Tuesday 25th June 2019

Resource Clips


Posts tagged ‘Forum Uranium Corp (FDC)’

Athabasca Basin and beyond

March 29th, 2014

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

by Greg Klein

Next Page 1 | 2

Another record-breaking hole at Patterson Lake South as Fission merges more zones

Still fattening itself up for acquisition, Fission Uranium TSXV:FCU moves closer to its goal of defining one big deposit at Patterson Lake South. On March 24, for the third time in 19 days, the company announced that drilling had merged two more high-grade zones. The project now consists of four zones—two high-grade zones in the middle, with another zone on each of the east-west flanks—along a 1.78-kilometre potential strike. Mineralization remains open at both ends.

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

The field crew examines core at Patterson Lake South,
where Fission Uranium continues to exceed past performance.

And, for those not yet suffering from repetitive record-breaking fatigue induced by this project, Fission Uranium announced another best-ever hole, which “far surpasses” its last such accomplishment.

Results for the nine holes released March 24 come from a hand-held scintillometer that measures radiation from drill core in counts per second. Scintillometer results are no substitute for assays, which are still to come.

The record-breaker, hole PLS14-187, showed a composite 53.47 metres (not true width) at 9,999 cps, the maximum that the device can measure. Six other holes also showed intervals with maximum readings. The interval closest to surface began at 54.5 metres, while the deepest stopped at 452 metres in downhole depth.

The $12-million winter campaign has four rigs attacking the high-grade area, while a fifth explores farther away. No target date has been announced for the project’s maiden resource.

Forum closes $3.04-million financing, resumes drilling NW Athabasca JV

Two days before closing a private placement, Forum Uranium TSXV:FDC announced drilling had resumed at its 9,800-hectare Northwest Athabasca joint venture. The 3,000-metre program “is designed to determine the eastern extent of the mineralization discovered at Otis West and its extension onto the Otis East gravity target, both of which lie on the south side of the [historic, non-43-101] 1.5-million-pound Maurice Bay deposit,” the company stated on March 24.

Otis West shows a 50-metre strike, a depth of about 110 metres and remains open to the east and at depth, Forum added. Drilling will also test basement targets below Maurice Bay, Zone A and MB East, an untested gravity low east of Maurice Bay.

Among previous assays, last June Otis West showed 0.152% uranium oxide (U3O8) over 39.5 metres, starting at 131 metres in downhole depth. The previous month Zone A gave up 1.34% over 3 metres, starting at 88.5 metres.

Forum and NexGen Energy TSXV:NXE jointly hold 64% of the JV, with Cameco Corp TSX:CCO and AREVA Resources Canada holding 23.5% and 12.5% respectively. Forum acts as project operator.

On March 26 Forum reported closing a private placement for $3.04 million.

In late February the company began drilling its 9,910-hectare, PLS-adjacent Clearwater project. Forum has also been busy picking up other projects in Nunavut and the northeastern Basin, in the vicinity of the Lakeland Resources TSXV:LK/Declan Resources TSXV:LAN flagship Gibbon’s Creek.

Aldrin offers $500,000 placement, plans up to 4,000 metres at Triple M

It’s not clear whether drilling has yet begun, but Aldrin Resource TSXV:ALN has up to 4,000 metres planned for Triple M, a 12,001-hectare property adjacent to PLS. Previous work has shown gravity lows associated with anomalous radon values over basement conductor anomalies. More recently, an infill gravity survey helped refine targets, the company stated on March 25.

One day earlier the company offered a $500,000 private placement. The previous week Aldrin announced TSXV approval to convert $220,000 in debt to shares. The sum remained outstanding out of $500,000 to be paid to Sotet Capital for the project.

Next Page 1 | 2

Athabasca Basin and beyond

March 9th, 2014

Uranium news from Saskatchewan and elsewhere for March 1 to 7, 2014

by Greg Klein

Next Page 1 | 2

Fission Uranium merges two zones, narrows gap between two others at Patterson Lake South

Fission Uranium merges two zones, narrows gap between two others at Patterson Lake South

Fission Uranium has four of its five rigs trying
to fill the gaps in the now six-zone PLS project.

With several zones stretched along a 1.78-kilometre potential strike at Patterson Lake South, Fission Uranium TSXV:FCU obviously wants to find one big, shallow, high-grade deposit. That dream came closer to reality with radiometric results released March 5 and 7. Zones R780E and R945E are now one, forever intertwined, while the gap between two zones to the west has been narrowed.

Scintillometer results from 20 holes released March 5 show mineralization at depths as shallow as 54 metres and as deep as 459 metres. Thirteen holes showed off-scale intervals, reaching the maximum 9,999 counts per second on the hand-held device that measures drill core for gamma radiation. Scintillometer readings are no substitute for assays, which are pending.

Apart from the hope of merging more zones—the goal of this winter’s drill program—Fission Uranium sees expansion potential. The best hole of this batch was the most easterly of the newly merged zone, which “bodes extremely well for high-grade expansion to the east.”

Two days later Fission Uranium unveiled scintillometer results for four more holes, each from a different zone, starting with R780E and moving west to the discovery zone. The interval nearest to surface started at 51 metres and the deepest ended at 276 metres. Intervals from one hole showed a total of 16.18 metres of off-scale radioactivity, while another hole gave up an off-scale composite of 2.65 metres. The gap between R390E and R585E has been narrowed to about 60 metres.

With 36 of the planned 85 winter holes complete, Fission Uranium claims a 100% hit rate. The company has one rig exploring outside the mineralized trend and four others attacking the gaps between these six zones:

The discovery zone, R00E, has a 165-metre strike and a lateral width up to about 45 metres. About 135 metres east, R390E has a 255-metre strike and a lateral width up to about 50 metres. Sixty metres east again, R585E has a 75-metre strike and a lateral width up to about 20 metres. About 105 metres east, R780E now has an approximately 270-metre strike, as a result of subsuming R945E. The lateral width reaches up to about 90 metres.

R780E’s geology “is similar to other zones,” Fission Uranium stated, “consisting of mineralization primarily associated with sequences of steeply south-dipping pelitic lithology with localized mylonites and cataclasites.”

Two other zones at the eastern and western extremities, R1155E and R600W, bring the potential strike to 1.78 kilometres.

Two weeks earlier Fission Uranium released lab assays from R585E that showed the project’s best hole ever—or maybe that should be “so far.”

Update: On March 10 Fission released its “second-best” radiometric results from PLS. Read more.

NexGen announces $10-million bought deal for Athabasca Basin exploration

Uranium news from Saskatchewan and elsewhere for March 1 to 7, 2014

With Fission Uranium’s PLS rigs in the background, NexGen drills Rook 1.

A $10-million bought deal for NexGen Energy TSXV:NXE reinforces the company’s new prominence in Athabasca Basin uranium exploration. Announced March 4, the private placement follows news of radiometric results from a new area of the company’s Rook 1 project, which is adjacent to PLS.

Subject to approvals, the deal involves 22.3 million units at $0.45 and gives the underwriters an option to buy an additional 15%. Each unit consists of a share and one-half warrant, with each entire warrant exercisable at $0.65 for two years. Proceeds will go to Basin exploration, working capital and general corporate purposes.

NexGen’s stock took off with the February 19 release of radiometric readings from the first hole in Rook 1’s Arrow area, which the company called “a totally new zone of uranium mineralization.” The news propelled the company from a 52-week low of $0.225 to a 52-week high of $0.65 in two days. The stock closed March 7 at $0.49.

Meanwhile NexGen has moved its other rig to Arrow to focus two drills on the new area.

NexGen holds several properties in the Basin. But it has yet to release results from last summer’s nine-hole campaign on the Radio project, where the company has a 70% earn-in.

NexGen expects to close the bought deal by March 26.

Zadar announces 2014 plans for PNE and Pasfield projects

With permit applications submitted, Zadar Ventures TSXV:ZAD announced plans for two projects on March 3. The 15,292-hectare PNE, about 11 kilometres northeast of PLS, has about 3,500 metres scheduled for winter and summer drilling, along with ground-based geophysics. Previously identified radon anomalies and conductive trends will help determine targets.

Plans for the 37,445-hectare Pasfield Lake property, within the Cable Bay shear zone in the east-central Basin, include airborne and ground geophysics and a proposed 3,800 metres of drilling “followed by a staged program of uranium exploration culminating in [a] 32,000-metre drilling program,” the company stated.

Pasfield Lake is one of a number of properties that Zadar acquired from Canterra Minerals TSXV:CTM late last year.

Noka Resources/Alpha Exploration begin radon surveys on Carpenter Lake

Radon surveys on lake water and sediment have begun at Carpenter Lake on the Basin’s south-central edge. Announced March 4 by Noka Resources TSXV:NX and Alpha Exploration TSXV:AEX, the four-to-five-week agenda will include sampling from about a thousand locations over a 16-kilometre stretch of the Cable Bay shear zone, which the companies have described as a “major regional shear zone with known uranium enrichment.”

Spring and summer plans for the 20,637-hectare property include high-resolution airborne radiometrics to search for near-surface uranium boulders, followed by ground prospecting and geochemical sampling. The work is part of the Alpha Minerals spinco’s 60% earn-in from Noka, a member of the Western Athabasca Syndicate that plans to drill its PLS-vicinity Preston Lake property this month.

Late last month Noka closed a $1.13-million private placement. Alpha Exploration announced plans for other projects in December and January.

Hodgins Auctioneers pursues Basin uranium claims

A company specializing in auctioning equipment and real estate has signed a conditional agreement to acquire uranium interests in the Basin. Under a deal announced March 6 with Majesta Resources Inc, Hodgins Auctioneers TSXV:HA would get a 25% interest in a 39,125-hectare contiguous package that comes within 10 kilometres of the Key Lake mill.

Apart from TSXV approval, the transaction hinges on raising a $350,000 private placement.

An initial 25% would cost Hodgins $100,000 in cash or debt, two million shares and $300,000 in exploration spending. An additional 35% would require an extra four million shares and $400,000 in spending. A further 30% would call for another $400,000 cash or debt and two million shares.

Hodgins attributed a “low cost relative to similar transactions in the area due to the relationship between two of the insiders of the corporation and the party which owns the mineral claims.” Majesta would act as project operator.

Next Page 1 | 2

Athabasca Basin and beyond

March 2nd, 2014

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

by Greg Klein

Next Page 1 | 2

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

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

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

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

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

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

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

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

Denison reports Wheeler River drill results, updates other projects

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

Hole WR-548

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

Hole WR-550

  • 18.37% over 4.7 metres, starting at 407.3 metres

Hole WR-545

  • 16.98% over 3.1 metres, starting at 403.3 metres

Hole WR-539

  • 11.63% over 3.5 metres, starting at 401.6 metres

Hole WR-538

  • 2.14% over 5.1 metres, starting at 392.4 metres

  • 0.87% over 3.3 metres, starting at 403.8 metres

  • 1.36% over 1.4 metres, starting at 408.2 metres

  • 0.11% over 2.1 metres, starting at 426.4 metres

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

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

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

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

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

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

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

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

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

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

Forum starts 3,000 metres at Clearwater

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

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

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

Lakeland Resources offers $2 million private placement for Basin exploration

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

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

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

Read more about Lakeland Resources here and here.

Next Page 1 | 2

Athabasca Basin and beyond

February 22nd, 2014

Uranium news from Saskatchewan and elsewhere for February 15 to 21, 2014

by Greg Klein

Next Page 1 | 2

New “zone” at Rook 1 rocks NexGen stock

Judging by share performance, radiometric readings from NexGen Energy’s TSXV:NXE Rook 1 project far outshone next-door neighbour Fission Uranium’s TSXV:FCU Patterson Lake South last week—even though PLS assays showed its best hole yet. Possibly a bit premature, NexGen claimed the first hole in Rook 1’s Arrow area constitutes “a totally new zone of uranium mineralization.” Then again, the company also refers to intercepts as “zones.”

NexGen’s February 19 announcement said scintillometer readings showed a number of significant radioactive intervals in a hole that’s still being drilled. By “significant,” the company means at least five centimetres above 500 counts per second from a hand-held device that measures gamma ray particles in cps.

Uranium news from Saskatchewan and elsewhere for February 15 to 21, 2014

NexGen’s first hole in the Arrow area of Rook 1 stole attention
from Patterson Lake South and catapulted the company’s stock.

Results so far show well over a dozen “significant” intervals ranging from 0.05 metres to 1.65 metres in width. They occurred between downhole depths of 207.8 metres and 319.1 metres.

Radiometric readings are no substitute for assays, which are pending.

The company’s now revising its original 6,000-metre program “to substantially expand the program at Arrow and the other 11 western-located Rook 1 target areas,” according to CEO Leigh Curyer.

Last summer’s drilling found three mineralized holes roughly four kilometres southwest of Arrow, closer to the PLS boundary.

NexGen’s stock soared. Having previously closed on a 52-week low of $0.225, it shot up to a 52-week high of $0.65 in two days, before closing February 21 on $0.53.

Another best hole to date from Fission Uranium’s Patterson Lake South

Although upstaged by NexGen’s same-day announcement, Fission Uranium once again outperformed previous results by reporting its “strongest mineralized hole to date” from PLS on February 19.

The celeb du jour is hole PLS14-129 on zone R585E, the fourth of seven zones along a southwest-northeast potential strike of 1.78 kilometres. The zone itself has a defined strike of 30 metres and a lateral width of about 10 metres.

Of eight intervals reported, the best results show:

  • 13.66% uranium oxide (U3O8) over 38 metres, starting at 56 metres in downhole depth
  • (including 38.49% over 10.5 metres)

  • 11.19% over 31.5 metres, starting at 108.5 metres
  • (including 27.57% over 12 metres)

  • 6.82% over 11.5 metres, starting at 145.5 metres
  • (including 20.28% over 2.5 metres)

  • 3.37% over 12.5 metres, starting at 160 metres
  • (including 9.57% over 4 metres)

True widths weren’t available. Drilling was vertical.

“Nothing less than phenomenal,” was president/COO and chief geologist Ross McElroy’s immodest appraisal. The grade-times-thickness value nearly doubled that of the previous best hole, which dates back to September on the neighbouring R390E zone.

Last week Fission Uranium released a batch of radiometric readings for seven holes from four zones. The $12-million campaign, which includes ground geophysics as well as 90 holes totalling 30,000 metres, continues.

Anthem reports initial drill results from Hatchet Lake JV with Denison

Anthem Resources TSXV:AYN released preliminary drill results from Hatchet Lake, a joint venture with Denison Mines TSX:DML, on February 20. The 10-hole, 2,025-metre program on the Athabasca Basin’s eastern edge found no significant mineralization but a downhole radiometric probe intersected anomalous radioactivity in four holes.

The campaign also found prospective features “including strong fracturing, de-silicification (sanding) and clay and hematite alteration in the sandstone, and weak to strong chlorite and clay alteration, graphitic fault zones and sulphide mineralization in the basement,” Anthem stated. Assays are still to come.

Anthem’s cash position prevented a contribution to Hatchet’s $750,000 budget and the $300,000 IP survey on the Murphy Lake property, also part of the JV. As a result, Anthem’s interest dropped from 50% to about 41%. Denison acts as project operator.

Forum to acquire northeastern Basin property from Anthem

The same day as the Hatchet Lake news, Anthem and Forum Uranium TSXV:FDC announced an agreement to move a Basin property from the former to the latter. Forum will get the 14,205-hectare Fir Island claims on the Basin’s northeastern margin for 300,000 shares and a 1.5% NSR, of which Anthem may buy two-thirds for $1 million.

With little or no sandstone cover and road access within two kilometres, the property lies directly on a major structure, the Black Lake Shear Zone, and adjacent to the former Nisto mine, Forum stated. Previous geophysical and geochemical surveys identified several shallow drill targets which Forum plans to refine through ground gravity work.

Two weeks earlier the company announced it would buy two sets of claims from Agnico Eagle Mines TSX:AEM to consolidate Forum’s North Thelon project in Nunavut.

This month Forum plans to begin drilling 12 to 15 holes totalling 3,000 metres at its 9,910-hectare PLS-adjacent Clearwater project. The company’s eastside Basin 40%/60% Henday JV has $150,000 worth of summer magnetic and electromagnetic surveys planned by project operator Rio Tinto NYE:RIO.

Next Page 1 | 2

Athabasca Basin and beyond

February 10th, 2014

Uranium news from Saskatchewan and elsewhere for February 1 to 7, 2014

by Greg Klein

Next Page 1 | 2

Fission Uranium releases final summer 2013 assays from Patterson Lake South

Having spent months doling out only occasional assays from last summer’s drilling at Patterson Lake South, on February 5 Fission Uranium TSXV:FCU suddenly dumped results for 20 holes—half of which showed no significant mineralization. They did, however, improve the company’s “understanding of the geological setting and controls of mineralization at PLS.”

The best results came from R780E, the fifth of seven zones along a 1.78-kilometre potential strike. R780E now boasts a 75-metre strike, with a lateral width up to about 60 metres. A few highlights show:

Hole PLS13-105

  • 3.93% uranium oxide (U3O8) over 3 metres, starting at 128 metres in downhole depth
  • (including 10.85% over 1 metre)

  • 1.12% over 3.5 metres, starting at 189 metres
Uranium news from Saskatchewan and elsewhere for February 1 to 7, 2014

Hole PLS13-107

  • 1.94% over 3 metres, starting at 171.5 metres

  • 0.57% over 6.5 metres, starting at 192.5 metres
  • (including 1.58% over 1 metre)

  • 0.23% over 13.5 metres, starting at 251.5 metres

Hole PLS13-108

  • 0.99% over 19.5 metres, starting at 152.5 metres
  • (including 3.46% over 2 metres)
  • (and including 3.92% over 1.25 metres)

  • 0.67% over 6.5 metres, starting at 174.5 metres
  • (including 1.64% over 2.5 metres)

  • 1.33% over 11 metres, starting at 184.5 metres
  • (including 6.52% over 1.5 metres)

  • 3.48% over 4.5 metres, starting at 228 metres

Hole PLS13-109

  • 4.22% over 8 metres, starting at 108 metres
  • (including 11.1% over 3 metres)
  • (which includes 24.6% over 0.5 metres)

  • 0.55% over 17.5 metres, starting at 141 metres

  • 5.89% over 6 metres, starting at 205.5 metres
  • (including 14.57% over 1.5 metres)

Off the lake and onto dry land, zone R600W shows a 30-metre strike and a lateral width up to 20 metres. Some of the better results include:

Hole PLS13-118

  • 0.34% over 6.5 metres, starting at 192 metres

Hole PLS13-121

  • 0.2% over 11.8 metres, starting at 98.7 metres

Hole PLS13-124

  • 0.29% over 6 metres, starting at 97.5 metres

The company also released assays from one hole on the R585E zone, 150 metres west of R780E. R585E now shows a 30-metre strike and a lateral width up to 10 metres. Some highlights from PLS13-106 include:

  • 0.19% over 5.5 metres, starting at 158.5 metres

  • 0.11% over 17 metres, starting at 166.5 metres

  • 0.39% over 12.5 metres, starting at 202 metres

True widths weren’t provided. Holes were vertical or close to it. One R600W hole and nine stepouts east of the zone drew blanks. These results constitute the final batch of summer assays. The current $12-million campaign, including ground geophysics as well as 90 holes totalling 30,000 metres, will primarily try to fill in the gaps separating the high-grade zones.

Rio drills Purepoint’s Red Willow

Rio Tinto NYE:RIO has begun winter drilling at Red Willow, Purepoint Uranium TSXV:PTU announced February 5. About 2,500 metres will test four target areas identified by geophysics, geochemistry and historic assays, the company stated. Rio is nearly halfway into its $5-million option to earn 51% of the 25,612-hectare property by December 31, 2015. The major may spend a total of $22.5 million by the end of 2021 to earn 80% of the eastern Athabasca Basin project.

In another project with some big name buddies, Purepoint began a $2.5-million, 5,000-metre program at its Hook Lake project in January. Cameco Corp TSX:CCO and AREVA Resources Canada each hold a 39.5% interest in the PLS-vicinity property, leaving the junior with 21%.

Continental Precious Minerals updates PEA for Swedish polymetallic project

An updated resource and preliminary economic assessment takes a new approach to Continental Precious Minerals TSX:CZQ Viken uranium-polymetallic project in central Sweden. Using a 6.5% discount rate, the study calculates an after-tax net present value of US$943 million and a 12.9% internal rate of return. Pre-production capital comes to $1.23 billion with payback in 6.9 years from an operation with two open pits and a 34-year lifespan, according to the February 6 announcement.

Viken’s original 2010 PEA considered uranium-vanadium-molybdenum production using fine grinding, tank leaching and roasting. Now Continental plans bio-heap leaching for nickel, zinc and copper sulphides as well as uranium. “This has substantially lowered operating and capital costs, and has led to more robust project economics,” stated CEO/chairperson Rana Vig.

More details will be available on sedar.com within 45 days.

Eagle Plains options out eastside Basin project

Eagle Plains Resources TSXV:EPL announced a definitive option agreement on February 4 for its Tarku property in the eastern Basin. The non-arms-length deal would give Clear Creek Resources a 60% interest for $500,000 cash, $5 million in exploration and 1.2 million shares over five years. Clear Creek may increase its interest to 75% by paying Eagle Plains another $1 million and completing feasibility. Previous work, including historic airborne surveys that found northeast-trending conductors, make the property prospective for both gold and uranium, Eagle Plains stated.

Next month Clear Creek expects to complete a three-way amalgamation with Ituna Capital TSXV:TUN.P and its subsidiary. Eagle Plains holds interests in over 35 properties.

Alpha airborne over Noka’s Carpenter Lake; Noka boosts private placement

Project operator Alpha Exploration TSXV:AEX has begun flying a VTEM and magnetic survey over Carpenter Lake on the Basin’s south-central edge. The 1,892-line-kilometre survey will test the 19-kilometre strike of the Cable Bay Shear Zone, a “major regional shear zone with known uranium enrichment,” Alpha stated on February 3. The work initiates the company’s 60% earn-in on Noka Resources’ TSXV:NX 20,637-hectare property.

About 10 to 14 days have been allotted to this portion of the winter campaign, which will also include radon sampling. Spring and summer should see airborne radiometrics, ground prospecting and geochemical sampling.

With interests in several properties, the Alpha Minerals spinco announced other exploration plans in December and January.

Noka, a member of the four-company Western Athabasca Syndicate, stated on February 6 it would increase a “heavily oversubscribed” private placement from $500,000 to $1.1 million, subject to exchange approval.

Next Page 1 | 2

Athabasca Basin and beyond

January 19th, 2014

Uranium news from Saskatchewan and elsewhere for January 11 to 17, 2014

by Greg Klein

Next Page 1 | 2

Fission Uranium’s Patterson Lake South gives up more high-grade assays

More results from Fission Uranium’s TSXV:FCU Patterson Lake South show last summer’s sowing continues to reap high-grade rewards. Released January 15, the latest batch comes from two holes on the Athabasca Basin project’s R390E zone and four on the R780E zone, the third and fifth of seven zones trending northeast.

All holes were vertical or near-vertical. The R390E zone currently has a strike length of 255 metres and a lateral width of about 40 metres. Some highlights show:

Hole PLS13-102

  • 0.32% uranium oxide (U3O8) over 12.5 metres, starting at 119.5 metres in downhole depth

  • 0.58% over 9.5 metres, starting at 138 metres
  • (including 1.44% over 1 metre)

  • 0.12% over 9 metres, starting at 154 metres

  • 0.73% over 4 metres, starting at 171.5 metres

Hole PLS13-104

  • 0.13% over 12 metres, starting at 61 metres

  • 4.97% over 13 metres, starting at 99 metres
  • (including 13.2% over 4.5 metres)
  • (which includes 35.9% over 0.5 metres)

  • 0.42% over 6.5 metres, starting at 131 metres
  • (including 2.1% over 1 metre)

  • 0.22% over 17 metres, starting at 146.5 metres

Zone 780E shows a 60-metre strike and approximately 50-metre lateral width. The best assays include:

Hole PLS13-082

  • 1.25% over 41 metres, starting at 141 metres
  • (including 4.94% over 9 metres)

Hole PLS13-089

  • 0.17% over 16 metres, starting at 150 metres

  • 0.18% over 8 metres, starting at 198.5 metres

Hole PLS13-097

  • 0.99% over 48 metres, starting at 119 metres
  • (including 1.94% over 5 metres)
  • (and including 2.05% over 2.5 metres)
  • (and including 6% over 3.5 metres)

  • 0.54% over 6 metres, starting at 228.5 metres
  • (including 1.1% over 1 metre)

Hole PLS13-101

  • 0.5% over 34.5 metres, starting at 103 metres
  • (including 1.89% over 4.5 metres)

  • 0.63% over 11.5 metres, starting at 163 metres
  • (including 2.27% over 1 metre)

  • 1.04% over 17 metres, starting at 179 metres
  • (including 2.44% over 3.5 metres)

True widths were unavailable. Both zones remain open in all directions.

And the project’s potential remains open to speculation, not to mention exploration. On January 13 the company announced a new radon survey to follow up on 10 basement electromagnetic conductors. So far the technique has been used systematically on only one of the property’s over 100 basement EM conductors, Fission Uranium stated. Expected to last five or six weeks, the survey will take some 2,300 samples from three areas within Patterson Lake and a fourth within Forrest Lake, immediately south.

$50-million Uranium Participation financing bolsters commodity price confidence

In what’s been hailed as a testament of faith in uranium prices, Uranium Participation Corp TSX:U announced a $50-million private placement on January 16. “By mid-day the bought deal was complete,” reported Toll Cross Securities analyst Tom Hope.

Uranium Participation describes itself as “an investment alternative for investors interested in holding uranium.” Proceeds of the financing will be used to stockpile further purchases of U3O8 and uranium hexafluoride (UF6). Hope estimates the company will buy up to 1.28 million pounds to hold a total of about 14.7 million pounds “or approximately 9% of our estimated 2014 global mine output.”

A Denison Mines TSX:DML subsidiary manages Uranium Participation.

Declan grabs more ground north of Gibbon’s Creek

North of the company’s Gibbon’s Creek joint venture with Lakeland Resources TSXV:LK, Declan Resources TSXV:LAN has acquired the 11,100-hectare North Star property, the company announced January 17. The property “is believed to contain the northerly extensions of a number of important regional structures associated with uranium projects in the area,” Declan stated. “An interpretation of the magnetic background at Gibbon’s Creek shows a northerly trending structure which continues to the north through Lakeland Resources Ltd’s Star property, and onto the North Star property.”

The deal costs Declan $15,000 and 1.5 million shares, with a 2% gross sales royalty in effect. The previous week Declan and Lakeland reported Gibbon’s Creek boulder samples grading up to 4.28% U3O8, as well as some of the Basin’s highest-ever radon readings.

Read more about Lakeland Resources here and here.

Azincourt closes Peru property acquisitions

Uranium news from Saskatchewan and elsewhere for January 11 to 17, 2014

Along with the more advanced Macusani project, Azincourt’s newly acquired Muñani property positions the company in Peru’s emerging uranium district.

Azincourt Uranium TSXV:AAZ announced January 16 completion of its $2-million cash-and-share deal with Cameco Corp TSX:CCO and Vena Resources TSX:VEM. Coming with the advanced-stage Macusani project and the earlier-stage Muñani property, the buyout of Cameco and Vena’s Minergia S.A.C. places the purchaser prominently in Peru.

Back in Saskatchewan, Azincourt is earning into a 50/50 JV with Fission Uranium on their Patterson Lake North project. In December Azincourt closed two private placements totalling $2.5 million.

As for Vena, the deal “reactivates our investment in the uranium business,” chairman/CEO Juan Vegarra stated. The agreement allows Vena to double its Azincourt holdings within months.

Read more about Azincourt’s Peru acquisitions.

Next Page 1 | 2

Athabasca Basin and beyond

January 12th, 2014

Uranium news from Saskatchewan and elsewhere to January 10, 2014

by Greg Klein

Next Page 1 | 2

Fission Uranium says lower-grade assays confirm new PLS zone 195 metres east

Fission Uranium TSXV:FCU continues to pick away at its nearly 50-hole backlog of assays from Patterson Lake South. Results released December 30 come from the project’s eastern-most high-grade zone as well as a not-so-high-grade zone farther east.

Highlights from hole PLS13-099 on zone R945E include:

  • 0.11% uranium oxide (U3O8) over 15 metres, starting at 122 metres in downhole depth

  • 0.14% over 16 metres, starting at 140 metres

  • 0.99% over 23.5 metres, starting at 159.5 metres
  • (including 2.49% over 8.5 metres)

  • 3.99% over 17 metres, starting at 185.5 metres
  • (including 18.52% over 3.5 metres)
  • (which includes 43.5% over 0.5 metres)

  • 0.12% over 8.5 metres, starting at 205 metres

  • 2.69% over 30.5 metres, starting at 222.5 metres
  • (including 5.1% over 6 metres)
  • (and including 5.4% over 7.5 metres)

True widths were unavailable. With a dip of -88 degrees, downhole depths were close to vertical. Three other holes from R945E were released earlier in December. The zone remains open in all directions.

About 195 metres east, two other holes confirm the existence of the less-spectacular zone R1155E. The single assay released from hole PLS13-090 shows:

  • 0.09% over 12 metres, starting at 189.5 metres

Results from PLS13-103 show:

  • 0.07% over 1.5 metres, starting at 176 metres

  • 0.06% over 3.5 metres, starting at 188 metres

  • 0.06% over 1.5 metres, starting at 199.5 metres

  • 0.05% over 0.5 metres, starting at 209 metres

  • 0.06% over 0.5 metres, starting at 365.5 metres

Again, true widths weren’t provided. Both holes were vertical. The results, from a “geologic setting similar to the high-grade zones to the west, [lead to] encouragement that the mineralized system remains open to the east,” the company stated. Winter drilling will continue east of R945E and between the higher-grade zones to the west.

Just before Christmas the company released assays from one hole at zone R585E and seven from R390E. On January 9 Fission Uranium announced that president/COO/chief geologist Ross McElroy had won PDAC’s 2014 Bill Dennis Award for a Canadian discovery or prospecting success. “It takes a team to make a discovery and I’m delighted to have won this award on behalf of Fission,” the statement quoted McElroy.

Recognition also goes to Fission Uranium’s former joint venture partner. In mid-December the father/son team of Ben and Garrett Ainsworth, formerly with Fission acquisition Alpha Minerals and now with spinco Alpha Exploration TSXV:AEX, won the 2013 Colin Spence Award for excellence in global mineral exploration from the Association for Mineral Exploration British Columbia for their part in the PLS discovery.

Lakeland Resources surveys historic drilling, finds high-grade boulders and some of Athabasca Basin’s highest radon readings

Lakeland Resources’ TSXV:LK Gibbon’s Creek uranium project now shows some of the highest radon gas readings ever found in the Athabasca Basin, the company says. Data collected last year and released January 8 also confirms an historic boulder field, with assays reaching 4.28% U3O8. Additionally, a DC resistivity survey has mapped basement alteration found by historic drilling.

Lakeland Resources Gibbon's Creek exploration

Existing access trails are among the benefits of more than
$3 million of previous work at Riou Lake/Gibbon’s Creek.

The 12,771-hectare project forms part of the 35,463-hectare Riou Lake property, a joint venture in which Declan Resources TSXV:LAN may earn 70% over four years, with a first-year exploration commitment of $1.25 million.

The survey by RadonEx Exploration Management, whose proprietary technology proved vital to Fission Uranium’s PLS, found Gibbon’s Creek readings peaking at 9.93 picocuries per square metre per second (pCi/m²/s). According to a statement by Lakeland president Jonathan Armes the readings, “to our knowledge, are the highest ever reported for the Athabasca Basin area.”

The highest value coincides with a uranium-in-soil anomaly found in historic work, part of more than $3 million of exploration performed on Riou Lake prior to Lakeland’s acquisition of the northern Basin property. Nine more radon samples reached above 3.2 pCi/m²/s, while the background level showed about 1.3 pCi/m²/s.

Meanwhile assays have confirmed existence of an historically defined radioactive boulder field. Prospecting by Dahrouge Geological Consulting found a 1-by-1.2-kilometre field with eight boulders grading over 1% U3O8, one of them hitting 4.28%. Eleven other samples assayed above 0.2%, with nine more below 0.2%. Also showing were anomalous values for nickel, arsenic, lead and cobalt.

Following up on historic drilling by Cameco Corp TSX:CCO-predecessor Eldorado Nuclear, the DC resistivity survey mapped one trend that ranges from near surface to about 200 metres, roughly coinciding with historic basement alteration and mineralization at 100 metres. A second resistivity trend coincides with strong radon values.

Ranking high on the project’s to-do list is a further radon survey. This year’s field work will also try to track the high-grade boulders to their source. Gibbon’s Creek sits less than three kilometres from the settlement of Stony Rapids, with power lines and highways passing through the property.

Read more about Lakeland Resources here and here.

NexGen Energy reports three mineralized holes at Rook 1

NexGen Energy TSXV:NXE released assays on January 9 for three mineralized holes found in last summer’s 13-hole, 3,032-metre program on the Rook 1 project. The widely spaced holes tested three parallel conductors along strike of the PLS discovery 2.1 kilometres southwest. Highlights show:

Hole RK-13-03

  • 0.00137% U3O8 and 0.0204% thorium over 1 metre, starting at 150 metres in downhole depth

Hole RK-13-05

  • 0.05093% U3O8 and 0.0027% thorium over 0.5 metres, starting at 220.5 metres

  • 0.07098% U3O8 and 0.0014% thorium over 0.5 metres, starting at 221 metres

  • 0.022% U3O8 and 0.00163% thorium over 0.5 metres, starting at 221.5 metres

  • 0.027% U3O8 and 0.0024% thorium over 0.5 metres, starting at 222 metres

  • 0.03796% U3O8 and 0.0025% thorium over 0.5 metres, starting at 223.5 metres

  • 0.04834% U3O8 and 0.00268% thorium over 0.5 metres, starting at 224 metres

Hole RK-13-06

  • 0.00118% U3O8 and 0.026% thorium over 0.5 metres, starting at 152 metres

  • 0.00125% U3O8 and 0.0315% thorium over 0.5 metres, starting at 153 metres

True widths were unavailable. Assays for RK-13-05 indicate “the uranium occurs almost wholly within pitchblende/uraninite and not in complex refractory minerals,” the company added. Winter drilling, scheduled to begin this month, will follow up on RK-13-05 and also target several regional anomalies interpreted from geophysical surveys and historic drilling.

In early December NexGen announced completion of airborne radiometric and magnetic surveys. Later that month the company closed a $3.11-million private placement, with funds destined for Rook 1. Still pending are assays from a nine-hole, 3,473-metre campaign at the eastern Basin Radio project, where NexGen holds a 70% option.

UEX announces winter work for western Athabasca and Black Lake projects

Along with its JV partners, UEX Corp TSX:UEX has 2014 exploration slated for its Laurie, Mirror River and Erica projects in the western Athabasca as well as Black Lake in the northern Basin, the company stated January 7.

The western Athabasca projects consist of seven or eight sites (depending which UEX info you consult) totalling 116,137 hectares and held 49.1% by UEX and 50.9% by project operator AREVA Resources Canada. UEX funds $982,000 of this year’s $2-million budget. A 2,000-metre drill campaign begins at Laurie imminently, to be followed by another 2,000 metres at Mirror. Both projects are located around the Basin’s southwestern rim. Erica, north of the other two and west of the company’s 49.1%-owned Shea Creek project, undergoes a ground tensor magnetotelluric survey starting in March.

UEX acts as operator on the 30,381-hectare Black Lake project in the Basin’s north. This year’s 3,000-metre, $650,000 drill program will be funded by Uracan Resources TSXV:URC, which has an option to earn 60% of UEX’s 89.97% portion of the project. AREVA holds the remainder. The campaign begins in late January.

Previous UEX drilling at Black Lake in 2004, 2006 and 2007 found intervals of 0.69% U3O8 over 4.4 metres, 0.5% over 3.3 metres, 0.79% over 2.82 metres and 0.67% over 3 metres.

UEX wholly owns six Basin projects and holds JVs in another eight. Resource estimates have been compiled for Shea Creek and Hidden Bay.

Next Page 1 | 2

Athabasca Basin and beyond

December 22nd, 2013

Uranium news from Saskatchewan and elsewhere for December 14 to 20, 2013

by Greg Klein

Next Page 1 | 2

News flash: Fission Uranium releases assays—actual lab assays—from Patterson Lake South

Frenetic as activity has been at Patterson Lake South, assays have been trickling in at a most leisurely pace. Results released by Fission Uranium TSXV:FCU on December 18 come from three holes that were drilled last summer and had scintillometer results reported in August and September. The backlog of assays, from about 50 holes, can only increase speculation about when the project’s maiden resource might appear and what it might show.

Uranium news from Saskatchewan and elsewhere for December 14 to 20, 2013

Even so, these results continue to impress with high-grade, near-surface intervals. Taken from R945E, the most easterly of six zones along a 1.78-kilometre trend, some of the better assays show 7.91% uranium oxide (U3O8) over 14 metres, 1.59% over 40 metres and 3.69% over 13.5 metres. One Russian doll interval-within-an-interval-within-an-interval graded 43.7% over 0.5 metres.

Highlights show:

Hole PLS13-084

  • 0.11% U3O8 over 8 metres, starting at 129.5 metres in downhole depth

  • 0.27% over 25.5 metres, starting at 156.5 metres

  • 0.3% over 7 metres, starting at 195 metres

  • 0.13% over 12.5 metres, starting at 206.5 metres

  • 3.69% over 13.5 metres, starting at 232.5 metres
  • (including 9.12% over 1 metre)
  • (and including 7.27% over 4.5 metres)

Hole PLS13-092

  • 0.84% over 16 metres, starting at 163 metres
  • (including 1.62% over 4 metres)
  • (and including 6.22% over 0.5 metres)

  • 0.15% over 7.5 metres, starting at 196 metres

Hole PLS13-096

  • 0.3% over 7.5 metres, starting at 98 metres

  • 1.59% over 40 metres, starting at 138 metres
  • (including 14.22% over 3 metres)

  • 2.4% over 11 metres, starting at 186 metres
  • (including 6.91% over 2 metres)

  • 7.91% over 14 metres, starting at 249.5 metres
  • (including 18.2% over 5.5 metres)
  • (which includes 43.7% over 0.5 metres)

True widths were unavailable. Drilling was vertical or near-vertical, with dips of 90, -88 and -89 degrees respectively.

The previous week, PLS’s now sole owner closed a $12.87-million financing for the project’s “most aggressive drill program to date” with about 100 holes totalling 30,000 metres, along with further geophysics. Winter is not a quiet time in the Athabasca Basin.

Lakeland recruits more expertise while planning Gibbon’s Creek winter program

Two more Lakeland Resources’ TSXV:LK appointments bring additional experience to the company’s management and board. December 16 and 19 announcements reported Neil McCallum joining as director and Frances Petryshen as corporate secretary.

McCallum, a project manager with Dahrouge Geological Consulting, has served a number of companies with target generation, hiring, logistics, land management, data compilation, project reviews and management.

“Among the first Basin projects I worked on was staking the Waterbury Lake project that started with Strathmore Minerals and turned into Fission Energy,” McCallum says. Fission Energy’s 60% interest in Waterbury was the main impetus for Denison Mines’ TSX:DML acquisition of the company earlier this year. The project’s J zone now shows an indicated resource of 291,000 tonnes averaging 2% for 12.81 million pounds U3O8.

“Also with Dahrouge, I worked on the Patterson Lake project, which morphed into Patterson Lake South,” McCallum adds. “Part of that work back in 2004 was digging through historic data, looking for projects that had been passed over by some of the major companies. So I’ve been familiar with the Basin since that time.”

His involvement in a variety of projects with prospect generator Zimtu Capital TSXV:ZC led him to Lakeland, a Zimtu core holding, about a year ago. “Having worked with Zimtu and Ryan Fletcher, I found I like the way he operates. He’s similar to me in that he’s a young guy who thinks outside the box. When you work with different projects and different teams you can look at the Basin from a different angle. I think that’s what people like Ryan and myself bring to the table—a bit of a different perspective.”

We’ll continue building our team and our projects so that when uranium’s price environment changes, which it will, we’ll be very well established.—Lakeland Resources
director Ryan Fletcher

As a Lakeland director, McCallum will play a wider role in the company than before. “A big part of Lakeland’s goal is to find projects either by staking or linking up with other companies,” he explains. “So a lot of what I’ll do is review those projects on a technical basis to make informed decisions.”

Fletcher reinforces those comments. “Our group has worked with Neil for several years now and I’ve seen the impact he’s had on other projects. But he’s also focused a lot on uranium and the Athabasca Basin. He has a talent for looking at historic data, filing through the assessment reports and putting it all into context. He’s already been helping with project management on our Gibbon’s Creek/Riou Lake project, but now he’s joining the board to represent shareholders and drive shareholder value.”

As corporate secretary Frances Petryshen brings 25 years of experience specializing in corporate compliance and governance for public, private and not-for-profit organizations. She’s been a director and officer with several public and private companies including CanAlaska Uranium TSX:CVV, where she worked from 2007 to 2012.

Petryshen is an accredited director and a fellow with the Institute of Chartered Secretaries and Administrators, where she currently serves as director and chairperson of the British Columbia branch.

“Her appointment is another important step towards adding the right people to deliver as we grow the company and expand our exploration and activity in the Athabasca,” said Lakeland president/CEO Jonathan Armes in a statement accompanying the announcement. “Frances will be an important contributor and a trusted adviser and associate to our team.”

The news follows several recent Lakeland announcements including the appointments of mining specialists Sam Wong as CFO and Canon Bryan as adviser, JVs with Declan Resources TSXV:LAN and Star Minerals Group TSXV:SUV, and a research report by Zimtu research and communications officer Derek Hamill.

With summer/autumn field work complete, planning now takes place for the 12,771-hectare Gibbon’s Creek winter campaign. “We’ll be very active throughout the new year as well,” Fletcher says. “We’ll continue building our team and our projects so that when uranium’s price environment changes, which it will, we’ll be very well established.”

Mega Uranium to get Energy Fuels’ interest in Bayswater; EFR signs KEPCO agreement

Under a share swap announced December 19, Energy Fuels TSX:EFR signed an agreement to exchange all its Bayswater Uranium TSXV:BYU stock with Mega Uranium TSX:MGA for 1.7 million newly issued Mega shares. Energy Fuels got the 11.5% interest in Bayswater on taking over Strathmore Minerals in September. Subject to all approvals, the co-signers expect to close the transaction by January 17.

The companies are hardly unacquainted. Energy Fuels is already a Mega shareholder. Mega, meanwhile, owns about 17% of NexGen Energy TSXV:NXE. Although Mega lost its bid for Rockgate Capital TSX:RGT in October, the following month it picked up 28% of the ASX-listed Toro Energy in return for Mega’s Lake Maitland pre-development project in Western Australia. Energy Fuels holds a 5% gross production royalty on the Reno Creek uranium project, which last March reached pre-feasibility under a Bayswater affiliate.

Energy Fuels supplies about 25% of American uranium production. In November the company suspended development of its Canyon mine in Arizona due to low commodity prices and legal action challenging the U.S. Forest Service’s approval of the mine.

On December 17 the company announced a strategic relationship agreement with the Korea Electric Power Corp. But details were lost in Energy Fuels’ vaguely written news release.

Ur-Energy offered 50% discount on Pathfinder Mines, AREVA to get 5% royalty

A revised agreement offers Ur-Energy TSX:URE a half-price deal on Pathfinder Mines and its two former Wyoming mines with historic resources. The acquisition was originally priced at US$13.25 million in July 2012. Now, “in recognition of current market conditions,” AREVA affiliate COGEMA Resources will let go of Pathfinder for approximately $6.625 million in return for a 5% gross royalty on Pathfinder’s Shirley Basin property. The royalty remains subject to caps depending on uranium’s price. Ur-Energy has already put $1.325 million into escrow. Some other details have yet to be negotiated, the company stated.

Three days after that December 16 announcement, the company reported a private placement expected to close on December 20 for approximately $5.18 million. The money was earmarked for the Pathfinder acquisition.

Earlier in December Ur-Energy reported a first shipment of 35,000 pounds U3O8 left its Lost Creek mine in Wyoming. Lost Creek’s resource update was released in November.

In late October the company closed a $34-million Wyoming state loan after having previously borrowed $35 million from RMB Australia Holdings Ltd.

Uranium exploration finds frac sand potential on Declan Resources’ Firebag River

Initial field work by Dahrouge Geological Consulting shows potential for high-quality frac sand on Declan Resources’ Firebag River property in northeastern Alberta, the company announced December 18. Samples from depths of less than two metres revealed “high silica content, quality sphericity and roundness values, and a high percentage of sand falling within the preferred 20/40 and 40/70 mesh sizes,” Declan stated.

Using figures from consulting firm PacWest, a December 2 Wall Street Journal report says oil and gas companies have boosted sand demand 25% since 2011, with another 20% increase expected over the next two years.

Declan intends to follow up on the finding “along with its principal objective of uranium exploration” at the 50,000-hectare property just southwest of the Basin. One day earlier the company released silver-copper results from its Nimini Hills property in Sierra Leone. In early December Declan signed a JV on Lakeland Resources’ Gibbon’s Creek project, a four-year option which would inject an extra $1.25 million into the property’s 2014 drill program.

Next Page 1 | 2

Athabasca Basin and beyond

December 14th, 2013

Uranium news from Saskatchewan and elsewhere for December 7 to 13, 2013

by Greg Klein

Next Page 1 | 2

Spincos Fission 3.0 and Alpha Exploration debut on TSXV, Fission Uranium plans most aggressive campaign ever

Never mind Fission 3.0’s FUU ticker. When Fission Uranium TSXV:FCU was created out of Fission Energy earlier this year, only a last-minute change prevented that spinco from becoming FUC. And now that Alpha Minerals has delisted to create its spinco, Alpha Exploration TSXV:AEX, two new companies join the Venture while Patterson Lake South comes under the sole ownership of Fission Uranium, a particularly tempting takeover target.

Uranium news from Saskatchewan and elsewhere for December 7 to 13, 2013

Now with sole control over Patterson Lake South, Fission Uranium seems
likely to use winter drilling as a theatrical build-up to a maiden resource.

Fission 3.0 debuted December 10 at $0.12 and quickly shot up to $0.30 before plunging to a $0.135 close. The stock finished December 13 at $0.16. With 152.96 million shares outstanding, Mach III had a $24.47-million market cap.

Alpha Exploration began trading December 12 at $0.45 and reached a daily high of $0.63. But it fell all the way to a $0.30 close. The following day’s finish dropped a penny lower. AEX’s 13.96 million shares represented a market cap of $4.05 million.

Each spinco got $3 million in start-up money from Fission Uranium. Alpha Minerals nominees Warren Stanyer and Kurt Bordian joined Fission Uranium’s board, replacing Frank Estergaard and Jeremy Ross who moved to Fission 3.0 along with Dev Randhawa and Ross McElroy, who lead both Fissions. Alpha Exploration’s management and board remains “substantially the same” as that of Alpha Minerals.

Meanwhile the PLS role played by father/son team Ben and Garrett Ainsworth (ex-Alpha Minerals now Alpha Ex) have won them the 2013 Colin Spence Award for excellence in global mineral exploration, the Association for Mineral Exploration British Columbia announced on December 12.

Fission 3.0 keeps its predecessor’s uranium focus with six Athabasca Basin-area projects and another in the Macusani region of Peru. Alpha Exploration lists its initial key assets as two gold projects, Mikwam in Ontario and Donna in B.C., as well as Saskatchewan uranium properties.

The spin-outs have hardly diminished Fission Uranium’s attraction, a $12.87-million financing suggests. Announced December 11, the company’s 8.58 million $1.50 subscription receipts have been exchanged for one flow-through share each, a transaction that closed after the Alpha Minerals acquisition.

Evidently emboldened by all that dough, McElroy announced Fission Uranium’s “most aggressive drill program to date at PLS—approximately 30,000 metres in up to 100 drill holes,” the news release quoted him. “Our core focus will be growth, including the specific goal of eliminating the distance between the six identified zones. We will also be testing new targets, using radon sampling on other EM conductors and employing resistivity ground geophysics to help identify additional prospective corridors.”

With assays still pending for over 50 holes, Fission Uranium might be accused of teasing investors prior to a first resource.

Late December 13 the company announced it granted a consultant one million options at $1.10 for two years.

Lakeland Resources bolsters team with Canon Bryan and Sam Wong

Two more appointments add to a busy period of announcements from Lakeland Resources TSXV:LK. On December 9 mining financial professional Canon Bryan joined Lakeland’s advisory board. Two days later another mining specialist, Sam Wong, took the position of chief financial officer.

With Bryan’s appointment Lakeland not only gains additional expertise but renews a relationship that’s already proved successful. Bryan’s resume lists management positions for several public and private companies including Uranium Energy Corp NYSE MKT:UEC, which Bryan co-founded. He also founded Terrestrial Energy Inc, which is developing a commercial molten salt reactor, and operates a merger-and-acquisition consulting service for the uranium sector.

Now he’s working again with people who’ve benefited from his past accomplishments. Lakeland director Ryan Fletcher recalls the genesis for what’s now NioCorp Developments TSXV:NB. “Canon came to us [Zimtu Capital Corp TSXV:ZC] with the idea to go to Nebraska and acquire a niobium project,” Fletcher says. “It was a great project, although difficult because we had to acquire it from 40 farmers. It took quite a while and a bit of money but we were successful.”

I co-founded [Uranium Energy Corp] with three other folks and took it through the hoops. It’s now listed on the New York Stock Exchange and producing uranium in Texas.—Lakeland Resources
adviser Canon Bryan

Known as Elk Creek, NioCorp calls it “the only primary niobium deposit in the U.S., and… the highest-grade, large-tonnage undeveloped deposit in North America.”

Bryan says, “I found the project and Zimtu was able to facilitate funding, so it was a good collaboration and profitable for everyone.”

With Uranium Energy Corp, “I co-founded the company with three other folks and took it through the hoops,” Bryan adds. “It’s now listed on the New York Stock Exchange and producing uranium in Texas. Producing uranium in the U.S. is quite a rare thing. It’s something I’m personally quite proud of.”

He says working with Lakeland renews “a collaboration that’s never really gone away. We’re colleagues in the industry. We agreed it would be a good fit for everybody, very much an organic fit.”

He joins three other well-respected names on Lakeland’s advisory board, all with complementary fields of expertise—John Gingerich, Richard Kusmirski and Thomas Drolet.

“Uranium M&A is my area of expertise,” Bryan says. “So naturally that’s something I would like to bring to the table.”

Wong, Lakeland’s new CFO, holds the same position at Lowell Copper TSXV:JDL and Chesapeake Gold TSXV:CKG. He’s also served as corporate controller at Luna Gold TSX:LGC, where he oversaw the finance division during Luna’s transition from development to commercial production. Wong articled as a chartered accountant at Deloitte & Touche LLP, where he specialized in assurance and advisory for mining companies.

In a statement accompanying the December 11 announcement, Lakeland president/CEO Jonathan Armes said Wong brings “strength in financial reporting, strategic planning, corporate governance, equity financings, due diligence for acquisitions and corporate development to our growing team. His attention to detail and in running a tight ship will be another strong asset for Lakeland as we advance as an up-and-coming leader in the Athabasca Basin.”

The appointments follow a flurry of recent news from the uranium explorer, which includes a joint venture with Declan Resources TSXV:LAN that expands Lakeland’s upcoming Gibbon’s Creek drill program, another JV with Star Minerals Group TSXV:SUV that increases Lakeland’s portfolio and the publication of a research report by Zimtu research and communications officer Derek Hamill.

Meanwhile results are pending from last season’s exploration on the Riou Lake/Gibbon’s Creek property in the north-central Basin.

Read more about Lakeland Resources here and here.

Forum completes ground gravity survey, plans ground EM at Clearwater

A December 11 announcement moves Forum Uranium TSXV:FDC closer to drilling its Clearwater project. With a ground gravity survey finished, around 11 drill targets have been chosen. The survey followed up on previously identified electromagnetic conductors and radon anomalies to find four gravity lows, three of which held several conductors. An early January ground EM survey will further refine targets for drilling that’s expected to start later that month.

In late November Forum released lake sediment samples from the southern area of the 9,910-hectare property. Clearwater lies adjacently southwest of, and on trend with, PLS.

Next Page 1 | 2

Athabasca Basin and beyond

November 30th, 2013

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

by Greg Klein

Next Page 1 | 2

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

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

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

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

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

Read more about the takeover.

Read more about uranium merger-and-acquisition activity.

PLS regional drilling disappoints but Fission/Alpha end campaign triumphantly

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

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

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

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

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

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

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

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

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

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

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

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

Research report examines Lakeland Resources as company acquires additional Basin property

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

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

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

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

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

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

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

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

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

Download the Lakeland Resources research report.

Read more about Derek Hamill’s research.

Read more about Lakeland Resources.

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

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

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

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

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

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

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

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

  • 0.48% over 3 metres, starting at 979.9 metres

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

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

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

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

  • 0.14% over 0.9 metres, starting at 765.4 metres

  • 0.21% over 0.9 metres, starting at 748.4 metres

(True widths were unavailable for all holes.)

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

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

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

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

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

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

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

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

Next Page 1 | 2