Thursday 8th December 2016

Resource Clips


Posts tagged ‘Fission Uranium Corp (FCU)’

ALX Uranium welcomes Denison Mines to southwestern Athabasca Basin’s “elephant country”

October 13th, 2016

by Greg Klein | October 13, 2016

ALX Uranium TSXV:AL gets 7.5 million shares of Denison Mines TSX:DML, retains a 20% stake in the Hook-Carter project and has its portion of $12 million in spending covered as Denison moves into the southwestern Athabasca Basin. Under a deal announced October 13, Denison becomes project operator, bringing its expertise to the 16,805-hectare property in the Patterson Lake South region.

ALX Uranium welcomes Denison Mines to southwestern Athabasca Basin’s elephant country

“This is elephant country—a large property that has seen very little drilling on a geological trend with a precedent for large and high-grade uranium deposits,” commented Denison VP of exploration Dale Verran.

“The Hook-Carter property is uniquely situated on the Patterson Lake corridor, offering potential for both basement-hosted deposits, similar to Triple R and Arrow, and unconformity-hosted deposits which remain the largest and highest grade in the Athabasca Basin, namely McArthur River and Cigar Lake which are both operating mines. With Athabasca sandstone thicknesses similar to the Wheeler River project, the property plays to our team’s strengths and we are very excited to get started with exploration in 2017.”

So far Hook-Carter has undergone just eight historic holes, five of them on the property’s 15 kilometres of the Patterson Lake conductive corridor, which hosts Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSX:NXE) Rook 1 and Hook Lake, a joint venture of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada. Hook-Carter also features additional potential along significant sections of the Derkson and Carter corridors.

Subject to approvals, Denison’s work requirement calls for $3 million over the first three years. Should the company fail to meet the commitment, ALX’s stake in the property increases from 20% to 25%. Additionally, Denison funds ALX’s portion of the first $12 million in spending. The companies plan a JV three years after closing the agreement.

“Denison has made a number of world class uranium discoveries within the Athabasca Basin and, given their experience, we believe that they will advance the project diligently and methodically,” said ALX president/CEO Jon Armes. “Knowing that Hook-Carter will see considerable exploration efforts over the next 36 months, the company will focus on exploration at its other high-quality exploration projects in and around the shallow margins of the Athabasca Basin, which include Gorilla Lake, Newnham Lake, Gibbon’s Creek and Lazy Edward Bay.”

NexGen Energy’s latest discovery emphasizes PLS camp’s regional potential

August 11th, 2016

by Greg Klein | August 11, 2016

Described as “strong visible uranium mineralization” with “dense accumulations of massive to semi-massive pitchblende,” the Harpoon discovery adds another weapon to NexGen Energy’s (TSX:NXE) arsenal. Announced August 11, hole HP-16-08 features 17 metres of continuous mineralization, 4.5 metres of it “off-scale” or above the 9,999-counts-per-second limit of older scintillometers. At least one point surpassed 61,000 cps. To put that in perspective, 500 cps rates as anomalous. Impressive as they are, results like that keep in line with the Rook 1 project’s Arrow resource, the Athabasca Basin’s largest undeveloped deposit. But this hole’s located 4.7 kilometres northeast.

NexGen Energy’s latest discovery emphasizes PLS camp’s regional potential

A regional discovery 4.7 kilometres northeast of NexGen’s
Arrow deposit delivered a boxful of pitchblende treasures.

Once again demonstrating the Patterson Lake South region’s overall potential, NexGen collared HP-16-08 as a 250-metre stepout from HP-16-06, which scintillated another 1.5 metres of continuous mineralization. The company now traces 5.6 kilometres in northeasterly mineralized strike between Arrow and Harpoon. Another 300 metres northeast of Harpoon lies the Spitfire discovery of JV partners Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada.

Results for NexGen’s latest four holes, all land-based, show:

HP-16-05

  • <500 to 890 cps over 1.5 metres, starting at 292 metres in downhole depth

HP-16-06

  • <500 to 2,200 cps over 1.5 metres, starting at 303 metres

HP-16-08

  • <500 to >61,000 cps over 17 metres, starting at 220 metres

HP-16-07 returned nothing of significance. True widths weren’t available.

Calling HP-16-08 “an extremely exciting development,” CEO Leigh Curyer credited VP of exploration Garrett Ainsworth and his team for the success. The discovery has “severely elevated the prospectivity of some of the other targets we’ve got along the Patterson [conductive] corridor, and we want to be able to test those as well,” Curyer told a conference call. The seven-rig, 35,000-metre summer campaign has focused on both infill and expansion at Arrow, with about 25% of the program on regional targets. Harpoon has prompted the company to consider adding an eighth rig.

The geophysics done on [the Derkson conductive corridor] show that’s got multiple targets as well, which are identical to what we’re seeing at Arrow and what we’re learning about at Harpoon as well…. We could be there for many, many years with seven drill rigs before we truly understand the magnitude of what we’re dealing with.—Leigh Curyer,
CEO of NexGen Energy

Curyer noted the proximity of Fission Uranium’s (TSX:FCU) Patterson Lake South to the southwest, as well as Spitfire to the northeast.

Home to all the PLS discoveries so far, the Patterson corridor remains “very under-drilled and we’ve got a lot of drilling to do … until we ultimately understand the scale of the deposition,” Curyer emphasized. Rook 1 is “obviously massive and there’s not a property like it that I’m aware of on the planet.”

But he pointed out that Rook 1 hosts seven known corridors. Parallel east to Patterson is the Derkson corridor, “and the geophysics done on that show that’s got multiple targets as well, which are identical to what we’re seeing at Arrow and what we’re learning about at Harpoon as well…. We could be there for many, many years with seven drill rigs before we truly understand the magnitude of what we’re dealing with. But suffice to say at the minimum—it’s huge.”

If the company misses its H2 target for the Arrow resource update, the team will attribute that to continued drilling success, he added. A postponement to early 2017 might be necessary “to do justice” to the deposit.

NexGen’s bankroll currently holds about $91 million.

ALX Uranium readies geophysics for northern Basin, drilling for PLS vicinity

August 9th, 2016

by Greg Klein | August 9, 2016

This month has ALX Uranium TSXV:AL returning to two projects at opposite ends of Saskatchewan’s prolific Athabasca Basin. On the Basin’s northern margin, the Perch property undergoes ground gravity while the Hook-Carter project in the Patterson Lake South camp gets both gravity and drilling, the company announced August 9.

The 1,682-hectare Perch offers shallow targets along a four-kilometre-long conductor and coincident magnetic low running through the central area of the property. The 470-station gravity survey will consist of 24 900-metre lines at 100-metre spacing perpendicular to the conductor. Work begins in about a week with the crew heli-commuting from the community of Stony Rapids, 65 kilometres west.

ALX Uranium readies geophysics for northern Basin, drilling for PLS vicinity

At 16,458 hectares, Hook-Carter features northeastern extensions of three known conductive corridors, Carter, Derkson and Patterson Lake. The latter hosts at least seven discoveries on three properties, Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSX:NXE) Rook 1 and the Hook Lake JV of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada. Cameco recently enlarged another property it holds bordering Hook-Carter to the northeast.

ALX now plans gravity on two areas over the Patterson corridor and one over Derkson. Weather permitting, up to two holes will follow on each of the corridors.

Previous geophysics show the Patterson corridor extending at least 12.7 kilometres along Hook-Carter, with depth to the sub-Athabasca unconformity estimated between 320 and 500 metres.

Derkson runs about 5.8 kilometres on the property, with the unconformity estimated to be 350 to 470 metres below surface. An historic hole on the corridor about 4.5 kilometres south of Hook-Carter found 0.24% uranium and 1.35% nickel over 2.5 metres in basement rocks about five metres below the unconformity.

The Carter corridor has undergone historic geophysics but remains relatively unexplored. Two separate portions of the corridor run through the property, each for about two kilometres of strike.

Plans for the Patterson and Derkson corridors follow a recent audio-magnetic transient EM survey as well as a study of the distribution of geochemical and radiochemical signatures against interpreted litho-structural features. As a result, the three priority targets were chosen.

ALX also announced an LOI to vend its Mikwam gold property to Galena International Resources NEX:GTO.H. The price tag comes to $20,000, two million shares and a 0.5% NSR, half of which Galena may buy for $1 million.

Last month ALX announced Lon Shaver’s appointment to its advisory board. His nearly 20 years of mining sector experience includes investment banking roles with Raymond James, Merrill Lynch Canada and Midland Walwyn Capital. Shaver has also held CFO positions with a publicly listed mining company and a private technology company.

In June ALX closed the second tranche of a private placement totalling $750,000, part of a strategic partnership with Holystone Energy. That month ALX also closed the final tranche of a separate private placement totalling $348,750.

With a number of active projects in its large, highly prospective portfolio, ALX reported highly anomalous radon values at its Lazy Edward Bay project on the Basin’s southeastern margin in April. The previous month preliminary geophysical results showed gravity lows on the company’s 80%-held Gorilla Lake project on the Basin’s west side.

Read Chris Berry’s report: A Closer Look at Uranium.

Battle in the Basin

July 15th, 2016

Backed by big money, Fission and NexGen compete for uranium prominence

by Greg Klein

NexGen Energy’s July 15 move to the TSX big board (TSX:NXE) marks another milestone of the almost phenomenal progress in and around Saskatchewan’s southwestern Athabasca Basin. In March the company’s Rook 1 project came from behind to surpass the deposit size of Fission Uranium’s (TSX:FCU) more advanced Patterson Lake South. Now both companies focus on regional exploration as well as resource expansion, leaving observers wondering just how much more uranium the region has to offer.

NexGen has seven rigs onsite for its largest season ever, at least 35,000 metres. Eight summer targets include the Arrow resource, due for stepouts as well as delineation, a massive pitchblende-bearing area 180 metres southwest, the Cannon discovery to the northeast and five other conductive areas running southwest to northeast across the property.

Backed by big money, Fission and NexGen compete for uranium prominence

NexGen has an H2 resource update scheduled for Rook 1’s Arrow zone.

Fission’s summer calls for 52 holes and 15,200 metres, most of it outside the Triple R resource. The company hopes to fill in some of the gaps between the deposit and other zones along a trend now 2.58 kilometres long. Sixteen holes will test regional exploration targets.

Fission also plans further EM work and, with pre-feas in mind, a seismic survey, geotechnical borehole testing, hydrogeology wells and Phase II metallurgical studies.

Last spring’s resource estimate for NexGen’s Arrow zone used a 0.25% cutoff on four parallel shear structures to report an inferred total of 3.48 million tonnes averaging 2.63% for 201.9 million pounds U3O8. With the deposit open in most directions, the company hopes to release an expanded, upgraded resource this year.

Fission’s September 2015 estimate for the two-zone Triple R deposit used a 0.2% open pit cutoff and 0.25% underground cutoff for a resource totalling:

  • indicated: 2.01 million tonnes averaging 1.83% for 81.11 million pounds U3O8

  • inferred: 785,000 tonnes averaging 1.57% for 27.16 million pounds

The deposit remains open in multiple directions, Fission states. Triple R reached PEA last September.

Fission has the shallower deposit, about 55 to 200 metres below surface. NexGen’s resource extends to about 800 metres but it’s land-based while most of Fission’s resource and its other zones lie under a lake. Both deposits are basement-hosted, avoiding the leaking sandstone problems that plagued Cigar Lake.

Fission’s summer budget comes to $13.3 million, slightly less than NexGen’s $14 million. Fission’s well-funded following last January’s $82.2-million private placement that gave Hong Kong-based uranium trader CGN Mining a nearly 20% stake in the company. NexGen took a different approach, issuing US$60 million in convertible debentures to CEF Holdings, shared 50/50 by CK Hutchinson Holdings and CIBC. That leaves NexGen with about $100 million on hand and the possibility of paying off the debt.

Does that suggest the company contemplates production revenue in its future? CEO Leigh Curyer can give that impression. The former CFO of a Uranium One predecessor takes credit for managing South Australia’s Honeymoon project through feasibility. Late last month he announced three new staffers holding “combined experience with permitting, development and operating mines.”

By contrast Fission chairperson/CEO Dev Randhawa has openly courted suitors, as in the failed merger with Denison Mines TSX:DML that preceded the CGN deal. The question of who ends up owning how much uranium in the region inspires wide-ranging speculation. Meanwhile expansion and development of the two projects can only enhance their attractiveness.

The region’s northeasterly reach of mineralization hardly stops at Rook 1’s border, as Purepoint Uranium TSXV:PTU demonstrates at Hook Lake. Last winter’s drilling reaffirmed interest in the project’s Spitfire zone, a few kilometres beyond NexGen’s Bow discovery. The season’s last hole revealed Spitfire’s best assay yet—10.3% U3O8 over 10 metres, starting at 237.6 metres in downhole depth and including 53.5% over 1.3 metres.

Backed by money from JV partners Cameco Corp TSX:CCO and AREVA Resources Canada (39.5% each), operator Purepoint has another round of drilling in the planning stages.

Exploring opportunity

June 17th, 2016

A capacity crowd attends the first annual Vancouver Commodity Forum

by Greg Klein
Next Page 1 | 2

A capacity crowd attends the first annual Vancouver Commodity Forum

 

“There’s excitement in the air,” said Cambridge House International founder Joe Martin. That’s the mood he senses as junior explorers emerge from the downturn. And certainly optimism was evident on June 14 as more than 450 people converged on the Vancouver Commodity Forum for an afternoon of expert talks amid a showcase of two dozen companies. Keynote speakers included Martin, Chris Berry of the Disruptive Discoveries Journal, Jon Hykawy of Stormcrow Capital, John Kaiser of Kaiser Research Online and Stephan Bogner of Rockstone Research.

A capacity crowd attends the first annual Vancouver Commodity Forum

Lithium, not surprisingly, stood out as a commodity of interest. While cautioning against over-enthusiasm for the exploration rush, Berry and Hykawy each affirmed the need for juniors to find new sources of the metal. Cobalt and scandium featured prominently too, as did other commodities including what Kaiser called “the weird metals”—lesser known stuff that’s vital to our lives but threatened with security of supply.

Kaiser also noted he was addressing a crowd larger than his last PDAC audience, another indication that “we’ve turned the corner.”

Attendees also met and mingled with company reps. Potential investors learned about a wide gamut of projects aspiring to meet a growing demand for necessities, conveniences and luxuries.

Presented by Zimtu Capital TSXV:ZC, the forum’s success will make it an annual event, said company president Dave Hodge. Berry emceed the conference, holding the unenviable task of “making sure Dave stays well-behaved.”

Read interviews with keynote speakers:

Meet the companies

Most companies were core holdings of Zimtu, a prospect generator that connects explorers with properties and also shares management, technical and financing expertise. Zimtu offers investors participation in a range of commodities and companies, including some at the pre-IPO stage.

After sampling high-grade lithium on its Hidden Lake project in the Northwest Territories earlier this month, 92 Resources TSXV:NTY plans to return in mid-July for a program of mapping, exposing spodumene-bearing pegmatite dykes, and channel sampling. The company closed the final tranche of a private placement totalling $318,836 in April. Hidden Lake’s located near Highway 4, about 40 kilometres from Yellowknife and within the Yellowknife Pegmatite Belt.

With one of the Athabasca Basin’s largest and most prospective exploration portfolios, ALX Uranium TSXV:AL has a number of projects competing for flagship status. Among them is Hook-Carter, which covers extensions of three known conductive trends, one of them hosting the sensational discoveries of Fission Uranium TSX:FCU and NexGen Energy TSXV:NXE. ALX’s strategic partnership with Holystone Energy allows that company to invest up to $750,000 in ALX and retain the right to maintain its ownership level for three years. ALX closed a private placement first tranche of $255,000 last month, amid this year’s busy news flow from a number of the company’s active projects.

A capacity crowd attends the first annual Vancouver Commodity Forum

Arctic Star Exploration TSXV:ADD boasts one of northern Canada’s largest 100%-held diamond exploration portfolios. Among the properties are the drill-ready Stein project in Nunavut and others in the Lac de Gras region that’s the world’s third-largest diamond producer by value. North Arrow Minerals TSXV:NAR holds an option to earn up to 55% of Arctic Star’s Redemption property.

Aurvista Gold TSXV:AVA considers its Douay property one of Quebec’s largest and last undeveloped gold projects. The Abitibi property has resources totalling 238,400 ounces of gold indicated and 2.75 million ounces inferred. Now, with $1.1 million raised last month, the company hopes to increase those numbers through a summer program including 4,000 metres of drilling. Douay’s 2014 PEA used a 5% discount rate to forecast a post-tax NPV of $16.6 million and a post-tax IRR of 40%.

Looking for lithium in Nevada, Belmont Resources TSXV:BEA now has a geophysics crew en route to its Kibby Basin property, which the company believes could potentially host lithium-bearing brines in a similar geological setting to the Clayton Valley, about 65 kilometres south. Results from the gravity survey will help identify targets for direct push drilling and sampling.

A mineral perhaps overlooked in the effort to supply green technologies, zeolite has several environmental applications. Canadian Zeolite TSXV:CNZ holds two projects in southern British Columbia, Sun Group and Bromley Creek, the latter an active quarrying operation.

With a high-grade, near-surface rare earths deposit hosted in minerals that have proven processing, Commerce Resources TSXV:CCE takes its Ashram project in Quebec towards pre-feasibility. The relatively straightforward mineralogy contributes to steady progress in metallurgical studies. Commerce also holds southeastern B.C.’s Blue River tantalum-niobium deposit, which reached PEA in 2011 and a resource update in 2013.

Permitted for construction following a 2014 PEA, Copper North Mining’s (TSXV:COL) Carmacks copper-gold-silver project now undergoes revised PEA studies. The agenda calls for improved economics by creating a new leach and development plan for the south-central Yukon property. In central B.C. the company holds the Thor exploration property, 20 kilometres south of the historic Kemess mine.

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ALX Uranium acquires additional claims in PLS vicinity

April 22nd, 2016

by Greg Klein | April 22, 2016

ALX Uranium TSXV:AL has signed agreements to pick up extra turf proximal to the Hook-Carter project in Saskatchewan’s Patterson Lake South camp, the company announced April 22.

Subject to approvals, ALX gets the new land for 250,000 shares at a deemed value of $0.115 each on the closing date. A 2.5% NSR applies.

ALX Uranium acquires additional claims in PLS vicinity

Geophysical results released last month verified multiple basement conductors at Hook-Carter, which covers extensions of three known conductive trends, the Carter, Derkson and Patterson corridors. Drill targets have already been established on the latter two.

The Patterson corridor hosts Fission Uranium’s (TSX:FCU) Triple R deposit and three additional zones on the company’s Patterson Lake South project. NexGen Energy’s (TSXV:NXE) adjacent Rook 1 project includes the Arrow deposit, the Athabasca Basin’s largest undeveloped resource, as well as the Bow zone. Neighbouring NexGen is the Hook Lake JV of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada, which hosts the Spitfire discovery. ALX’s Hook-Carter borders Hook Lake to the south and a Cameco property to the north.

In February Cameco signed an agreement to buy ALX claims peripheral to Hook-Carter.

Earlier this month the company reported highly anomalous radon values at its Lazy Edward Bay project on the Basin’s southeastern rim. A week earlier preliminary geophysical results showing gravity lows brought encouraging news for ALX’s 80%-held Gorilla Lake property in the western Basin. The ALX portfolio includes five active projects in the Basin region.

ALX closed a private placement first tranche of $318,000 from Holystone Energy last month, part of a strategic partnership in which Holystone would invest up to $750,000, retain the right to maintain its ownership level for three years and nominate a director.

Read Chris Berry’s report: A Closer Look at Uranium.

Chris Berry takes a closer look at uranium

April 13th, 2016

by Greg Klein | April 13, 2016

How does one explain such a compelling story coinciding with such delinquent price performance? Chris Berry examines this peculiar yellow metal from a number of perspectives in his latest Zimtu Research report. Along the way readers gain a clear overview of nuclear energy, near- and long-term supply and demand, mining methods and jurisdictional risk, among other topics.

His SWOT analysis notes recent Asian investments in Fission Uranium TSX:FCU and ALX Uranium TSXV:AL that “demonstrate significant interest in developing future supply in Canada.”

Once again Berry applies his clarity and insight to a highly informative, readable report.

Download A Closer Look at Uranium.

See more from Zimtu Research.

ALX Uranium reports highly anomalous radon at Lazy Edward Bay

April 7th, 2016

by Greg Klein | April 7, 2016

Successful financings and a prospective portfolio distinguish ALX Uranium TSXV:AL with a steady news flow from five active Athabasca Basin projects this year. The company’s most recent announcement arrived April 7 from Lazy Edward Bay, where strong radon-in-water results near an historic hole will help ALX narrow down drill targets. This follow-up survey took 143 samples over an area of 1,400 by 450 metres on the 18,916-hectare property. Work was conducted by RadonEx Ltd, whose technology helped select drill targets for Fission Uranium’s (TSX:FCU) Triple R deposit.

Straddling the Athabasca Basin’s southeastern rim, the highway-accessible Lazy Ed lies about 55 kilometres from the Key Lake mill.

ALX Uranium reports highly anomalous radon at Lazy Edward Bay

Results show eight one-point samples with highly anomalous readings of 100 picocuries per litre. Four of the samples surpassed 200 pCi/L. The results showed up approximately 200 metres northeast of historic hole LE-50, which returned basement uranium grading 908 ppm U3O8 over 0.3 metres, along with boron, nickel and other pathfinders.

“Many of the anomalous samples appear to lie along a northeast-striking linear trend in the central portion of the grid which overlies historic conductors,” ALX noted.

Electromagnetic surveys in 2005 and 2007 confirmed the conductors, while further support came from geochem and radon work in 2014 and 2015, all of which helps pinpoint high-priority drill targets.

“Given the proximity of the highly anomalous radon samples to historic drill hole LE-50, which was never followed up with drilling along strike, the results of this radon survey demonstrate the significant exploration potential at Lazy Edward Bay,” commented president Jon Armes.

With one of Saskatchewan’s largest and most highly prospective uranium portfolios, ALX has five projects scheduled for exploration this year. Last week the company announced gravity anomalies pointing to prime drill targets at the western Basin’s Gorilla Lake project, where ALX holds an 80% option.

One week earlier came geophysical confirmation of multiple basement conductors at ALX’s Hook-Carter, a 16,461-hecatre property that covers extensions of three known conductive trends. Hook-Carter sits in the southwestern Basin region that hosts Fission’s Patterson Lake South, NexGen Energy’s (TSXV:NXE) Arrow deposit and Bow zone, and the Purepoint Uranium TSXV:PTU/Cameco Corp TSX:CCO/AREVA Resources Canada Spitfire discovery.

Cameco signed an agreement in February to buy ALX claims peripheral to Hook-Carter.

In mid-March ALX closed a $318,000 first tranche of a private placement from Holystone Energy, part of a strategic partnership in which Holystone would invest up to $750,000 on TSXV approval. Howard Haugom, Holystone’s nominee to the ALX board, has been appointed an adviser until the company’s AGM. The former Simon Fraser University economics professor co-owns a national retail chain and is a partner in the private equity firm Burkehill Capital.

Wheeler River PEA buoyant even with cautious uranium price forecast

April 4th, 2016

by Greg Klein | April 4, 2016

Two high-grade eastern Athabasca Basin uranium deposits could form a single mining operation lasting 16 years, according to the Wheeler River joint venture’s PEA. Operator Denison Mines TSX:DML released the figures April 4 from a study that incorporates the McClean Lake mill and bases its numbers on a conservative price forecast.

Wheeler River PEA buoyant even with cautious uranium price forecast

McClean Lake expansion should provide
excess capacity of six million pounds a year.

Using an 8% discount rate, the pre-tax NPV comes to $513 million with a 20.4% IRR. Each of the three partners would face a different tax scenario, Denison pointed out. The company holds a 60% stake in the JV with Cameco Corp TSX:CCO (30%) and JCU (Canada) Exploration (10%).

Initial capex would come to $560 million and sustaining capex another $543 million. Payback was reckoned at about three years.

Those numbers assume a uranium price of $44 per pound U3O8, the current long-term contract price according to Denison. (In lieu of a spot price, UEX Consulting provided a very low March 28 price indicator of $29.15.)

By comparison, Fission Uranium’s (TSX:FCU) September PEA for Patterson Lake South considered a price of $65 per pound. Cameco’s average realized price for 2015 came to $57.58, partly bolstered by the weak Canadian dollar.

But should uranium reach $62.60, Wheeler River’s PEA projects a pre-tax NPV of $1.42 billion and a 34.1% IRR.

The “conventionally mined” basement-hosted Gryphon deposit would enter production first. The unconformity-hosted Phoenix, located below water-saturated sandstone, would require Cigar Lake techniques of ground-freezing and remote-control jet-boring. The two Wheeler River deposits lie three kilometres apart on the 11,720-hectare property.

The Phoenix resource used a 0.8% cutoff to show:

  • indicated: 166,400 tonnes averaging 19.14% for 70.2 million pounds U3O8
  • inferred: 8,600 tonnes averaging 5.8% for 1.1 million pounds

Gryphon’s resource used a 0.2% cutoff:

  • inferred: 834,000 tonnes averaging 2.31% for 43 million pounds

Cutoff grades were based on an assumed price of $50 per pound. The Phoenix indicated category has the world’s highest grade of any undeveloped uranium deposit, Denison states. High-grade Gryphon assays from last winter’s drilling have yet to be incorporated into the resource.

The study sees Gryphon production beginning in 2025, turning out around 40.7 million pounds over seven years. Phoenix would follow with 64 million pounds over nine years. Milling would take place at McClean Lake, expected to have excess capacity of six million pounds a year when expansion finishes by the end of 2016. Denison holds a 22.5% share of the mill, along with AREVA Resources Canada (70%) and OURD Canada (7.5%).

“Thanks to the existing infrastructure in the eastern Athabasca Basin, our ownership interest in the McClean Lake mill, and a project designed to minimize risk and upfront capex, the Wheeler River project has the potential to emerge as one of the next producing assets in the region,” stated Denison president/CEO David Cates.

Last week the company announced an all-share deal in which GoviEx Uranium CSE:GXU would acquire all of Denison’s African assets. Expected to close next month, the transaction would leave Denison with 25% of GoviEx outstanding shares and 28% on a fully diluted basis.

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

March 23rd, 2016

by Greg Klein | March 23, 2016

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

ALX Uranium found two complex models of multiple conductors at the A1 and W1/W2 areas.

 

Initial geophysical results verify multiple basement conductors on the Hook-Carter project, ALX Uranium TSXV:AL reported March 23. Analysis shows one area (W1/W2 on the map) hosting at least six conductors within a 2.5-kilometre width and another area (A1) of at least three conductors within a 1.5-kilometre width.

Results come from an airborne and ground sub-audio magnetic transient electromagnetic (HeliSAM TEM) survey over two of the project’s three conductive corridors. The complexity of the conductors calls for additional surveys such as DC resistivity and gravity to better define drill targets, ALX noted. Meanwhile study continues on the current data for final interpretation.

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

The 16,461-hecatre property covers northeastern extensions of three known conductive trends, the Carter, Derkson and Patterson corridors. Historic and recent exploration has already identified drill targets on two of them. Depending on weather, ALX plans up to two holes on the Patterson corridor and two more along Derkson, still the project’s most advanced exploration target.

Patterson hosts Fission Uranium’s (TSX:FCU) Triple R deposit and three additional zones now stretching 2.58 kilometres along strike at Patterson Lake South. That prolific corridor also hosts the Athabasca Basin’s largest undeveloped resource at NexGen Energy’s (TSXV:NXE) Arrow deposit, as well as NexGen’s Bow zone and the Spitfire discovery at the Hook Lake JV of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada.

The discoveries took place along an approximately 14-kilometre-long section of the Patterson corridor, about 8.5 kilometres to 22 kilometres southwest of Hook-Carter.

Last week ALX closed a $318,000 private placement first tranche, part of a strategic partnership with Holystone Energy. Pending approvals, Holystone will buy a total of 12.5 million shares for $750,000 and retain the right to participate in future financings for three years to maintain its ownership level.

Holystone’s nominee to the board of directors, Howard Haugom, has been appointed an ALX adviser until the company’s AGM. A former economics professor at Vancouver’s Simon Fraser University, Haugom co-owns a national retail chain and is a partner in the private equity firm Burkehill Capital.

In January ALX announced winter/summer exploration plans for four other Basin properties, as well as Hook-Carter.

Last month Cameco signed a purchase agreement for ALX claims peripheral to Hook-Carter.