Thursday 27th October 2016

Resource Clips

Posts tagged ‘CanAlaska Uranium Ltd (CVV)’

Arctic Star seeks Athabasca Basin diamonds

July 21st, 2016

by Greg Klein | July 21, 2016

Saskatchewan’s Athabasca Basin is a busy place for uranium activity but remains underexplored for diamonds, Arctic Star Exploration TSXV:ADD believes. The Diamond Dunes acquisition announced July 21 now gives the company a 40,831-hectare presence in an area that’s attracted CanAlaska Uranium TSXV:CVV and De Beers Canada.

Arctic Star seeks Athabasca Basin diamonds

Diamond Dunes consists of two claim blocks southwest and southeast of CanAlaska’s West Athabasca project, where magnetics flown by the Saskatchewan Geological Survey show 75 circular signatures prospective for kimberlites.

In May CanAlaska announced an option with De Beers that could total $20.4 million in exploration spending over seven years for a 90% interest. Last month De Beers finished a sampling program for kimberlite indicator minerals. The next stage calls for more detailed airborne magnetics.

Arctic Star gets a 100% interest in the Diamond Dunes property for $25,000 and one million shares.

Read Chris Berry’s report on the diamond sector.

The high-grade camp

February 25th, 2016

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

by Greg Klein

Renewed interest in the southwestern Athabasca Basin area’s Patterson Lake South camp comes from Cameco Corp TSX:CCO, as the giant signs a purchase agreement with ALX Uranium TSXV:AL. The merchandise consists of 27 claims totalling 7,064 hectares peripheral to ALX’s Hook-Carter property. That leaves ALX with a more closely consolidated PLS camp position of 16,461 hectares.

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

Most of the vended claims are isolated from Hook-Carter’s main contiguous block, states ALX’s February 25 announcement. They also “include a small, northeastern portion of the main block, covering ground with depths to the unconformity much deeper than the main parts of the property where ALX intends to focus its exploration.”

The development might portray Cameco in an acquisitive mood, following the previous day’s news that the company had optioned 60% of CanAlaska Uranium’s (TSXV:CVV) West McArthur project in the eastern Basin.

ALX president/CEO Jon Armes says the Hook-Carter transaction benefits both parties. ALX gets $170,000 and, on some claims, a 1% net refining returns royalty that can be reduced to 0.25% by paying ALX $750,000. Other claims have a 2% NRR reducible to 1% for $500,000. Cameco, he says, gets to “tidy up its land position” in the PLS area, making concerted exploration more viable.

“A lot of that ground is 600-plus metres to the unconformity,” Armes points out. “When you start drilling 1,000-metre holes at $400 a metre, that’s quite a costly endeavour for a junior. When you’ve got little bits and pieces, you’re not typically going to drill a 16-hectare piece when you’re surrounded by Cameco.”

The sale “provides ALX with some significant hard dollars, certainly more than we paid in our staking and other costs, and we maintain a small underlying royalty,” he adds. “The chance of Cameco making a discovery northeast of us would only benefit us.”

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

Before-and-after maps show geographical advantages to
both Cameco and ALX Uranium. Click for a larger view.

ALX retains land covering the Patterson corridor, hosting three attention-grabbing projects, as well as the parallel Carter and Derkson corridors. Winter plans currently under evaluation include ground electromagnetics to define deep conductors and possibly drilling, Armes says.

Encouraging news continues from the camp’s standouts, Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSXV:NXE) Arrow zone and Bow discovery, and the Cameco/AREVA Resources Canada/Purepoint Uranium TSXV:PTU Spitfire zone.

Fission’s $7.9-million, 39-hole, 13,000-metre winter program aims to expand the Triple R deposit and do some exploration too. On the latter front, one hole recently added 135 metres to the project’s potential strike, now consisting of five zones along a 2.47-kilometre trend. Three of the zones lie outside Triple R’s January 2015 resource. That estimate, showing 79.61 million pounds indicated and another 25.88 million pounds inferred at shallow depths, formed the basis of a September preliminary economic assessment envisioning PLS as potentially one of the world’s lowest-cost uranium mines.

In January Fission closed an $82.2-million strategic investment, giving a Chinese uranium trader nearly 20% of the company.

Next-door neighbour NexGen has six rigs drilling a 30,000-metre winter program on the Rook 1 project’s Arrow zone. Last month the company announced its best assay so far, 10% U3O8 over 78 metres, including 38.29% over 12 metres. The project’s previous record-holder was 9.72% over 35.5 metres.

Earlier this month came more superlatives—Arrow’s “most significant accumulations of massive pitchblende” and scintillometer results showing the project’s “most intense mineralization to date.”

More recently NexGen added 25 metres to Arrow’s strike, now 670 metres with a lateral width of up to 235 metres and mineralization ranging from depths of 100 metres to 920 metres. The zone remains open in all directions and at depth. NexGen plans Arrow’s maiden resource for H1 release.

The company closed a $21-million bought deal in December, following last May’s $23.74-million private placement.

At Spitfire, project operator Purepoint announced an expansion to the mineralized area early this month with a 130-metre stepout that returned 0.67% eU3O8 over 10.1 metres, including 9.2% over 0.6 metres. Results came from a downhole probe that measures uranium oxide-equivalent. The winter schedule calls for at least 14 holes and 6,000 metres. Purepoint holds a 21% stake in the joint venture, with big guys Cameco and AREVA sharing the rest. Purepoint ended last year by closing a $204,000 private placement.

Looking at the Basin’s opposite side, ALX also announced assay results from last fall’s seven-hole, 1,005-metre campaign at Gibbon’s Creek. Although significant radioactivity failed to materialize, anomalous uranium (up to 297 ppm), nickel, copper and boron came from the basement near a previous hole that showed strongly anomalous geochemical pathfinders. ALX will evaluate further exploration after integrating drill results with regional and property-scale data.

With Hook-Carter now under consideration for ground EM and a possible drill program, the company last month announced exploration plans for four other projects. On the agenda are ground gravity for Gorilla Lake and Perch, a radon-in-lake survey for Lazy Edward Bay and ground EM for Newnham Lake. ALX holds one of the Basin’s largest uranium portfolios.

Late last month the company closed tranche two of a private placement totalling $358,500.

Athabasca Basin and beyond

May 1st, 2015

Uranium news from Saskatchewan and elsewhere to May 1, 2015

by Greg Klein

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NexGen ends winter with outstanding step-outs, plans 2015 maiden resource

Following a season in which 44 of 46 holes at Rook 1’s Arrow zone found mineralization, the last one released by NexGen Energy TSXV:NXE showed the project’s highest total composite mineralization. That April 29 announcement followed an April 23 batch of results that included some of the zone’s strongest offscale radioactivity. Although lots of assays are still pending, drilling resumes in early June with five rigs expected to sink a total of 25,000 metres. The longer-term goal is a maiden resource by December.

Winter’s record-breaker was angled hole AR-15-45b, which drilled through A2 and A3, two of the zone’s three mineralized shears. It returned a composite 226 metres of mineralization distributed within a 468-metre section starting at 391 metres in downhole depth. Included was a composite 9.8 metres that went “offscale” between 10,000 and 54,000 counts per second.

The results come from a hand-held scintillometer that measures drill core radioactivity. Readings above 10,000 cps are considered offscale due to the limitations of earlier devices. These measurements don’t substitute for assays, which have yet to arrive.

Another radioactive announcement six days earlier heralded a substantial expansion to A2’s high-grade core, some of Arrow’s strongest off-scale measurements and semi-massive to massive pitchblende that would make a geologist’s mouth water. Currently marking Arrow’s southwestern border, hole AR-15-44b stepped out 76 metres southwest along strike from AR-14-30, which last October assayed 7.54% U3O8 over 63.5 metres.

AR-15-44b found a composite 190.7 metres within a 519-metre section, starting at 430.5 metres in depth. The results included an offscale composite of 40.45 metres.

Other highlights include:

  • AR-15-43a, with 92 composite metres within a 501.5-metre section, starting at 346 metres

  • AR-15-42a, with 68.9 composite metres within a 592.5-metre section starting at 142.5 metres

Arrow now covers 515 metres by 215 metres, with mineralization found vertically at depths between 100 metres and 920 metres. Still open in all directions and at depth, the zone boasts significant off-scale mineralization at both its southwestern and northeastern extents.

Beyond Arrow, NexGen’s winter season also resulted in Rook 1’s Bow discovery.

Athabasca Basin bought deals: Fission closes $20 million, Denison announces $15 million

April 29 proved a good day for uranium financings as the Basin’s two most prominent explorers announced substantial bought deals. Fission Uranium TSX:FCU completed a private placement of 13.34 million flow-through shares at $1.50 to bring in $20.01 million. Denison Mines TSX:DML announced an agreement to purchase 12 million flow-through shares at $1.25 for $15 million, an offer that’s expected to close around May 26.

Fission’s placement started at $15 million on April 1. Within hours the figure rose to $17.4 million. With the underwriters exercising their additional 15% option, the deal closed on $20.01 million. Earlier this month the company finished its winter program at Patterson Lake South, which strived to expand and upgrade the Triple R deposit and the R600W zone, as well as explore the PLS property farther afield.

Denison also wrapped up winter work earlier this month after sinking 61 holes totalling 30,400 metres on seven projects, most of them joint ventures. Summer plans call for about 34,000 metres on eight projects, focusing on the flagship Wheeler River project, which has a maiden resource for the Gryphon zone planned for December to complement the very high-grade Phoenix deposit three kilometres southeast. Denison holds 60% of the JV with Cameco Corp TSX:CCO (30%) and JCU (Canada) Exploration (10%).

Also announced April 29, Cameco’s Q1 results showed $566 million in revenue, a 35% increase over the same period last year. Gross profit reached $129 million, a 19% increase. But a net loss attributable to shareholders sunk to $9 million, or $0.02 per share diluted, 107% below Q1 2014 performance. The company attributed blame “primarily due to higher mark-to-market losses on foreign exchange derivatives.”

In a more modest financing the following day, Kivalliq Energy TSXV:KIV closed the final tranche of a private placement totalling nearly $2.8 million. UEX Corp TSX:UEX offered a $2.5-million placement on April 21.

Phase I drilling finds U3O8 at Lakeland Resources’ Star/Gibbon’s Creek project

Assays released May 1 show a promising start to Lakeland Resources’ (TSXV:LK) Star/Gibbon’s Creek project. As a result the company plans geophysics and drilling to complement last winter’s 14-hole, 2,550-metre program on the road-accessible property a few kilometres from the town of Stony Rapids, on the Basin’s north-central rim.

Among highlights from the project’s South trend was hole GC15-03, immediately below the sub-Athabasca unconformity, which showed:

  • 333.8 ppm U3O8 over 1.1 metres, starting at 106.8 metres in downhole depth
  • (including 0.13% over 0.23 metres)

True widths weren’t available.

The hole also revealed uranium enrichment, strong hydrothermal alteration and the pathfinder elements boron, cobalt and nickel between 106.8 and 133 metres in depth.

Additional anomalous uranium came from two holes north and south of GC15-03:

Phase I drilling finds U3O8 at Lakeland Resources’ Star/Gibbon’s Creek project

Drill results show uranium enrichment, strong hydrothermal
alteration and pathfinder geochemistry for hole GC15-03.


  • 86.7 ppm over 1 metre, starting at 114.2 metres


  • 123.3 ppm over 2.1 metres, starting at 103.4 metres

GC15-02, collared near an historic hole that assayed 0.18% over 0.13 metres, showed:

  • 120.3 ppm over 1 metre, starting at 101 metres

At the South zone’s eastern end, GC15-10 returned “a strong illite clay alteration assemblage from the unconformity (80.9 metres) to 148 metres’ depth,” Lakeland stated. “This interval corresponds to a zone of strong ductile shearing and local brittle-ductile cataclastic brecciation.”

GC15-06 on the Centre zone tested an area with some of the Basin’s strongest land-based RadonEx measurements. “Highly anomalous geochemical pathfinders were noted throughout the hole, including a zone of uranium enrichment from approximately 41 metres to 109.5 metres in depth.”

The company now plans airborne electromagnetics on the project’s eastern margins, ground gravity at the South trend and additional RadonEx surveys. Further drilling around GC15-06 and the South trend will follow.

“Given the early stage of exploration at Gibbon’s Creek, results obtained from this first round of drilling are very encouraging,” said president Jonathan Armes. “The geochemical, clay and alteration results are suggestive of a nearby basement-hosted or unconformity-hosted uranium occurrence…. Lakeland will have multiple exploration programs ongoing in and around the Athabasca Basin this summer and fall, which should provide for an exciting year.”

With one of the Basin-region’s largest portfolios, Lakeland currently holds 32 properties totalling over 300,000 hectares. Among other drill-ready projects are Newnham Lake, east of Star/Gibbon’s, and Lazy Edward Bay on the Basin’s southern rim.

Last week the company appointed well-known geologist Jody Dahrouge to Lakeland’s board of directors. During his 25-year career he played a key role in Fission Energy’s acquisition of Waterbury Lake, Patterson Lake and Patterson Lake South. Waterbury Lake now hosts the J-zone discovery, while PLS holds the Triple R deposit.

Read more about Lakeland Resources’ Star/Gibbon’s Creek project.

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Athabasca Basin and beyond

April 17th, 2015

Uranium news from Saskatchewan and elsewhere to April 17, 2015

by Greg Klein

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India’s fast-emerging market becomes a Cameco customer

What was confirmed on April 15 had been anticipated all along—otherwise, why would Saskatchewan Premier Brad Wall just happen to join the Ottawa announcement by Prime Minister Stephen Harper and his Indian counterpart Narendra Modi? Athabasca Basin heavyweight Cameco Corp TSX:CCO clinched a five-year deal to supply India with 7.1 million pounds of uranium.

The contract, valued by the feds at $350 million, completely overshadowed the day’s other 15 bilateral announcements. Yet it’s not all that big to a company that sold 33.9 million pounds U3O8 last year. Most importantly, the deal “opens the door to a dynamic and expanding uranium market,” said Cameco president/CEO Tim Gitzel. “Much of the long-term growth we see coming in our industry will happen in India and this emerging market is key to our strategy.”

Uranium news from Saskatchewan and elsewhere to April 17, 2015

An emerging economy that’s a quickly-growing uranium market,
India marked a new stage in its Canadian relations by signing
a contract with Cameco. Photo: O’SHI/

Indeed Cameco described its new customer as the second-fastest-growing uranium market in the world. India’s 21 reactors now produce 6,000 megawatts, only 3% of the country’s consumption. Six new reactors should add another 4,300 MW by 2017, Cameco noted. By 2032 India’s projected to have about 45,000 MW of nuclear capacity.

As for the impact on prices, Dundee Capital Markets analyst David Talbot told the Financial Post that the deal could cause a chain reaction for future contracts.

But the deal also aggravated an old wound. A group of anti-nuke activists meeting in Quebec—a province now considering an outright ban on uranium mining—denounced the sale to “a country that maintains an arsenal of nuclear weapons and has never signed the United Nations’ Nuclear Non-Proliferation Treaty.”

Attendees of the World Uranium Symposium reminded Canadians that “India has already broken its promise to Canada in the past by using a Canadian reactor given as a gift in 1956 to produce the plutonium for its first atomic bomb, detonated in 1974.”

Gordon Edwards of the Canadian Coalition for Nuclear Responsibility added, “Despite rules specifying no military use of Canadian materials, some uranium from Canada could well end up in Indian bombs. At the very least, Canadian uranium will free up more Indian uranium for weapons production purposes.”

Yet India plans to double its coal consumption by 2020, “overtaking the U.S. as the world’s second-largest coal consumer after China,” the Financial Post reported.

And as a supplier to India, Canada will hardly be alone.

Citing figures from India’s Department of Atomic Energy, the World Nuclear Association stated the country had imported 4,458 tonnes of uranium since 2008, when India appeared to regain some of its pre-1974 credibility by signing the Nuclear Suppliers’ Group agreement. Russia supplied 2,058 tonnes, Kazakhstan 2,100 tonnes and France 300 tonnes, according to the WNA. Several other countries, most recently Australia, have signed so-far unconsummated and not necessarily binding supply agreements with India.

Fission finishes winter work at Patterson Lake South

With another season of drilling wrapped up, Fission Uranium TSX:FCU reported results from multiple fronts at Patterson Lake South. The last few dispatches outlined progress at the R780E zone, as well as R00E and two areas of exploration drilling. R780E, mainstay of the Triple R resource, has been extended laterally, vertically and along strike. But four holes from R00E, scene of the PLS discovery, fell short of spectacular. Four exploration holes from Patterson Lake found no significant radioactivity while 20 others at Forest Lake presented a mixed bag of insignificant to anomalous radioactivity.

Released April 16, some step-out highlights from the eastern part of R780E showed:

Hole PLS15-330

  • 0.66% U3O8 over 33 metres, starting at 142 metres in downhole depth
  • (including 1.87% over 2.5 metres)
  • (and including 8.78% over 1 metre)


  • 0.42% over 40.5 metres, starting at 61.55 metres
  • (including 2.87% over 1 metre)


  • 5.4% over 4 metres, starting at 162.5 metres
  • (including 14.07% over 1.5 metres)

  • 0.23% over 7 metres, starting at 182.5 metres


  • 1.6% over 10.5 metres, starting at 144 metres
  • (including 3.71% over 4 metres)

  • 0.37% over 12.5 metres, starting at 172.5 metres

True widths weren’t available.

Four holes at R00E, 225 metres west of R780E, fell short of the project’s high standards, with the best result showing 0.19% over 2 metres, starting at 67.5 metres.

About seven kilometres southeast of Triple R, four holes at Forest Lake intersected anomalous radioactivity on three basement EM conductors, Fission stated. Sixteen other holes didn’t. Nevertheless, Forest Lake remains a priority.

Four other regional holes at Patterson Lake northeast of Triple R also came up empty.

Scintillometer results announced April 8 extended Triple R’s high-grade area and increased the extent of known mineralization. The hand-held device measures radiation from drill core in counts per second. Its results are no substitute for the still-pending assays.

The standout was hole PLS15-379 which found, within a 105-metre section, a total composite of 8.01 metres above 10,000 cps, peaking up to 61,100 cps. Another five showed mineralization in areas that had little previous drilling. Of 11 holes in the April 8 batch, all found mineralization and eight hit intervals above 10,000 cps, the level once considered “offscale” due to the limitations of older scintillometers.

An April 6 batch of assays increased R780E laterally, vertically and along strike, with all 16 step-outs finding mineralization. The more outstanding assays showed:


  • 1.91% over 33.5 metres, starting at 60.5 metres
  • (including 14.09% over 3.5 metres)


  • 1.41% over 22.5 metres, starting at 147.5 metres
  • (including 12.03% over 2 metres)


  • 3.13% over 13.5 metres, starting at 56.5 metres
  • (including 8.14% over 5 metres)


  • 0.92% over 5.5 metres, starting at 83.5 metres
  • (including 2.29% over 2 metres)


  • 0.53% over 27 metres, starting at 149.5 metres
  • (including 4.31% over 1 metre)
  • (and including 2.42% over 2.5 metres)


  • 1.3% over 6.5 metres, starting at 160.5 metres
  • (including 7.74% over 1 metre)

  • 0.55% over 15.5 metres, starting at 183.5 metres
  • (including 3.99% over 1.5 metres)


  • 8.14% over 6 metres, starting at 215 metres
  • (including 21.18% over 2 metres)

Again, true widths weren’t available.

Fission ended the winter with 88 holes totalling 28,296 metres and lots more assays to come. While R780E’s pre-eminence was confirmed by 50 mineralized holes out of a seasonal total of 51 on that zone, earlier results also brought renewed interest to the project’s R600W zone.

Read about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

Purepoint finds semi-massive pitchblende in the Hook Lake JV’s last winter hole

A 40-metre step-out, the last hole of the season, added encouragement to Purepoint Uranium’s (TSXV:PTU) Hook Lake joint venture in the southwestern Basin. Announced April 15, hole HK15-33 gave up an 8.6-metre intercept starting at a downhole depth of 344 metres, averaging 8,900 counts per second with semi-massive pitchblende peaking at 32,600 cps. Another interval in the same hole averaged 1,500 cps for 4.4 metres starting at 304.5 metres in depth. True thicknesses were estimated at 75% to 85%.

The hole was collared 35 metres west of HK15-27, which last month revealed 2.23% U3O8 over 2.8 metres. Purepoint said another hole, HK15-31, backed up 35 metres from HK15-27 and found two intervals of 3.4 metres and 4.1 metres just under 0.05% eU3O8 between 387 and 396 metres in depth. The Spitfire zone remains open in most directions, the company added.

Purepoint gleaned its results from a hand-held scintillometer that measures drill core for radiation in counts per second, and two downhole probes that measure uranium oxide-equivalent. Applicable is the usual disclaimer that scintillometer results are no substitute for the still-pending assays.

Purepoint holds a 21% interest in the 28,683-hectare JV, with Cameco and AREVA Resources Canada each holding 39.5%.

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Athabasca Basin and beyond

March 1st, 2015

Uranium news from Saskatchewan and elsewhere to March 1, 2015

by Greg Klein

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Saskatchewan’s number two for mining jurisdictions worldwide

The province has held a top 10 position for at least five years, but last week Saskatchewan reached second place in a global survey of miners and explorers. The Fraser Institute study released February 24 rated jurisdictions for a number of factors, with the most important attributes making up the Investment Attractiveness Index. There sits Saskatchewan, second only to Finland.

The index considers responses for two separate categories, giving a 60% weight to geology and 40% to public policy. As Macdonald-Laurier Institute managing director Brian Lee Crowley told, reserves aren’t much good without policies that allow responsible development. Some comments quoted by the Fraser Institute bear that out.

Uranium news from Saskatchewan and elsewhere to February 27, 2015

A province founded on agriculture, Saskatchewan became one of
the world’s leading mining jurisdictions thanks to geology and policy.

“In Saskatchewan, ‘Duty to Consult’ is the responsibility of government, not the company. Something like the Ring of Fire fiasco in Ontario would not happen in Saskatchewan.”

“Good geoscientific support and permitting procedures which allow for timely planning and efficient support from provincial administration in addressing land access and Amerindian issues.”

“Saskatchewan is open to uranium exploration.”

Speaking to the Regina Leader-Post, survey director Kenneth Green said, “In addition to being blessed with an abundance of mineral potential, Saskatchewan gets credit for having a government with a transparent and productive approach to mining policy. The province offers a competitive taxation regime, good scientific support, efficient permitting procedures and clarity around land claims.”

More good words came from provincial Economy Minister Bill Boyd. “Clearly, there is a very good resource here in the province, whether it’s in potash, uranium or other minerals that we mine here in Saskatchewan,’’ the Leader-Post quoted him. “We’ve been able to create a business climate here in Saskatchewan that’s positive. There’s a good workforce in Saskatchewan, a trained workforce, as well.’’

Four other Canadian jurisdictions made the top 10 for investment attractiveness. Additionally the survey showed a significant improvement in Canada’s median score on the Policy Perception Index.

Read more about Canada’s performance in the global mining survey.

Download the survey.

NexGen adds third high-grade section to Rook 1’s Arrow zone

Having discovered another high-grade section of the Arrow zone with Rook 1’s best angled hole yet, NexGen Energy TSXV:NXE assigned new names to the project’s features. A1, A2 and A3 designate three mineralized shears trending northeast to southwest. The latest hole, AR-15-39, found composite mineralization totalling 89.15 metres within 436.5 metres that started at 433.5 metres in downhole depth. Scintillometer readings above 10,000 counts per second coincided with “dense accumulations of semi-massive to massive pitchblende,” the company stated February 24.

The results, from a handheld device that scans drill core for gamma radiation, are no substitute for the still-pending assays. Readings of 10,000 cps or more are called “offscale” due to the limitations of a previous model.

Drilled at a -70 dip between AR-15-37 and -38, the new hole went offscale for seven metres at A2, reinforcing “the continuity of semi-massive to massive pitchblende” in that shear. A3 revealed another 9.75 offscale metres, representing “a 200-metre down-dip extension from high-grade uranium assay intervals in drill holes AR-14-08 and -13,” NexGen added.

One week earlier the company released two holes extending mineralization 81 metres southwest along strike from Rook 1’s best hole so far—angled or vertical and “amongst the best drill results” in the Athabasca Basin.

Both holes revealed “significant dense accumulations of semi-massive to massive pitchblende,” with AR-15-37 giving composite radiation readings for 76 metres within a 264.5-metre section beginning at 405 metres in downhole depth. That included an offscale composite of 9.35 metres.

AR-15-38 showed composite mineralization of 82.35 metres within a 247.5-metre section starting at 474 metres, with a composite 4.5 metres above 10,000 cps.

NexGen also reported its third rig began drilling 400 metres northeast along Arrow’s strike. That’s where a radon-in-lake-water anomaly, 480 metres long by 20 to 150 metres wide, is “optimally situated along the southeast-dipping VTEM conductor [and] projected to reach the unconformity.”

As of February 24, drilling hit mineralization in 37 of 39 Arrow holes, with 5,519 metres of the 18,000-metre winter program complete. The zone covers about 515 metres by 215 metres, with mineralization as shallow as 100 metres and as deep as 817.5 metres in vertical depth.

Arrow remains open in all directions and at depth.

Ever modest, NexGen CEO Leigh Curyer said the zone “is quickly becoming a significant discovery on a world scale with relatively very few holes drilled.”

Fission hits high grade west of Triple R resource

Sunday’s not the usual day to release news of this nature. But March 1 begins PDAC 2015, so what better time to assert bragging rights? Whatever the reason, Fission Uranium TSX:FCU chose the day to announce a radioactive find 555 metres west of its Triple R deposit. The news reinforces interest in R600W, the most westerly of Patterson Lake South’s four zones, where five previous holes showed only low-grade mineralization.

Scintillometer readings for land-based hole PLS15-343 showed 65.5 metres of radiation starting at 105.5 metres in downhole depth, including a continuous 8.85 metres over 10,000 counts per second “with peaks up to 52,900 cps at shallow depth,” the company reported. A second radioactive interval of four metres began at 342.5 metres.

As explained in the NexGen item above, scintillometer readings are no substitute for assays, which are pending. Readings above 10,000 cps are often called “offscale” due to the limitations of earlier scintillometers.

Technical problems terminated the hole at 368 metres “in moderately altered semi-pelitic gneiss,” Fission stated.

R600W’s strike runs 30 metres with a north-south lateral width up to about 20 metres. The project’s four zones extend for a 2.24-kilometre potential strike along the PL-3B conductor. The two middle zones, R00E and R780E, comprise the Triple R resource that shook the market in January. In mid-February Fission announced nine holes that expand R780E, by far the project’s largest zone.

The $10-million, four-rig winter agenda calls for 35 holes on Triple R and R600W, along with 28 holes on regional targets, for a total of about 20,230 metres.

Read more about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

Lakeland Resources bolsters its Basin portfolio

Now with 32 properties totalling over 300,000 hectares, Lakeland Resources TSXV:LK has enlarged what was already one of Saskatchewan’s largest exploration portfolios. New acquisitions announced February 20 include two land packages in the southeastern Basin’s Key Lake area, which gave up over 200 million pounds of uranium by 2002 and still hosts the Key Lake mill.

One of the area acquisitions, the KLR property, features “a significant number of historic conductors within basement rock types and at least two unexplained radiometric anomalies,” Lakeland stated. Sampling of surface rocks and lake and stream sediment brought results up to 691 ppm uranium. Historic drilling revealed 0.12% U3O8 across 0.1 metres. The new turf complements Lakeland’s existing Key Lake-region properties.

Six new claims sit adjacent to Lakeland holdings in the southwestern Basin’s Carter Lake area. The company also gained ground in the Mathews Lake area, north of Lake Athabasca and within basement rocks of the Beaverlodge Domain.

The Carson Lake property lies beyond the Basin’s northeastern margin but within the Wollaston Domain, which hosts most of the Basin’s currently operating mines.

South of the Basin, along the highly prospective Cable Bay shear zone, Lakeland picked up Black Birch East. Historic work on the 26,389-hectare property “showed a number of electromagnetic conductors and radiometric anomalies roughly coincident with the CBSZ.”

The acquisitions result from two transactions, subject to TSXV approval. One set of properties costs $40,880 and 1.12 million shares. A set of two other properties calls for $32,636 and 326,350 shares. Both transactions include a 2% NSR, half of which Lakeland may buy back for $2 million per property.

In late January the company began drilling its Star/Gibbon’s Creek project on the Basin’s north-central rim. Other drill-ready projects include Lazy Edward Bay on the Basin’s southern margin and Newnham Lake, east of Star/Gibbon’s.

In December Takara Resources TSXV:TKK took out a 50% option on Lakeland’s Fond du Lac property. Last year’s private placements brought Lakeland over $5.1 million.

Read more about Lakeland Resources’ Star/Gibbon’s Creek project.

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Athabasca Basin and beyond

December 5th, 2014

Uranium news from Saskatchewan and elsewhere to December 5, 2014

by Greg Klein

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Fission strikes 3.72% U3O8 over 64.5 metres, delays maiden resource

All assays are in but Fission Uranium’s (TSX:FCU) highly anticipated resource for Patterson Lake South seems to have been put off. The milestone was originally scheduled for this month but in a December 1 statement president/COO Ross McElroy said, “We expect to be able to release preliminary results by early 2015.” Meanwhile the company announced last summer’s final 18 delineation holes, again flaunting the PLS trademark of high grades at shallow depths.

This batch comes entirely from R780E, by far the biggest of four zones along a 2.24-kilometre potential strike. R780E itself now extends about 164 metres at its widest point and 905 metres in strike, remaining open in all directions. The upcoming resource will focus on zones R780E and R00E.

Some of the best December 1 assays follow.

Hole PLS14-275

  • 0.2% U3O8 over 26 metres, starting at 137.5 metres in downhole depth
  • (including 1.26% over 2 metres)
Uranium news from Saskatchewan and elsewhere to December 5, 2014

A summer of round-the-clock drilling brought the
final assays prior to Patterson Lake South’s first resource.

  • 0.31% over 9 metres, starting at 171 metres
  • (including 1.96% over 1 metre)


  • 13.84% over 10 metres, starting at 71.5 metres
  • (including 29.29% over 4.5 metres)


  • 0.48% over 13 metres, starting at 117.5 metres
  • (including 1.17% over 4.5 metres)


  • 0.83% over 30 metres, starting at 131 metres
  • (including 2.09% over 10.5 metres)

  • 1.24% over 6.5 metres, starting at 163.5 metres
  • (including 2.5% over 2.5 metres)


  • 0.4% over 14.5 metres, starting at 251.5 metres
  • (including 1.02% over 4 metres)


  • 0.54% over 9 metres, starting at 177 metres
  • (including 3.84% over 1 metre)

  • 2.61% over 9 metres, starting at 257.5 metres
  • (including 8.61% over 2.5 metres)


  • 0.96% over 7.5 metres, starting at 287.5 metres
  • (including 2.56% over 2 metres)

  • 0.36% over 15 metres, starting at 299 metres


  • 7.91% over 21.9 metres, starting at 61.1 metres
  • (including 17.3% over 9.5 metres)

  • 0.42% over 30.5 metres, starting at 86.5 metres

  • 1.49% over 4.5 metres, starting at 96 metres


  • 3.72% over 64.5 metres, starting at 133.5 metres
  • (including 32.53% over 6.5 metres)


  • 2.34% over 11 metres, starting at 198.5 metres
  • (including 11.74% over 2 metres)


  • 0.8% over 10.5 metres, starting at 61 metres
  • (including 1.77% over 4 metres)

  • 0.27% over 21 metres, starting at 111 metres


  • 0.7% over 33 metres, starting at 174 metres
  • (including 2.21% over 3 metres)
  • (and including 2.2% over 4 metres)


  • 0.52% over 22.5 metres, starting at 184 metres
  • (including 1.39% over 3 metres)

  • 2.21% over 5.5 metres, starting at 210 metres
  • (including 6.76% over 1.5 metres)


  • 1.51% over 13.5 metres, starting at 246.5 metres
  • (including 2.38% over 5 metres)

True widths weren’t available.

Fission noted that scissor drilling brought “vastly improved strength of mineralization on section 735E.” Oriented opposite to the south-to-north holes, they “provide geometry control and confirmation on the mineralization.” One scissor hole hit the star assay for this batch, 3.72% U3O8 over 64.5 metres, in an area that had previously seen only moderate results, the company stated.

With assays for 22 exploration holes still pending and a winter program in the planning stages, speculation remains on whether the company will spend more time testing the property’s lesser-known areas.

Denison drills 22.2% U3O8 over 2.5 metres at Wheeler River

The final batch of assays from Gryphon’s summer season at Denison Mines’ (TSX:DML) Wheeler River property revealed the zone’s highest grade so far, 22.2% U3O8 over 2.5 metres. Announced December 2, that hole was also the deepest, making down-plunge extensions a priority for the next round of drilling, scheduled to start next month.

As usual, the chemical assays generally show better grades than the previously reported U3O8-equivalents that came from a downhole gamma probe.

Some highlights include:

Hole WR-571

  • 8.8% U3O8 over 2.5 metres, starting at 757.5 metres in downhole depth

  • 1.9% over 1 metre, starting at 761.5 metres


  • 2.5% over 1 metre, starting at 651.1 metres

  • 9.5% over 1 metre, starting at 675.5 metres

  • 1.8% over 1 metre, starting at 714.5 metres

  • 2.1% over 1 metre, starting at 717.5 metres


  • 22.2% over 2.5 metres, starting at 768 metres

  • 1.5% over 1 metre, starting at 779 metres


  • 5% over 2 metres, starting at 665 metres

  • 1.5% over 1 metre, starting at 675.5 metres

  • 14.6% over 2 metres, starting at 696.5 metres


  • 2.7% over 2 metres, starting at 626.5 metres

The company estimates true widths at about 75%.

Wheeler River’s summer program comprised 20 holes totalling 14,937 metres, all of it at or near the newly discovered Gryphon zone.

Meanwhile, as a result of metallurgical testwork from the project’s Phoenix deposit, “a high-purity yellowcake product was produced that met all ASTM C967-13 specifications,” Denison stated. The sample grade was 19.7% U3O8, close to the average for Phoenix, which hosts 70.2 million pounds indicated.

The company closed a $14.99-million private placement in August.

With a 60% interest in Wheeler River, Denison acts as project operator. Cameco Corp TSX:CCO holds 30% of the 11,720-hectare southeastern Athabasca Basin property, leaving JCU (Canada) Exploration with the other 10%.

Lakeland Resources boosts portfolio, offers $1.88-million private placement

All acquired by staking, four new properties and five property expansions announced by Lakeland Resources TSXV:LK on November 19 increase the company’s portfolio by 40,218 hectares in and around the Basin.

The five expansions cover targets identified by historic data. Among the highlights is the 4,753-hectare addition to Lazy Edward Bay, which underwent extensive field work last summer. Now totalling 31,128 hectares, the project features eight exploration trends, many of them drill-ready. Other additions came to Lakeland’s Riou Lake, Hawkrock Rapids, Small Lake and Fedun Lake properties.

Of the new land, the 1,508-hectare Carter Lake property covers part of the Carter Lake Structural Corridor, parallel to the Patterson Structural Corridor hosting the discoveries of Fission and NexGen Energy TSXV:NXE.

If you look back to 2006 and 2007, there were probably 60 to 70 juniors active in the Basin. Right now you’ve got about 20. So if we do see this [price] resurgence continue, we’ll have that opportunity to link up with JV and strategic partners and get as many drills turning as we possibly can.—Jonathan Armes, president/CEO of Lakeland Resources

Cable Bay, a 1,077-hectare property on the Basin’s southern rim, benefits from extensive geophysics showing a trend of graphitic meta-sedimentary rocks in the basement, below 10 metres or less of Athabasca sandstone.

The 6,479-hectare Highrock property on the Basin’s southeastern margin features a moderately strong conductor that has yet to see follow-up work.

Extending beyond the Basin’s eastern rim, the 8,889-hectare Wright River project underwent an airborne survey showing a radiometric anomaly in the property’s centre. Regional lake sediment samples have graded up to 61 ppm.

Early new year plans include a 1,500-metre program on Star/Gibbon’s Creek, two adjacent properties forming one project on the Basin’s north-central rim. Also drill-ready are Lazy Edward Bay and, east of Star/Gibbon’s, Newnham Lake. More funding is expected from a $1.88-million private placement announced December 4.

“There’s not that much ground left to be had in the Basin,” Lakeland president/CEO Jonathan Armes tells “Most of what we see as quality ground is not available. If you look back to 2006 and 2007, there were probably 60 to 70 juniors active in the Basin. Right now you’ve got about 20. So if we do see this [price] resurgence continue, we’ll have that opportunity to link up with JV and strategic partners and get as many drills turning as we possibly can.”

Read more about Lakeland Resources.

NexGen plans 18,000 metres for Rook 1, updates other properties

Funded by an $11.5-million private placement that closed last month, NexGen plans a three-rig, 18,000-metre program to start in January. Work will focus on Rook 1’s Arrow zone and along strike to the northeast and southwest, but will also test some of the project’s regional targets, the company stated on December 3. An infill ground gravity survey will precede the drilling.

Now complete are airborne VTEM and magnetometer surveys over Rook 1 as well as additional nearby land that has had little or no previous mention from NexGen, the “SW2 property portfolio which includes Bishop 1 and 2, Meanwell and R-7 claims.” Winter plans include a radon-in-water survey.

NexGen also updated what it calls its “SW3 project portfolio (Rook 2, Sandhill and Dufferin).” Rook 2 and Sandhill underwent airborne gravity surveys. Dufferin got airborne VTEM and magnetometer surveys, as did the eastern Basin Madison and 2Z Lake properties.

Rook 1 covers all the southwestern Basin’s major uranium-bearing conductor corridors, according to the company. Still pending are assays from 16 summer holes on Arrow. In October the company claimed one of the Basin’s best-ever drill results.

UEC reports 77% increase in Burke Hollow’s inferred resources

Seven trends at Uranium Energy Corp’s (NYSE MKT:UEC) Burke Hollow project in Texas now have total inferred resources of 2.9 million tons averaging 0.09% for 5.12 million pounds U3O8. About 14,152 metres of drilling in 526 holes were used to calculate the 77% increase. UEC has three additional areas of the property under consideration for drilling.

Burke Hollow, potentially an in-situ recovery operation, has an application for a radioactive material licence and mine permit currently under review.

The 7,824-hectare project lies about 80 kilometres from the company’s Hobson processing plant, the centrepiece of UEC’s “hub and spoke” properties. The portfolio includes the Palangana ISR mine, the Goliad ISR development project and nearly two dozen exploration projects, two in Paraguay and the rest in the western U.S. The company released a preliminary economic assessment for its Anderson uranium project in Arizona last September, as well as a PEA for its Slick Rock uranium-vanadium deposit in Colorado last April.

On December 2 UEC stated it secured US$5.6 million of surety bonds to replace the same amount in reclamation deposits for future decommissioning. The bonds “require cash collateral of $1.7 million, allowing for the release of $3.9 million of previously restricted cash to the company.”

Last March the company received a two-year extension on a $20-million loan.

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Athabasca Basin and beyond

August 30th, 2014

Uranium news from Saskatchewan and elsewhere for August 23 to 29, 2014

by Greg Klein

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Patterson Lake South’s main zone swallows neighbour as Fission’s summer progresses

Fission Uranium TSXV:FCU has once again merged Patterson Lake South’s R780E zone with a neighbour. Of seven summer holes announced August 26, one “demonstrated the continuity between the shallow depth, high-grade R780E to the west and the R1155E zone to the east,” the company stated. That extends the zone’s strike by 75 metres to 930 metres. “All seven holes returned wide mineralization,” Fission added.

The project now has four zones along a 2.24-kilometre potential strike that remains open to the east and west.

These results come from a handheld scintillometer that measures drill core radiation in counts per second. The readings are no substitute for assays, which are still to come.

In addition to the easterly expansion, R780E’s high-grade mineralization has extended 15 metres west, prompting plans for further drilling there in an attempt to upgrade the area.

Among other highlights, one hole revealed a total of 103 metres (not true width) of mineralization over a 146-metre section, starting at a downhole depth of 57.5 metres. Another gave up a composite 49.5 metres starting at 63 metres in depth.

The week before Fission had announced a widening of R780E. As a result the company added 10 more step-out holes to a summer program that has focused on delineation drilling for a December resource. Additionally, an exploration hole released another week earlier found mineralization 17 kilometres from the discovery area.

While radiometric results continue to come from summer drilling, the company still has assays pending for 12 of last winter’s 92 holes.

NexGen hole-in-progress tests depth of Rook 1 high-grade mineralization

Uranium news from Saskatchewan and elsewhere for August 23 to 29, 2014

Uranium-bearing massive pitchblende from hole AR-14-30, which set a project record for composite “off-scale” mineralization at NexGen’s Rook 1.

Vying for attention with Fission, next-door neighbour NexGen Energy TSXV:NXE proclaimed “a landmark drill hole” from its Rook 1 project on August 26. AR-14-30 revealed a composite 186.9 metres of mineralization (not true thickness) within a 287.7-metre section starting at 298.3 metres in vertical depth. The hole was still in progress.

As is the case for Fission’s latest batch, these scintillometer results don’t substitute for assays, which will follow.

The Arrow zone’s first vertical hole, AR-14-30 tests the depth of high grades reported for AR-14-15, an angled hole collared roughly 225 metres away. So far AR-14-30 has set a Rook 1 record for composite “off-scale” mineralization (above 9,999 cps) totalling 53.85 metres.

The previous week NexGen reported radiometric results for step-out drilling that extended Arrow’s width by 35 metres. The zone’s now 215 metres wide and 515 metres in strike, remaining open in all directions.

Lakeland Resources expands Newnham Lake property to revisit historic work

On the Basin’s northeastern rim, Lakeland Resources TSXV:LK has expanded its Newnham Lake property to about 24,500 hectares, bringing into one package an area that’s seen extensive previous exploration—but work that predated current knowledge of the region’s deeper basement-style mineralization.

Announced August 27, the property now includes “the entire folded and faulted, graphitic meta-pelite trend which was the subject of the historic work,” the company stated. Over 140 drill holes tested the trend by 1984, focusing on the unconformity separating the sandstone from the basement rock below. But most holes stopped less than 25 metres past the unconformity.

More recent Basin discoveries have shown rich mineralization deeper into the basement. Last March Denison Mines TSX:DML heralded its Wheeler River project’s newly found Gryphon zone, with high-grade mineralization about 200 metres beneath the sub-Athabasca unconformity. This summer’s standout assay graded 21.2% U3O8 over 4.5 metres.

Nevertheless historic work at Newnham did show promise. Immediately below the unconformity, a 20-centimetre interval revealed 0.2% U3O8, along with high nickel, arsenic and lead values. Another hole found a 20-centimetre interval of 0.13% in the basement, while a third showed 0.038% over one metre directly above the unconformity.

Between 1997 and 2011, the property underwent ground and airborne geophysics, including an electromagnetic survey that identified drill targets yet to be tested. That recent work was conducted by JNR Resources when Rick Kusmirski served as president/CEO. Now he’s a Lakeland director and, as corporate communications manager Roger Leschuk says, “He sees unfinished business there.”

Adding to a busy summer of news, Lakeland announced plans the previous week for its Star, Lazy Edward Bay and Fond du Lac projects, as well as the appointment of uranium veteran Steven Khan to the board of directors.

Read more about Lakeland Resources.

Northern Uranium drills NW Manitoba

Drilling has begun on Northern Uranium’s (TSXV:UNO) Northwest Manitoba project, the company announced August 27. Some 39 high-priority land targets, and seven high-priority and five not-so-high-priority lake targets were selected following geophysics, “exceptionally anomalous radon results” and prospecting that found boulders grading up to 66% U3O8. The company, formerly MPVC Inc, holds an 80% option on the property from CanAlaska Uranium TSXV:CVV.

The Wollaston area has also attracted attention from Kivalliq Energy TSXV:KIV, Roughrider Exploration TSXV:REL and Athabasca Nuclear TSXV:ASC.

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Athabasca Basin and beyond

August 9th, 2014

Uranium news from Saskatchewan and elsewhere for August 2 to 8, 2014

by Greg Klein

Next Page 1 | 2

High grades, wide intervals from neighbours Fission and NexGen

Nearly simultaneous announcements from two adjacent projects once again evoke a sense of wonder about the Athabasca Basin’s southwestern rim. Fission Uranium’s (TSXV:FCU) Patterson Lake South still comes out ahead with an August 7 best result of 12.12% U3O8 over 27 metres. Still, NexGen Energy’s (TSXV:NXE) same-day best of 3.42% over 22.35 metres can hardly be dismissed. Fission also retains the shallower depths. But NexGen’s relatively recent Arrow discovery suggests something big might have spread beyond Fission’s 31,039-hectare property.

First, a look at NexGen.

Two days after announcing the “strongest and shallowest mineralization to date” from Rook 1’s Arrow zone, the company rushed to market with two stock-propelling assays from a single hole. Announced August 7, the results come from AR-14-15, the zone’s 15th hole so far. NexGen released the numbers in a sort of Russian doll formation of intervals within intervals, showing ever-higher grades as the widths contracted:

  • 3.42% uranium oxide (U3O8) over 22.35 metres, starting at 564 metres in downhole depth
  • (including 10.72% over 6.85 metres)
  • (which includes 15.74% over 4.5 metres)
  • (which includes 26.1% over 2.6 metres)
  • (which includes 55.8% over 0.45 metres)

  • 1.52% over 32 metres, starting at 594 metres
  • (including 2.98% over 15.85 metres)
  • (which includes 10.4% over 3.15 metres)
  • (which includes 43.7% over 0.35 metres)

True widths weren’t provided but the hole was sunk at a dip of -70 degrees.

Uranium news from Saskatchewan and elsewhere for August 2 to 8, 2014

The assays follow an August 5 batch of radiometric readings. Those eight holes, which included AR-14-15, extend Arrow’s strike by 45 metres to about 515 metres in length for a zone that’s up to 180 metres wide and open in all directions. Encouraged by a near 100% hit rate, the company has increased its summer program from 13,500 metres to 18,500 metres of drilling.

These results come from a handheld scintillometer that measures gamma radiation from drill core in counts per second. They’re no substitute for assays.

The zone’s shallowest finding came from hole AR-14-20, which showed a composite of 51.3 metres of mineralization within a 284.45-metre section starting at 118.55 metres in downhole depth. True widths weren’t provided.

The strongest results came from AR-14-15.

Two regional holes totalling 558 metres at Rook 1’s Area K failed to find mineralization. The company now plans regional drilling at Area A on an electromagnetic conductor that NexGen interprets to be PL-3B, which hosts the PLS discovery. Rook 1 has two other conductors as well.

Not including one abandoned hole, the eight Arrow holes bring the zone’s total to 22 so far. Just one failed to find mineralization. Radiometric results have been reported previously for the first six summer holes, while assays have been released for last winter’s eight-hole campaign.

With Arrow clearly the project’s focus, NexGen has changed Rook 1’s protocol for identifying holes. Arrow hole numbers now begin with the letters AR, while regional holes retain the prefix RK.

AR-14-15’s assay came out with remarkable speed. Both NexGen and Fission use the same lab (SRC Geoanalytical Laboratories in Saskatoon). But while Fission is still releasing assays from last winter’s drilling, months after publishing their radiometric results, NexGen somehow released a summer assay just two days after reporting the same hole’s radiometrics.

Fission hits with six holes from winter, 12 from summer

As has been the case for most of last winter’s PLS drilling, the half-dozen holes released August 7 came from the project’s R780E zone, the middle and largest of five zones along a 2.24-kilometre potential strike. Fission’s most outstanding results showed:

Hole PLS14-201

  • 2.51% U3O8 over 12 metres, starting at 128 metres
  • (including 5.6% over 5 metres)

  • 12.12% over 27 metres, starting at 149 metres
  • (including 26.41% over 12 metres)


  • 0.54% over 43 metres, starting at 132.5 metres
  • (including 1.54% over 7.5 metres)

  • 2.65% over 10 metres, starting at 229 metres
  • (including 11.57% over 1.5 metres)

  • 0.59% over 35.5 metres, starting at 251.5 metres


  • 4.05% over 34 metres, starting at 147.5 metres
  • (including 11.37% over 11 metres)

True widths weren’t provided. One additional hole on the R00E zone failed to find significant mineralization. Still to come are assays for another 17 holes from last winter’s 92-hole program.

Like NexGen, Fission’s assays followed radiometric results by two days. And, like NexGen, those measurements expand the size of a zone. Taking advantage of barge-based angle drilling, a new technique first announced the previous week, the crew sunk 12 angled holes into the lake, all of them showing wide mineralization.

Hole PLS14-248 expanded the zone’s eastern half approximately 40 metres south while PLS14-236 showed mineralization about 50 metres north. The usual scintillometer disclaimer applies.

The $12-million, 63-hole summer program continues its progress towards a December resource.

U3O8 Corp Argentinian PEA sees payback in 2.5 years

U3O8 Corp TSX:UWE emphasized low cash costs as the company announced a preliminary economic assessment for its Laguna Salada deposit in Argentina on August 5. The deposit’s characteristics would make it “competitive with low-cost in-situ recovery uranium projects and with high-grade deposits in the Athabasca Basin,” the company stated.

Taking into consideration a vanadium credit and a 3% NSR, cash costs for the 10-year mine life would average $21.62 per pound of uranium. The study estimates even lower initial cash costs of $16.14 a pound as production starts in higher-grade zones, bringing payback in just 2.5 years.

Using U.S. dollars for all figures, the PEA forecast a $134-million capex and used a 7.5% discount rate to calculate a net present value of $55 million and an 18% post-tax internal rate of return. The numbers were based on presumed prices of $60 a pound U3O8 and $5.50 a pound vanadium.

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Athabasca Basin and beyond

July 19th, 2014

Uranium news from Saskatchewan and elsewhere for July 12 to 18, 2014

by Greg Klein

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High-grade U3O8 helps Fission delineate

Still enthusiastically proving that high grades can come from shallow depths, Fission Uranium TSXV:FCU released more assays from winter drilling on July 14. Six infill holes from the central portion of R780E, the middle and largest of five zones, complemented the previous week’s batch from the zone’s eastern area. An additional hole from R1155E proved less impressive but provided the strongest results so far from that zone.

Some highlights from R780E show:

Hole PLS14-172

  • 2.1% uranium oxide (U3O8) over 28 metres, starting at 86 metres in downhole depth
  • (including 5.88% over 8.5 metres)
Uranium news from Saskatchewan and elsewhere for July 12 to 18, 2014

With five barges afloat over Patterson Lake South, Fission Uranium
has another season to drill prior to releasing a December resource.

  • 0.23% over 11 metres, starting at 131.5 metres

  • 0.54% over 18 metres, starting at 168 metres
  • (including 1.62% over 4.5 metres)

  • 0.6% over 10 metres, starting at 224 metres

Hole PLS14-181

  • 0.46% over 27.5 metres, starting at 118 metres
  • (including 1% over 9 metres)

  • 6.01% over 17.5 metres, starting at 148 metres
  • (including 23.53% over 4 metres)

Hole PLS14-183

  • 0.14% over 18 metres, starting at 109 metres

  • 0.21% over 10.5 metres, starting at 147 metres

  • 0.66% over 13.5 metres, starting at 176.5 metres
  • (including 1.22% over 5.5 metres)

  • 1.63% over 3.5 metres, starting at 193.5 metres

  • 1.1% over 6.5 metres, starting at 213 metres

  • 0.48% over 6 metres, starting at 244 metres
  • (including 1.11% over 2 metres)

Hole PLS14-184

  • 2.02% over 14.5 metres, starting at 110.5 metres
  • (including 8.31% over 2 metres)

  • 7.66% over 2 metres, starting at 136 metres

  • 1.65% over 19 metres, starting at 158.5 metres
  • (including 4.45% over 3.5 metres)

Hole PLS14-189

  • 1.93% over 15 metres, starting at 262.5 metres

  • 0.44% over 13 metres, starting at 281 metres
  • (including 1.03% over 4.5 metres)

Hole PLS14-191

  • 0.22% over 6.5 metres, starting at 99 metres

  • 0.62% over 9 metres, starting at 122 metres
  • (including 1.7% over 2.5 metres)

  • 1% over 3.5 metres, starting at 152.5 metres

On the R1155E zone, the better results from PLS14-191 showed:

  • 0.2% over 8 metres, starting at 197.5 metres
  • (including 1.28% over 0.5 metres)

  • 0.33% over 3.5 metres, starting at 211 metres

  • 0.1% over 5.5 metres, starting at 359 metres

True widths weren’t provided. Fission Uranium stated PLS14-191 “opens up the potential to discover increased amounts and higher grades of mineralization from this area, including further to the south and within the 75-metre gap separating R780E and R1155E.” The 31,039-hectare project’s 2.24-kilometre potential strike remains open to the east and west.

Still to come are assays for 32 holes from last winter’s 92-hole program. Now underway is a 63-hole, 20,330-metre campaign worth $12 million to focus on R780E. That would bring the project’s total to about 263 holes totalling around 83,500 metres. December’s the deadline for the maiden resource.

Cigar Lake suspended as Cameco encounters freezing failure

Progress continues on the technological challenge of extracting Cigar Lake’s uranium deposit—but not “as quickly as expected,” Cameco Corp TSX:CCO conceded July 16. As a result production has been suspended to allow some areas of the mine to freeze more thoroughly. In an innovative method to prevent flooding “where the water-saturated Athabasca sandstone meets the underlying basement rocks,” the company injects and freezes a brine solution around the rock body. Water jet boring then extracts the ore. (Watch a video here.) Now Cameco has stopped operations to allow “additional freezing.”

Noting that the McClean Lake mill, 70 kilometres away, hasn’t started processing Cigar Lake feed, the suspension “will allow more continuous production at the mine once the mill is operational.” Cameco anticipates a couple of months’ delay that will affect 2014 production, which was originally estimated at 770 to 1,100 tonnes of uranium concentrate. The long-term annual target of 18 million pounds U3O8 by 2018 remains unaffected.

The company will provide another update during its July 31 Q2 discussion.

Flooding in 2006 and 2008 had already set back development at the eastside Athabasca Basin mine, which began construction in 2005. The first ore shipment finally left Cigar Lake in March. McClean Lake was scheduled to begin processing last quarter, following modifications to the leaching circuit.

The world’s second-largest high-grade uranium deposit, Cigar Lake holds grades 100 times the global average. The joint venture is held 50.025% by Cameco, 37.1% by AREVA Resources Canada, 7.875% by Idemitsu Canada Resources and 5% by TEPCO Resources.

Another JV, McClean Lake is held 70% by AREVA, 22.5% by Denison Mines TSX:DML and 7.5% by OURD Canada.

Read more about Cigar Lake.

Athabasca Nuclear/Strike Graphite merger would combine uranium and diamond projects

Exploration in two Saskatchewan plays would come together under one entity should a merger go through between Athabasca Nuclear TSXV:ASC and Strike Graphite TSXV:SRK. The companies announced that intention on July 15, subject to conditions and approvals. Athabasca Nuclear holds a number of uranium properties including its Preston Lake flagship, which the company operates for the four-company Western Athabasca Syndicate. Strike has received conditional TSXV approval for its 80% acquisition of two properties in the Sask Craton that are contiguous to the Pikoo diamond discovery made last November by North Arrow Minerals TSXV:NAR.

The deal would exchange one Athabasca Nuclear share for each Strike share, with a similar swap of options and warrants. Strike would then become a wholly owned subsidiary of Athabasca Nuclear but presumably would not be called Nuclear Strike. Athabasca Nuclear would be held 73.9% by its current shareholders and 26.1% by Strike shareholders. Athabasca Nuclear’s officers and BOD would remain unchanged, except for the board addition of Blair Way, now a Strike director.

Among the deal’s conditions is two-thirds approval by Strike shareholders. The companies hope to consummate by September 20.

Read about diamond mining and exploration in Canada here and here.

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Athabasca Basin and beyond

July 12th, 2014

Uranium news from Saskatchewan and elsewhere for June 28 to July 11, 2014

by Greg Klein

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NexGen extends Arrow’s reach at Rook 1

The first six summer holes at the Rook 1 project’s Arrow zone have more than doubled the potential strike, NexGen Energy TSXV:NXE stated July 7. Radiometric measurements extended the 215 metres determined by eight winter holes to a potential 470-metre strike open in all directions.

Although assays have been released for the winter program, the company bases its summer results on radiation readings from a gamma spectrometer and a gamma probe. The results are no substitute for assays, which are pending.

Some of the highlights include hole RK-14-37, which totalled a composite 8.1 metres of “off-scale” radioactivity straining the spectrometer’s limit of 9,999 counts per second. The drill hit 17 anomalous intercepts totalling a composite 78.05 metres of mineralization within a 227.8-metre section beginning at 378 metres in downhole depth.

RK-14-34 found 29 intercepts totalling a composite 100.6 metres of mineralization within a 627.9-metre section that started at 221.4 metres in depth.

RK-14-31 found 35 intercepts totalling 125.8 metres of mineralization within a 430.7-metre section beginning at 221.4 metres in depth.

True widths weren’t provided. All six Arrow holes, which totalled 4,324 metres, showed visible mineralization. One hole is still in progress.

About 200 metres away, the Dagger area took in four holes totalling 1,349 metres without showing anomalous radioactivity. In addition to further Arrow drilling, “preparations have been made for regional drilling to continue at Area K (Dennis Lake),” the company stated.

Rook 1 straddles the southwestern rim of the Athabasca Basin, on the northeastern border of Fission Uranium’s (TSXV:FCU) Patterson Lake South.

Fission Uranium drills 12.35% U3O8 over 13.5 metres, 4.68% over 25 metres at PLS

More high-grade assays from Fission Uranium continue to build Patterson Lake South’s R780E zone, focus of the highly anticipated maiden resource scheduled for December. Of nine holes released July 2 from last winter’s infill drilling, all showed mineralization. A half dozen brought especially impressive results. Some highlights include:

Hole PLS14-170

  • 0.35% uranium oxide (U3O8) over 58 metres, starting at 135.5 metres in downhole depth
  • (including 1.2% over 5.5 metres)
Fission drills 13.5 metres of 12.35%, 25 metres of 4.68% at Patterson Lake South

With 39 winter holes still to report,
Fission Uranium has embarked on
a 63-hole summer campaign.

  • 0.31% over 12 metres, starting at 202 metres

  • 2.9% over 20 metres, starting at 217.5 metres
  • (including 8.35% over 4 metres)

  • 0.58% over 11 metres, starting at 260 metres

Hole PLS14-174

  • 0.8% over 25 metres, starting at 105 metres
  • (including 3.45% over 1.5 metres)
  • (and including 2.8% over 1 metre)
  • (and including 4.39% over 1.5 metres)

  • 0.87% over 13.5 metres, starting at 135 metres
  • (including 9.24% over 1 metre)

Hole PLS14-175

  • 0.7% over 21 metres, starting at 120.5 metres
  • (including 3.35% over 2.5 metres)

  • 0.38% over 26 metres, starting at 144 metres
  • (including 1.44% over 2.5 metres)

Hole PLS14-178

  • 0.12% over 25.5 metres, starting at 135.5 metres

  • 0.19% over 15 metres, starting at 164.5 metres

Hole PLS14-179

  • 2.99% over 1 metre, starting at 184.5 metres

  • 2.25% over 8.5 metres, starting at 244 metres

Hole PLS14-180

  • 0.44% over 21 metres, starting at 136.5 metres
  • (including 3.45% over 2 metres)

  • 4.68% over 25 metres, starting at 165 metres
  • (including 18.56% over 5.5 metres)

Hole PLS14-186

  • 12.35% over 13.5 metres, starting at 157 metres
  • (including 23.41% over 7 metres)

  • 1.52% over 2.5 metres, starting at 175 metres

  • 0.9% over 7 metres, starting at 188 metres
  • (including 3.61% over 1.5 metres)

True widths weren’t provided. With five PLS zones stretching east-west along a 2.24-kilometre potential strike, Fission Uranium stated these results show “the continued strong nature of uranium mineralization as the R780E zone moves eastwards.”

Still to come are assays for 39 holes from the 92-hole winter campaign. One week before unloading this latest batch of results, the company announced a 20,330-metre, 63-hole summer program that would eat $12 million of this year’s $28-million budget. As was the case last winter, most of the drilling will focus on delineation for a December resource.

Gold, PGEs and REEs suggest a “robust hydrothermal system” at Lakeland Resources’ Star uranium project

Recently compiled data shows potential for a regional hydrothermal system on Lakeland Resources’ (TSXV:LK) Star uranium property, adjacently north of the company’s Gibbon’s Creek joint venture. That’s the verdict for samples taken last year, which assayed for gold, platinum group elements and rare earth elements, as well as uranium.

The Star property covers “a quasi-circular basement uplift,” a feature considered “an ideal location for the development of uranium occurrences associated with the unconformity or sub-unconformity of the Athabasca Basin,” the company stated July 8.

One outcrop sample assayed 5.7 grams per tonne gold, 0.36 g/t platinum and 0.39 g/t palladium. Another showed 1.8 g/t gold, 0.08 g/t platinum and 0.12 g/t palladium.

A sandstone boulder revealed 257 ppm uranium and 0.3% total rare earth oxides, including 1,216 ppm dysprosium and 321 ppm yttrium. Another outcrop sample showed 6.9% TREO, predominantly light REE-enriched.

The assays further indicate potential for a regional hydrothermal system as “demonstrated by intense alteration associated with historic uranium mineralization within the Gibbons Creek property located immediately to the south,” Lakeland stated. “Within the Athabasca Basin, there are a number of projects where highly anomalous precious metals and/or rare earth elements occur in spatial relation to uranium deposits and/or mineralization. Examples of such mineralization include the Nicholson Bay and Fish Hook Bay uranium-gold-platinum group elements occurrences, and the MAW zone-Wheeler River occurrences.”

The Star project’s now slated for a near-term mapping and sampling program. Lakeland may earn a 100% interest in the property by paying $60,000 and issuing 600,000 shares over 12 months. The vendor retains the option of a 25% buyback for four times Lakeland’s exploration expenses.

Declan Resources TSXV:LAN has an option to earn 70% of the adjacent Gibbon’s Creek JV, which has shown boulder samples grading up to 4.28% U3O8 and some of the Basin’s highest-ever radon readings.

With an acquisition announced late last month, Lakeland now holds interests in 17 properties totalling 164,316 hectares in and around the Basin.

GoviEx debuts on CSE, orders enviro/social assessment for Niger project

The company began public trading just last month but GoviEx Uranium CSE:GXU has been advancing its Madaouela project in Niger since 2008. On July 2 the company announced contracts to complete an environmental and social impact assessment expected to “culminate the detailed feasibility study and environmental work already undertaken.”

Uranium news from Saskatchewan and elsewhere for June 28 to July 11, 2014

Backed by Toshiba and a Cameco subsidiary, GoviEx’s
Madaouela project in Niger moves towards feasibility.

As of March 2013 Madaouela’s seven deposits showed resources totalling 22.92 million pounds uranium oxide-equivalent (eU3O8) measured, 75.3 million pounds indicated and 24.1 million pounds inferred. Included are probable reserves of 25,300 tonnes.

Five of the deposits “have been developed to pre-feasibility level of confidence,” the company states.

The July 2 announcement quoted GoviEx chief executive Daniel Major, “Through the use of proprietary technologies never before used in Niger, our project team has presented a commercially viable project and one that seeks to limit its impact on the environment with a particular focus on limitation of dust, reduction in water usage and commercialization of the molybdenum byproduct resource.”

Executive chairman Govind Friedland’s bio lists a number of accomplishments even after he took part in the 1996 Voisey’s Bay discovery. Friedland went on to graduate from the Colorado School of Mines, provided business development services to Ivanhoe Mines and Ivanhoe Energy, and co-founded Ivanhoe Industries. Yes, he’s the son of that Friedland.

Two Niger mines operated by AREVA produce 7.5% of global supply, ranking the country as the world’s fourth-largest producer. While the government supports mining, the industry has been plagued by terrorist kidnappings and a bombing.

Fission 3.0, Azincourt report scintillometer results from PLN

One of four summer holes at Patterson Lake North shows anomalous radioactivity, JV partners Fission 3.0 TSXV:FUU and Azincourt Uranium TSXV:AAZ reported July 7. Two intercepts of 0.5 metres and 7.5 metres (not true widths) showed variable readings up to 1,450 counts per second on a hand-held scintillometer. Assays are pending.

The hole, PLN14-019, “is still in progress at 258 metres, although no further intervals of mineralization are expected,” the companies stated. The three other holes “intersected anomalous hydrothermal clay altered intervals, associated with structurally disturbed sections. This further highlights the partners’ confidence of the prospectivity and potential of the A1 conductor to host high-grade uranium mineralization.”

This summer’s five-hole program will total about 1,600 metres. Fission 3.0 acts as operator on the 27,408-hectare property, where Azincourt has a 50% earn-in.

Last April the companies reported that winter drilling failed to find radioactivity but did “confirm the high prospectivity of the target areas.”

In late May Azincourt and Macusani Yellowcake TSXV:YEL stated they would extend to June 15 a letter of intent to consolidate their Peruvian assets. That date passed without further announcement. (Update: The companies announced a definitive agreement on July 14.)

Those properties surround a project held by Fission 3.0, which holds interests in nine others in Saskatchewan and Alberta. Along with JV partner Brades Resource TSXV:BRA, Fission 3.0 announced VTEM results from their Clearwater West project in May.

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