Friday 28th February 2020

Resource Clips


Posts tagged ‘colorado’

Athabasca Basin and beyond

May 10th, 2014

Uranium news from Saskatchewan and elsewhere for May 3 to 9, 2014

by Greg Klein

Next Page 1 | 2

Paladin releases Labrador infill results, plans Q2 resource update

From Labrador’s Central Mineral Belt, Paladin Energy TSX:PDN announced winter infill drilling results on May 7. Thirteen holes sunk 3,871 metres into the Michelin deposit, with each hole finding mineralization and six revealing significant intervals, the company stated. The best results showed:

Hole M14-151

  • 0.109% uranium oxide-equivalent (eU3O8) over 10 metres, starting at 302 metres in downhole depth
Uranium news from Saskatchewan and elsewhere for May 3 to 9, 2014

Paladin considers Labrador’s Central Mineral Belt “one of the
few remaining under-explored uranium districts globally.”

Hole M14-154

  • 0.14% over 15 metres, starting at 214 metres

  • 0.13% over 8 metres, starting at 256 metres

Hole M14-156

  • 0.095% over 12 metres, starting at 230 metres

Hole M14-158

  • 0.096% over 16 metres, starting at 191 metres

Hole M14-162

  • 0.102% over 28 metres, starting at 348 metres

Hole M14-163

  • 0.114% over 9 metres, starting at 355 metres

Information about true widths wasn’t provided. The deposit remains open in both directions and at depth. On the agenda is a Q2 resource update in which Paladin hopes the last few years of drilling will boost confidence as well as produce a small size increase.

Michelin’s resource currently shows:

  • measured: 7.1 million tonnes averaging 0.08% for 13.06 million pounds U3O8

  • indicated: 23 million tonnes averaging 0.11% for 54.06 million pounds

  • inferred: 16 million tonnes averaging 0.1% for 36.09 million pounds

Adding in five other deposits within 50 kilometres of a potential Michelin mill, the CMB project totals:

  • measured: 8.1 million tonnes averaging 0.08% for 15.1 million pounds

  • indicated: 32 million tonnes averaging 0.1% for 68.7 million pounds

  • inferred: 29.1 million tonnes averaging 0.08% for 53 million pounds

Three kilometres south of Michelin, two holes totalling 561 metres failed to find depth extensions to the Rainbow deposit. But Paladin considers the Michelin-Rainbow trend highly prospective as a result of radiometric surveying, mapping, prospecting and some drilling. Interpretation of a 608-line-kilometre ground magnetic survey will help guide exploration in the Michelin vicinity. More drilling is planned for next winter.

Paladin holds interests in five other exploration projects in Australia and another in Niger. Last February, declining prices forced the company to place its Kayelekera mine in Malawi on care and maintenance. Paladin hopes to close the sale of a 25% interest in its Langer Heinrich flagship in Namibia in June.

Northwest Manitoba radon-in-water might be second only to PLS, MPVC says

Having reported results of a land-based radon survey last month, MPVC Inc TSXV:UNO announced preliminary but optimistic findings from a radon-in-water survey at its Northwest Manitoba project on May 7. “To the author’s knowledge” only Fission Uranium’s (TSXV:FCU) Patterson Lake South has shown higher readings for a water-based survey, MPVC stated. More detailed analysis could change the results by about 10% either way.

Of the 1,399 samples from Maguire Lake, 41 showed results above 100 picocuries per litre (pCi/L), 14 went beyond 200 pCi/L, eight exceeded 300 pCi/L and four surpassed 400 pCi/L.

The readings extend linear trends identified in last month’s land-based survey results, MPVC added.

Still to come are results from a ground gravity survey to fill in areas missed by a 2012 survey. The area has also undergone an airborne magnetic/VLF/radiometric survey in 2006 and an airborne VTEM survey in 2007.

Among future work, the company plans to scan drill cuttings with a high-resolution gamma spectrometer system to “detect young uranium which is not radioactive and therefore not detectible with other field instruments…. The detection of anomalous young uranium, radon or lead 210 ascending along fractures would signal the presence of a uranium deposit at depth.” Drilling might descend as far as 1,000 metres in search of deeper deposits.

Previous prospecting in the area has found in-situ mineralization up to 9.5% U3O8 and boulders grading above 65%.

The company’s 80% option with CanAlaska Uranium TSXV:CVV calls for $3.2 million worth of exploration on the 143,603-hectare project by 2015.

Western Athabasca Syndicate reports initial Preston drill results

The four-company Western Athabasca Syndicate announced preliminary results from seven holes totalling 1,571 metres on their Preston property’s Swoosh target May 6. Five holes showed elevated radioactivity measured by a handheld spectrometer and a downhole probe. The project’s best hole so far, PN14007, found 12 radioactive intervals, one of them 1,432 counts per second over 0.75 metres (not true width). The results are no substitute for assays, which are expected in early June.

The alliance consists of Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY.

Six holes reached downhole depths between 200 and 350 metres while poor drilling conditions eliminated one hole. But all seven “intersected a broad, hydrothermally altered and reactivated structural zone,” the syndicate stated. The six-kilometre-long Swoosh was defined by gravity, magnetic and electromagnetic surveys, and surficial geochemical anomalies.

This month the companies plan at least one hole on each of two other targets, Fin and CHA. Swoosh is slated for additional field work and drilling later this year.

Athabasca Nuclear acts as project operator on the 246,643-hectare Preston property, which the syndicate credits with 15 prospective targets.

Anfield collects Colorado claims

Anfield Resources TSXV:ARY has once again expanded its western U.S. turf with 239 unpatented mining claims on federal land in Colorado. As a result the company now “has access to mineral rights” on more than 7,082 hectares in historic uranium and vanadium districts in Colorado and Utah, according to the May 8 announcement.

Subject to approvals, Anfield gets the claims from Alamosa Mining Corp for 1.95 million shares and three years of payments totalling US$600,000.

The company previously announced Utah acquisitions in March and January. All the Utah and Colorado claims lie within a 193-kilometre radius of Energy Fuels’ (TSX:EFR) White Mesa mill. Anfield also holds claims in Arizona.

European Uranium refines portfolio sale, intends to pursue other assets

On May 9 European Uranium Resources TSXV:EUU announced that the planned sale of its entire portfolio has reached a share purchase agreement with Forte Energy that replaces the companies’ previous binding heads of agreement. As in the original deal, the ASX/AIM-listed company issues EUU 915.93 million shares, valued at $7.5 million, and pays EUU $1 million. The latter retains a 1% production royalty.

But the new arrangement calls for the shares to be issued in instalments to avoid breaching the Australia Takeovers Prohibition. On closing, EUU would get 19.9% of the shares with the rest following “from time to time.”

Nor will EUU distribute Forte shares to its own shareholders. Instead it will sell some of them over time to fund its operations. EUU stated the deal would provide initial funding to pursue options or acquisitions “in multiple commodities in the general European area.”

The Forte deal came together shortly after EUU’s planned merger with Portex Minerals CSE:PAX fell through. EUU’s portfolio consists of two Slovakian uranium projects.

The company closed a $100,000 private placement with Forte in mid-April.

Next Page 1 | 2

Athabasca Basin and beyond

April 27th, 2014

Uranium news from Saskatchewan and elsewhere for April 19 to 25, 2014

by Greg Klein

Next Page 1 | 2

Fission Uranium completes winter delineation, releases Patterson Lake South drill results

Delineation drilling, the focus of Fission Uranium’s (TSXV:FCU) winter 2014 Patterson Lake South program, has come to its seasonal end. While one rig worked outside the main mineralized area, four others sunk 82 infill holes, roughly 85% of the 30,000-metre campaign, since mid-January. As a result PLS now consists of five zones along a 2.24-kilometre potential strike that’s open at both east and west. Along with its April 24 announcement Fission Uranium released radiometric results for the last dozen holes. Two days earlier the company reported assays for nine others.

Ten of the 12 latest holes came from zone R780E, the third of the five east-west zones. With a total of 77 holes so far, R780E has about 855 metres in strike and up to about 95 metres in lateral width. Seven of the latest 10 holes showed substantial intercepts reaching the maximum possible reading of 9,999 counts per second on a hand-held scintillometer that measures radiation from drill core. Scintillometer results are no substitute for assays, which are pending for these holes.

R1620E, at the eastern extent and declared a new zone earlier this month after just one hole, now has a second which showed 38.5 metres (not true width) ranging from under 300 cps to 3,500 cps. Ironically for the discovery zone, R00E gave up just half a metre of 490 cps.

Assays released two days earlier included yet another PLS “best yet”—this time “the widest high-grade interval to date,” which helped PLS14-187 nearly equal a previously recorded best hole. This nine-hole batch marks the third set of assays, totalling 22 holes, for the winter campaign. Like the previous week’s dozen holes, all nine came from R780E. Some of the best results showed:

Hole PLS14-138

  • 0.2% uranium oxide (U3O8) over 34 metres, starting at 73 metres in downhole depth
Uranium news from Saskatchewan and elsewhere for April 19 to 25, 2014

  • 0.4% over 3.5 metres, starting at 137.5 metres

  • 1.04% over 17 metres, starting at 170 metres
  • (including 2.88% over 4.5 metres)

PLS14-139

  • 0.15% over 30 metres, starting at 130 metres

  • 0.28% over 8.5 metres, starting at 199 metres

PLS14-140

  • 0.1% over 19.5 metres, starting at 22.5 metres

  • 0.28% over 7.5 metres, starting at 254.5 metres

PLS14-145

  • 0.13% over 27.5 metres, starting at 89.5 metres

  • 0.97% over 22.5 metres, starting at 132 metres
  • (including 2.24% over 7.5 metres)

  • 1.34% over 2.5 metres, starting at 178.5 metres

  • 0.4% over 7.5 metres, starting at 203.5 metres

  • 0.22% over 8 metres, starting at 218 metres

PLS14-146

  • 2.18% over 47 metres, starting at 132 metres
  • (including 4.3% over 3 metres)
  • (and including 14.27% over 2 metres)

  • 1.04% over 4 metres, starting at 237 metres
  • (including 3.64% over 1 metre)

  • 3.19% over 2 metres, starting at 254 metres

PLS14-147

  • 0.15% over 28.5 metres, starting at 115 metres

PLS14-151

  • 0.31% over 6 metres, starting at 125.5 metres

Best of the batch and second-best overall was PLS14-187:

  • 5.98% over 102.5 metres, starting at 63 metres
  • (including 27.2% over 3 metres)
  • (and including 12.93% over 10.5 metres)
  • (and including 14.12% over 6 metres)
  • (and including 16.92% over 2.5 metres)
  • (and including 16.14% over 4.5 metres)

  • 2.59% over 9 metres, starting at 218.5 metres

True widths weren’t provided. “Mineralization is both located within and associated with a metasedimentary lithologic corridor, bounded to the south by the PL-3B basement electromagnetic conductor,” Fission Uranium added.

The $12-million winter agenda also calls for geophysics. And no, there’s still no word on when Fission Uranium might unveil its maiden resource.

Lakeland Resources acquisition expands Lazy Edward Bay project

Out of Lakeland Resources’ (TSXV:LK) portfolio of 16 uranium properties in and around the Athabasca Basin, Lazy Edward Bay has taken on greater prominence. A three-claim, 4,475-hectare acquisition announced April 24 expands the project to 26,375 hectares. The new turf also adds two conductive trends, giving Lazy Edward a total of six around the Basin’s southern margin.

Subject to TSXV approval, the 100% interest will cost Lakeland $5,000, 250,000 shares and a 2% gross revenue royalty.

Of the two additional conductive trends, the Ponderosa consists of two parallel graphitic trends, each about 2.5 kilometres long, Lakeland stated. Ground EM surveys and seven holes tested the trend in 1989, with more EM and another hole following in 2001.

The Jack trend extends from the original Lazy Edward property, tripling the trend to about 5.1 kilometres. In 2007 it underwent a ground fixed loop transient EM survey but hasn’t been drilled.

Historic work has sunk at least 53 holes on Lazy Edward’s six trends but, with each ranging between five and seven kilometres long, they remain under-explored. One hole on the Bay trend assayed 770 ppm uranium, along with anomalous pathfinder metals. Depths to the unconformity along the Basin’s southern edge range from zero to 350 metres.

“As a result of the historic and recent exploration on the property, all six trends are considered drill ready,” the company stated.

Among other projects in Lakeland’s portfolio is Gibbon’s Creek, a joint venture with Declan Resources TSXV:LAN that features surface boulders grading up to 4.28% U3O8 and some of the highest radon readings ever measured in the Basin.

Read more about Lakeland Resources here and here.

Aldrin reports initial findings from Triple M’s initial four holes

With drilling suspended by snowmelt, Aldrin Resource TSXV:ALN reported preliminary results from the first four holes on its PLS-adjacent Triple M property. All four “intersected alteration, structures and breccia zones within a metasedimentary rock succession including elevated radioactivity counts in a graphitic fault zone,” the company stated on April 22. Assays have yet to come.

With less than 25% of the planned 4,000-metre program complete, the quartet tested the Forrest Lake fault. Aldrin plans at least four more holes over the same fault “moving towards the most intense part of the basement conductive anomaly” before starting on the Anticline target.

Drilling could resume on the 12,000-hectare property in as little as two weeks, the company added.

NexGen adds to eastern Basin holdings

The size of the property wasn’t divulged. Nor was its name. But NexGen Energy TSXV:NXE announced an eastside Basin acquisition and option on April 25. Subject to approvals, NexGen gets a 75% interest in five claims by issuing Long Harbour Exploration TSXV:LHC shares worth $135,000. NexGen’s option on the other 25% would require additional shares worth $45,000. Value would be calculated by the volume-weighted average for five days before closing. The property remains subject to a 2% NSR and 2% gross overriding royalty. The claims lie “in close proximity” to NexGen’s Thorburn Lake property.

On April 22 the company implemented a shareholder rights plan.

Late last month NexGen wrapped up winter drilling at its southwestern Basin Rook 1 flagship by announcing radiometric results for the project’s best hole so far.

Next Page 1 | 2

Athabasca Basin and beyond

April 12th, 2014

Uranium news from Saskatchewan and elsewhere for April 5 to 11, 2014

by Greg Klein

Next Page 1 | 2

Fission Uranium reports seven strong holes from Patterson Lake South

They probably don’t surprise anyone anymore but Fission Uranium’s (TSXV:FCU) weekly dispatches from Patterson Lake South continue to impress. Radiometric readings from all seven holes released April 7 showed wide intervals and “off-scale” radioactivity.

The results, which are no substitute for assays, come from a hand-held scintillometer that measures gamma radioactivity from drill core in counts per second up to a maximum possible (“off-scale”) reading of 9,999 cps. Lab results are pending.

Uranium news from Saskatchewan and elsewhere for April 5 to 11, 2014

Fission Uranium found off-scale radiometric readings for intervals
from each of seven holes in this week’s news from Patterson Lake South.

This week’s batch comes from zone 780E, the third of five zones along a west-east strike that just last week extended to 2.24 kilometres and remains open at both ends.

The star hole was PLS14-201, which gave up a composite total of 82.5 metres (not true widths) of mineralization including a composite of 16.8 metres straining the scintillometer at 9,999 cps. The interval closest to surface began at 84 metres in downhole depth while the deepest stopped at 340.5 metres.

The other six holes showed intervals in roughly similar ranges of depth, with one beginning as close as 58.5 metres from surface and the deepest ending at 415 metres.

The company has now finished 70 of 100 holes totalling 30,000 metres planned for the $12-million winter campaign. Four rigs will sink about 85 of those holes to delineate the 31,039-hectare project’s main mineralized trend. A fifth rig explores farther away.

Also on April 7 Fission Uranium granted insiders 500,000 options at $1.65 for five years. The previous week the company granted 6.5 million options on the same terms.

Lakeland Resources stakes five more Saskatchewan properties totalling 52,255 hectares

A quintet of new acquisitions in and around the Athabasca Basin bolstered Lakeland Resources’ (TSXV:LK) portfolio to 16 properties totalling about 157,000 hectares. The turf came through staking which, president/CEO Jonathan Armes told ResourceClips.com on April 11, is ideal for juniors “because you own it 100% with no encumbrances, underlying NSRs and so on.”

Neil McCallum, a company director and project geologist/manager with Dahrouge Geological Consulting, says Lakeland had been studying the properties while waiting for them to come available. “A lot of people get land because it’s in or near the Basin without targeting anything in particular. You can do a lot of research, if you know what you’re looking for, to find good targets before you acquire them.”

A lot of people get land because it’s in or near the Basin without targeting anything in particular. You can do a lot of research, if you know what you’re looking for, to find good targets before you acquire them.—Lakeland Resources
director Neil McCallum

The new ground includes Lazy Edward Bay, a 21,990-hectare project on the Basin’s southern margin with four shallow trends that Lakeland considers drill-ready.

Just off the Basin’s northeastern rim, the 7,195-hectare Karen Lake project has yet to be drilled despite several silt samples grading over 1% uranium. Another 2,889-hectare property along the Basin’s northern edge, Black Lake has a shallow depth to the unconformity of about 260 metres and has undergone historic and recent geophysics.

The 16,925-hectare Hidden Bay sits about eight kilometres east of the Basin and hosts an outlier of Athabasca sandstone and at least four graphitic corridors. About 70 klicks south of the Basin, the 3,258-hectare Fedun Lake property sits on the Wollaston domain that hosts most of the Basin’s uranium deposits.

With cash in hand from last month’s oversubscribed $2.8-million private placement, McCallum says Lakeland is “certainly funded to prioritize the projects we want to work ourselves. If we find JV opportunities for other projects, we wouldn’t mind that either. We have enough projects that we can work some ourselves and have those JV opportunities at the same time.”

Speaking of joint ventures, Gibbon’s Creek is about to undergo a ground electromagnetic survey prior to an anticipated 2,500-metre drill campaign funded by partner Declan Resources TSXV:LAN. Boulder samples from the 12,771-hectare northern Basin project have graded as high as 4.28% uranium oxide (U3O8) while a RadonEx survey showed some of the highest measurements ever found in the Basin.

Read more about Lakeland’s new acquisitions.

MPVC/CanAlaska report radon anomalies from Northwest Manitoba project

Now trading under TSXV:UNO following its change of business, MPVC Inc joined CanAlaska Uranium TSXV:CVV on April 8 to announce “highly anomalous radon results” from the Maguire Lake area of their Northwest Manitoba project. The land-based survey covered a three-by-10-kilometre section of the 143,603-hectare project finding trends “in some cases over four kilometres and approximately 100 to 200 metres wide.” The survey also identified areas of about 400 by 800 metres where radon measured over three times the background levels, sometimes coinciding with gravity and resistivity lows.

Two islands with anomalous values also feature radioactive outcrops. Boulder samples from one island have graded up to 66% U3O8.

The Manitoba property shares some geological features with the Basin, with a distinction that “uranium mineralization outcrops within our project area rather than being deeply buried as is the case with many deposits in the Basin,” the companies stated.

Upcoming plans include a radon survey over the lake itself prior to a drill program scheduled to begin in late April. As part of its 80% option with CanAlaska, MPVC must spend $3.2 million on exploration by 2015.

The previous week CanAlaska sold its Kasmere South project in Manitoba to a private company for $1.8 million to help advance its “core Japanese and Korean joint ventures at West MacArthur and Cree East.”

Next Page 1 | 2

Athabasca Basin and beyond

March 2nd, 2014

Uranium news from Saskatchewan and elsewhere for February 22 to 28, 2014

by Greg Klein

Next Page 1 | 2

Radiometric results divert NexGen’s focus to new area of Rook 1

Following up on last week’s market-moving news, NexGen Energy TSXV:NXE reported more radiometric readings from the first hole on the Arrow area of its Rook 1 project. Obviously inspired by the results, the company has moved its other rig to Arrow “until additional rigs can be sought to drill the other 11 western-located Rook 1 target areas,” according to the February 24 statement.

Once again NexGen has found dozens of “significant”—if tiny—intervals of uranium mineralization from hole RK-14-21. By “significant,” NexGen means at least 0.05 metres reading over 500 counts per second, a measure of gamma radiation from drill core by a hand-held scintillometer. The significant readings started at 207.8 metres in downhole depth and ended at 583.55 metres. Drilling stopped at 663 metres. Two intervals maxed out the scintillometer at 10,000 cps.

Uranium news from Saskatchewan and elsewhere for February 22 to 28, 2014

Radiometric results from a single hole have turned
NexGen’s attention to the Arrow area of Rook 1.

The readings are no substitute for assays, which are pending. But an additional spectrometer scan “confirmed that all radiometric activity is due to uranium, with minimal or no thorium input.” Further encouragement came from three intercepts showing visible pitchblende.

Now in progress are two more holes, one collared from the same location but at a more shallow angle and another 30 metres northeast along strike. Now under revision is the company’s original 6,000-metre plan for the Patterson Lake South-adjacent project. Arrow has become the target.

On February 26 NexGen reported it closed a previously announced two-year extension to its 70% earn-in on the northeastern Athabasca Basin Radio project. Assays have yet to be released from Radio’s nine-hole, 3,473-metre program, which wrapped up last July.

Denison reports Wheeler River drill results, updates other projects

A downhole radiometric probe found high-grade uranium oxide-equivalent results for a new batch of holes at Denison Mines’ (TSX:DML) flagship Wheeler River project. The company holds a 60% interest and acts as operator in the southeastern Basin joint venture, with Cameco Corp TSX:CCO holding 30% and JCU (Canada) Exploration 10%. Collars for eight holes released February 26 were spaced over roughly 240 metres of the closely drilled zone A of the Phoenix deposit. The best intercepts show:

Hole WR-548

  • 29.61% uranium oxide-equivalent (eU3O8) over 6.5 metres, starting at 407.9 metres in vertical depth

Hole WR-550

  • 18.37% over 4.7 metres, starting at 407.3 metres

Hole WR-545

  • 16.98% over 3.1 metres, starting at 403.3 metres

Hole WR-539

  • 11.63% over 3.5 metres, starting at 401.6 metres

Hole WR-538

  • 2.14% over 5.1 metres, starting at 392.4 metres

  • 0.87% over 3.3 metres, starting at 403.8 metres

  • 1.36% over 1.4 metres, starting at 408.2 metres

  • 0.11% over 2.1 metres, starting at 426.4 metres

With vertical drilling and “roughly” horizontal mineralization, the company considers intercept widths equal to true widths. Assays will presumably follow these radiometric readings, which are no substitute for lab work.

So far 13 of 28 winter holes have been finished at zone A and an exploration target called the K zone. The latter showed no significant mineralization but Denison declared itself encouraged by “sandstone and basement alteration in three of seven wide-spaced drill holes, which will likely warrant follow-up drilling.” This winter rigs will also target Wheeler’s 489 zone, Phoenix North, K North and two DC resistivity-low anomalies, the company added. The project lies about 35 kilometres from the Key Lake mill.

In other Denison updates reported February 26, 10 holes at Hatchet Lake failed to find significant mineralization. The company will evaluate geochemical data before planning further work.

Ten holes at Moore Lake followed Hatchet’s example. Electromagnetic and DC resistivity surveys are slated for winter. Denison currently has drills turning at its Park Creek, Bell Lake and Waterbury Lake projects in campaigns scheduled for March completion.

Kivalliq announces ore-sorting and metallurgical progress at Angilak in Nunavut

Kivalliq Energy TSXV:KIV says metallurgical and ore-sorting tests from the Lac 50 deposit of its Angilak property provide encouraging news for the Nunavut project’s economics. Announced February 27, tests showed better than 95% uranium recovery in a 48-hour leach cycle, the ability to recycle all the primary alkaline leach reagents and production of 70% yellowcake meeting industry standards for uranium concentrate. The presence of boron and magnesium was “marginally higher than penalty levels but significantly below reject levels,” the company stated. Optimization tests continue.

Dilution could be reduced through radiometric ore sorting prior to milling. Tests showed a cumulative uranium recovery of 96.7% out of 49.2% of the extracted rock. In other words, 50.8% of the rock was rejected with loss of only 3.3% of uranium. The tests also showed 94.1% recovery from just 15.9% of the rock, when 84.1% of rock was rejected with a loss of only 5.9% of uranium.

“The testing reflects the high-grade uranium characteristics at Lac 50 where the majority of uranium mineralization occurs as disseminations and veins of massive pitchblende within the carbonate and hematite alteration zone” comprising the inferred resource, the company stated.

The resource boasts Canada’s highest grade outside the Athabasca Basin. Released in January 2013, the inferred category uses a 0.2% cutoff to show 2.83 million tonnes averaging 0.69% for 43.3 million pounds uranium oxide (U3O8). The inferred resource also shows 1.88 million ounces silver, 10.4 million pounds molybdenum and 15.6 million pounds copper. Kivalliq operates the 137,699-hectare project, 225 kilometres south of the hamlet of Baker Lake, in partnership with Nunavut Tunngavik Inc.

Kivalliq picked up another Nunavut property in October and moved into Saskatchewan last January.

Forum starts 3,000 metres at Clearwater

Adjacently southwest of PLS, drilling has begun at Forum Uranium’s (TSXV:FDC) 9,910-hectare Clearwater project. According to its February 26 statement, the company plans about 3,000 metres in 12 to 15 shallow holes between 100 and 200 metres in depth. Around 11 targets were chosen by previous surveys including ground gravity, airborne EM and radon work.

Initial drilling will focus on the project’s northern claim. Forum stated the central and southern claims require further ground gravity, ground EM and radon surveys to define targets.

The previous week Forum’s portfolio increased with the Fir Island acquisition east of Stony Rapids on the Athabasca Basin’s northeastern rim.

Lakeland Resources offers $2 million private placement for Basin exploration

Lakeland Resources TSXV:LK announced a private placement up to $2 million on February 24. The offer consists of three million flow-through units at $0.25 and 5.92 million non-flow-through units at $0.21. Each flow-through unit consists of one flow-through share and one-half non-flow-through warrant. Each warrant is exercisable for 12 months at $0.30. Non-flow-through units consist of one share and one warrant, also exercisable at $0.30 for a year.

Proceeds go to Athabasca Basin exploration, corporate development and general and administrative purposes.

In January Lakeland announced its 12,771-hectare Gibbon’s Creek project showed high-grade boulders up to 4.28% U3O8 and some of the highest radon readings ever measured in the Basin. As part of a 70% four-year earn-in, Declan Resources TSXV:LAN has committed $1.25 million to exploration this year.

Read more about Lakeland Resources here and here.

Next Page 1 | 2

Athabasca Basin and beyond

October 19th, 2013

Uranium news from Saskatchewan and elsewhere for October 12 to 18, 2013

by Greg Klein

Next Page 1 | 2

Alpha/Fission upgrade R780E zone; final barge drilling shows zones open in all directions

Actual lab assays, not scintillometer readings, show the best results so far from Patterson Lake South’s R780E zone, giving it high-grade status similar to the R390E zone. Announced by 50/50 joint venture partners Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW on October 17, some highlights from hole PLS13-080 include:

  • 6.93% uranium oxide (U3O8) over 43 metres, starting at 130 metres in downhole depth

  • (including 26.73% over 2 metres)
  • (and including 15.63% over 14 metres)

  • 0.28% over 5 metres, starting at 175.5 metres

  • 0.48% over 6 metres, starting at 236.5 metres

  • 1.98% over 2.5 metres, starting at 245 metres

  • 0.16% over 11 metres, starting at 290 metres
Uranium news from Saskatchewan and elsewhere for October 12 to 18, 2013

Alpha Minerals VP of exploration
Garrett Ainsworth surveys a PLS core shack.

True widths weren’t available. The hole reached a total depth of 347 metres, encountering basement bedrock at 54 metres. At an 89-degree dip, downhole depths are close to vertical.

One day earlier the JV reported more scintillometer results, largely the stock in trade of this campaign’s announcements, for the final 10 holes drilled from barges. The hand-held device measures drill core for gamma radiation up to an off-scale reading over 9,999 counts per second. Scintillometer readings are no substitute for assays, which are pending.

The two companies didn’t always report results the same way. Some highlights from Alpha’s chart include:

R390E zone, hole PLS13-104

  • <300 to <9,999 cps over 14.5 metres, starting at 98 metres in downhole depth

  • <300 to >9,999 cps over 10.5 metres, starting at 131 metres

R780E zone

Hole PLS13-097

  • <300 to >9,999 cps over 49.5 metres, starting at 117.5 metres

  • 340 to >9,999 cps over 6 metres, starting at 228.5 metres

Hole PLS13-101

  • <300 to >9,999 cps over 17 metres, starting at 179 metres

Hole PLS13-105

  • <300 to >9,999 cps over 18.5 metres, starting at 113 metres

Hole PLS13-107

  • <300 to 8,400 cps over 24.5 metres, starting at 138.5 metres

Hole PLS13-108

  • <300 to >9,999 cps over 20 metres, starting at 152 metres

  • <300 to >9,999 cps over 21 metres, starting at 174.5 metres

  • <300 to >9,999 cps over 6.5 metres, starting at 228 metres

Hole PLS13-109

  • <300 to >9,999 cps over 10.5 metres, starting at 105.5 metres

  • <300 to >9,999 cps over 34 metres, starting at 136 metres

  • <300 to >9,999 cps over 15 metres, starting at 197 metres

Again, true widths were unavailable. Dips ranged from -85 to -89 degrees.

Alpha noted that the five zones remain open in all directions and continuity is possible between some or all of the “zones.”

The quotation marks might reflect Alpha’s previous doubt that a fifth zone had been confirmed. But elsewhere in the company’s October 16 news release Alpha refers unequivocally to five zones.

Now Fission’s the more cautious partner. Two additional holes stepped out 195 metres grid east of the most easterly zone, R945E. Although mineralization wasn’t strong, Alpha said the results extend the PLS trend by 210 metres to 1.23 kilometres. Fission, on the other hand, said the holes may extend the strike at least 200 metres. Presumably these little differences will be forgotten once Fission closes its acquisition of Alpha, which might take place in November.

Meanwhile the recently extended campaign continues with 11 land-based holes, totalling 3,700 metres, west of the lake.

NexGen finds three mineralized holes at Rook 1, plans winter drilling

With Rook 1’s Phase I now complete, NexGen Energy TSXV:NXE reported probe results for three of 12 widely spaced holes on October 16. Like the scintillometer, the downhole probe measures gamma radiation in counts per second while assays are pending. Some highlights include:

Hole RK-13-03

  • 350 to 508 cps over 0.8 metres, starting at 131.9 metres in downhole depth

  • 345 to 1,143 cps over 0.5 metres, starting at 149.9 metres

Hole RK-13-05

  • 380 to 4,379 cps over 2.7 metres, starting at 215.7 metres

  • 347 to 1,771 cps over 1.7 metres, starting at 219.2 metres

Hole RK-13-06

  • 481 to 2,297 cps over 2.1 metres, starting at 151.8 metres

True widths weren’t available. The three holes targeted three parallel conductors, one of them interpreted to be the same conductor hosting the PLS discoveries 2.1 kilometres southwest.

NexGen plans “a significantly large” winter drill campaign near the mineralized holes and on targets identified by geophysics.

The company’s portfolio includes a 70% option on the northeastern Athabasca Basin Radio project two kilometres east of Rio Tinto’s NYE:RIO Roughrider deposits. Assays are pending from Radio’s nine-hole, 3,473-metre program, which wrapped up in July.

Kivalliq to buy Nunavut uranium project in $275,000 deal

On the southern boundary of Nunavut’s Baker Lake Basin, Kivalliq Energy TSXV:KIV will acquire a 93,991-hectare property from Pacific Ridge Exploration TSXV:PEX. Subject to approvals, the deal has Kivalliq paying $55,000 to Pacific Ridge, issuing the company 600,000 shares at a deemed price of $0.25 and investing $70,000 by purchasing 1.4 million Pacific Ridge units at $0.05. Each unit would consist of one share and one-half warrant, with each whole warrant exercisable at $0.10 for a year, Kivalliq announced October 15.

The 100% acquisition doesn’t include any diamonds found on the property.

Previous work on the Baker Basin project included $7.1 million of exploration in 2006 and 2007. Among the results were:

KZ zone

  • 0.31% U3O8 over 11.5 metres, starting at 79.5 metres in downhole depth

  • (including 0.56% over 5.5 metres)

  • 0.27% over 5.8 metres, starting at 36 metres

True widths were unknown.

Lucky 7 zone

  • 0.3% over 17.3 metres, starting at 232.2 metres

  • (including 0.51% over 9 metres)

True widths were estimated between 50% and 70% of intercepts.

Four zones haven’t been fully evaluated, according to Kivalliq. The company plans to compile project data before planning additional work. The property lies 60 kilometres south of the hamlet of Baker Lake.

About 165 kilometres farther south, Kivalliq’s 137,699-hectare Angilak project has inferred resources of 43.3 million pounds U3O8, 1.88 million ounces silver, 10.4 million pounds molybdenum and 15.6 million pounds copper. The company reported new geochemical and metallurgical results in September.

Pacific Ridge focuses on projects in the Yukon’s White Gold and Klondike districts.

Next Page 1 | 2

Athabasca Basin and beyond

September 7th, 2013

Uranium news from Saskatchewan and elsewhere for August 31 to September 6, 2013

by Greg Klein

Next Page 1 | 2

PLS to come under Fission control as Alpha agrees to sweetened takeover offer

The Patterson Lake South partners have come to terms. Joint September 3 news releases from Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU announced a letter of intent to combine the 50/50 joint venture under Fission’s control. The acquisition would cost 5.725 Fission shares for each Alpha share while each company would spin out its non-PLS assets into a new entity. Alpha gets no place on Fission’s management team but would nominate two directors to Fission’s five-person board.

Uranium news from Saskatchewan and elsewhere for August 31 to September 6, 2013

With three barges supporting drill rigs,
the Alpha/Fission flotilla patrols Patterson Lake South.

The deal sweetens Fission’s previous offer of 5.3 shares announced August 26 and represents a 14.5% premium to the shares’ August 23 close and 11% to their August 30 close.

Shareholders of each company will get shares in their respective spincos, which will hold all non-cash and non-PLS assets. Each spinco will get $3 million in start-up cash.

Alpha’s other projects include three Athabasca Basin uranium projects and two gold properties in Ontario and British Columbia. Fission holds interests in six other Basin properties and one in Peru.

Pending all shareholder and regulatory approvals, the companies hope to consummate by November.

Fission/Alpha report best PLS hole so far

With the ink barely dry on their LOI, Alpha and Fission released more drill results on September 4—real assays this time, instead of teasing the market with scintillometer readings. And this time, according to Fission president/COO Ross McElroy, a single hole provided “not only the best results to date on the PLS property, but on a level with the best holes within the Athabasca Basin district.”

Sunk on the western part of R390E, the second of four zones extending from southwest to northeast, hole PLS13-075 showed a highlight of:

  • 9.08% uranium oxide (U3O8) over 54.5 metres, starting at 61 metres in vertical depth

  • (including 21.76% over 21.5 metres)

Additional results from the same hole showed:

  • 0.09% over 0.5 metres, starting at 57.5 metres

  • 0.07% over 7.5 metres, starting at 118 metres

  • 0.24% over 11.5 metres, starting at 130 metres

  • 0.65% over 2 metres, starting at 146.5 metres

  • 0.71% over 1.5 metres, starting at 151 metres

  • 0.06% over 0.5 metres, starting at 157 metres

  • 0.27% over 2.5 metres, starting at 160 metres

  • 0.27% over 1 metre, starting at 176.5 metres

True widths were unavailable. The vertical hole reached a total depth of 248 metres and was collared 30 metres grid west of PLS13-061, which last June showed 1.39% U3O8 over 23.5 metres starting at 110 metres, and included 4.34% over 6 metres.

The $6.95-million campaign will include additional drilling on the R390E zone, which has the largest of the lake water radon anomalies found last winter.

First tranche brings Lakeland Resources $738,000

Lakeland Resources TSXV:LK closed the first tranche of its private placement, issuing 5.7 million units at $0.10 and 1.35 million flow-through units at $0.125 for gross proceeds of $738,770, the company announced on September 3. The money goes to Athabasca Basin uranium exploration and general working capital.

Lakeland holds nine Basin properties and currently focuses on the Riou Lake project’s Gibbon’s Creek area, which has at least 23 historic holes. The project shows shallow depths to basement rock and also has radioactive boulders grading up to 11.3% uranium. Situated on high ground, the property can be drilled year-round.

Read more about Lakeland Resources.

Energy Fuels completes Strathmore takeover

Its acquisition of Strathmore Minerals TSX:STM now complete, Energy Fuels TSX:EFR has taken “an important step toward achieving our goal of becoming the dominant uranium producer within the U.S.,” according to joint statements issued September 3. Energy Fuels currently holds No. 2 position, with guidance of about 1.15 million pounds uranium oxide (U3O8) for fiscal 2013. The company added that the United States “is the world’s largest nuclear power market and heavily dependent on imported uranium for over 90% of its supply requirements.” Read more about the acquisition here and here.

Next Page 1 | 2

Athabasca Basin and beyond

August 4th, 2013

Uranium news from Saskatchewan and elsewhere for July 27 to August 2, 2013

by Greg Klein

Next Page 1 | 2

Alpha/Fission extend Patterson Lake South R390E zone by 30 metres

Just two weeks ago they were crowing about “the most abundant off-scale mineralization of any hole” at Patterson Lake South. Now Fission Uranium TSXV:FCU and 50/50 joint venture partner Alpha Minerals TSXV:AMW say they’ve surpassed that. Scintillometer readings for one of two shallow step-outs reported July 29 represent “the largest accumulation of discrete off-scale mineralized intervals in any drill hole at PLS to date.” The two holes add 30 metres of strike to R390E, the middle of three zones along an 850-metre northeast-southwest trend. Including the 15-metre extension resulting from the hole announced July 18, the campaign’s first three holes have extended the zone’s strike by 75% to 105 metres.

The scintillometer measures gamma radiation from drill core in counts per second, up to an off-scale reading over 9,999 cps. Scintillometer readings are not assays, which are still pending. A radiometric probe will also be used to measure downhole radiation.

Hole PLS13-073, 15 metres grid east of the zone’s nearest hole, showed:

  • <300 to >9,999 cps over 19.5 metres, starting at 102 metres in vertical depth
  • <300 to >9,999 cps over 11 metres, starting at 142.5 metres.

True widths weren’t available. Drilled to a depth of 248 metres, the hole encountered Devonian sandstone at 50 metres’ depth and a basement unconformity at 53 metres.

Hole PLS13-075, 15 metres grid west of the nearest hole, showed:

  • <300 to >9,999 cps over 70 metres, starting at 57.5 metres in vertical depth
  • (including 580 to >9,999 cps over 23 metres)
  • <300 to 6,800 cps over 12 metres, starting at 130 metres
  • <300 to >9,999 cps over 2.5 metres, starting at 146.5 metres
  • 400 to 1,800 cps over 2 metres, starting at 151 metres
  • 1,000 cps over 0.5 metres, starting at 157 metres
  • <300 to 3,600 cps over 2.5 metres, starting at 160 metres.
Uranium news from Saskatchewan and elsewhere

Again, true widths were unknown. The 188-metre hole struck sandstone at 47 metres and the basement unconformity at 49.3 metres. The first PLS13-075 result above included 21.65 metres of mineralization over 9,999 cps in several intervals, which the JV partners call the project’s “largest accumulation of discrete off-scale mineralized intervals” so far. They include 16.7 metres of continuous off-scale readings starting at 73.5 metres’ depth. Although Alpha and Fission anticipate that its main zone of mineralization has been found, drilling on this hole continues.

As does the $6.95-million program, comprising ground geophysics and about 44 holes totalling 11,000 metres.

Paladin cancels sale; reports $180-million impairment, $81-million placement, fatality

Paladin Energy TSX:PDN has dropped negotiations to sell a minority interest in its Langer Heinrich mine in Namibia. In one of three August 2 announcements, the company said uranium’s currently low price would drive down offers on an asset with expansion potential and a mine life of over 20 years.

Paladin also reported it expects a further non-cash impairment estimated at US$180 million before taxes, which the company attributed to its Kayelekera mine in Malawi, Niger exploration projects “and other smaller items.” Paladin suspended work in Niger following May 23 terrorist attacks.

Within minutes of reporting the suspended sale Paladin announced it was offering a private placement “to provide adequate funding for the company into the September quarter” despite low uranium prices. Later the same day Paladin announced it closed the placement at $C81 million. The money came from 125.6 million shares, representing 15% of the company’s existing issued capital, at a 30% discount to the stock’s previous ASX close.

Paladin managing director/CEO John Borshoff said the money would help “reduce debt in the mid-term.”

On July 31 the company reported a fatal accident in Kayelekera’s engineering workshop.

Read about Paladin’s last quarterly report.

Powertech forms strategic alliance with Asian uranium investor

A Vancouver-headquartered company with uranium projects in three American states announced a strategic alliance with Asia’s “only significant uranium investment and development vehicle.” On August 1 Powertech Uranium TSX:PWE reported Azarga Resources Ltd, a privately held Hong Kong-based company, agreed to a number of deals.

As of July 22 Azarga bought 24.65 million shares at $0.07 for a total of $1.72 million, giving the purchaser an initial 17.5% of Powertech. Azarga also provided Powertech with $514,350 in return for a debenture with the amount payable at 115% within 12 months or 130% within two years. Powertech may instead convert the principal into shares granted to Azarga at $0.07. Full conversion would leave Azarga with an approximate 22% interest in Powertech.

Azarga also agreed to buy a 60% chunk of Powertech’s Centennial project in Colorado for $1.5 million over two years. Should shareholders oppose the purchase, $1 million of the purchase price would be converted to a debenture on the same terms as the other. On completing the 60% purchase, the two companies would form a JV with Azarga acting as project operator.

The deal would include a put option, in which Powertech could sell its remaining 40% after January 1, 2017, for $250,000, and a call option, allowing Azarga to buy the 40% after that date for $7 million or, within 10 days of a change of control at Powertech, for $1 million.

The companies further agreed to share data and expertise, with Azarga using “its best efforts to support any equity financings” undertaken by Powertech. In a statement accompanying the announcement, Powertech president/CEO Richard Clement said Azarga’s “positioning in Asia will provide enhanced access and exposure to those markets.”

The transactions are subject to shareholder and TSX approval.

Powertech released a preliminary economic assessment for an in-situ recovery (ISR) mine at Centennial in August 2010. Following local opposition, Colorado imposed new restrictions on uranium mining the following month. Powertech lost its court challenge against the new regulations in July 2012. By that time the company had already shifted focus to its Dewey-Burdock project in South Dakota, for which it released a revised PEA in April 2012. The project is now undergoing permitting and licensing with the United States Nuclear Regulatory Commission. Powertech has two other uranium projects in Wyoming.

Azarga stated it currently has no plans to develop Centennial but will instead review the project’s exploration and development potential. Azarga also holds an 80% operating interest in “the largest-known Soviet-era resource in the Kyrgyz Republic,” as well as interests in other uranium projects in the U.S. and Turkey.

Forum begins airborne radiometrics over PLS-adjacent Clearwater project

On July 30 Forum Uranium TSXV:FDC announced airborne radiometrics had begun over its Clearwater project, adjacently southwest of Alpha/Fission’s PLS property. The survey consists of 1,463 line-kilometres at 100-metre spacing over the 99-square-kilometre property to measure surface radioactivity in outcrops or boulder trains using a proprietary system of Goldak Airborne Surveys. Forum says preliminary interpretation of its magnetic and electromagnetic survey suggests one of Clearwater’s conductors hosts the PLS discovery.

On further scrutinizing the airborne surveys, the company will begin prospecting, radon surveys and lake sediment geochemical sampling this month. Ground geophysics might also be used to identify drill targets.

In a collaborative effort, the surveys have also been covering PLS-area properties held by Aldrin Resource TSXV:ALN and the Western Athabasca Syndicate. The latter is a four-company strategic alliance consisting of Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Lucky Strike Resources TSXV:LKY and Noka Resources TSXV:NX, which are jointly exploring a 275,361-hectare land package in the vicinity of the Fission/Alpha discovery. On July 23 the syndicate announced an extension of its portion of the surveys.

Earlier in July, Forum announced it extended the company’s Key Lake-area holdings in the Athabasca Basin’s southeast corner.

Ur-Energy begins Lost Creek production in Wyoming

Ur-Energy TSX:URE began mining its Lost Creek operation on August 2. The ISR project in Wyoming’s Great Divide Basin took eight years and US$95 million to develop and should, according to an April 2012 PEA, produce about 7.38 million pounds uranium oxide (U3O8) over 14 years. The 2012 numbers assumed uranium prices ranging from $55 to $80 a pound, substantially higher than the current seven-year low of $34.50. But with those numbers the PEA used an 8% discount rate to calculate a pre-tax net present value of $181 million and an 87% internal rate of return.

Ur-Energy says it holds long-term contracts with several U.S.-based utilities and will begin deliveries in Q4.

On July 30 the company reported filing its Q2 report on sedar.com.

Cameco reports Q2 results, makes company and commodity forecasts

Cameco Corp’s TSX:CCO Q2 report came out August 1, with the company reporting $421 million in revenue, 49% above the same period last year and a $99-million gross profit, up 98%. Net earnings attributable to equity holders came to $34 million or $0.09 a share. Adjusted net earnings were $61 million or $0.15 a share.

Cameco president/CEO Tim Gitzel addressed a conference call, speaking optimistically about Cigar Lake’s imminent start-up, a planned 50% production increase and future uranium prices.

Next Page 1 | 2

Athabasca Basin and beyond

May 25th, 2013

Uranium news from Saskatchewan and elsewhere for May 18 to 24, 2013

by Greg Klein

Next Page 1 | 2

Alpha/Fission plan $6.95-million campaign for Patterson Lake South

A review of uranium activity from Saskatchewan and beyond

With three rigs, three barges and $6.95 million, Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW have a busy summer planned for Patterson Lake South. The 44-hole, 11,000-metre campaign announced May 21 will focus on delineating and expanding three zones of high-grade, near-surface uranium mineralization. Additional targets southwest and northeast of the 850-metre trend come courtesy of a radon survey. Ground geophysics will follow up on two “highly prospective” areas spotted by an airborne survey over the property’s southwest and southeast areas. The agenda also includes environmental baseline studies and sampling for metallurgical tests.

The 50/50 joint venture partners patted each other on the back for finding mineralization in 82% of their targets during a winter campaign that attracted widespread attention in and around the Athabasca Basin’s southwestern rim. Their discoveries sit 3.8 kilometres to 4.6 kilometres from one of the Basin’s largest known high-grade boulder fields.

Companies collaborate on PLS-region flyover

Six companies are pooling their money to fund a joint airborne geophysical survey in the PLS area. A May 24 announcement from Yellowjacket Resources TSXV:YJK said Lakeland Resources TSXV:LK, Skyharbour Resources TSXV:SYH, Aldrin Resources TSXV:ALN, Forum Uranium TSXV:FDC and Canadian International Minerals TSXV:CIN will join Yellowjacket on the study that begins May 26.

Yellowjacket will focus a 2,000-line-kilometre VTEM-Plus time domain system and 2,000-line-kilometre radiometric survey on parts of its 83,600-hectare Preston Lake project 26 kilometres southeast of the PLS discovery area. VTEM-Plus will search for basement conductors similar to the structures hosting the PLS discoveries while radiometrics will hunt down uranium boulder trains and in-situ mineralization. Although reports will come in daily, full results along with interpretation are scheduled for late July.

Historic Preston Lake work found anomalous uranium in lake sediment, as well as graphitic faults associated with sulphides and anomalous radioactivity. Rock samples of up to 5.4 parts per million uranium might indicate “either the down-ice glacial transport of uranium boulders from source or an in-situ source of uranium,” Yellowjacket stated.

The company’s Preston Lake and Patterson East properties total over 158,200 hectares, making Yellowjacket the PLS area’s largest claim holder. YJK also holds six other Basin properties. On the agenda for its May 29 AGM is a proposed name change to Athabasca Nuclear Corp. (Update: On June 6, 2013, Yellowjacket Resources began trading as Athabasca Nuclear Corp TSXV:ASC.)

We have a plan in place to attack this as a team. With the three companies combined we have a number of highly qualified geologists who have collectively been up in this part of Canada for a long time, so we have many, many years of exploration expertise behind us.—Jordan Trimble, Skyharbour Resources manager of corporate development and communications

Survey participant Skyharbour benefits from the money and expertise of two additional companies, SYH manager of corporate development and communications Jordan Trimble points out. The earn-ins announced last week allow Lucky Strike Resources TSXV:LKY and Noka Resources TSXV:NX each a 25% interest in Skyharbour’s portfolio of seven Basin properties, six in the PLS region. In return Lucky Strike and Noka each pay Skyharbour $100,000 and fund $500,000 of exploration a year for two years.

“In this market especially, the financial capital they’re providing is hugely beneficial,” Trimble says. “We have a plan in place to attack this as a team. With the three companies combined we have a number of highly qualified geologists who have collectively been up in this part of Canada for a long time, so we have many, many years of exploration expertise behind us. This is just the start of the program. There’ll be lots more news to come.”

UEX offers $3.175-million private placement

Already holding about $10.6 million in cash, UEX Corp TSX:UEX announced on May 24 a private placement of 6.35 million flow-through shares at $0.50 for proceeds of $3.175 million. An additional 1.85 million flow-through shares may be issued under the same terms should Cameco Corp TSX:CCO exercise its right to maintain an approximately 22.58% interest in UEX. The company hopes to close the placement by June.

UEX holds 17 Basin projects totalling 264,363 hectares including its 49.9% interest in Shea Creek, the Basin’s third-largest uranium resource. The UEX portfolio includes nine other JVs with AREVA and one with both AREVA and Japan-Canada Uranium (JCU). UEX holds a 100% interest in the other six.

NexGen hires ex-Hathor/Rio geos, plans Radio drill campaign

NexGen Energy TSXV:NXE snagged more expertise with two new hires announced May 22. Senior geologist James Sykes moved from Denison Mines TSX:DML to Hathor Exploration and from Hathor to Rio Tinto when the latter bought Hathor and its Roughrider deposit in 2011 for $654 million. Sykes is credited with building the 3D geological model of the Roughrider system that led to the discovery of the Roughrider East and Far East deposits.

Exploration geologist Matthew Schwab has a similar background. A member of the Hathor team that explored Roughrider and defined its mineralized zones, he also comes to NexGen via Rio.

Next Page 1 | 2

Fortnight in review

January 4th, 2013

A mining and exploration retrospect for December 22, 2012, to January 4, 2013

by Greg Klein

Next Page 1 | 2

To accommodate the Christmas/New Year publishing schedule, this review covers two weeks.

From risk to risk

“Although some companies and the province laud Ontario as being one of the best mining-friendly jurisdictions in the world,” that reputation is changing, according to a Thunder Bay-based drilling contractor. In the January 2 edition of Northern Ontario Business, Barb Courte, president of Cobra Drilling and North Star Drilling, said the province is facing a downturn in early-stage exploration.

The article stated, “In conversation with her industry colleagues, Ontario is considered a ‘risk area’ for investment, based on some high-profile First Nations-industry conflicts, along with the uncertainty of how the new Mining Act plans and permits regulations will play out.”

Regulations that take full effect in April will give native bands more power to block drilling on Crown land.

A mining and exploration retrospect

Courte told Northern Ontario Business her companies did well in 2012 but business has now dropped by about 50%.

A supplier dates the drilling downturn to last April. Hugh Paxton, GM of Wire Rope Industries Distribution, told the paper, “It’s the lowest numbers we’ve seen for drilling supplies since we’ve been [in] it for the last four years.”

Courte, meanwhile, hopes to make up for lost business in the Caribbean. Unigold TSXV:UGD has contracted her to send four drills to the Dominican Republic in autumn and she’s getting inquiries from other companies operating in the country, the story stated.

Unigold calls the country a “premier mining destination.” The company’s most recent (November 28) news release stated the government “supports development and exploration in the mining sector. In addition, the country has well-established mining laws and environmental laws.”

Two days later, however, Mining Weekly offered a different perspective. A spokesperson for the Xstrata Nickel subsidiary Falcondo told the publication, “Security in the country has seen a gradual deterioration, which has forced us to significantly increase our security costs. They have tripled in the past few years.”

Mining Weekly added, “Dominican President Danilo Medina has acknowledged the problems and promised in a televised speech to the nation on [November 27] to improve security and reform the country’s police force. According to the World Economic Forum’s latest Global Competitiveness Index released in October, the Dominican Republic ranked 143rd out of 144 countries worldwide in reliability of its police force.”

New mega-company consolidating China’s rare earths production

A planned 12-company takeover could mark the first step in creating “a massive rare earth enterprise that will integrate light rare earth resources” in northern China. According to a December 28 China Daily article, newly signed framework agreements would have the companies and their shareholders hand over a combined 51% interest for free to the Inner Mongolia Baotou Steel Rare-Earth Hi-Tech Co (REHT). In return, REHT would provide management, technology and funding, while setting production and export quotas. The agreement allows one year for the deals to be consummated.

“If the first step goes well, REHT will eventually team up with major rare earth producers in Gansu, Sichuan and Shandong provinces to form the China North Rare Earth Hi-Tech Co,” China Daily reported. “Authorities expect bigger enterprises to churn out products with higher added value and shoulder more responsibility in environmental protection.”

With just 23% of the world’s rare earths reserves, China supplies over 90% of global demand, the paper added.

Can placer miners meet B.C.’s environmental code?

An enduring legacy of the Fraser and Cariboo gold rushes, placer mining remains a British Columbian institution. But now that a forgotten 2011 environmental report has come to light, the miners are worried.

An audit from B.C.’s Ministry of the Environment found 74% of 23 placer operations inspected in 2010 didn’t comply with land restoration requirements and 43% of miners “were also working in streams without authorization,” the Vancouver Sun reported on December 26.

“The placer mines range from one-person operations to larger operations that employ dozens of people and use heavy equipment to extract gold from sand and gravel,” said the story.

Next Page 1 | 2