Argentinian discovery, on the southern extension of Laguna Salada, further suggests that potential. In both cases vertical channel sampling found near-surface, soft gravel uranium-vanadium mineralization.

Laguna Salada trials showed that screening could concentrate over 90% of its uranium in about 10% of the gravel’s original mass, resulting in 10 to 11 times greater grade, U3O8 stated. The company maintains its deposits offer continuous surface mining potential with alkaline leaching.

Dubbed La Susana, the new discovery’s slated for pitting and trenching to determine the extent of mineralization. While Laguna Salada’s PEA nears completion, the company continues JV negotiations with a province-owned mining company that could unite Laguna Salada with adjoining concessions.

U3O8 has a Colombian uranium-polymetallic project with a PEA and an earlier-stage project in Guyana.

Aldrin finishes Triple M gravity survey, offers $2-million private placement

With its ground gravity survey complete, Aldrin Resource TSXV:ALN stated anomalies coincide with previous results and already-identified drill targets. Data from 871 stations on Triple M, adjacent to and southwest of PLS, covered two parallel bedrock conductors already noted from an airborne VTEM survey and surface radon anomalies, the company reported on December 4.

Gravity anomalies consist of relatively low readings “reflecting the dissolution and removal of rock mass by the same basinal fluids that may also precipitate uranium,” Aldrin explained.

Two days earlier the company announced a $2-million private placement for Triple M exploration and drilling. The offer comprises 18.18 million units at $0.11, with each unit consisting of one flow-though share and one-half warrant, with each full warrant exercisable at $0.16 for 18 months.

In early November Aldrin reported closing a $972,500 first tranche of a private placement that had been announced the previous month. The company has also indicated plans to buy the Virgin property around the Basin’s south-central rim.

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Athabasca Basin and beyond

November 30th, 2013

Uranium news from Saskatchewan and elsewhere for November 23 to 29, 2013

by Greg Klein

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December 6 expected for Fission to finish Alpha acquisition; Fission spinco gets court approval

Now that both companies have put it to a vote, Fission Uranium’s TSXV:FCU acquisition of Alpha Minerals TSXV:AMW goes to the TSXV and Alberta Court of Queen’s Bench for final approval. The 50/50 Patterson Lake South joint venture partners announced overwhelming support at their respective meetings on November 28. The companies expect final approval on December 6.

The Fission tally was 99.55% from shareholders and 99.6% from security holders. Alpha’s enthusiasm was slightly more restrained, with 83.18% shareholder and 85.72% security-holder support.

Assuming final approvals come through, the arrangement will put the celebrated PLS uranium project under a single takeover target… er, company. Alpha and Fission will each create a spinco for their non-PLS assets.

Court approval for Fission’s spinco was announced November 29. Itself a spin-out resulting from last April’s Fission Energy acquisition by Denison Mines TSX:DML, Fission Uranium calls the new entity Fission 3.0. Each Fission Uranium shareholder gets one new share of post-arrangement PLS-holding Fission Uranium as well as a share of Fission Mach III, expected to start trading December 10.

Read more about the takeover.

Read more about uranium merger-and-acquisition activity.

PLS regional drilling disappoints but Fission/Alpha end campaign triumphantly

Two of the final 11 autumn holes at PLS confirmed continuity along a 30-metre strike at the project’s recently discovered sixth zone. But nine others failed to find significant radioactivity, according to scintillometer results released by Fission and Alpha on November 27. The non-mineralized nonet, sunk further west of the project’s western-most R600W zone, might please only an anti-nuke activist. Nevertheless “varying degrees of secondary hydrothermal alteration were present in all holes, thus providing encouragement for the prospectivity of the western strike extension” of the PL-3B EM conductor corridor. R600W remains open in all directions, the partners maintain.

Their hand-held scintillometer measures gamma ray particles in drill core up to a maximum of 9,999 counts per second. These results are no substitute for assays, which are still to come. But don’t hold your breath—so are assays for 40 holes drilled last summer.

Of the two mineralized holes, PLS13-123 reached a total depth of 260 metres, encountering sandstone at 90.7 metres and the basement unconformity at 100 metres. Some highlights show:

  • <300 to 1,200 cps over 20 metres, starting at 95 metres in downhole depth

  • <300 to 5,100 cps over 7.5 metres, starting at 132.5 metres

  • 320 to 2,300 cps over 2.5 metres, starting at 142.5 metres

Hole PLS13-124 found sandstone at 97.5 metres and the basement unconformity at 99 metres before stopping at 257 metres. Highlights include:

  • 450 to 5,500 cps over 6.5 metres, starting at 97.5 metres

  • <300 to 1,300 cps over 7.5 metres, starting at 114 metres

  • <300 to 2,500 cps over 11.5 metres, starting at 197 metres

True widths weren’t available. With dips of -87 and -89 degrees respectively, the two holes’ downhole depths are close to vertical.

The 11 land-based holes bring an end to this drill program, most of which took place from barges over the lake. Fifty-three holes totalling 16,485 metres found six near-surface zones along a 1.76-kilometre trend. Ending the season on a triumphant note, Alpha president Ben Ainsworth said the 12-month campaign nearly equalled “what was completed in four years of work on Hathor’s Roughrider discovery.”

Research report examines Lakeland Resources as company acquires additional Basin property

Just one day after a research report was released on Lakeland Resources TSXV:LK, the company reported expansionary plans in Saskatchewan’s Athabasca Basin. Announced November 27, a JV teams the company with Star Minerals Group TSXV:SUV on two claims totalling 1,092 hectares. The new turf sits adjacently north of the Gibbon’s Creek target, focal point of Lakeland’s Riou Lake property.

The acquisition takes place while results are pending from autumn field work at Gibbon’s Creek. “Based on preliminary findings we decided it was important that we acquire that ground,” Lakeland president/CEO Jonathan Armes tells ResourceClips.com. “Star Minerals is focused on a rare earth project north of the Basin so the agreement works well for both companies.”

Gibbon’s autumn campaign, including boulder sampling, line-cutting, a RadonEx survey and a ground DC resistivity survey, has just wrapped up, he adds. “We’re putting all the data together and we’ll get that out imminently.”

A distinct topographical feature of the new property is an uplifted block of basement rock that “highlights the evidence for structural offsets, a key feature of known unconformity-type uranium deposits,” Lakeland stated. Historic work by Cameco Corp TSX:CCO-predecessor Eldorado Nuclear found several anomalous soil samples around the uplifted block measuring up to 0.01% uranium. Trenching by Eldorado showed concentrations of rare earths that might also indicate unconformity-type uranium mineralization. The property has also undergone 14 historic drill holes.

Lakeland plans to follow up on the previous work while reviewing Gibbon’s Creek data to identify drill targets. “We still have two other priority projects, South Pine bordering Riou Lake on the west, and Perch Lake farther east,” Armes says. “There’s lots more field work we can do, even during winter. Both radon and resistivity can be carried out during the winter, so we’re not limited to fair weather programs.”

Gibbon’s Creek and the new claims also benefit from close proximity to the town of Stony Rapids, a few kilometres away. Apart from the new acquisition, Lakeland has a portfolio of nine properties totalling over 100,000 hectares in the northern and eastern Basin.

Under the JV agreement, Lakeland may earn a 100% interest in the two additional claims by paying Star $60,000 and issuing 600,000 shares over 12 months. Star retains a 25% buy-back option for four times the exploration expenditures up to 90 days following a resource estimate.

One day before the announcement, prospect generator Zimtu Capital TSXV:ZC released a report on Lakeland. Written by Zimtu research and communications officer Derek Hamill, it places Lakeland in the context of Athabasca Basin exploration, the nuclear energy industry and the outlook for uranium prices. Presented as both research and opinion, Hamill’s work shows a shareholder’s perspective—Lakeland is a core holding of Zimtu.

So a degree of self-interest can be acknowledged. But the breadth of research goes far beyond Lakeland, its people and projects, providing a level of detailed scrutiny not often applied to early-stage companies.

Download the Lakeland Resources research report.

Read more about Derek Hamill’s research.

Read more about Lakeland Resources.

UEX announces final Shea Creek results, initial 2014 uranium exploration plans

North from PLS along Highway 955, and 13 kilometres south of the Cluff Lake past-producer, a year’s drilling has wrapped up at Shea Creek. UEX Corp TSX:UEX reported final results for two concurrent programs reported November 27.

UEX picked up the entire $2-million tab for drilling around the Kianna deposit while funding $1.27 million of $2.6 million sunk into property-scale exploration as part of the company’s 49%/51% JV with AREVA Resources Canada.

Results were given in uranium oxide-equivalent (eU3O8) using readings from a downhole radiometric probe which were calibrated with an algorithm calculated by comparing previous probe results with assays.

The most promising results came from the Kianna deposit. Kianna East hole SHE-142-3 reached a total depth of 1,065 metres, finding the unconformity at 736.9 metres and expanding the zone to the south. Highlights show:

  • 0.99% eU3O8 over 5.3 metres, starting at 961.2 metres in downhole depth
  • (including 3.21% over 1.5 metres)

In addition, UEX credited hole SHE-135-16 with a northwest expansion to Kianna East. Ending at 1,038 metres’ depth, the hole found the unconformity at 750.5 metres. Some of the better results show:

  • 0.16% over 5.2 metres, starting at 956 metres
  • (including 0.41% over 0.9 metres)
  • (and including 0.49% over 0.7 metres)

  • 0.48% over 3 metres, starting at 979.9 metres

Kianna North hole SHE-135-17 hit the unconformity at 732.2 metres before stopping at 1,059 metres, expanding the zone’s eastern extension of basement-hosted mineralization. Highlights include:

  • 0.33% over 9.4 metres, starting at 724.6 metres
  • (including 0.5% over 1.3 metres)
  • (and including 0.53% over 4.4 metres)

  • 0.8% over 31.5 metres, starting at 848.8 metres
  • (including 3.29% over 1.3 metres)
  • (and including 3.22% over 1.3 metres)
  • (and including 4.05% over 4.1 metres)

Of 10 exploration holes that tested two conductors, eight failed to find significant results. Two holes at Anne South showed these results:

  • 0.14% over 0.9 metres, starting at 765.4 metres

  • 0.21% over 0.9 metres, starting at 748.4 metres

(True widths were unavailable for all holes.)

Four of the 10 holes confirmed the Saskatoon Lake East conductor’s location, providing a new target area parallel to the roughly three-kilometre trend hosting Shea’s four deposits. Combined, they comprise the Basin’s third-largest resource after Cameco’s McArthur River and Cigar Lake, showing:

  • indicated: 2.07 million tonnes averaging 1.48% for 67.66 million pounds U3O8

  • inferred: 1.27 million tonnes averaging 1.01% for 28.19 million pounds

Still undecided are next year’s plans for Shea Creek, where AREVA acts as project operator. UEX states work will depend on Q1 capital market conditions.

But another November 27 announcement reported a $2-million budget for three western Basin projects. Plans include about 4,000 metres of drilling to test EM conductors at the Laurie and Mirror River projects, and a 50.4-line-kilometre ground tensor magnetotelluric survey at the Erica project. Work is expected to start in January. By that time ownership will be divided approximately 49.1% by UEX and 50.9% by AREVA, again acting as operator.

Among other UEX projects, its 100%-held Hidden Bay on the Basin’s east side has three deposits totalling:

  • indicated: 10.37 million tonnes averaging 0.16% for 36.62 million pounds U3O8

  • inferred: 1.11 million tonnes averaging 0.11% for 2.71 million pounds

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Regional drilling disappoints at Patterson Lake South as Fission/Alpha finish otherwise successful campaign

November 28th, 2013

by Greg Klein | November 28, 2013

Two of Patterson Lake South’s final 11 autumn holes confirmed continuity along a 30-metre strike at the project’s recently discovered sixth zone. But nine others failed to find significant radioactivity, according to scintillometer results released by Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW on November 27. The non-mineralized nonet, sunk further west of the project’s western-most R600W zone, might please only an anti-nuke activist. Nevertheless “varying degrees of secondary hydrothermal alteration were present in all holes, thus providing encouragement for the prospectivity of the western strike extension” of the PL-3B EM conductor corridor. R600W remains open in all directions, the 50/50 joint venture partners maintain.

Their hand-held scintillometer measures gamma ray particles in drill core up to a maximum reading of 9,999 counts per second. These results are no substitute for assays, which are still to come. But don’t hold your breath—so are assays for 40 holes drilled last summer.

Of the two mineralized holes, PLS13-123 reached a total depth of 260 metres, encountering sandstone at 90.7 metres and the basement unconformity at 100 metres. Some highlights show:

  • <300 to 1,200 cps over 20 metres, starting at 95 metres in downhole depth

  • <300 to 5,100 cps over 7.5 metres, starting at 132.5 metres

  • 320 to 2,300 cps over 2.5 metres, starting at 142.5 metres

Hole PLS13-124 found sandstone at 97.5 metres and the basement unconformity at 99 metres before stopping at 257 metres. Highlights include:

  • 450 to 5,500 cps over 6.5 metres, starting at 97.5 metres

  • <300 to 1,300 cps over 7.5 metres, starting at 114 metres

  • <300 to 2,500 cps over 11.5 metres, starting at 197 metres

True widths weren’t available. With dips of -87 and -89 degrees respectively, the two holes’ downhole depths are close to vertical.

The 11 land-based holes bring an end to this drill program, most of which took place from barges over the lake. Fifty-three holes totalling 16,485 metres found six near-surface zones along a 1.76-kilometre trend. Ending the season on a triumphant note, Alpha president Ben Ainsworth said the 12-month campaign nearly equalled “what was completed in four years of work on Hathor’s Roughrider discovery.”

Project operator Fission’s takeover of Alpha is expected to conclude on December 6.

Fission Uranium’s takeover of Alpha Minerals gets shareholder approval from both companies

November 28th, 2013

by Greg Klein | November 28, 2013

Now that both companies have put it to a vote, Fission Uranium’s TSXV:FCU acquisition of Alpha Minerals TSXV:AMW goes to the TSXV and Alberta Court of Queen’s Bench for final approval. The 50/50 Patterson Lake South joint venture partners announced overwhelming support at their respective meetings on November 28. The companies expect final approval on December 6.

The Fission tally was 99.55% from shareholders and 99.6% from security holders. Alpha’s enthusiasm was slightly more restrained, with 83.18% shareholder and 85.72% security-holder support.

Assuming final approvals come through, the arrangement will put the celebrated PLS uranium project under a single takeover target… er, company. Alpha and Fission will each create a spinco for their non-PLS assets.

Read more about the takeover.

Read more about uranium merger-and-acquisition activity.

Read about Patterson Lake South’s most recent drill results.

Athabasca Basin and beyond

November 23rd, 2013

Uranium news from Saskatchewan and elsewhere for November 16 to 22, 2013

by Greg Klein

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Azincourt to acquire Peruvian company from Cameco and Vena for $2 million

So far best known for its 50% interest in the Patterson Lake North joint venture with Fission Uranium TSXV:FCU, Azincourt Uranium TSXV:AAZ plans to acquire an advanced-stage uranium project in Peru. Under definitive share purchase agreements announced November 22, the $8.1-million market cap Athabasca Basin junior proposes to buy Minergia S.A.C. from 50/50 co-owners Cameco Corp TSX:CCO and Vena Resources TSX:VEM. As well as the 4,900-hectare Macusani project, Minergia comes with its younger sister, 9,600-hectare Muñani, both in southeastern Peru.

Subject to approvals, the deal would have Azincourt give Cameco and Vena $750,000 worth of shares and $250,000 each. Vena chairman/CEO Juan Vegarra would join Azincourt as an independent director. Azincourt would spend between $1.5 million and $2 million on the projects annually.

The deal would also allow Vena to buy Cameco’s portion of Azincourt shares for the purchase price plus 50% of any increase in the market price.

In a statement accompanying Vena’s announcement, Vegarra noted that Azincourt president/CEO Ted O’Connor is “the former director of Cameco’s corporate development group who was responsible for overseeing Cameco’s significant investment in Minergia.”

With over $12 million of work between 2007 and 2011, Macusani comes with an historic resource that was released in September 2011. Using a 0.009% cutoff, five of the property’s nine areas show:

  • measured: 10.39 million short tons averaging 0.025% for 5.69 million pounds uranium oxide (U3O8)

  • indicated: 34.16 million tons averaging 0.018% for 12.52 million pounds

  • inferred: 37.79 million tons averaging 0.02% for 17.42 million pounds

The project could offer low-cost open pit, acid heap leach potential, according to Azincourt.

As for Muñani, it shows uranium mineralization in sandstone and outcrops, has undergone airborne geophysics and ground prospecting, and has drill targets ready, Azincourt stated.

Although two years of depressed prices have pushed the projects into dormancy, Azincourt plans to complete community agreements and permitting prior to another drill program.

Vena also announced that Silvia Dedios has been named general manager following David Bent’s resignation. Walter Cuba becomes project manager to work with Azincourt on Minergia’s uranium assets.

Last June Vena dropped out of negotiations with a private Peruvian company to create a JV for three other Vena projects. In August the company settled $150,350 of debt for 1.64 million shares.

Azincourt and Fission update winter plans for Patterson Lake North

Back in the Basin, Azincourt and Fission updated their previously announced winter plans for Patterson Lake North on November 18. The program now includes a radon survey at Hodge Lake as well as further electromagnetic work and eight to 10 holes totalling 2,500 to 3,000 metres.

Initial results from a five-kilometre ground magnetotelluric survey over the northern part of an eight-kilometre VTEM conductive trend suggest it comprises a series of parallel west-dipping basement EM conductors, the JV stated. Further EM work will increase resolution and orient a resistivity survey scheduled for next summer. “Many structurally controlled high-grade uranium occurrences in the Athabasca Basin are related to hydrothermal alteration systems associated with basement EM conductors,” the companies emphasized. Drill targets will be refined by identifying an EM basement conductor with a resistivity low signature, especially when associated with a cross-cutting interpreted structural feature, the partners explained.

Diamond drilling is slated to begin in January, after the holes have been pre-collared with RC rigs.

Azincourt is earning a 50% interest in the 27,408-hectare project adjacent to Fission’s better-known project, the Patterson Lake South JV with Alpha Minerals TSXV:AMW. Fission acts as operator on both projects.

Denison considers compulsory acquisition as Rockgate takeover now 86% complete

Delighted with “such overwhelming enthusiasm,” Denison Mines TSX:DML president/CEO Ron Hochstein announced on November 18 his company has so far nabbed 100.54 million shares for 86% control of Rockgate Capital TSX:RGT. In another extension to the offer—the final one, this time—Denison now says Rockgate laggards have until November 29 to throw in their lot with the victor.

If the company can get just 4% more of Rockgate’s total shares, Denison intends to acquire the rest through a compulsory acquisition. Otherwise the aggressive uranium miner/explorer will try an “amalgamation or other corporate reorganization” to part the hold-outs from their holdings. On October 30 Denison stated it was lowering the minimum tender condition from 90% to two-thirds of outstanding shares.

At that time directors of the two companies softened their positions considerably. Rockgate president/CEO Karl Kottmeier initially denounced the Denison offer as an “unsolicited opportunistic hostile takeover bid” which scuttled Rockgate’s proposed merger with Mega Uranium TSX:MGA. Rockgate’s board did, however, reluctantly recommend shareholder acceptance.

Read more here and here.

Read more about uranium merger-and-acquisition activity.

Read about Denison’s Q3 report.

Denison moves its people into Rockgate management/board positions

Rockgate’s changing of the guard, meanwhile, presages its takeover. The company announced five departures from its seven-person board on November 22. Gone are Doug Ford, Edward Ford, Allen Ambrose, Gord Neal and Phil Williams. Replacing them are Denison directors Ron Hochstein, Robert Dengler and Catherine Stefan, with William Rand becoming chairperson.

Rockgate’s Karl Kottmeier, Doug Ford and Kirk Gamely step down from management, although Kottmeier and Bryan Hyde will remain on Rockgate’s board to smooth the transition of its flagship Falea project in southwestern Mali, which was scheduled for pre-feasibility in early 2014. Denison’s Hochstein now becomes Rockgate president/CEO, David Cates CFO and Sheila Colman corporate secretary.

Denison has said that on acquiring Rockgate it will spin out its African assets to concentrate on the Athabasca Basin.

Mega Uranium closes Australian sale, gains 28% of Toro Energy

Undeterred by its Rockgate failure, Mega has now picked up 28% of an ASX-listed company with “one of the larger pre-development uranium projects worldwide.” That results from the completed sale of Mega’s Lake Maitland property in Western Australia to Toro Energy. In a deal valued at about AU$37 million last August, Mega gets about 28% of Toro shares and fills Toro board positions with Mega executive VP of corporate affairs Richard Patricio and executive VP for Australia Richard Homsany, the Toronto-listed company announced November 19.

Blue Sky drills Ivana project in Argentina, offers $500,000 private placement

Uranium news from Saskatchewan and elsewhere for November 16 to 22, 2013

Located in Argentina’s Rio Negro province, Blue Sky’s
Ivana project currently undergoes a 2,000-metre drill program.

Now underway at Blue Sky Uranium’s TSXV:BSK Ivana project in Argentina, a nine-hole, 2,000-metre drill campaign targets shallow, roll-front uranium mineralization to 400 metres in depth. Announced November 18, Phase I work also includes ground geophysics. The 71,300-hectare property has previously undergone airborne radiometrics, sampling, prospecting, mapping and trenching.

AREVA funds the work under an option to spend $2 million by December 31 on Blue Sky’s Argentinian properties. On completion, AREVA may fund an additional $3 million on one project, or $4 million combined on two projects, to earn a 51% interest by the end of 2017. In addition to the project in Rio Negro province, Blue Sky currently focuses on its Sierra Colonia property in central Chubut province.

The company also announced a private placement of 10 million units at $0.05 for $500,000. Each unit consists of one share and one transferable warrant exercisable at $0.10 for two years.

Ground gravity survey underway on Aldrin Resource’s Triple M

Announced by Aldrin Resource TSXV:ALN on November 20, a ground gravity survey on the PLS-vicinity Triple M property intends to find extensively altered basement rocks associated with two bedrock conductive anomalies shown in last summer’s VTEM survey. Identified by anomalous gravity lows, extensively altered rocks are associated with strong uranium mineralization elsewhere in the region, the company stated. Triple M’s schedule calls for completion of the gravity survey by year-end.

The previous week Aldrin released initial radon results from 527 sample sites. The company also plans to buy the 49,275-hectare Virgin property around the Basin’s south-central edge.

Zadar Ventures acquires two more properties from Canterra Minerals

With two new acquisitions just south of the Basin’s southeastern rim, Zadar Ventures TSXV:ZAD has signed another definitive purchase agreement. The deal, announced November 20, has Zadar issuing 160,000 shares to Canterra Minerals TSXV:CTM and 170,000 to African Oil Corp in return for the 5,831-hectare Highrock and the 5,583-hectare Riverlake projects. Canterra retains a 2% NSR on both properties, of which Zadar may buy half for $1 million.

Both properties have seen historic EM surveys, soil sampling and drilling. Radioactive pitchblende pebbles found immediately west of Highrock might have originated on the property, Zadar stated. Highrock sits eight kilometres from Cameco’s former Key Lake mine.

Riverlake features a 1,200-metre by 600-metre soil anomaly with uranium values up to 0.0374% over three EM conductors with a combined strike of five kilometres, Zadar added. A hole drilled in 2008 found 63 metres of radioactivity five to 10 times the background level.

In September the company announced its acquisition of the 37,445-hectare Pasfield Lake property, also from Canterra. Earlier that month Zadar reported finding radioactive boulders on its PLS-vicinity PNE project.

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Azincourt and Fission Uranium update winter plans for Patterson Lake North

November 18th, 2013

by Greg Klein | November 18, 2013

Joint venture partners Fission Uranium TSXV:FCU and Azincourt Uranium TSXV:AAZ updated their previously announced winter plans for Patterson Lake North on November 18. The program now includes a radon survey at Hodge Lake as well as further electromagnetic work and eight to 10 holes totalling 2,500 to 3,000 metres.

Initial results from a five-kilometre ground magnetotelluric survey over the northern part of an eight-kilometre VTEM conductive trend suggest it comprises a series of parallel west-dipping basement EM conductors, the JV stated. Further EM work will increase resolution and orient a resistivity survey scheduled for next summer. “Many structurally controlled high-grade uranium occurrences in the Athabasca Basin are related to hydrothermal alteration systems associated with basement EM conductors,” the companies emphasized. Drill targets will be refined by identifying an EM basement conductor with a resistivity low signature, especially when associated with a cross-cutting interpreted structural feature, the partners explained.

Diamond drilling is slated to begin in January, after the holes have been pre-collared with RC rigs.

Azincourt is earning a 50% interest in the 27,408-hectare project adjacent to Fission’s better known project, the Patterson Lake South JV with Alpha Minerals TSXV:AMW. Fission acts as operator on both projects.

See last week’s uranium news roundup.

Athabasca Basin and beyond

November 17th, 2013

Uranium news from Saskatchewan and elsewhere for November 9 to 15, 2013

by Greg Klein

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New Argentinian discovery might hold district-wide potential, says U3O8 Corp

Roughly 40 kilometres northeast of its Laguna Salada deposit in Argentina, U3O8 Corp TSX:UWE said it’s discovered a new area with the district’s “highest uranium-vanadium grades found to date.” La Rosada shows district-scale potential for Laguna Salada-style mineralization in near-surface, soft gravels, the company stated on November 12. But in addition, chip samples from adjacent basement rock show grades ranging from 0.01% to over 0.79% uranium oxide (U3O8). That might indicate a source of the gravel’s mineralization.

The extremely shallow, fine-sand mineralization potentially offers low-cost extraction through continuous surface mining, the company maintained. Screening tests at Laguna Salada, moreover, concentrated over 90% of the uranium in about 10% of the gravel’s original mass.

Vertical channel samples starting less than a metre from surface show a weighted average of 0.15% U3O8 and 0.08% vanadium pentoxide (V2O5). Some highlights show:

  • 0.12% U3O8 and 0.06% V2O5 over 0.7 metres

  • 0.13% U3O8 and 0.05% V2O5 over 0.5 metres

  • 0.25% U3O8 and 0.09% V2O5 over 0.9 metres

  • 1.18% U3O8 and 0.52% V2O5 over 0.4 metres

  • 0.24% U3O8 and 0.08% V2O5 over 1.5 metres

Highlights from horizontal channel sampling of the basement rock show:

  • 0.09% U3O8 and 0.04% V2O5 over 0.6 metres

  • 0.09% U3O8 and 0.04% V2O5 over 0.9 metres

  • 0.16% U3O8 and 0.07% V2O5 over 0.2 metres

  • 0.79% U3O8 and 0.26% V2O5 over 0.1 metre

  • 0.17% U3O8 and 0.06% V2O5 over 0.4 metres

The company didn’t provide the depth to basement.

Further near-surface exploration is planned south of the discovery while the basement calls for systematic trenching to determine its “potential as a target in its own right,” U3O8 stated. Planned for year-end completion is Laguna Salada’s preliminary economic assessment and a hoped-for joint venture with a state-owned company holding adjacent claims.

Laguna Salada has a 2011 resource estimate showing:

  • an indicated category of 47.3 million tonnes averaging 0.006% U3O8 and 0.055% V2O5 for 6.3 million pounds U3O8 and 57.1 million pounds V2O5

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

Elsewhere U3O8 has completed a PEA for its Berlin uranium-polymetallic project in Colombia and holds two earlier-stage projects in Argentina and Guyana.

Fission/Alpha release results from two PLS zones, lengthen strike by 15 metres

Releasing both scintillometer readings and assays the same week, Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU provided a prompt update from their current Patterson Lake South drilling as well as results from last summer’s campaign. On November 12 the 50/50 joint venture partners said they’ve confirmed the sixth zone announced last week, extending it 15 metres east and 10 metres north. Two days later they reported five more holes bearing high grades from R390E, the third most-easterly zone along what’s now a 1.8-kilometre trend.

Starting with the newly discovered R600W zone, the partners reported readings from a handheld device that measures gamma ray particles from core in counts per second, maxing out at an off-scale reading above 9,999 cps. Scintillometer results are no substitute for assays, which are pending.

Both holes were sunk at -89 degrees, making downhole depths close to vertical. Hole PLS13-121 reached a total depth of 248 metres, encountering just a bit of sandstone at 98.7 metres before hitting the basement unconformity at 99 metres. Some of the better results show:

  • <300 cps to >9,999 cps over 11.3 metres, starting at 98.7 metres in downhole depth

  • <300 cps to 600 cps over 3.5 metres, starting at 141 metres

Hole PLS13-122 totalled 332 metres in depth, reaching the basement unconformity at 100 metres without finding sandstone. Some highlights show:

  • <300 cps to 800 cps over 2 metres, starting at 101.5 metres in downhole depth

  • <300 cps to 510 cps over 4 metres, starting at 106 metres

  • 430 cps to 1,900 cps over 1 metre, starting at 158.5 metres

True widths weren’t provided.

Turning to zone R390E and real lab assays, some highlights show:

Hole PLS13-078

  • 0.66% U3O8 over 30 metres, starting at 85 metres in downhole depth

  • (including 7.62% over 1.5 metres)

  • 0.12% over 7.5 metres, starting at 128 metres

Hole PLS13-081

  • 0.19% over 18.5 metres, starting at 106 metres

  • Hole PLS13-085

  • 0.93% over 22 metres, starting at 82.5 metres

  • (including 4.07% over 4 metres)

Hole PLS13-086

  • 1.93% over 43 metres, starting at 81.5 metres

  • (including 9.91% over 5 metres)

Hole PLS13-087A

  • 0.28% over 4 metres, starting at 45.5 metres

  • 0.4% over 8.5 metres, starting at 63.5 metres

  • 0.12% over 16.5 metres, starting at 92.5 metres

True widths weren’t available. Dips strayed no more than six degrees from vertical.

With $2.25 million funding an 11-hole, 3,700-metre extension to the summer/fall campaign, land-based work now focuses on the R600W area while waiting for the lake to freeze. Meanwhile more assays are expected from the previous barge-based drilling to the east.

Alpha acquisition vote looms; Fission and Dahrouge square off in legal battle

November 28’s the day when Fission and Alpha shareholders vote on the latter’s acquisition by the former. Mentioned in the companies’ joint November 15 update was a barely publicized legal dispute between Fission and Dahrouge Geological Consulting, its principals and a related company.

Seeking unspecified damages, Fission filed a notice of civil claim on July 29 alleging “breach of fiduciary duties and knowing assistance in breach of the same.” On November 8 the defendants filed a counter-claim with “allegations of breaches of British Columbia securities laws, slander, wrongful interference, improper assignment and improper variation of obligations. The relief being sought in the counter-claim includes unspecified losses and damages, declarations of ownership in relation to certain mineral permits and claims, declarations concerning the enforceability of certain assignments, injunctions preventing the defendants by way of counter-claim from disparaging certain mineral permits and claims, interest and costs.”

The account of the defendants’ counter-claim comes from a draft version reported in Fission and Alpha circulars dated October 30. Neither claim has been tested in court.

International Enexco/Cameco/AREVA plan winter drilling at Mann Lake

A three-way JV intends to start the new year with a $2.9-million drill program for the eastside Athabasca Basin Mann Lake project. Up to 18 holes will evaluate three types of targets—the area footwall to the western axis of the C trend, remaining targets along the main C trend and conductive features near the western margin of the Wollaston sedimentary corridor, International Enexco TSXV:IEC stated on November 13. The company holds a 30% interest in the 3,407-hectare property, along with AREVA Resources Canada (17.5%) and Cameco Corp TSX:CCO (52.5%).

This year’s drilling totalled 21 holes for 15,721 metres, focusing on the C conductor, which Enexco describes as a six-kilometre-long section of a regional trend extending from Cameco’s McArthur River mine to Denison Mines’ TSX:DML Wheeler River deposit.

The previous week Enexco reported three holes from the southeastern Basin’s Bachman Lake, a 20/80 JV with Denison, which holds a 7.4% interest in Enexco. The latter also keeps busy with pre-feasibility work at its 100%-held Contact copper project in Nevada.

Aldrin reports radon results from Triple M

With its Triple M property’s surface radon survey complete, Aldrin Resource TSXV:ALN announced some results from 527 sample sites on November 14. The findings show elevated values over more than one kilometre of a VTEM bedrock conductor, which the company interprets as a steeply south-dipping fault zone. “The most intense portion of this radon anomaly reaches a high value of 1.68 pCi/m²/s [picocuries per square metre per second] and extends for more than 200 metres, comprising a priority drill target,” Aldrin stated.

The company added that the fault zone parallels the conductor hosting the PLS discovery on the Alpha/Fission project adjacent to and northeast of Triple M. North of the fault zone, and parallel to it, sits a second VTEM basement conductor with radon values up to 1.18 pCi/m²/s.

The previous week Aldrin reported closing a $972,500 first tranche of a private placement that had been increased to $1.5 million. The company has also previously announced an agreement to buy the 49,275-hectare Virgin property around the Basin’s south-central edge.

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Athabasca Basin and beyond

November 10th, 2013

Uranium news from Saskatchewan and elsewhere for November 2 to 8, 2013

by Greg Klein

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Alpha/Fission find sixth zone with 525-metre step-out west of PLS discovery

Almost exactly a year ago joint venture partners Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW announced their Patterson Lake South discovery hole in what came to be known as zone R00E. Since then drilling from ice or barge extended east along the lake, finding five zones along a 1.23-kilometre trend. Now initial results from a $2.25-million, 11-hole, 3,700-metre land-based extension to the 2013 summer program have found a sixth zone, R600W, 525 metres west of the discovery.

The 50/50 JV bases its claim on scintillometer results—which measure gamma radiation up to 9,999 counts per second and are no substitute for lab assays—for two holes released November 4.

Hole PLS13-116 was sunk at a dip of -74 degrees, reaching 323 metres in total downhole depth, encountering basement bedrock at 106.4 metres. Results show:

  • 300 to 310 cps over 1 metre, starting at 143 metres in downhole depth

Collared from the same location but with better results, PLS13-118 went vertical to 314 metres and hit basement at 97.2 metres. The shallower depth “possibly suggest[s] structural faulted off-set between the holes,” the companies stated. Results show:

  • <300 to 680 cps over 9 metres, starting at 174.5 metres

  • <300 to 750 cps over 3 metres, starting at 186 metres

  • 314 to 5,550 cps over 8 metres, starting at 191.5 metres

  • 650 to 880 cps over 1 metre, starting at 222 metres

  • 380 cps over 0.5 metres, starting at 254.5 metres

True widths were unavailable. Assays, as well as downhole radiometric probe results, are pending.

The targets result from a radon in sediment anomaly found last summer, which “may be associated with inferred north-south cross-cutting structures. This anomaly lies along an east-northeast trend, parallel and just north of the PL-3B EM conductor,” according to the JV. The companies plan further drilling to focus on this zone, which moves activity closer to the high-grade radioactive boulder field that sparked the PLS rush.

Non-compliant quote of the week

Despite all the verifiably positive news, Alpha disregarded geological best practices and NI 43-101 disclosure rules by distributing this semantically confused whopper about PLS, courtesy of a magazine called ResourceWorld:

“No uranium resource/reserves figures have been inferred from the status of the project as yet, but it can be implied that PLS will become a standalone operation with a minimum 50 million pounds of U3O8.”

International Enexco, Denison report three holes from Bachman Lake

Four kilometres west of Cameco Corp’s TSX:CCO proposed Millennium mine in the southeastern Athabasca Basin, JV partners International Enexco TSXV:IEC and Denison Mines TSX:DML have wrapped up their 2013 Bachman Lake drill program. Three holes reported November 4 tested two of the property’s three conductors.

Uranium news from Saskatchewan and elsewhere for November 2 to 8, 2013

One hole intersected the ML-1 conductor, finding “a large graphitic shear zone in contact with granite gneiss, a favourable host for mineralization warranting additional drilling,” Enexco stated.

An intersection of the CR-2 conductor “confirm[s] that the dominant clay species is illite with some dravite, both of which are commonly elevated near unconformity-related mineralization.” The partners are considering follow-up drilling.

A sandstone alteration zone encountered by the third hole suggests “it may have just overshot the favourable conductive basement horizon.”

Now that Enexco has earned its 20% interest, both companies will fund further work on a pro-rata basis. Denison, which holds a 7.4% interest in Enexco, acts as project operator on the 11,419-hectare property. Enexco also holds a 30% interest in the Mann Lake JV 20 kilometres northeast, along with Cameco (52.5%) and AREVA Resources Canada (17.5%). In Nevada, Enexco has a pre-feasibility study underway on its 100%-held Contact copper project.

Ashburton’s Phase I exploration finds three anomalous areas at Sienna West

Disruptions by the animal kingdom notwithstanding, a radon survey on Ashburton Ventures’ TSXV:ABR Sienna West project found three anomalous areas for follow-up work. Of 35 cups that were buried to measure radon gas, eight were dug up by wildlife. But some of the others identified areas of interest, the company stated on November 4.

In addition, 12 previously reported radioactive boulders have now been analysed, with two showing 12.4 and 184.5 parts per million uranium. The latter was found in an area with high radon counts.

Ashburton also announced the resignation of director Phil Taneda.

The Sienna project comprises the 1,090-hectare Sienna West property about 40 kilometres southwest of PLS and the 147-hectare Sienna North property contiguously north of PLS.

Western Athabasca Syndicate announces winter plans for Preston Lake

With its summer field program complete, a four-company alliance prepares for winter at the PLS-proximal Preston Lake property. Work so far consisted of rock, soil, radon and biogeochemical sampling, as well as airborne electromagnetic, magnetic and radiometric surveys, the companies announced November 5. The Western Athabasca Syndicate consists of Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY.

Still to come are final results. But the campaign identified eight potential corridors with 15 drill target areas to be refined with ground gravity, EM and radon surveys between December and February. The companies anticipate drilling to begin in March. So far only about half of the alliance’s 246,643-hectare land package has been explored.

Energy Fuels suspends Arizona mine development, updates corporate news

Blaming litigation and low prices, Energy Fuels TSX:EFR has suspended construction of its Canyon mine in Arizona, the company announced November 5. Legal action by environmentalists and local natives challenges the U.S. Forest Service’s approval of the mine. With all surface infrastructure complete, the company has put underground development on hold until December 2014, or earlier if a court decides on the merits of the case.

According to Associated Press, low uranium prices had put the project “on standby status before, from 1992 until work resumed earlier this year.” The news agency added, “The mine sits in a nearly [404,680-hectare] area that was placed off limits to new mining claims in January 2012. Companies with existing claims that were proven to have sufficient quantity and quality of mineral resources could be developed.”

Canyon has an inferred resource of 82,800 tons averaging 0.98% for 1.63 million pounds U3O8. The deposit is part of Energy Fuels’ Arizona Strip project, acquired when the company bought out Denison’s American assets in June 2012. Canyon had been slated for production in 2015.

In another November 5 announcement rather lacking in specifics, Energy Fuels stated it had applied “to be listed on a recognized U.S. stock exchange.” The same day the company’s post-consolidation shares began trading on the TSX and OTCQX following a 1:50 reverse split agreed to the previous week. The company also changed its fiscal year-end from September 30 to December 31.

Energy Fuels supplies about 25% of American uranium production.

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Alpha/Fission find sixth zone with 525-metre step-out west of PLS discovery

November 4th, 2013

by Greg Klein | November 4, 2013

Almost exactly a year ago joint venture partners Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW announced their Patterson Lake South discovery hole in what came to be known as zone R00E. Since then drilling from ice or barge extended east along the lake, finding five zones along a 1.23-kilometre trend. Now initial results from a $2.25-million, 11-hole, 3,700-metre land-based extension to the 2013 summer program have found a sixth zone, R600W, 525 metres west of the discovery.

The 50/50 JV bases its claim on scintillometer results—which measure gamma radiation up to 9,999 counts per second and are no substitute for lab assays—for two holes released November 4.

Hole PLS13-116 was sunk at a dip of -74 degrees, reaching 323 metres in total downhole depth, encountering basement bedrock at 106.4 metres. Results show:

  • 300 to 310 cps over 1 metre, starting at 143 metres in downhole depth

Collared from the same location but with better results, PLS13-118 went vertical to 314 metres and hit basement at 97.2 metres. The shallower depth “possibly suggest[s] structural faulted off-set between the holes,” the companies stated. Results show:

  • <300 to 680 cps over 9 metres, starting at 174.5 metres

  • <300 to 750 cps over 3 metres, starting at 186 metres

  • 314 to 5,550 cps over 8 metres, starting at 191.5 metres

  • 650 to 880 cps over 1 metre, starting at 222 metres

  • 380 cps over 0.5 metres, starting at 254.5 metres

True widths were unavailable. Assays, as well as downhole radiometric probe results, are pending.

The targets result from a radon in sediment anomaly found last summer, which “may be associated with inferred north-south cross-cutting structures. This anomaly lies along an east-northeast trend, parallel and just north of the PL-3B EM conductor,” according to the JV. The companies plan further drilling to focus on this zone, which moves activity closer to the high-grade radioactive boulder field that sparked the PLS rush.

See a round-up of last week’s uranium exploration news.

Athabasca Basin and beyond

November 3rd, 2013

Uranium news from Saskatchewan and elsewhere for October 26 to November 1, 2013

by Greg Klein

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Alpha/Fission hit 5.98% U3O8 over 17.5 metres, including 19.51% over 5.5 metres

With so many scintillometer results announced already, assays for the same holes can be anti-climactic. But that’s the way Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW have orchestrated their Patterson Lake South campaign, now giving observers a near sense of déjà vu. Assays from four holes announced October 29 add little to the news of August 8, although results from the lab are much more reliable than those from the hand-held radiation-detecting gizmo. The assays come from R00E, the farthest southwest of the project’s five zones.

Hole PLS13-074

  • 0.13% uranium oxide (U3O8) over 2.5 metres, starting at 65 metres in downhole depth

PLS13-076

  • 0.09% over 2 metres, starting at 178.5 metres

  • 0.08% over 1.5 metres, starting at 183 metres

  • 0.16% over 4.5 metres, starting at 186.5 metres

PLS13-077

  • 0.39% over 11.5 metres, starting at 59 metres

  • 0.13% over 15.5 metres, starting at 73 metres

PLS13-079

  • 5.98% over 17.5 metres, starting at 83 metres

  • (including 19.51% over 5 metres) (Update: On November 4 the JV partners corrected the intercept width from 5.5 metres to 5 metres.)

True widths were unavailable. Three of the holes were vertical, while 079 dipped at -75 degrees. That hole expands the zone’s high-grade southern area, the companies stated, while all four holes confirm R00E’s east-west strike at 165 metres. The zone remains open in all directions.

With the summer barge-based campaign complete, attention now turns to a land-based program west of R00E. Fission acts as project operator on the 50/50 joint venture until its acquisition of Alpha closes. Fission shareholders will vote on the deal’s spinout aspect on November 28.

(Update: On November 4 the JV announced a sixth PLS zone west of the discovery. Read more.)

Rio Tinto plans winter drilling at Purepoint’s Red Willow

Purepoint Uranium Group TSXV:PTU announced plans on October 29 by Rio Tinto Exploration Canada for 2,500 metres of drilling at Red Willow, a 25,612-hectare property on the Athabasca Basin’s eastern edge. Rio identified targets based on historic drill logs and more recent geophysical and geochemical work. The company built a 28-person camp last summer.

Depth to unconformity in the area varies from zero to 80 metres, Purepoint stated. The company says five major deposits—JEB, Midwest, Cigar Lake, McArthur River and Millennium—“are located along a NE to SW mine trend that extends through the Red Willow project.”

Rio has so far spent about $2.25 million out of a $5-million commitment to earn an initial 51% interest by December 31, 2015. The giant’s Canadian subsidiary may earn 80% by spending $22.5 million by the end of 2021.

In early October Purepoint announced a winter drill campaign for the Hook Lake JV held 21% by Purepoint and 39.5% each by Cameco Corp TSX:CCO and AREVA Resources Canada.

Strong Q3 financials surprise Cameco shareholders

Despite historic low uranium prices, Cameco came out with Q3 earnings far beyond the same period last year. In his October 29 statement, president/CEO Tim Gitzel attributed the success to a contracting strategy “providing us with higher average realized prices that are well above the current uranium spot price.”

Uranium news from Saskatchewan and elsewhere for October 26 to November 1, 2013

Rabbit Lake was one of three Cameco operations that received
10-year licence renewals the same week that the company
surprised investors with an especially strong quarterly report.

Adjusted net earnings for three months ending September 30 came to $208 million, a 324% increase over Q3 2012 or, at 53 cents a share, a 342% increase. Year-to-date figures came to $295 million (up 48%) and 75 cents a share (up 47%).

Gitzel added that Cameco’s “starting to see some of the cost benefits of the restructuring we undertook earlier” and plans to “take advantage of the opportunity we see in the long term.”

However the company’s statement noted “there have been some deferrals of future projects due to uranium prices insufficient to support new production. The deferrals will not directly impact the near-term market, but could have an effect on the longer term outlook for the uranium industry. Complicating the supply outlook further is the possibility of some projects, primarily driven by sovereign interests, moving forward despite market conditions.”

The company forecast strong long-term fundamentals, mostly to China which has “reaffirmed its substantial growth targets out to 2020 and indicated plans to pursue further growth out to 2030. Their growth is palpable as construction on two more reactors began during the third quarter, bringing the total under construction to 30.”

As for Cameco’s long-delayed Cigar Lake mine, the company’s sticking to its current plan of Q1 2014 production and Q2 milling.

But while junior exploration flourishes, especially in the Athabasca Basin, the major plans a 15% to 20% cut in exploration spending this year.

Three Cameco operations get 10-year licence renewals

Licences for Cameco’s Key Lake, McArthur River and Rabbit Lake operations have been renewed for 10 years, the Canadian Nuclear Safety Commission announced October 29. The CNSC granted the extensions after three days of public meetings that heard from the company, 27 interveners and CNSC staff. The commission agreed to Cameco’s request for 10-year renewals, twice the previous term.

MillenMin finds radioactive outcrops on east Basin properties, reports AGM results

MillenMin Ventures TSXV:MVM completed initial field work at two eastside Basin properties, the 2,759-hectare Highrock Lake NE and 1,648-hectare Smalley Lake W. Work included prospecting, outcrop mapping and examination of previously found mineralization, the company announced October 28.

Grab samples from radioactive outcrops on both properties have been sent for assays. MillenMin first announced its foray into uranium last May and has staked 11 claims totalling about 18,983 hectares in and around the Basin.

On October 31 the company reported AGM results with directors re-elected, auditors re-appointed and other business approved.

Declan options northeastern Alberta property

Southwest of the Basin’s Alberta extremity, Declan Resources TSXV:LAN has optioned the 50,000-hectare Firebag River property. Previous geophysical survey data “shows a complex pattern of magnetic lows and highs, truncated or offset in the northern part of the property by the Marguerite River Fault,” Declan stated on October 29. Exploration in 1977 “confirmed the presence of a southwest-oriented fault zone and a geochemical anomaly with 11 ppm cobalt in lake sediments atop this structure,” the company added.

The deal would have Declan paying $85,000, issuing five million shares over two years and spending $3 million over three years. The optioner retains a 2% NSR on metals and a 4% gross overriding royalty on non-metallic commodities.

In September Declan announced an option to acquire the Patterson Lake Northeast property. The company plans to engage Dahrouge Geological Consulting to explore its uranium properties.

Rockgate takeover offer: Denison softens conditions, extends deadline

Denison Mines TSX:DML advanced its attempted takeover of Rockgate Capital TSX:RGT by lowering the minimum tender condition from 90% to two-thirds of outstanding shares. In an October 30 statement Denison also extended the offer’s deadline again, this time to November 18, and dropped conditions related to staff retention and consulting agreements.

The same day Rockgate said insiders agreed not to exercise their options unless another company comes up with a better offer. Denison had requested a cease trade order on 11 million Rockgate options granted on September 30, which Denison termed “improper defensive tactics.” The British Columbia Securities Commission didn’t agree. But rather than risk Denison withdrawing its offer, Rockgate insiders “put the interests of the shareholders of Rockgate before their own personal interests and agreed to amend the terms of the options,” company president/CEO Karl Kottmeier said.

The tone of the companies’ statements has warmed considerably since Kottmeier labelled Denison’s offer an “unsolicited opportunistic hostile takeover bid.” Denison president/CEO Ron Hochstein thanked Kottmeier and the Rockgate board “for their contributions to allowing the offer to proceed towards a successful conclusion.”

Meanwhile Rockgate continues prefeasibility work on its flagship Falea uranium-silver-copper project in Mali.

Read how Denison’s offer defeated Rockgate’s proposed merger with Mega Uranium.

Read more about uranium merger-and-acquisition activity.

Lakeland Resources’ JV partner New Dimension to drill for gold

Lakeland Resources TSXV:LK announced on October 31 an imminent drill campaign of at least 1,800 metres by JV partner New Dimension Resources TSXV:NDR on the Midas gold property in north-central Ontario. Lakeland optioned the project to New Dimension in September in order to focus on Saskatchewan uranium exploration. But Lakeland will retain a 30% interest in Midas carried to an initial 43-101 resource estimate.

I’m excited that the project’s going to continue to be worked while we focus on uranium.—Jonathan Armes, president/CEO
of Lakeland Resources

“New Dimension is a great group to work with and the deal was easy to do,” Lakeland president/CEO Jonathan Armes tells ResourceClips.com. “I’m excited that the project’s going to continue to be worked while we focus on uranium. The onus is on them to explore that project and we share in any benefits that result.”

The previous week Lakeland closed a private placement for a total of $1,057,718 and announced the appointment of Basin veteran John Gingerich to the company’s advisory board. Field work continues on Lakeland’s Riou Lake uranium project.

Read more about Lakeland Resources.

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