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Posts tagged ‘Forum Uranium Corp (FDC)’

Athabasca Basin and beyond

November 17th, 2013

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

by Greg Klein

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

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

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

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

  • 0.12% U3O8 and 0.06% V2O5 over 0.7 metres

  • 0.13% U3O8 and 0.05% V2O5 over 0.5 metres

  • 0.25% U3O8 and 0.09% V2O5 over 0.9 metres

  • 1.18% U3O8 and 0.52% V2O5 over 0.4 metres

  • 0.24% U3O8 and 0.08% V2O5 over 1.5 metres

Highlights from horizontal channel sampling of the basement rock show:

  • 0.09% U3O8 and 0.04% V2O5 over 0.6 metres

  • 0.09% U3O8 and 0.04% V2O5 over 0.9 metres

  • 0.16% U3O8 and 0.07% V2O5 over 0.2 metres

  • 0.79% U3O8 and 0.26% V2O5 over 0.1 metre

  • 0.17% U3O8 and 0.06% V2O5 over 0.4 metres

The company didn’t provide the depth to basement.

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

Laguna Salada has a 2011 resource estimate showing:

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

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

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

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

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

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

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

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

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

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

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

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

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

True widths weren’t provided.

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

Hole PLS13-078

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

  • (including 7.62% over 1.5 metres)

  • 0.12% over 7.5 metres, starting at 128 metres

Hole PLS13-081

  • 0.19% over 18.5 metres, starting at 106 metres

  • Hole PLS13-085

  • 0.93% over 22 metres, starting at 82.5 metres

  • (including 4.07% over 4 metres)

Hole PLS13-086

  • 1.93% over 43 metres, starting at 81.5 metres

  • (including 9.91% over 5 metres)

Hole PLS13-087A

  • 0.28% over 4 metres, starting at 45.5 metres

  • 0.4% over 8.5 metres, starting at 63.5 metres

  • 0.12% over 16.5 metres, starting at 92.5 metres

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

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

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

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

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

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

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

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

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

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

Aldrin reports radon results from Triple M

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

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

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

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Athabasca Basin and beyond

October 26th, 2013

Uranium news from Saskatchewan and elsewhere for October 19 to 25, 2013

by Greg Klein

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Forum reports radon results from PLS-adjacent Clearwater

Forum Uranium TSXV:FDC released soil and water radon surveys from its Clearwater project adjacently southwest to Patterson Lake South. Soil results “are similar and higher than those located immediately west” of the PLS R00E zone, according to Forum’s October 22 announcement. Radon surveys played an important role in identifying drill targets at R00E and east along trend. The Alpha Minerals TSXV:AMW/Fission Uranium TSXV:FCU joint venture now plans autumn drilling west of R00E while waiting for freeze-up.

Forum’s results for three grids show:

  • Bear grid: Up to 1.33 picocuries per square metre per second (pCi/m2/s)

  • West Bear grid: Up to 1.08 pCi/m2/s

  • Mungo grid: Up to 0.92 pCi/m2/s

Additionally, a small lake in the Mungo grid returned up to 18 picocuries per litre (pCi/L), “which is considered to be very anomalous when compared with a maximum value of 12 pCi/L immediately over the Patterson Lake South deposits,” Forum stated. The company added that 428 samples were taken “over areas with electromagnetic conductors and over the interpreted extension of the Patterson Lake structure that hosts the PLS deposits.”

Near-term plans include a ground gravity survey over the same areas and possibly further radon studies prior to setting targets on the 9,910-hectare property for a drill campaign to begin in late January.

Lakeland Resources appoints expert adviser, closes second tranche

In joining the Lakeland Resources TSXV:LK advisory board, Athabasca Basin veteran John Gingerich returns to some familiar turf. With over 30 years’ experience, the geoscientist worked for Eldorado Nuclear from 1979 to 1986, spending most of that time in the north-central Basin exploring property now held by Lakeland, the company stated on October 23. Additionally he served in the Noranda group’s senior management, founded Geotechnical Business Solutions and chairs both the Canadian Mining Industry Research Organization’s exploration division and the Ontario Geological Survey’s advisory board.

The radon survey is done and line-cutting and resistivity are underway. Once we compile that data we’ll have it interpreted and zero in on drill targets likely for January. We’ll have a fairly steady stream of news over the next few months.—Jonathan Armes, president/CEO
of Lakeland Resources

Speaking to ResourceClips.com, Lakeland president/CEO Jonathan Armes says Gingerich “co-ordinated exploration activities from Stony Rapids to Fond du Lac, on properties we’re now exploring, so he’s quite familiar with that neck of the woods. But at that time they didn’t have some of the technologies we now have in the way of geophysics and radon surveys. He said it was tough determining where to drill back in those days. But he certainly feels there’s potential based on the historic findings. He’s also trying to dig up some additional historic work besides the data we’ve already found. He’s definitely a valuable addition to our board, given his experience up there.”

Gingerich joins two other industry authorities on Lakeland’s advisory board, Richard Kusmirski and Thomas Drolet.

Lakeland also announced the closing of a second and final tranche of its private placement, bringing in $318,948 for a total of $1,057,718 to fund further work. Activity focuses on the Gibbon’s Creek target of the Riou Lake property.

“The radon survey is done and line-cutting and resistivity are underway,” Armes says. “Once we compile that data we’ll have it interpreted and zero in on drill targets likely for January. We’ll have a fairly steady stream of news over the next few months. We also retained an interest in the gold project we vended to New Dimension Resources [TSXV:NDR], which will likely be drilled in the next few weeks. That’s a bonus side story for us while we continue our focus on the Basin. So things are going extremely well.”

Read more about Lakeland Resources.

Rockgate reluctantly recommends Denison bid, Denison extends deadline

It’s an “unsolicited opportunistic hostile takeover bid,” according to Rockgate Capital TSX:RGT directors. So it was with obvious reluctance that they recommended shareholders accept the offer from Denison Mines TSX:DML. Nearly five weeks of effort failed to find a superior proposal, Rockgate announced October 21.

Uranium news from Saskatchewan and elsewhere for October 19 to 25, 2013

A crew prepares to drill a target on
Rockgate’s flagship Falea project in Mali.

But three days later, and just one day before its offer was to expire, Denison extended the deadline to November 1. Denison stated that, while its bid remains open for acceptance, the company needed time to remedy change of control protections that Rockgate had provided to employees and consultants: “In light of these actions, the conditions to Denison’s takeover bid offer cannot be fulfilled.”

Read more about Denison’s offer, Rockgate’s response and the failed merger with Mega Uranium.

Read about other uranium merger-and-acquisition activity.

Zadar completes PNE Phase II, grants options

Results are pending but Phase II exploration at Zadar Ventures’ TSXV:ZAD PNE project has wrapped up, the company announced October 22. Work included scintillometer prospecting, boulder mapping and radon surveys over nine areas. The company added that an eight-kilometre conductive trend on the adjacent Patterson Lake North project announced earlier this month by JV partners Fission and Azincourt Uranium TSXV:AAZ marks a “very positive development” for the 15,292-hectare PNE property.

Zadar also announced 100,000 incentive options at $0.25 for two years.

Last month the company signed a definitive agreement to acquire the 37,445-hectare Pasfield Lake property on the Athabasca Basin’s east side.

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Athabasca Basin and beyond

September 22nd, 2013

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

by Greg Klein

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Fission and Alpha sign acquisition agreement, Denison challenges Mega for Rockgate

Another burst of merger and acquisition activity hit the markets last week. Joint September 18 statements from Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW announced a definitive agreement for the former’s acquisition of the latter. The proposed Mega Uranium TSX:MGA/Rockgate Capital TSX:RGT merger, however, took a surprising turn with Denison Mines’ TSX:DML unsolicited pitch for Rockgate. Denison’s September 17 announcement claimed a 38% premium over Mega’s offer, based on the previous day’s closing prices.

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

In addition to taking a run at Rockgate, Denison filed a revised
43-101 report for six deposits on its Mutanga property in Zambia.

The Fission/Alpha rationale is to put their 50/50 joint venture under a single owner, creating a company solely focused on Patterson Lake South and presumably a more attractive takeover target. Their other properties would go to two newly created spincos. Should Denison’s offer succeed, the company would spin out its African assets along with Rockgate’s advanced-stage Mali project. That would leave Denison focused on the Athabasca Basin.

Read more about these proposals and other uranium M&A news.

(Update: On September 24 Rockgate terminated its proposed merger with Mega. Read more.)

PLS assay backlog grows as Fission/Alpha release more scintillometer results

Step-out drilling confirmed strong mineralization in Patterson Lake South’s newest zone, Alpha and Fission stated on September 16. The JV partners released scintillometer readings for two new holes on zone R945E, the fourth of four zones along a 1.02-kilometre southwest-northeast trend.

The hand-held device measures drill core gamma rays in counts per second, up to an off-scale reading above 9,999 cps. The results are no substitute for assays, which are pending.

Hole PLS13-092 was collared roughly 10 metres north of existing holes. It reached a total downhole depth of 377 metres, striking the basement unconformity at 59 metres without encountering sandstone. Some highlights include:

  • <300 to 1,400 cps over 3 metres, starting at 157.5 metres in downhole depth

  • <300 to >9,999 cps over 16 metres, starting at 163 metres

  • <300 to 1,800 cps over 11 metres, starting at 192.5 metres

  • 460 to 2,500 cps over 2.5 metres, starting at 238 metres

PLS13-096 was collared about 15 metres grid west of PLS-084, replacing it as the zone’s most southwesterly hole. It found no sandstone, hit the basement unconformity at 56.5 metres and stopped at 365 metres. Highlights include:

  • <300 to >9,999 cps over 42.5 metres, starting at 135.5 metres in downhole depth

  • 310 to >9,999 cps over 11.5 metres, starting at 185.5 metres

  • <300 to >9,999 cps over 10.5 metres, starting at 235.5 metres

  • <300 to >9,999 cps over 14.5 metres, starting at 249 metres

True widths weren’t available. The two holes were drilled at -88 and -89 degree angles respectively, making downhole depths close to vertical.

The $6.95-million program calls for 44 holes totalling 11,000 metres, along with geophysics. These results bring the summer’s drilling to 27 holes totalling 8,488 metres. So far just one of the holes has had lab assays released. Scintillometer readings have been reported for 18 holes this summer.

Denison files combined resources for Mutanga property in Zambia

Denison has filed a new NI 43-101 report to replace two previous reports for its Mutanga property in Zambia, the company announced on September 16. The New Mutanga Report follows an Ontario Securities Commission review of a resource filed in March 2012 for the property’s Dibwe East deposit. The OSC declared that report non-compliant because it didn’t include all resource estimates and material information for the property as a whole. Denison’s new report incorporates information covered in a 2009 report on the Mutanga and Dibwe deposits, as well as the 2012 info for Dibwe East.

Of the project’s six deposits, only Mutanga shows measured, indicated and inferred categories. Mutanga Extension, Mutanga East, Mutanga West, Dibwe and Dibwe East have inferred pounds only. Combined, the estimate shows:

  • a measured resource of 1.88 million tonnes averaging 0.048% for 2 million pounds uranium oxide (U3O8)

  • an indicated resource of 8.4 million tonnes averaging 0.031% for 5.8 million pounds

  • inferred resources totalling 65.2 million tonnes averaging 0.029% for 41.4 million pounds

The 457.3-square-kilometre property is about 200 kilometres south of the capital city of Lusaka, near the Zimbabwean border.

The previous week, Denison updated two Athabasca Basin projects with a new resource for Waterbury Lake and more high-grade assays from Wheeler River.

Lakeland Resources options gold project to focus on Athabasca uranium

Now a pure play uranium explorer, Lakeland Resources TSXV:LK optioned a north-central Ontario gold property to New Dimension Resources TSXV:NDR, the companies announced September 16. New Dimension may earn a 70% interest in the Midas project by paying $100,000, spending $1.2 million and issuing 1.5 million shares. New Dimension must spend $300,000 on exploration by December 31.

We’re maintaining our focus on uranium, yet we’re not giving away what could turn out to be a valuable asset in the end. In our view there’s no downside to our shareholders, only a potential upside.—Roger Leschuk, corporate communications manager for Lakeland Resources

The 2,112-hectare road-accessible property has already seen ground magnetics, induced polarization and 16 drill holes that partially defined two gold-bearing zones, with 14 holes showing gold mineralization. Among the assays was 5.92 grams per tonne gold over 4.7 metres, starting at 45.7 metres in depth and including 8.88 g/t over 2.6 metres.

“We get to maintain an interest in a property that looks very encouraging to say the least,” Lakeland corporate communications manager Roger Leschuk tells ResourceClips.com. “The people who are picking it up are a very good group and they see this as potentially becoming their flagship property. The great part about it for Lakeland is we retain a 30% interest all the way potentially to a new discovery. We’re maintaining our focus on uranium, yet we’re not giving away what could turn out to be a valuable asset in the end. In our view there’s no downside to our shareholders, only a potential upside.”

A fall drill program is expected to begin shortly, the companies stated.

Read more about Lakeland Resources.

Forum announces fall/winter plans for its PLS-adjacent Clearwater project

In a September 17 report, Forum Uranium TSXV:FDC updated its Clearwater project, which underwent ground radiometric prospecting, lake sediment geochemical surveys and soil radon surveys in late August and early September. The radon survey found anomalous zones immediately southwest of the adjacent PLS property, the company stated. Forum now plans further prospecting of radiometric anomalies, as well as an expanded radon survey to cover areas with electromagnetic conductors on strike with the PLS conductive trend. Autumn is scheduled for ground EM surveys and early winter for ground gravity work to identify drill targets for the 9,910-hectare property in late January.

One week earlier Forum said its private placement raised $2.59 million.

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Athabasca Basin and beyond

September 15th, 2013

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

by Greg Klein

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Denison updates Waterbury Lake resource, releases Wheeler River assays up to 43.8% U3O8 over 12 metres

Denison Mines TSX:DML confirmed its best-ever hole from the eastside Athabasca Basin Wheeler River project on September 11. Releasing lab assays to back up previously reported radiometric results from downhole probes, the company reported hole WR-525 with 43.8% uranium oxide (U3O8) over 12 metres, starting at 400.5 metres in downhole depth.

With intercepts approximately equal to true thicknesses, some other results include:

  • 20% U3O8 over 8 metres, starting at 407.5 metres

  • 10.9% over 8.5 metres, starting at 404.1 metres

  • 7.3% over 8 metres, starting at 405.5 metres

  • 0.5% over 5 metres, starting at 424 metres

  • 0.4% over 3 metres, starting at 411 metres

  • 0.1% over 3 metres, starting at 412 metres

The above results come from the Phoenix A zone. Apart from lab assays, the company released radiometric readings from probes of three new holes at the same zone:

Hole WR-533

  • 1.5% radiometric equivalent uranium oxide (eU3O8) over 4.5 metres, starting at 407.1 metres in downhole depth

Hole WR-534

  • 10.3% over 3.1 metres, starting at 407.7 metres

Hole WR-535

  • 19% over 2.5 metres, starting at 404.9 metres

  • 1.4% over 1 metre, starting at 408.1 metres

With 23 holes totalling 11,074 metres, Wheeler River’s summer campaign has finished. But while Phoenix A continues to impress, other parts of the project so far haven’t. Of 10 holes sunk in the 489 zone, only one found significant mineralization (0.4% over 3 metres, starting at 411 metres). Five others at the Phoenix North and REA areas also failed to find significant results.

The project has a December 2012 resource using a 0.8% cutoff. Phoenix A shows:

  • an indicated category of 133,500 tonnes averaging 15.8% for 46.5 million pounds U3O8

  • an inferred category of 6,300 tonnes averaging 51.7% for 7.2 million pounds

The Phoenix B deposit shows:

  • an indicated category of 19,000 tonnes averaging 14.1% for 5.9 million pounds

  • an inferred category of 5,300 tonnes averaging 3.5% for 400,000 pounds

The joint venture is held 60% by Denison, 30% by Cameco Corp TSX:CCO and 10% by JCU (Canada) Exploration.

On September 12 Denison unveiled a new resource for the J zone of its Waterbury Lake project. The update, entirely in the indicated category, uses a 0.1% cutoff to show 291,000 tonnes averaging 2% for 12.81 million pounds U3O8. The resource reduces the overall tonnage but increases the grade reported in a December 2012 estimate compiled for Fission Energy prior to its acquisition by Denison.

Assays from 268 holes were used for the estimate. With an east-west strike as long as 700 metres and a width up to 70 metres, the J zone generally shows mineralization at depths of 195 to 230 metres, the company reported. No capping was applied because using “high composite values uncut would be negligible to the overall resource estimate,” Denison added. The crew now has a six-hole campaign following up on a DC-resistivity survey northwest along trend of the zone. Denison has a 60% interest in the project, with the Korea Electric Power Corp (KEPCO) holding the remainder.

Denison also updated other Basin projects. Packrat has geochemical results pending, which will determine whether drilling resumes next year. Geochem results are also pending for South Dufferin, where 10 holes failed to find significant mineralization but did confirm the presence of the Dufferin Lake fault system. Crawford Lake, Moon Lake (held 45% by Uranium One TSX:UUU) and Bachman Lake (with International Enexco TSXV:IEC earning 20%) also have small drill programs underway.

Kivalliq reports geochem, metallurgical results for its Angilak property in Nunavut

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

Currently undergoing a $4.8-million campaign, Kivalliq Energy’s
137,699-hectare Angilak project in southern Nunavut hosts Canada’s
highest-grade uranium deposit outside the Athabasca Basin.

Extensive geochemical sampling has helped Kivalliq Energy TSXV:KIV find new anomalous areas and determine drill targets on its 137,699-hectare Angilak project in Nunavut. Some 1,538 samples brought 387 anomalous uranium soil geochem results along the three-by-12-kilometre Lac 50 trend, as well as the Nine Iron-KU trend 5.5 kilometres south. Some of the Lac 50 anomalies were found at least 600 metres beyond existing drill holes “demonstrating much more work is warranted in these areas,” the company stated on September 9. Anomalies also coincided with three electromagnetic conductor targets located 3.8 kilometres northeast, 1.8 kilometres southeast and one kilometre north of the Lac 50 resource.

Another EM target extending 8.1 kilometres from the Nine Iron zone to the KU zone showed 44 anomalous results.

Two days later Kivalliq announced positive metallurgical results for Lac 50 and J4 zone samples. In a statement accompanying the release, Chuck Edwards, director of metallurgy for the engineering firm AMEC, said: “Optimizing sulphide recovery, plus improvements to alkaline leach kinetics using oxygen as oxidant, could have a positive impact on reducing costs associated with potential treatment options.”

In addition, Kivalliq announced a trial run suggested radiometric sorting might “efficiently identify and segregate uranium-bearing minerals” from Lac 50.

Located 225 kilometres south of Baker Lake, Angilak has a 2013 exploration budget of $4.8 million. With Canada’s highest-grade deposit outside the Athabasca Basin, the project has a January inferred resource estimate using a 0.2% cutoff to show 2.83 million tonnes averaging 0.69% for 43.3 million pounds 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 project in partnership with Nunavut Tunngavik Inc.

Alpha/Fission release scintillometer results, extend acquisition letter of intent

Somewhere there must be a considerable backlog of Patterson Lake South core waiting to be assayed. So far this year, 50/50 JV partners Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW have mostly released scintillometer readings. A preliminary indication of radioactivity, they measure gamma rays in counts per second, up to an off-scale reading above 9,999 cps. The September 12 batch comes from R780E, the third of four zones along a 1.02-kilometre southwest-northeast trend.

Hole PLS13-082 reached a total depth of 380 metres, finding the basement unconformity at 55.3 metres without striking sandstone. Some results show:

  • <300 to 500 cps over 7.5 metres, starting at 118.5 metres in downhole depth

  • <300 to 820 cps over 3.5 metres, starting at 141 metres

  • <300 to >9,999 cps over 35 metres, starting at 146.5 metres

  • 1,000 to 4,200 cps over 1.5 metres, starting at 237 metres

Hole PLS13-089 encountered no sandstone and hit the basement unconformity at 54.2 metres on its way to a total depth of 393 metres. Some examples show:

  • <300 to 1,800 cps over 5 metres, starting at 142.5 metres

  • <300 to 3,200 cps over 16.5 metres, starting at 150 metres

  • 740 to >9,999 cps over 1.5 metres, starting at 179.5 metres

  • <300 to 6,500 cps over 8 metres, starting at 198.5 metres

True widths were unavailable. Lab assays are pending.

With 25 holes totalling 7,746 metres complete by September 11, the campaign’s $6.95-million, 44-hole, 11,000-metre program is well advanced. Fission acts as project operator.

On September 13 the partners updated Fission’s proposed acquisition of Alpha. They’ve now extended to September 17 “the date by which the obligations set out in the LOI, including the signing of an arrangement agreement, must be completed.”

Zadar finds radioactive boulders in PLS-vicinity PNE project

With Phase I exploration complete on Zadar Ventures’ TSXV:ZAD PNE project, a scintillometer has found boulders measuring 130 to 405 cps. “The anomalous boulders sampled have basement rock lithologies similar to those reported in the early stages” of Alpha/Fission’s PLS, Zadar stated on September 11. The program also included taking boulder chip samples for assays and placing radon gas detector cups.

Phase II calls for additional scintillometer prospecting and boulder sampling, as well as a survey of more than 350 radon cups. The team also plans to locate the 15,292-hectare property’s single historic hole. PNE lies about 11 kilometres northeast of PLS and adjacent to Patterson Lake North, a 50/50 JV between Fission and Azincourt Uranium TSXV:AAZ.

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Athabasca Basin and beyond

August 31st, 2013

Uranium news from Saskatchewan and elsewhere for August 24 to 30, 2013

by Greg Klein

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Fission proposes Alpha takeover for sole control of Patterson Lake South

Fission Uranium threatened to go hostile when Alpha Minerals <br />asked for more time to consider its proposal Patterson Lake South” width=”400″ height=”300″ />
<p class=Fission Uranium threatened to go hostile when Alpha Minerals
asked for more time to consider its proposal.

This week’s Patterson Lake South news came not from the field or an assay lab but from the boardrooms. Separate August 26 news releases from 50/50 joint venture partners Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW revealed that talks had been underway about the former taking over the latter.

It transpired that after the market closed on Friday, August 23, Fission gave Alpha until the following Sunday afternoon to respond to Fission’s all-share offer, then valued at $7.26 per Alpha share or about $170.44 million. When Alpha asked for more time to consider, Fission went public, saying it “will consider making a formal offer directly to Alpha’s shareholders.”

By press time August 31, neither company had made further announcements on the subject.

Read more about Fission’s proposal and Alpha’s response.

Read commentator Tommy Humphreys’ suggestions for a combined Fission/Alpha team.

Update: On September 3 both companies announced a letter of intent for Fission to acquire Alpha. Read more.

Ashburton finds radioactive boulders at Sienna West, reports historic data

Ashburton Ventures TSXV:ABR has wrapped up Phase I exploration at its 1,090-hectare Sienna West property about 40 kilometres southwest of the PLS discovery, the company announced on August 28. “Numerous” radioactive boulders showed gamma ray readings above 200 counts per second, with some measuring 1,500 to 1,800 cps. About 20 boulders will be assayed, the company stated. In addition 40 radon detector cups were placed, to be retrieved for analysis after 30 days.

Ashburton also cited historic, non-43-101 Geological Survey of Canada sediment samples from two lakes on the property that showed results in the 98th percentile of 909 samples from roughly 16,000 square kilometres of northwestern Saskatchewan. The lakes are two kilometres apart, suggesting the results “are not an isolated occurrence,” the company added.

The Sienna project includes the 147-hectare Sienna North property contiguous with PLS’s northern boundary. Two weeks earlier Ashburton reported a crew found radioactive boulders there, which were sent for assays, and placed radon cups. The company plans to identify drill targets for Sienna’s next phase.

Enexco/Denison drill Bachman Lake

Drilling has begun at Bachman Lake, an 11,419-hectare property about four kilometres west of Cameco Corp’s TSX:CCO proposed Millennium mine in the southeastern Athabasca Basin. The three-hole, 1,900-metre program will cost JV partners Denison Mines TSX:DML and International Enexco TSXV:IEC $570,000, the latter announced on August 26. The helicopter-supported campaign will test three conductors that lie 2.5 to five kilometres apart.

Enexco may earn a 20% interest by funding $500,000 by year-end. Denison, which holds a 7.4% interest in Enexco, acts as project operator. Enexco also holds a 30% interest in the 3,407-hectare Mann Lake JV 20 kilometres northeast, along with Cameco (52.5%) and AREVA Resources Canada (17.5%). In Nevada, Enexco’s 100% Contact copper project now undergoes pre-feasibility.

Fission finds “significant and strongly radioactive” anomalies on North Shore

On the northwestern Basin, airborne geophysics found two “significant and strongly radioactive” anomalies on Fission’s North Shore property, the company reported August 29. “The northern anomalous region occurs within a 1.5-kilometre by 0.5-kilometre area and contains several parallel trends up to 300 metres,” the company stated. Another anomaly about seven kilometres southwest ranges between one to 10 kilometres wide and up to three kilometres long. The company added that radiometrics suggest some of the larger anomalies “are likely to be part of the outcrop/sub-crop, as opposed to boulders.”

Fission credited the find to its patent-pending System and Method for Aerial Surveying or Mapping of Radioactive Deposits, which the company says is the same technology that found the PLS boulder field. In August Fission’s collaborator on the system, Special Projects Inc, flew a 12,257-line-kilometre magnetic and radiometric survey at 50-metre line-spacing over the entire property. The system can distinguish between radioactivity released by uranium, thorium or potassium, as well as determine the relative concentration of each element, Fission stated.

Along with further data analysis, the company plans to follow up with mapping and prospecting. The property underwent a seven-hole, 1,260-metre drill program in 2007 and 2008. Fission has interests in seven Basin uranium projects and one in Peru.

U3O8 negotiating JV with Argentinian state-owned company

U3O8 Corp TSX:UWE announced August 27 that advanced discussions are underway with the state-owned mining company of Chubut province, Argentina, to form a JV. The proposal would combine U3O8’s Laguna Salada uranium-vanadium project with adjoining concessions held by Petrominera Chubut SE, onto which U3O8 believes its deposit extends. The company said the deal would also “establish a framework for potential development of the Laguna Salada deposit in compliance with the stringent requirements of the current provincial mining law.” The project has a preliminary economic assessment scheduled later this year.

Having acquired Calypso Uranium last May, U3O8 holds Argentina’s two largest uranium deposits. The country plans to bring a third reactor online this year, boosting its proportion of nuclear energy to 9%, while a fourth reactor is out for tender and a fifth is being planned, U3O8 stated. Argentina currently imports all of its nuclear fuel.

In Colombia, U3O8’s Berlin project has a December PEA for a potential uranium mine with phosphate, vanadium, nickel and rare earths credits. The company also has a uranium project in Guyana.

Boss Power/Morning Star dispute stalls $30-million settlement

A $30-million settlement dating to October 2011 is being held up by a dispute between its beneficiaries. After the British Columbia government suddenly banned uranium and thorium exploration in 2009, the province eventually settled Boss Power’s TSXV:BPU lawsuit out of court. But a condition required the company to surrender its exploration properties, the Blizzard properties and the peripheral B claims. According to an August 19 news release from Morning Star Resources, the settlement hasn’t closed because Boss included those claims in the settlement “without the knowledge and consent of the B claims owner,” Anthony Beruschi.

An August 27 Boss news release acknowledged Beruschi, “sole director and president of Morning Star” and a former Boss director, as “beneficial owner of the B claims.”

Boss’ news release claimed Beruschi “appears determined to extract more than his fair share of the settlement proceeds” and “now appears to be leveraging media and threats of a board replacement to obtain payment for his B claims.”

Morning Star’s August 19 statement said Beruschi “has privately presented several fair offers to Boss’ management and the board to enable Boss to deliver the B claims under the settlement” and accused Boss of “a refusal to negotiate in good faith.”

Morning Star said it will present its own slate of nominees for election to Boss’ board at a meeting Morning Star expects to be held by mid-November “so that it can promptly close the $30-million settlement.” Morning Star stated that it and its affiliates hold about 33% of Boss’ shares.

Boss countered it will “continue its efforts to reach an agreement with Mr. Beruschi while at the same time pursuing court proceedings to allow the settlement proceeds to be paid into court and the settlement to complete.”

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Athabasca Basin and beyond

August 25th, 2013

Uranium news from Saskatchewan and elsewhere for August 17 to 23, 2013

by Greg Klein

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Fission/Alpha extend zone, find “potential candidate” for PLS bedrock source

More scintillometer readings from Patterson Lake South show a 47-metre interval of continuous radioactivity and a 15-metre extension to one zone. Of five holes reported August 22, three showed no sandstone above the basement unconformity. According to joint venture partners Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU, that “makes the R390E zone a potential candidate area for one of the bedrock sources of the large uranium boulder field.” R390E is the second of four zones extending northeast along a 1.05-kilometre potential strike.

The hand-held scintillometer scans drill core to measure gamma rays in counts per second up to an off-scale reading above 9,999 cps. Scintillometer readings are not substitutes for assays, which have yet to come. Radioactivity will also be measured with a downhole probe.

Dips range from 84 to 90 degrees, making downhole depths close to vertical depths. True widths were unavailable. Hole PLS13-078 was drilled to a total depth of 224 metres, encountering sandstone at 50 metres and the basement unconformity at 53.5 metres. Highlights include:

  • <300 to >9,999 cps over 31.5 metres, starting at 85 metres in downhole depth

  • <300 to 5,900 cps over 10 metres

Drilled to a total depth of 230 metres, hole PLS13-081 found two metres of sandstone before striking the basement unconformity at 51.5 metres. The one result released showed:

  • <300 to 7,300 cps over 25.5 metres, starting at 105 metres in downhole depth

Hole PLS13-083 stepped out 15 metres west to extend the zone’s strike. It found no sandstone before striking the basement unconformity at 53 metres, reaching a total depth of 278 metres. Highlights include:

  • <300 to >9,999 cps over 17.5 metres, starting at 53 metres in downhole depth

  • <300 to >9,999 cps over 16.5 metres

  • <300 to >9,999 cps over 7.5 metres

With a total depth of 224 metres, hole PLS13-085 hit the basement unconformity at 57 metres without encountering sandstone. Highlights include:

  • <300 to 2,800 cps over 5.5 metres, starting at 58.5 metres in vertical depth

  • <300 to >9,999 cps over 22.5 metres

Hole PLS13-086 was drilled to a total depth of 263 metres, finding no sandstone but hitting the basement unconformity at 50 metres. Highlights include:

  • <300 to >9,999 cps over 47 metres, starting at 75 metres in downhole depth

  • (including 530 to >9,999 cps over 22.5 metres)

PLS13-083’s 15-metre step-out brings the R390E zone’s strike to 120 metres, twice that of last winter. The zone remains open in all directions. The 50/50 JV’s $6.95-million campaign of drilling and ground geophysics continues just beyond the Athabasca Basin’s southwestern rim.

Update: On August 26 Fission announced a proposal to take over Alpha. Read more.

Fission, Azincourt complete airborne geophysics over Patterson Lake North

Backed by another JV partner, Azincourt Uranium TSXV:AAZ, Fission is also exploring the Patterson Lake North project adjacent to PLS and about 5.7 kilometres north of the discovery. On August 20 the companies announced completion of an airborne VTEM survey over the 27,000-hectare property’s northern half.

Uranium news from Saskatchewan and elsewhere for August 17 to 23, 2013

JV partners Fission and Azincourt plan a $1.53-million
summer/winter program for their Patterson Lake North project.

At 400-metre line-spacing, the survey flew 303 line-kilometres to provide data that might show basement conductors or enhanced sandstone alteration. Late summer and fall are scheduled for ground geophysics featuring time domain electromagnetic (TDEM) and magnetotellurics surveys. The partners have budgeted $530,000 for geophysics and about $1 million for winter drilling.

Azincourt may earn 50% of the project by paying $4.75 million in cash or shares and spending $12 million by April 2017. Fission retains a 2% NSR and acts as operator. Prior to the JV Fission had already spent about $4.7 million exploring PLN.

Forum begins Clearwater ground campaign, raises private placement to $2.25 million

Adjacently southwest of PLS, Forum Uranium TSXV:FDC has begun field work on its 9,910-hectare Clearwater project. Having interpreted data from airborne surveys, Forum says the EM conductor hosting the PLS discovery and parallel conductors trend onto Clearwater in a northeast-southwest direction. Radiometrics show uranium channel anomalies and historic surveys reveal two areas with highly anomalous lake sediment samples, according to the August 20 announcement.

Clearwater’s current campaign consists of prospecting with scintillometers, soil radon surveys and lake sediment sampling, along with additional ground geophysics. The company plans to begin drilling in January.

A $1.5-million private placement announced the morning of August 21 was, by late afternoon, raised to $2.25 million. On offer are up to 6.08 million units at $0.37, with each unit comprised of one share and one warrant exercisable at $0.50 for two years. Proceeds will go to Clearwater’s ground geophysics and 3,000-metre campaign.

Ground work begins at Aldrin’s PLS-adjacent Triple M

Adjacently west of PLS and contiguous with Clearwater, Aldrin Resource TSXV:ALN has begun field work on its Triple M property, according to an August 20 news release. Following up on radiometric anomalies identified by an airborne survey, the company will prospect for uranium boulders and map surficial geology. In September another crew will take surface radon samples above bedrock conductive anomalies found in an airborne VTEM survey.

The schedule calls for drilling to begin by January.

Skyharbour arranges additional $75,000 private placement

On August 19 Skyharbour Resources TSXV:SYH announced an additional $75,000 non-brokered private placement of 937,500 flow-through units at $0.08. Each unit consists of one flow-through share and one non-transferable warrant exercisable for a non-flow-through share at $0.10 for two years. No finder’s fee will be paid.

The company also granted incentive stock options up to a total of 531,250 shares at $0.10 for five years. The previous week Skyharbour closed a $425,000 private placement that left the company fully funded for its portion of a $6-million, two-year program.

Skyharbour is part of the Western Athabasca Syndicate, a four-company strategic alliance with Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY that’s exploring the PLS-area’s largest land package.

Read more about the Western Athabasca Syndicate Project.

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Athabasca Basin and beyond

August 4th, 2013

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

by Greg Klein

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Read about Paladin’s last quarterly report.

Powertech forms strategic alliance with Asian uranium investor

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

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

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

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

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

The transactions are subject to shareholder and TSX approval.

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

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

Forum begins airborne radiometrics over PLS-adjacent Clearwater project

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

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

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

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

Ur-Energy begins Lost Creek production in Wyoming

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

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

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

Cameco reports Q2 results, makes company and commodity forecasts

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

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

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Athabasca Basin and beyond

July 28th, 2013

Uranium news from Saskatchewan and elsewhere for July 20 to 26, 2013

by Greg Klein

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Denison reports best grade/interval result from high-grade Wheeler River

A radiometric probe has found the most impressive result so far from Denison Mines’ TSX:DML Wheeler River project in the eastern Athabasca Basin. Of four holes reported July 24, one showed the project’s highest grade-times-thickness calculation.

Three holes at the Phoenix A deposit showed:

  • 43.2% uranium oxide-equivalent (eU3O8) over 10.3 metres, starting at 401.6 metres in vertical depth
  • 16.4% over 1.7 metres, starting at 403.5 metres
  • 13% over 3.1 metres, starting at 403.7 metres.

Roughly 2.1 kilometres from the Phoenix deposits, one hole at the 489 zone showed:

  • 0.3% over 3.2 metres, starting at 411.1 metres.

Intercepts are approximate true widths. The company explained eU3O8 as “radiometric equivalent uranium oxide calculated from a total gamma downhole probe.” Radiometric probes are not chemical assays.

The Phoenix A drill holes tested for possible extensions of the deposit’s higher-grade domain, defined as approximately 20% U3O8. Using a 0.8% cutoff, the December 2012 resource estimate for Phoenix A showed:

  • an indicated category of 133,500 tonnes averaging 15.8% for 46.5 million pounds U3O8
  • an inferred category of 6,300 tonnes averaging 51.7% for 7.2 million pounds.

With the same 0.8% cutoff, the Phoenix B deposit showed:

  • an indicated category of 19,000 tonnes averaging 14.1% for 5.9 million pounds
  • an inferred category of 5,300 tonnes averaging 3.5% for 400,000 pounds.
Uranium news from Saskatchewan and elsewhere for July 20 to 26, 2013

With continued drilling, Denison hopes to expand
Wheeler River’s high-grade resource.

Combined, Wheeler River’s resource comes to 52.4 million pounds indicated and 7.6 million pounds inferred.

With 15 of 23 holes in three areas now complete, drilling continues. Wheeler is held 60% by project operator Denison, 30% by Cameco Corp TSX:CCO and 10% by JCU (Japan-Canada Uranium) Exploration.

This summer will also see Denison busy at seven other Basin properties: Waterbury Lake (held 40% by the Korea Electric Power Corp), Packrat, South Dufferin, Johnston Lake and Moon Lake (held 45% by Uranium One TSX:UUU, which is expected to be taken private by the Russian state-owned company ARMZ in Q3).

WASP extends VTEM-Plus, advances radiometrics on PLS-area’s largest package

A four-company strategic alliance announced progress on its airborne surveys over the Patterson Lake South-area’s largest land package. Jointly funded by Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Lucky Strike Resources TSXV:LKY and Noka Resources TSXV:NX, the Western Athabasca Syndicate Project totals 287,130 hectares, with 275,361 hectares in the vicinity of the near-surface, high-grade PLS discovery of Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU.

A VTEM-Plus survey has flown 720 line-kilometres in addition to the original 4,120-line-kilometre survey. The additional coverage consisted of infill and extension of conductive anomalies and structural features identified in preliminary data, the syndicate reported on July 23. Meanwhile Goldak Airborne Surveys is wrapping up a 4,400-line-kilometre radiometric program at 200-metre line spacing to measure radioactivity in outcrops and boulder trains. Goldak compiles the data using a proprietary digital acquisition system.

“We should have complete interpretation done by [geophysicist] Phil Robertshaw in early or mid-August,” Skyharbour president/CEO Jordan Trimble tells ResourceClips.com. “That will delineate the highest-priority targets for fieldwork but we’ve already had boots on the ground doing some preliminary surveying and prospecting. We plan to have a small team back there in early August and that will lead to the full-fledged field program that will commence probably in late August.”

With the four companies earning 25% each, the alliance plans to spend $6 million over two years. “The syndicate is a real advantage to budget,” Trimble points out. “Skyharbour’s obligation is just one-sixth of that. The same with Athabasca Nuclear and then Lucky Strike and Noka pay just one-third each, so it’s not onerous for any one company. It makes the project a lot more viable, especially in these tough markets. And we’re really starting to see the synergies pay off here with the different geologists and their contact base. Their networks are open too.”

Read more about the Western Athabasca Syndicate Project.

VTEM-Plus, radiometric collaboration flies Aldrin’s Triple M

The VTEM-Plus and radiometric surveys also cover PLS-area properties held by Aldrin Resource TSXV:ALN and Forum Uranium TSXV:FDC, a money-saving collaboration announced in May. On July 24 Aldrin also reported the program completed VTEM-Plus infill lines and began radiometrics using 100-metre line spacing over its Triple M property.

Scheduled for August is radon sampling as well as follow-up work on any anomalies found by the radiometrics. The company hopes to start drilling next January to test basement conductors reported in June.

NexGen expands PLS-adjacent Rook 1 drill campaign

NexGen Energy TSXV:NXE has doubled its drill plans for Rook 1, the company announced July 24. With two rigs scheduled to start in mid-August, the campaign now calls for approximately 20 holes totalling 3,000 metres, twice the amount announced in May. Land-based, shallow drilling will test targets identified by airborne VTEM and ground gravity and DC resistivity surveys in the property’s southwestern section, immediately northeast of PLS. NexGen interprets a conductor to extend from the Fission/Alpha discovery into southwestern Rook 1.

In June NexGen began a 4,000-metre campaign on its Radio project, part of a 70% earn-in on the property adjacent to Rio Tinto’s Roughrider deposit.

Fission, Azincourt announce summer program for Patterson Lake North

Immediately north of Patterson Lake South lies, of course, Patterson Lake North. On July 22 joint venture partners Fission and Azincourt Uranium TSXV:AAZ announced a $530,000 summer program to start in early August.

Following up on “conductive areas of interest” found by a previous survey, an airborne VTEM max will fly 303 line-kilometres at 400-metre line spacing over the approximately 25,000-hectare property’s northern half. That will be followed by a single-line 6.3-line-kilometre ground magnetotellurics survey. The property’s southern portion will get a ground TDEM survey. The partners hope results will help identify targets for a drill campaign anticipated for next winter.

The companies say PLN sits within a large gravity low structural corridor that incorporates PLS, the former Cluff Lake mine and the Shea Creek deposits of UEX Corp TSX:UEX and AREVA Resources Canada. Additionally PLN shows EM anomalies that might be interpreted as an extension of the Saskatoon Lake EM conductor associated with Shea Creek.

Azincourt may earn 50% of PLN by paying $4.75 million in cash or shares and spending $12 million by April 2017. Fission gets a 2% NSR and acts as project operator. Fission has already spent about $4.7 million exploring PLN. Earlier this month the company applied for a patent on its “System and Method for Aerial Surveying or Mapping of Radioactive Deposits.”

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Athabasca Basin and beyond

July 20th, 2013

Uranium news from Saskatchewan and elsewhere for July 13 to 19, 2013

by Greg Klein

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Step-out hole extends PLS zone by 15 metres

The first hole of Patterson Lake South’s summer program found 85.5 metres of “the most abundant off-scale mineralization of any hole drilled on the property,” stated Fission Uranium TSXV:FCU president/COO Ross McElroy. In dual announcements made July 18, Fission and 50/50 joint venture partner Alpha Minerals TSXV:AMW said scintillometer readings show the step-out extends the R390E zone 15 metres grid west. R390E is the middle of three zones along an 850-metre northeast-southwest trend.

Although its readings aren’t substitutes for assays, the scintillometer determines radioactivity by measuring gamma ray particles in counts per second, up to an off-scale reading of more than 9,999 cps. Results for PLS13-072 show:

Uranium news from Saskatchewan and elsewhere for July 13 to 19, 2013

Alpha/Fission’s $6.95-million summer drill program has begun,
with the first hole extending one zone by 15 metres.

  • <300 to >9,999 cps over 85.5 metres, starting at 62 metres in downhole depth
  • (including 1,100 to >9,999 cps over 16.5 metres)
  • (and including 5,000 to >9,999 cps over 6.9 metres)
  • (and including <300 to 8,600 cps over 5 metres)
  • (and including <300 to 720 cps over 2.5 metres).

Assays are pending. True widths weren’t available. Drilling on the hole was suspended due to mechanical failure. All PLS holes will get a radiometric probe to assess radioactivity more accurately.

Interestingly, the drill found no Devonian sandstone between the overburden and the basement bedrock, which started at 55.7 metres’ depth. “This may be a result of the RC rig casing past the overburden and bedrock contact, and so the presence or absence of Devonian sandstone is inconclusive,” stated Alpha’s news release. “Alternatively, the lack of Devonian sandstone and presence of shallower mineralization may indicate that the bedrock source of the high-grade uranium boulders is possibly approaching further to the west of PLS13-072. Other step-out drill holes may resolve this.”

The program uses two diamond rigs in addition to the reverse circulation drill. With a $6.95-million budget, the 44-hole, 11,000-metre drill campaign and ground geophysics surveys continue on the 31,000-hectare property two kilometres from Highway 955.

Fission applies for boulder-finding patent

Along with collaborator Special Projects Inc, Fission wants to patent the system used to discover the PLS high-grade uranium boulder field. Calling it “an invention entitled System and Method for Aerial Surveying or Mapping of Radioactive Deposits,” Fission announced the application on July 16.

The company explained that radiometric surveys can be affected by a number of variables including weather, topography and cosmic activity, as well as more controllable factors such as sensor height and aircraft speed. The invention “is particularly sensitive to addressing these variables,” Fission stated.

The news release didn’t specify the invention of new technology.

Forum extends Key Lake-area holdings

Towards the Athabasca Basin’s southeast corner, Forum Uranium TSXV:FDC picked up the Highrock South property, adding another 1,381 hectares to its Key Lake area holdings. The company’s July 17 announcement states the property “is a continuation of the prospective Key Lake/Black Forest conductive trend” that hosted Cameco Corp’s TSX:CCO former deposits and the geology “compares favourably” with PLS. Highrock South lies about 15 kilometres south of the world’s largest high-grade uranium mill.

Forum pays $2,500, issues 25,000 shares and grants a 2% NSR. The company holds six other projects totalling over 90,000 hectares in the area, as well as other projects in Saskatchewan and Nunavut’s Thelon Basin.

Brades moves into Athabasca Basin

Brades Resource TSXV:BRA marked its Saskatchewan entry with the Lorne Lake acquisition announced July 16. The approximately 39,450-hectare property shows “extensive regional faulting and lineaments and covers one of only three identified cross-cutting major fault structures located in the western Athabasca Basin,” as well as “favourable magnetic geophysical data,” the company stated.

In return, Brades will issue a total of 3.5 million shares to two vendors including Ryan Kalt, who will also get a 2% NSR. On closing the deal, Kalt becomes a company insider.

On July 19 Brades announced the appointment of Evany Hung as CFO, replacing Christopher Cherry. The company also holds the 14,133-hectare BRC porphyry copper-gold property in northwestern British Columbia.

Noka retains Dahrouge Geological Consulting

On July 18 Noka Resources TSXV:NX announced it retained Dahrouge Geological Consulting to manage and explore Noka’s Athabasca Basin properties. Dahrouge and its predecessor, Halferdahl & Associates, have over 40 years’ experience with mineral projects, including over 30 years in uranium, Noka stated. The announcement credited Jody Dahrouge and his team with “the conceptualization and acquisition of several uranium properties within the Athabasca Basin, most notably these include such projects as Waterbury Lake (J zone), Patterson Lake and in part Patterson Lake South.”

Noka’s properties include Clearwater and Athabasca North, as well as a 25% earn-in on the Western Athabasca Syndicate Project, a four-company strategic alliance with Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC and Lucky Strike Resources TSXV:LKY that’s exploring the PLS-area’s largest land package.

Read more about the Western Athabasca Syndicate Project.

Paladin reports quarterly revenue of $107.4 million, record production

Paladin Energy’s TSX:PDN quarterly report, released July 16, showed sales revenue for three months ending June 30 of US$107.4 million. The company sold 2.32 million pounds of uranium oxide (U3O8) at an average price of $46.22 a pound.

Both of the company’s mines achieved quarterly production records. Langer Heinrich in Namibia produced 1.35 million pounds U3O8 while Kayelekera in Malawi gave up 789,430 pounds for a combined 2.14 million pounds, up 8% from the previous quarter. Fiscal 2013 production met guidance with 8.25 million pounds. The fiscal 2014 forecast ranges from 8.3 million to 8.7 million pounds.

The company also stated it had cut production costs by 9% at Langer Heinrich and 24% at Kayelekera, compared with June 2012. Paladin has been negotiating the sale of a minority interest in Langer Heinrich.

As for the company’s other projects, its Michelin property in Labrador has more exploration planned for summer and a resource update scheduled for next quarter. At Western Australia’s Manyingee project, work continues on an updated resource and hydrogeological modelling. Exploration on its Agadez property in Niger, however, has been suspended following the May 23 terrorist attacks that hit a military barracks and a uranium mine operated by AREVA.

In April Paladin became sole owner of the Angela project in Northern Territory, with an inferred resource of 30.8 million pounds, after buying Cameco’s 50% interest. Paladin also holds other Australian properties.

Cameco wants Canada to allow foreign ownership, Paladin concurs

Cameco “has broken ranks with the Canadian government by taking the position that Australian companies should be able to wholly own uranium mines in the country,” reported Australia’s Financial Review (subscription required) on July 15. Not surprisingly the journal added that John Borshoff, managing director/CEO of Australia’s Paladin, “says Canada must heed the words of one of its biggest companies and prioritize lifting restrictions on foreign ownership.”

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Athabasca Basin and beyond

July 13th, 2013

Uranium news from Saskatchewan and elsewhere for July 6 to 12, 2013

by Greg Klein

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Four companies seal $6-million exploration plan for PLS-area’s largest package

With a formal agreement signed, an airborne survey about finished and a field crew on site, progress continues on the four-company Western Athabasca Syndicate Project, the Patterson Lake South-area’s largest land package. Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Lucky Strike Resources TSXV:LKY and Noka Resources TSXV:NX announced the formal agreement July 10, saying the strategic alliance shares synergies while mitigating risk and dilution.

Uranium news from Saskatchewan and elsewhere

Four companies plan to spend $6 million over two years exploring the PLS-area’s largest package, the Western Athabasca Syndicate Project.

As previously reported in a memorandum of understanding, Skyharbour contributes seven Athabasca Basin properties to combine with Athabasca Nuclear’s 125,375-hectare Preston Lake, forming a 287,130-hectare package. Apart from the 11,769-hectare Wheeler project on the Basin’s east side, the properties are contiguous to the high-grade, near-surface uranium discovery of Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW.

With 25% earn-ins for each company, the syndicate will jointly fund a $6-million program over two years. Noka and Lucky Strike will each put up $1 million a year while Skyharbour and Athabasca Nuclear will each spend $500,000. Cash and shares also change hands.

Data from the VTEM-plus time domain survey will be analysed for conductive trends like those hosting the PLS discovery. Under a joint program with two other companies, the survey also flew properties held by Forum Uranium TSXV:FDC and Aldrin Resource TSXV:ALN. So far the survey has found two parallel basement conductive trends on Aldrin’s Triple M property and a conductive trend extending from the PLS discovery into Forum’s Clearwater project.

Referring to activity surrounding the Alpha/Fission discovery, Dundee Capital Markets senior analyst David Talbot told ResourceClips.com, “This is an area play because these are area-type deposits. They tend to occur in clusters. The chances that Fission and Alpha are the only ones that have uranium on their property is probably relatively low.”

Following the VTEM, a radiometrics survey will search for boulder trains and in-situ radioactivity. Also on the syndicate’s agenda are radon surveys, geochemical sampling, prospecting and scintillometer surveying. Athabasca Nuclear acts as project operator, in consultation with the other three geological teams. The companies plan to follow Alpha’s 43-101 technical report, which details procedures leading to the PLS discovery.

Skyharbour president/CEO Jordan Trimble told ResourceClips.com, “I think it’s the lowest-risk way, on a per-company basis, to carry out this kind of large, aggressive exploration program.”

Read more about the Western Athabasca Syndicate Project.

Noka picks up two more properties

One day after sealing the syndicate deal, Noka announced two more Basin acquisitions. For the 151,170-hectare Clearwater project, the company issues two million shares and grants a 5% NSR. The transaction makes one of the vendors, Ryan Kalt, a company insider. For the 50,161-hectare Athabasca North, Noka issues 600,000 shares and grants a 2% NSR. TSXV approval has already come through. Noka also issued 130,000 shares and paid $14,000 as a finder’s fee.

Cameco, Mega mull Kintyre deal Down Under

About 1,250 kilometres north of Perth, at the western edge of Western Australia’s Great Sandy Desert, lies Cameco Corp’s TSX:CCO Oz flagship, the Kintyre deposit. Now the major is negotiating with a junior to co-operate on some additional claims adjacent to the project. Announced July 11 by Mega Uranium TSX:MGA, the two companies have signed a non-binding understanding that could give Cameco an initial 51% interest in the Kintyre Rocks project, held by Mega’s subsidiary Boxcut Mining. The talks imply Cameco’s continued interest in a project that had its feasibility study shelved last year.

Kintyre, held 70% by Cameco and 30% by Mitsubishi, has a 2011 resource showing:

  • an indicated category of 5.26 million tonnes averaging 0.49% for 56.4 million pounds uranium oxide (U3O8)
  • an inferred category of 505,000 tonnes averaging 0.47% for 5.3 million pounds.

The project reached pre-feasibility in 2012, detailing an open pit producing an average six million pounds a year for seven years. But economic survival called for $67-a-pound uranium, a price not seen after the March 2011 Fukushima accident. Full-feas was suspended and Cameco recorded a $168-million write-down. Work continued, however, on an engineering study and environmental permitting. The company also stated its interest in finding satellite deposits.

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