Monday 24th October 2016

Resource Clips

Posts tagged ‘Fission 3.0 Corp (FUU)’

Patterson Lake South’s still up for grabs as Fission/Denison merger fizzles

October 13th, 2015

by Greg Klein | October 13, 2015

Two renowned dealmakers have failed in their plan to merge the Athabasca Basin’s two most prominent exploration companies. On October 13 Fission Uranium TSX:FCU and Denison Mines TSX:DML announced that proxies submitted four days earlier showed majority support from both companies but fell short of the two-thirds vote required from Fission shareholders. The companies called off shareholders’ meetings scheduled for October 14.

Patterson Lake South’s still up for grabs as Fission-Denison merger fizzles

Potentially one of the world’s lowest-cost uranium mines
according to its PEA, Patterson Lake South seeks a new owner.

Fission shareholders expressed skepticism soon after the proposal was announced in early July, putting CEO Dev Randhawa on the defensive in a conference call. To drum up support, he and Denison director Lukas Lundin then spoke to shareholders at an October 6 town hall meeting in Toronto.

The deal would offer Fission “superb access to capital via the Lundin Group,” as well as a large Denison portfolio featuring its 60%-held Wheeler River project and 22.5% interest in the McClean Lake mill, Randhawa maintained. He and Lundin noted “two of the leading independent proxy advisory firms,” Institutional Shareholder Services and Glass Lewis & Co, recommended a yes vote.

A week prior to the proxies, the National Post’s Peter Koven reported strong support from Fission’s institutional shareholders but stated “the vast majority of the stock is held by retail shareholders, some of whom are loudly resisting the deal.”

A website called FCU Oversight argued that from the outset the terms severely undervalued Fission’s sole asset, Patterson Lake South, and included “no value” for the preliminary economic assessment released in early September.

FCU Oversight added that Denison’s “Athabasca projects are located on the eastern side of the basin and are not considered as robust, or as readily minable. The balance of Dennison’s [sic] international assets are simply not synergistic to Fission.” The website also questioned the appointments of Fission brass to positions with the new company.

Randhawa told Koven he foresaw no deal with giants like Cameco Corp TSX:CCO or AREVA. Fission has shown no interest in taking PLS into production itself. In fact the company was set up specifically to be sold after spinning out its other assets to Fission 3.0 TSXV:FUU to make PLS a more attractive take-out target.

Foreign suitors might be emboldened by last June’s federal government decision to allow Australian Paladin Energy’s (PDN) ownership of its proposed Michelin mine in Labrador. Canada requires at least 51% domestic ownership of uranium operations but allows exceptions when no Canadian partners materialize.

The failed merger marks the second time PLS has slipped through Denison’s fingers. The company nearly got the project in November 2012 with Denison’s takeover of Fission Uranium’s predecessor, Fission Energy. Before the deal was signed, Fission Energy’s joint venture partner Alpha Minerals struck massive pitchblende and strong radioactivity in the project’s discovery hole. Randhawa renegotiated the deal with Lundin to exclude the project. Fission Uranium bought out Alpha the following year.

Athabasca Basin and beyond

April 17th, 2015

Uranium news from Saskatchewan and elsewhere to April 17, 2015

by Greg Klein

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India’s fast-emerging market becomes a Cameco customer

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

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

Uranium news from Saskatchewan and elsewhere to April 17, 2015

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

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

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

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

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

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

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

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

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

Fission finishes winter work at Patterson Lake South

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

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

Hole PLS15-330

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


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


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

  • 0.23% over 7 metres, starting at 182.5 metres


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

  • 0.37% over 12.5 metres, starting at 172.5 metres

True widths weren’t available.

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

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

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

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

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

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


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


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


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


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


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


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

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


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

Again, true widths weren’t available.

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

Read about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

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

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

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

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

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

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Athabasca Basin and beyond

February 14th, 2015

Uranium news from Saskatchewan and elsewhere to February 13, 2015

by Greg Klein

Next Page 1 | 2

Fission Uranium expands main zone at PLS

With a 100% hit rate so far, the first 14 holes of Fission Uranium’s (TSX:FCU) winter campaign extend the geography of Patterson Lake South’s largest zone. Nine holes reported February 10 expand R780E at different points laterally 40 metres north, 30 metres eastward along strike and 50 metres vertically up dip—continuing a process begun with five step-outs released January 26. The R780E zone already holds about 96% of indicated and 90% of inferred categories from last month’s estimate for Triple R, the Athabasca Basin’s largest undeveloped uranium deposit. The resource “remains open in several directions, including strike, width and vertically,” the company stated.

Scintillometer readings, which are no substitute for assays, showed strong mineralization for all holes. R780E now stretches about 900 metres in strike length. Beyond a 225-metre gap to the west, Triple R’s R00E zone adds another 125 metres in strike. Overall, the 31,039-hectare property hosts four zones running east-west along 2.24 kilometres of potential strike.

This year’s exploration budget comes to $15 million. Winter drilling gets a $10-million, four-rig, 20,230-metre program. Thirty-five holes will focus on the Triple R deposit as well as the R600W zone. Another 28 holes will test regional targets. Of special interest is the Forest Lake conductive corridor, which features “geophysics and radon signatures similar to the Patterson Lake conductive corridor” that hosts Triple R.

Read about the Patterson Lake South resource estimate.

See an historical timeline of the Patterson Lake South saga.

Fission Uranium buys into Fission 3.0

On February 11 Fission Uranium announced its intention to pay $3.08 million to get about 12% of its own spinout Fission 3.0 TSXV:FUU, a company not exactly known for monogamy.

Dev Randhawa, who leads both companies, resigned from the board of Azincourt Uranium TSXV:AAZ, according to a February 6 statement. Three days later came the announcement that he joined Aldrin Resource’s (TSXV:ALN) board.

Uranium news from Saskatchewan and elsewhere to February 13, 2015

On February 5 Aldrin had announced a plan to acquire up to 50% of Fission 3.0’s Key Lake properties, an 18,392-hectare package on the southeastern Basin. The deal would cost Aldrin $100,000 cash, 1.9 million shares and $6.9 million in expenditures up to May 2019. Fission 3.0 remains project operator.

Fission 3.0’s already busy with winter campaigns on two PLS-vicinity projects. At the PLN project, a joint venture with Azincourt, a $1.45-million program of seven holes and geophysics has begun. The Clearwater project, a JV with Brades Resource TSXV:BRA, has 10 holes plus geophysics underway at an expected cost of $1.04 million.

In a mid-January announcement, Brades described three northeastern Basin acquisitions as part of an “objective to stake highly prospective areas near, and in the case of Perron Lake and Cree Bay, adjacent to, properties of Fission 3.0.”

NexGen honoured for 2014 performance, reports 2015 progress

A Fission Uranium next-door neighbour, NexGen Energy TSXV:NXE made it into the TSX Venture 50, the company announced February 12. The TSXV compiles the list by ranking the top 10 companies in five sectors for market cap, share appreciation, volume and analyst coverage.

Last year’s last batch of Rook 1 assays hit as high as 2.34% U3O8 over 26.5 metres, starting at 592.5 metres in downhole depth. Impressive as it was, the result fell short of earlier assays considered among the Basin’s best.

A three-rig, 18,000-metre program began last month, focusing on the project’s Arrow zone as well as “regional targets on the Rook 1 claim that covers all the major uranium-bearing conductor corridors in the southwestern region of the Athabasca Basin.”

One target was noted in a January 20 announcement, a radon-in-lake-water anomaly 480 metres long by 20 to 150 metres wide that was found 400 metres northeast along strike from Arrow.

One week later the company reported scintillometer results for the first four holes from Arrow, all of them finding “substantial broad mineralization.” Then, the following day, NexGen announced that VTEM, ground gravity and magnetic surveys identified six targets on the Fury area, about 13.5 kilometres southeast of Arrow. As a result, Fury’s slated for about 4,500 metres of winter drilling.

Denison reports eU3O8 from Mann Lake and Wheeler River

Denison Mines TSX:DML released the year’s first results on February 4 from Mann Lake and Wheeler River, two eastern Basin projects five kilometres apart and among the company’s 14 drill campaigns scheduled for this year.

Measured with a downhole probe, the single Mann Lake hole showed 9.8% uranium oxide-equivalent (eU3O8) over 3.5 metres, starting at 671.7 metres in downhole depth. True thickness would come to at least 80%.

Denison holds a 30% stake in the JV, along with operator Cameco Corp TSX:CCO (52.5%) and AREVA Resources Canada (17.5%).

Three holes at Wheeler River’s Gryphon zone showed:

  • 0.3% eU3O8 over 2 metres, starting at 664.5 metres in downhole depth

  • 2.9% over 2.4 metres, starting at 764.2 metres

  • 2.8% over 2.4 metres, starting at 786.3 metres

  • 9% over 4.6 metres, starting at 641.6 metres

True thickness is estimated at about 75%.

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A Patterson Lake South saga

January 11th, 2015

As Fission releases its maiden resource, we look at how two juniors made uranium exploration history

by Greg Klein

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As Fission releases its maiden resource, we look at how two juniors made uranium exploration history

The initial resource comprises two of Patterson Lake South’s four zones.


Originally scheduled for December, the maiden resource for Fission Uranium’s (TSX:FCU) Patterson Lake South hit the streets after the market closed on January 9, all the better time—no doubt coincidentally—for a greater sensation at this month’s investor and trade shows. With 79.6 million pounds U3O8 indicated and 25.88 million pounds inferred, the numbers confirm the newly named Triple R deposit’s status as the Athabasca Basin region’s largest undeveloped resource and third-largest overall. Outdone only by two operating mines, McArthur River and Cigar Lake, PLS stands out for mineralization beginning at exceptionally shallow depths of 60 to 250 metres.

There’s gold too, 38,000 ounces indicated and 16,000 ounces inferred.

As Fission releases its maiden resource, we look at how two juniors made this historic uranium discovery

By last summer, Fission had five barge-based rigs
devoted to delineation drilling.

As Fission president/COO and chief geologist Ross McElroy pointed out, “The entire deposit is located in basement rock, which is a preferred host rock for development of economic uranium deposits” in the region.

Included in the resource are two of the project’s four zones along a 2.24-kilometre potential strike. Zone R00E runs about 125 metres in strike length. Beginning 225 metres east, R780E stretches out for about 900 metres in strike. Triple R’s indicated category takes up about 75% of the resource, which uses a 0.1% cutoff (based on $50 uranium) to show:

  • indicated: 2.29 million tonnes averaging 1.58% U3O8 and 0.51 grams per tonne gold for 79.61 million pounds U3O8 and 38,000 ounces gold

  • inferred: 901,000 tonnes averaging 1.3% U3O8 and 0.56 g/t gold for 25.88 million pounds U3O8 and 16,000 ounces gold

Within the resource lies a higher-grade zone containing 44.3 million pounds indicated and 13.86 million pounds inferred.

Mineralization remains open in multiple directions, Fission stated. Upcoming programs, which include a $10-million, 63-hole, 20,230-metre campaign expected to begin January 15, will focus partly on resource expansion.

A closer look at the indicated resource, including its 18.21% high-grade area, shows:

R00E zone

  • 126,000 tonnes averaging 1.15% U3O8 and 0.15 g/t gold for 3.18 million pounds U3O8 and 1,000 ounces gold

R780E high-grade area

  • 110,000 tonnes averaging 18.21% U3O8 and 2.77 g/t gold for 44.3 million pounds U3O8 and 10,000 ounces gold

R780E lower-grade area

  • 1.9 million tonnes averaging 0.69% U3O8 and 0.39 g/t gold for 28.76 million pounds U3O8 and 24,000 ounces gold

The inferred resource breaks down as follows:

R00E zone

  • 8,000 tonnes averaging 3.57% U3O8 for 669,000 pounds U3O8

R780E high-grade area

  • 24,000 tonnes averaging 26.35% U3O8 and 3.77 g/t gold for 13.86 million pounds U3O8 and 3,000 ounces gold

R780E lower-grade area

  • 23,000 tonnes averaging 1.26% U3O8 and 0.89 g/t gold for 648,000 pounds U3O8 and 1,000 ounces gold

Other R780E areas

  • 585,000 tonnes averaging 0.68% U3O8 and 0.56 g/t gold for 8.8 million pounds U3O8 and 11,000 ounces gold

Low-grade halo

  • 260,000 tonnes averaging 0.22% U3O8 and 0.22 g/t gold for 1.91 million pounds U3O8 and 2,000 ounces gold

The new year announcement obviously marks another milestone for PLS, an historic find that both excited the market and sparked an ongoing exploration rush in and around the Basin. All that for a deposit just off a route that geologists travelled for years, Highway 955 leading to the Shea Creek deposit and former Cluff Lake mine. But PLS sits outside the Basin. According to past wisdom, uranium had no business being there. Massive pitchblende and strong radioactivity shattered that mode of thinking in November 2012. A timeline shows how the dogged perseverance of two junior exploration companies, along with new approaches that complemented their geological expertise, brought about the PLS discovery.


Patterson Lake South, from early exploration to maiden resource


1969 Wainoco Oil and Chemicals conducts regional mapping, airborne radiometrics and magnetic surveys without finding significant results.

1977 to 1982 Exploration by the Saskatchewan Mining Development Corp includes five holes north of PLS along the same conductive corridor that extends into PLS. SMDC concludes the area has a favourable setting for unconformity-type uranium deposits.

1977 Canadian Occidental Petroleum finds “very strong” radon anomalies that the company attributes to “exotic radioactive boulders.” A ground EM survey delineates the Patterson Lake conductive corridor.

1979 CanOxy drills the conductors finding anomalous uranium, copper and nickel with “two curious spikes in radioactivity.”

July 2007 Fission Energy spins out of Strathmore Minerals, which transfers its Canadian and Peruvian assets to Fission in order to focus on U.S. properties.

November 2007 Alpha Minerals predecessor ESO Uranium and Fission Energy conduct EM and magnetic surveys on the northern part of PLS.

January 2008 ESO Uranium and Fission Energy form a 50/50 joint venture called Patterson Lake South, contributing two claims each for a total of 4,771 hectares. The project would eventually expand to 17 claims totalling 31,039 hectares.

October 2008 The JV conducts radon and radiometric surveys on the northern part of the property.

June 2008 The JV stakes the area explored by CanOxy.

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Athabasca Basin and beyond

October 31st, 2014

Uranium news from Saskatchewan and elsewhere to October 31, 2014

by Greg Klein

Next Page 1 | 2

Fission hits 8.53% over 24 metres at Patterson Lake South

The 600th company to graduate from the Venture to the big board since 2000,
Fission Uranium opens the TSX on October 30. (Photo: TMX Group)


Fission hits 8.53% U3O8 over 24 metres at Patterson Lake South

A second batch of assays hit the streets October 27 from Fission Uranium’s (TSX:FCU) Patterson Lake South summer program, the final drill season before a maiden resource due in December. Thirteen holes from the R780E zone showed mineralization at shallow depths, some with very impressive results. Several holes broaden the zone’s lateral width at different locations up to about 93 metres north and 38 metres south, and also extend the depth. Still the focal point of PLS, R780E remains by far the largest of four zones along a 2.24-kilometre potential strike that’s open at both ends.

Some of the best results follow:

Hole PLS14-253

  • 1.33% U3O8 over 16.5 metres, starting at 117.5 metres in downhole depth
  • (including 3.57% over 5.5 metres)

  • 1.65% over 5 metres, starting at 155 metres
  • (including 5.37% over 1.5 metres)


  • 0.62% over 13 metres, starting at 169 metres
  • (including 2.42% over 2.5 metres)


  • 1.76% over 39.5 metres, starting at 61.5 metres
  • (including 3.16% over 8 metres)
  • (and including 6.22% over 3.5 metres)

  • 1.17% over 11.5 metres, starting at 104 metres
  • (including 3.99% over 2.5 metres)


  • 5.02% over 5 metres, starting at 256.5 metres


  • 4.21% over 38.5 metres, starting at 132 metres
  • (including 23.53% over 6 metres)

  • 2.77% over 13.5 metres, starting at 205 metres
  • (including 6.95% over 4 metres)


  • 1.43% over 42.5 metres, starting at 58 metres
  • (including 5.91% over 9.5 metres)

  • 0.74% over 26 metres, starting at 104 metres
  • (including 2.42% over 6 metres)


  • 1.85% over 8 metres, starting at 234 metres
  • (including 6.63% over 2 metres)


  • 0.27% over 22.5 metres, starting at 191.5 metres

  • 0.37% over 19.5 metres, starting at 216.5 metres


  • 0.56% over 16 metres, starting at 164.5 metres
  • (including 1.44% over 4.5 metres)


  • 8.53% over 24 metres, starting at 78 metres
  • (including 24.87% over 7.5 metres)

  • 0.55% over 28.5 metres, starting at 105.5 metres
  • (including 2.02% over 3.5 metres)

True widths weren’t provided.

These results bring the total to 42 holes reported. Assays for another 18 delineation holes and 22 exploration holes are pending. The previous batch of summer assays, released earlier this month, included the project’s strongest intercept so far.

Lakeland Resources ready to drill Star/Gibbon’s project, confirms drill-ready targets at Lazy Edward Bay

A busy summer has moved two Lakeland Resources TSXV:LK projects to the drill-ready stage, one of which will see a rig working as soon as winter conditions allow. Announced October 28, a 1,500-metre program on the adjacent Gibbon’s Creek and Star properties follows positive results from surface sampling and a DC-resistivity survey, some of the Athabasca Basin’s highest RadonEx readings and confirmation of a radioactive boulder field grading up to 4.28% U3O8.

Uranium news from Saskatchewan and elsewhere to October 31, 2014

A structural lineament connects this radioactive boulder field with
two other mineralized systems on the Star/Gibbon’s Creek properties.

The two properties on the Basin’s north-central rim host a regional, multi-staged, structural lineament immediately west of the Star Uplift, a basement outcrop about 350 metres by 700 metres, that extends south to the Gibbon’s Creek boulder field about three kilometres away. In addition an east-west resistivity low, interpreted as an alteration corridor, has been found near an historic intercept of 1,500 parts per million uranium.

Surface sampling at the uplift found a gold trend that also revealed platinum group elements, rare earths and anomalous low-grade uranium. Follow-up drilling will test the trend and examine basement geology as it relates to the Gibbon’s Creek targets, Lakeland stated.

With depth to the unconformity ranging from 50 to 250 metres, the company anticipates an economical program of shallow drilling. Roads and power lines cross the property, which lies a few kilometres from the town of Stony Rapids.

The company wholly owns Gibbon’s Creek and holds a 100% option on Star.

Meanwhile exploration at Lazy Edward Bay has confirmed the project’s drill-ready targets, as well as its prominence in Lakeland’s portfolio. Field work on two areas of the 26,375-hectare property on the Basin’s southeastern edge revealed anomalous rock samples, soil samples and RadonEx readings, the company announced October 30.

The Liberty Trend consists of an approximately five-kilometre-long conductive zone intruded by diabase dykes. Near a radioactive spring reported earlier in October, two boulders graded 537 ppm and 896 ppm U3O8, also showing anomalous levels of the pathfinder elements arsenic, cobalt, chromium, nickel and lead.

Two nearby soil samples returned uranium values of 13.7 ppm and 14.8 ppm, along with 2,920 ppm arsenic, 119 ppm cobalt and 112 ppm nickel. An outcrop sample farther south showed low-grade uranium and was also enriched in copper, cobalt and zinc, the company added.

The significance of the Liberty Trend “appears to be a rare combination of favourable geochemistry, geophysics and surface rock samples anomalous in radioactivity coupled with a series of radioactive springs within a complex structural setting,” said Lakeland president/CEO Jonathan Armes. “This confluence of geologic features attests to the potential of this area to host a large mineralizing system.”

The project’s Bay Trend underwent 150 soil samples over a 789-sample radon-in-soil grid. The samples showed several anomalous geochemical results coinciding with previously identified basement conductors. This year’s work further refines the conductors.

Results from both the Liberty and Bay trends confirm high-priority drill-ready targets and Lazy Edward’s place among “the most promising early-stage exploration projects that Lakeland has assembled, which include the Gibbon’s Creek, Star and Newnham Lake properties,” Armes said.

Read more about Lakeland Resources.

Fission 3.0 stakes new ground, joins Brades on Clearwater West fall campaign

Seven new acquisitions, along with expansions to four other properties, bring the Fission 3.0 TSXV:FUU portfolio up to 17 projects totalling 232,088 hectares, all in the Basin area except one in Peru. The expansion came through staking, the company announced October 29.

Karpinka Lake, a 3,072-hectare property 40 klicks south of the Basin, features at least 14 historic uranium occurrences. The most significant “consists of a series of five discontinuous low-grade zones of stratabound uranium mineralization,” Fission 3.0 stated.

Midas, a 1,476-hectare property near Uranium City, has five known uranium occurrences including an historic intercept of 0.19% U3O8 over 9.6 metres.

On the Basin’s north-central rim, the 1,678-hectare Hearty Bay property sits up-ice from a boulder train that graded up to 3% uranium.

Eighty kilometres south of the Basin’s southeastern margin, the 5,745-hectare Hobo Lake property has had historic lake sediment samples showing anomalous uranium. South of the Basin but north of Hobo Lake, the 1,213-hectare Costigan Lake property benefits from a 2005 airborne radiometric survey that found anomalous radioactivity associated with conductors.

Just beyond the Basin’s southern edge, the 1,866-hectare River Lake “has potential to host outliers of sandstone cover, which is the favourable host rock for unconformity and perched styles of uranium mineralization.”

East of the Basin’s northeastern margin, the 2,412-hectare Flowerdew Lake underwent airborne geophysics in 2005, finding “moderate to strong formational electromagnetic conductors trending northeast.”

A 1,024-hectare addition to Beaver River covers an extension of the property’s EM conductors and includes two historic uranium showings. Cree Bay got another 5,252 hectares of contiguous turf along the prospective Black Lake shear zone. Grey Island grew by 1,271 hectares over a strong EM conductor. Thompson Lake added 577 hectares, also covering the extension of a conductor.

On October 15 Fission 3.0 and Brades Resource TSXV:BRA announced fall plans for their Clearwater West joint venture. The program calls for mapping, prospecting and a DC resistivity survey to follow up on radiometric anomalies identified last May. Brades holds a 50% option on the 11,835-hectare project, where Fission 3.0 acts as operator. Read a review of the companies’ announcement by Geology for Investors.

Winter drilling planned for Azincourt/Fission 3.0’s Patterson Lake North

Patterson Lake North’s agenda calls for a $1.5-million, 3,200-metre winter program, JV partner Azincourt Uranium TSXV:AAZ announced October 21. Work will follow up on last summer’s drilling, targeting the property’s A1-A4 conductor area and two untested areas, the N conductor trend and the Broach Lake conductor system.

The 27,408-hectare property lies adjacent to and north of Patterson Lake South. Fission 3.0 acts as operator. Azincourt, which currently holds a 10% stake, said its $1.5-million winter expenditure will complete the $3-million year-two requirement, raising its total to 20%. The option allows Azincourt up to a 50% interest.

The company also stated it distributed the Macusani Yellowcake TSXV:YEL stock resulting from that company’s acquisition of Azincourt’s Peruvian properties (read more here and here). Shareholders got “the equivalent of $0.09 per Azincourt share, based on the recent Macusani share price.”

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Athabasca Basin and beyond

September 26th, 2014

Uranium news from Saskatchewan and elsewhere for September 20 to 26, 2014

by Greg Klein

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As Fission’s $14.4-million placement closes, regional drilling expands PLS horizons

Seventeen exploration holes didn’t do so well but Fission Uranium TSXV:FCU thinks four others show potential well away from the four zones that have been Patterson Lake South’s focus. In a September 25 statement the company identified the Far East area, 17 kilometres east of the discovery, and the PL Corridor, 750 metres east of the discovery, as targets “for aggressive follow-up.”

The drill results come from a hand-held scintillometer that measures core for radioactivity. They’re no substitute for assays, which will follow.

Uranium news from Saskatchewan and elsewhere for September 20 to 26, 2014

A $14-million infusion helps fund Patterson Lake South,
where Fission Uranium prepares for a December resource.

Of six new holes in the Far East area, three showed anomalous radioactivity on two conductors in the vicinity of PLS14-255, an exploration hole released last month.

One of nine holes on the PL Corridor went radioactive. With another hole still to report, the regional work totalled 5,895 metres in 22 holes over five areas testing 11 electromagnetic targets. The company noted that this program brings activity closer to a Fission Energy spinout, the Clearwater West joint venture of Fission 3.0 TSXV:FUU and Brades Resource TSXV:BRA.

Fission Uranium has also slated its Forrest Lake area for future exploration drilling. Overall, PLS features more than 105 separate conductors.

On September 23 the company announced the closing of a private placement which, with the exercise of an over-allotment option, hit $14.4 million. Radiometric measurements released two weeks earlier indicated a widening of the project’s main zone.

Gryphon gives up good grades for Denison

Denison Mines TSX:DML marked summer’s end with a September 24 batch of drill results from its Wheeler River flagship. Of 20 holes totalling 14,937 metres, eight showed weak or no significant mineralization. But, more optimistically, the company provided radiometric results for the program’s newest holes as well as assays for those holes with previously released radiometric readings.

The campaign targeted the project’s Gryphon zone, where mineralization ranges from 100 to 250 metres below the unconformity within a 350-metre strike and 60-metre lateral width.

Assays are still pending for the latest holes. These results were measured in uranium oxide-equivalent from a downhole probe. Highlights include:


  • 1.5% eU3O8 over 2.9 metres, starting at 649.4 metres in downhole depth

  • 4.2% over 1.4 metres, starting at 675.8 metres

  • 1.3% over 1 metre, starting at 714.7 metres


  • 15.8% over 2.3 metres, starting at 767.2 metres

  • 1.8% over 1 metre, starting at 778.3 metres


  • 7% over 2 metres, starting at 664.8 metres

  • 1.5% over 1 metre, starting at 674.8 metres

  • 9.8% over 2.5 metres, starting at 695.8 metres

  • 1.2% over 1 metre, starting at 709.4 metres


  • 0.2% over 4.1 metres, starting at 630.7 metres


  • 0.4% over 4.6 metres, starting at 772.3 metres


  • 1.8% over 2 metres, starting at 625.6 metres

True widths were estimated at about 75%.

For the other holes, Denison provided assays which exceed the previously reported radiometric results. Some highlights include:

Hole WR-564

  • 6.6% U3O8 over 2 metres, starting at 744 metres in downhole depth

  • 3.4% over 1 metre, starting at 752 metres

  • 2.1% over 1 metre, starting at 757 metres


  • 1.6% over 3 metres, starting at 728 metres


  • 2.4% over 1 metre, starting at 653.5 metres

  • 3.8% over 3 metres, starting at 662.9 metres

  • 13.2% over 3.5 metres, starting at 680 metres

  • 12.4% over 1 metre, starting at 693 metres

  • 4.9% over 9 metres, starting at 702.5 metres

  • 3.6% over 2 metres, starting at 724.6 metres


  • 0.3% over 10.5 metres, starting at 742.5 metres

  • 0.3% over 3 metres, starting at 777 metres

Again, true widths were estimated at 75%.

With a 60% interest in Wheeler River, Denison acts as operator. Cameco Corp TSX:CCO holds 30% and JCU (Canada) Exploration the rest.

Denison updated two wholly owned projects, also near the Athabasca Basin’s southeastern corner. Two holes totalling 1,194 metres at Bachman Lake failed to find significant mineralization. Ditto for five holes totalling 2,995 metres at Crawford Lake. But the latter program extended “a large zone of sandstone and basement alteration on the CR-2 and CR-5 conductors, roughly along trend to the south of the Millennium deposit,” the company stated. Denison expects Crawford to hold high priority in 2015.

That year’s budget was taken care of by a $14.99-million private placement that closed last month.

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As Fission’s $14.4-million placement closes, regional drilling expands PLS horizons

September 25th, 2014

This story has been moved here.

Athabasca Basin and beyond

September 6th, 2014

Uranium news from Saskatchewan and elsewhere for August 30 to September 5, 2014

by Greg Klein

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“Aggressive” step-outs continue at NexGen’s PLS-adjacent Rook 1

A week unusually devoid of bragging from Fission Uranium’s (TSXV:FCU) Patterson Lake South gives next-door neighbour NexGen Energy TSXV:NXE top spot among uranium newsmakers. Three more holes announced September 3 bring the total to 28 mineralized holes out of 30 that were sunk across an area of 515 metres by 215 metres at Rook 1’s Arrow zone. Among them is the previously reported “landmark drill hole,” which has now been completed.

The usual scintillometer disclaimer applies. The results come from a hand-held device that measures drill core for radiation in counts per second and are no substitute for assays, which will follow.

Uranium news from Saskatchewan and elsewhere for August 30 to September 5, 2014

That “landmark” hole, AR-14-30, peaked with the previous results. Further drilling only found an additional 6.9 metres (not true thickness) of mineralization starting at 721.3 metres in vertical depth. But overall the hole’s mineralization totalled a composite 206.6 metres.

VP of exploration and development Garrett Ainsworth credited AR-14-30 as “successful in confirming the pinch and swell of mineralization within one of the sub-vertical shear zones that hosts high-grade uranium … Targeting these mineralized swells or ‘blow-outs’ will require a combination of angled and vertical drill holes.”

A composite 202.05 metres came from AR-14-28, with the top-most interval starting at a downhole depth of 108.1 metres. AR-14-29a revealed 123.35 metres, with the first intercept beginning at 230.75 metres in downhole depth.

Ainsworth characterized these holes as “aggressive 45-to-50-metre step-outs that intersected significant intervals of mineralization, which provides further evidence that Arrow is only getting bigger.”

Backed by $6.5 million of working capital, the Arrow campaign continues.

Fission 3.0/Azincourt finish summer drilling at PLN

Fission 3.0 TSXV:FUU and Azincourt Uranium TSXV:AAZ have wrapped up the summer’s six-hole program of about 2,130 metres at Patterson Lake North. One assay released September 3, from a hole testing the A1 conductor, showed:

  • 0.012% U3O8 over six metres, starting at 193 metres in downhole depth
  • (including 0.047% over 0.5 metres)

Geochemical analysis of two other holes “returned highly prospective results that warrant aggressive follow-up on two separate conductor trends,” the companies stated. Five holes tested A1 along 750 metres of strike. A sixth hole targeted the A4-1 conductor. Further drilling is now being planned.

Results are pending for DC resistivity surveys on the property’s Broach Lake area “but preliminary interpretations are prospective.”

Fission 3.0 acts as operator on the 27,408-hectare project, where Azincourt has so far earned 10% of its 50% option.

Last May Fission 3.0 joined Brades Resource TSXV:BRA to announce VTEM results from their Clearwater West joint venture, also adjacently north of PLS.

Macusani completes acquisition of Azincourt’s Peruvian properties

A consolidation of their Peruvian uranium assets has closed, as Macusani Yellowcake TSXV:YEL acquired properties from Azincourt. Details announced September 4 followed terms of a July definitive agreement. Macusani got Azincourt’s Peruvian subsidiary for 68.35 million shares representing about 26.3% of Macusani’s post-transaction stock. Macusani also announced a further $1.66-million financing that brought its private placement to a total of $2.23 million.

The property package borders a project held by Azincourt’s PLN JV partner, Fission 3.0. Read more here and here.

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Fission’s Patterson Lake South builds confidence, suggests possible expansion

August 13th, 2014

by Greg Klein | August 13, 2014

High grades and wide intervals continue for Patterson Lake South as more winter assays arrive from the main zone, along with anomalous radiometric measurements 17 kilometres from Fission Uranium’s (TSXV:FCU) discovery.

With 80 holes released so far from the 92 drilled last winter, only two missed mineralization. Of the five holes released August 13, three featured especially strong results of 6.29% U3O8 over 48.5 metres, 5.19% over 57 metres and 2.28% over 94.5 metres. These five holes came from the central to eastern part of R780E, the middle and largest of five zones along a 2.24-kilometre potential strike that’s open to the east and west. Highlights showed:

Hole PLS14-209

  • 5.19% uranium oxide (U3O8) over 57 metres, starting at 83.5 metres in downhole depth
  • (including 21.97% over 10.5 metres)
Fission’s Patterson Lake South builds confidence, suggests possible expansion

  • 0.8% over 4 metres, starting at 156.5 metres


  • 0.17% over 20 metres, starting at 120.5 metres
  • (including 2.02% over 1 metre)

  • 0.15% over 21 metres, starting at 163.5 metres

  • 1.41% over 8 metres, starting at 200 metres
  • (including 3.25% over 3 metres)


  • 2.28% over 94.5 metres, starting at 82.5 metres
  • (including 7.02% over 5.5 metres)
  • (and including 16.75% over 3 metres)
  • (and including 8.15% over 1.5 metres)
  • (and including 7.87% over 3.5 metres)

  • 1.17% over 21 metres, starting at 189.5 metres
  • (including 2.64% over 5 metres)


  • 6.29% over 48.5 metres, starting at 65 metres
  • (including 11.8% over 22.5 metres)

  • 1.02% over 21.5 metres, starting at 117.5 metres
  • (including 2.61% over 4.5 metres)

  • 0.6% over 10.5 metres, starting at 185.5 metres
  • (including 1.65% over 3 metres)


  • 0.53% over 6 metres, starting at 217 metres
  • (including 1.14% over 2 metres)

True widths weren’t provided.

A summer exploration hole reported two days earlier tested the PLG-105A electromagnetic conductor, about 17 kilometres southeast of the discovery. The property hosts over 100 EM conductors, few of which have been drilled. A downhole probe found 0.95 metres of anomalous radioactivity starting at 63.76 metres in downhole depth and peaking at 2,532 counts per second. The measurement is no substitute for an assay, which is pending. Fission Uranium plans further drilling in the area, which is 330 metres north of the Clearwater West project, operated by the company’s spinco Fission 3.0 TSXV:FUU and funded by Brades Resource TSXV:BRA.

Last week high-grade assays came from not only Fission Uranium but also next-door neighbour NexGen Energy TSXV:NXE.

Athabasca Basin and beyond

August 9th, 2014

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

by Greg Klein

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High grades, wide intervals from neighbours Fission and NexGen

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

First, a look at NexGen.

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

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

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

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

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

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

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

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

The strongest results came from AR-14-15.

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

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

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

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

Fission hits with six holes from winter, 12 from summer

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

Hole PLS14-201

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

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


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

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

  • 0.59% over 35.5 metres, starting at 251.5 metres


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

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

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

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

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

U3O8 Corp Argentinian PEA sees payback in 2.5 years

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

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

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

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