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Posts tagged ‘Kivalliq Energy Corp (KIV)’

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)

PLS14-205

  • 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

PLS14-213

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

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

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

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

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

U3O8 Corp Argentinian PEA sees payback in 2.5 years

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

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

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

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Athabasca Basin and beyond

August 2nd, 2014

Uranium news from Saskatchewan and elsewhere for July 26 to August 1, 2014

by Greg Klein

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Fission off to a scintillating summer at Patterson Lake South

Fourteen widely mineralized holes released July 28 mark Fission Uranium’s (TSXV:FCU) first summer results from Patterson Lake South. All tested R780E, the middle and largest of five zones along a 2.24-kilometre potential strike. Two holes extended the eastern part of the zone about 50 metres north. Among other PLS news is a new technique that allows barge-based angle drilling to better determine the mineralization’s size and shape. And new technology—a scintillometer can now measure radioactive drill core up to 65,535 counts per second, replacing a model that maxed out at 9,999 cps.

Scintillometer readings, as the usual disclaimer relates, are no substitute for assays, which are pending. But the brand new gizmo shows measurements that would have been well off scale for the older device. Some examples from Fission’s multi-page chart include:

Hole PLS 14-219

  • <300 to 33,000 counts per second over 17 metres, starting at 160 metres in downhole depth
Uranium news from Saskatchewan and elsewhere for July 26 to August 1, 2014

PLS 14-220

  • <300 to 15,000 cps over 32 metres, starting at 59.5 metres

  • <300 to 30,000 cps over 14.5 metres, starting at 97 metres

  • <300 to 41,000 cps over 11 metres, starting at 163 metres

PLS 14-223

  • <300 to 41,000 cps over 13.5 metres, starting at 176.5 metres

PLS 14-224

  • <300 to 42,000 cps over 19.5 metres, starting at 128.5 metres

PLS 14-225

  • <300 to 30,000 cps over 39 metres, starting at 145.5 metres

PLS 14-229

  • <300 to 31,300 cps over 27.5 metres, starting at 96.5 metres

One interval in hole PLS 14-230 came close to maxing out the new scintillometer:

  • <300 to 65,500 cps over 24 metres, starting at 229 metres

True widths weren’t provided.

Forty-three holes of the 63-hole, 20,330-metre summer program will attack the project’s main mineralized trend in hopes of extending it north, south and along strike to the east, as well as delineating the December resource. In the meantime, the market awaits assays for the last 24 holes from 92 sunk last winter.

Denison steps out at Wheeler’s Gryphon zone

On the southeastern Athabasca Basin, step-out drill results from Denison Mines’ (TSX:DML) Wheeler River showed some strong numbers, although possibly not as strong as the company had hoped. Out of 10 holes reported July 29 from the project’s Gryphon zone, seven were 50-metre step-outs from two previously announced holes: Gryphon discovery hole WR-556, which assayed 15.3% U3O8 over 4 metres, and WR-560, which showed 21.2% over 4.5 metres.

The latest batch was provided as radiometric-equivalent uranium from a downhole probe. Lab assays are pending. Some highlights showed:

Hole WR-564

  • 0.8% uranium oxide-equivalent (eU3O8) over 20.5 metres, starting at 736.3 metres in downhole depth
  • (including 3% over 2.3 metres)
  • (also including 4.5% over 1 metre)

WR-567

  • 1.1% over 2.7 metres, starting at 727.2 metres

WR-569A

  • 3.1% over 3 metres, starting at 662.6 metres

  • 9.4% over 3.7 metres, starting at 679.3 metres

  • 8.1% over 1.1 metres, starting at 692.3 metres

  • 5.3% over 5.9 metres, starting at 702.1 metres

  • 3% over 2 metres, starting at 724 metres

WR-571

  • 2.3% over 6.5 metres, starting at 755.8 metres
  • (including 10.9% over 1 metre)
  • (also including 1.9% over 1.1 metres)

True widths were estimated at approximately 75%. Three other step-outs failed to find significant mineralization, as did two extensions of historic holes.

Denison described the area as a zone of mineralization above 1% eU3O8 enveloped by lower-grade stuff. “The higher-grade mineralization plunges to the northeast and has now been drilled over 150 metres in the along-plunge direction and over 50 metres across the plunge,” the company added. “Mineralization is open down plunge to the northeast, up plunge to the southwest and across the plunge at depth.”

Last March’s Gryphon discovery diverted attention from Wheeler River’s Phoenix deposit three kilometres southeast. Nevertheless, in June Denison announced a 34% increase in Phoenix indicated resources.

Wheeler’s agenda calls for another 10 holes at Gryphon this summer. Denison acts as operator and holds 60% of the 12,333-hectare property, along with Cameco Corp TSX:CCO (30%) and JCU Canada Exploration (10%).

The previous week Denison announced a $13.04-million bought deal that’s expected to close around August 12. In June the company closed its acquisition of International Enexco. Denison plans to spend $15 million on Canadian exploration this year.

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Athabasca Basin and beyond

July 19th, 2014

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

by Greg Klein

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High-grade U3O8 helps Fission delineate

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

Some highlights from R780E show:

Hole PLS14-172

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

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

  • 0.23% over 11 metres, starting at 131.5 metres

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

  • 0.6% over 10 metres, starting at 224 metres

Hole PLS14-181

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

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

Hole PLS14-183

  • 0.14% over 18 metres, starting at 109 metres

  • 0.21% over 10.5 metres, starting at 147 metres

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

  • 1.63% over 3.5 metres, starting at 193.5 metres

  • 1.1% over 6.5 metres, starting at 213 metres

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

Hole PLS14-184

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

  • 7.66% over 2 metres, starting at 136 metres

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

Hole PLS14-189

  • 1.93% over 15 metres, starting at 262.5 metres

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

Hole PLS14-191

  • 0.22% over 6.5 metres, starting at 99 metres

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

  • 1% over 3.5 metres, starting at 152.5 metres

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

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

  • 0.33% over 3.5 metres, starting at 211 metres

  • 0.1% over 5.5 metres, starting at 359 metres

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

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

Cigar Lake suspended as Cameco encounters freezing failure

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

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

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

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

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

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

Read more about Cigar Lake.

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

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

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

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

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

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Athabasca Basin and beyond

May 31st, 2014

Uranium news from Saskatchewan and elsewhere for May 24 to 30, 2014

by Greg Klein

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Fission Uranium drills 38 metres of 4.44% U3O8 at Patterson Lake South

Still no word on a resource estimate, but Fission Uranium TSXV:FCU released assays for 10 more infill holes from Patterson Lake South on May 29. The latest batch brings the total reported holes from last winter to 40, with 52 more to come. Nine of the most recent came from R780E, the middle and the largest of five zones along a 2.24-kilometre potential strike that’s open to the east and west. Some of the best results show:

Hole PLS14-153

  • 0.34% uranium oxide (U3O8) over 21.5 metres, starting at 166.5 metres in downhole depth
  • (including 1.47% over 2 metres)
Uranium news from Saskatchewan and elsewhere for May 24 to 30, 2014

  • 0.78% over 5.5 metres, starting at 203 metres
  • (including 3.76% over 1 metre)

  • 0.64% over 10.5 metres, starting at 215 metres
  • (including 4.16% over 1 metre)

Hole PLS14-156

  • 4.68% over 19 metres, starting at 103.5 metres
  • (including 12.32% over 5.5 metres)

  • 3.69% over 4.5 metres, starting at 202 metres
  • (including 10.67% over 1.5 metres)

Hole PLS14-160

  • 4.44% over 38 metres, starting at 69 metres
  • (including 14.74% over 10 metres)

  • 1.05% over 9.5 metres, starting at 187 metres
  • (including 3.44% over 2.5 metres)

Hole PLS14-167

  • 1.16% over 18.5 metres, starting at 120 metres
  • (including 3.1% over 6.5 metres)

Hole PLS14-171

  • 1.05% over 18.5 metres, starting at 75 metres
  • (including 4.42% over 2.5 metres)

  • 2.96% over 48 metres, starting at 105 metres
  • (including 8.67% over 11.5 metres)

Fission Uranium also released one assay from R00E, the second zone from the west and location of the project’s first hit.

Hole PLS14-163

  • 0.14% over 5 metres, starting at 128.5 metres

True widths weren’t provided.

Back to the R780E assays, Fission Uranium stated they show “the exceptional strength of uranium mineralization in the middle region over a substantial strike length” of the zone.

Aldrin finds radioactivity at Triple M’s Anticline area

The first hole sunk on the Anticline target at Aldrin Resource’s (TSXV:ALN) Triple M property went radioactive, the company announced May 29. A downhole probe found nine intervals totalling 14.6 metres (not true widths) showing “significant” radiation above 300 counts per second for intercepts above 0.3 metres. The nine intervals occurred at downhole depths between 176.6 and 246.2 metres.

Radiation measurements are no substitute for assays. The company noted that radiation could come from potassium or thorium, but radiometric readings have shown some correlation with uranium at the adjacent PLS project.

Aldrin has also drilled seven holes so far on the project’s Forrest Lake fault, reporting preliminary results for the first four in April. The 12,000-hectare Triple M property consists of two blocks west and south of PLS.

Ur-Energy reports Shirley Basin eU3O8, prepares 43-101

Radiometric results announced May 28 follow completion of a 14-hole confirmation drill program at Ur-Energy’s (TSX:URE) Shirley Basin project in Wyoming. Providing the results not as counts per second but as uranium oxide-equivalent, the company found 13 intercepts above 0.02% eU3O8 for intercepts ranging between 1.83 metres and 5.79 metres thick (not true widths). The intercepts started at downhole depths ranging from 68 to 161 metres.

Historically, the Shirley Basin district has hosted low-grade deposits suited to in-situ recovery operations. But this campaign found higher-grade results too, including:

  • 0.502% eU3O8 over 2.44 metres, starting at 95 metres in downhole depth

  • 0.321% over 3.81 metres, starting at 73.8 metres

  • 0.189% over 5.79 metres, starting at 100.95 metres

Now underway is a 43-101 technical report on the property, part of last December’s acquisition of Pathfinder Mines. In August Ur-Energy began ISR production at another Wyoming project, Lost Creek. In May the company revised the mine’s guidance in view of low uranium prices.

Fission 3.0 and Brades report Clearwater West conductors

On May 27 Fission 3.0 TSXV:FUU and Brades Resource TSXV:BRA announced more detailed results from a previously reported VTEM survey. The companies now say 24 conductive areas have been located on the Clearwater West joint venture, five coinciding with anomalous radiometric readings. In all, seven high-priority areas have been identified on the eastern side of the 11,835-hectare property that borders PLS to the north.

Follow-up work will include boulder prospecting and ground-based electromagnetic and DC resistivity surveys to determine drill targets.

The Fission Energy spinco acts as operator and currently holds 100% of the project. Brades has a three-year, 50% option that would call for $5 million in spending by October 2016 and a first-year commitment of $700,000.

New listing enhances Lakeland Resources’ American exposure

Lakeland Resources TSXV:LK made its OTCQX trading debut May 30, marking an important step “as we continue to grow and expand our shareholder base globally,” said president/CEO Jonathan Armes. “The United States is an important market to be active in and we look forward to the increased visibility and exposure that this new listing will offer.”

In April the company announced a 4,475-hectare expansion to its Lazy Edward Bay project, one of Lakeland’s 16 uranium properties in and around the Basin.

Read more about Lakeland Resources here and here.

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Athabasca Basin and beyond

May 24th, 2014

Uranium news from Saskatchewan and elsewhere for May 17 to 23, 2014

by Greg Klein

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Kivalliq signs LOI with Westham Resources on Saskatchewan Genesis property

Its flagship Angilak project in Nunavut holds Canada’s highest-grade uranium deposit outside the Athabasca Basin. Nevertheless Kivalliq Energy TSXV:KIV was drawn into Saskatchewan with last January’s acquisition of the 198,763-hectare Genesis project. Now the company plans to bring in Westham Resources TSXV:WHR.P as a funding partner.

Under a letter of intent announced May 21, the capital pool company could acquire an 85% interest in return for 20% of its issued and outstanding shares, $1 million in payments and $5 million in spending over four years. The exploration commitment would include $1 million by year-end and another $1.5 million by August 31, 2016. Kivalliq would act as project operator for at least two years. Kivalliq director Dale Wallster would join Westham’s board.

Uranium news from Saskatchewan and elsewhere for May 17 to 23, 2014

Among other conditions, Westham must raise a private placement of at least $2 million.

The property lies northeast of the Basin in the prospective Western Wollaston Tectonic Domain and “covers basement rocks known to host uranium mineralization,” the companies stated. Previous operators and government surveys “outlined over 30 uranium showings that include several uranium-bearing boulder trains.” Based on that data, Kivalliq has identified eight initial targets for geophysics, sediment sampling, soil sampling, mapping and prospecting to be completed by early autumn. The company hopes to follow with a “major” drill program early next year.

Last February Kivalliq reported results of ore-sorting and metallurgical tests from Angilak’s Lac 50 deposit.

UEC adds one Texas property, “releases” another

Still expanding its southern Texas “hub-and-spoke” projects, Uranium Energy Corp NYSE MKT:UEC announced a new acquisition May 20, this one with a permitting advantage. The Longhorn project’s aquifer exemption “eliminates a major permitting hurdle” for a potential in-situ recovery operation, covering the mining zone of interest and allowing for expansion, the company stated. The project’s historic legacy includes drill maps and over 500 logs of gamma radiation data.

UEC compiled the project leases and data “over the last 18 months at a very low cost.”

The company also announced a decision to “release” its Channen project following evaluation of last summer’s drill results.

In April UEC completed a preliminary economic assessment for its Slick Rock uranium-vanadium deposit in Colorado. A week before that, the company announced its Burke Hollow ISR project in Texas had begun permitting.

UEC’s southern Texas holdings include the Hobson processing plant, the Palangana ISR mine, the Goliad development project and satellite properties. Of its nearly two dozen exploration properties, two are located in Paraguay and the others in the western U.S.

Unity picks up historic Uranium City region property

Twenty-six kilometres southwest of Uranium City, Saskatchewan, the Gulch Mine project comprises Unity Energy’s TSXV:UTY latest acquisition. Announced May 21, the 3,010-hectare property holds an historic, non-43-101 “reserve,” estimated by one source at around 928,796 pounds uranium oxide (U3O8) and by another at 1.65 million pounds. Gulch adjoins properties held by Fission 3.0 TSXV:FUU, Red Rock Energy TSXV:RRK and CanAlaska Uranium TSXV:CVV.

A 100% interest will require $1.2 million in payments over 18 months from Unity, which must drill 3,000 metres within three years. The vendor retains a 2.5% gross overriding royalty. Unity may buy back two-fifths for $1.5 million, less any previous royalty payments.

Earlier this month Unity closed a 100% option on the 14,200-hectare Camsell project in the northwestern Basin. In April the company optioned out 50% of its Mitchell Lake project to Rio Grande Mining TSXV:RGV.

MPVC tests NW Manitoba for uranium, “young” uranium, radon and lead 210

As a rotary air blast drill arrived on site, MPVC Inc TSXV:UNO updated its Northwest Manitoba project on May 22. The RAB drill is intended to quickly test shallow targets found by geophysical, geochemical and prospecting work. Drilling will take place over the lake while ice persists.

Two holes of core drilling have failed to convince a gamma ray spectrometer that they contain significant uranium mineralization, MPVC conceded. But “samples of the core are now being tested for radon, ‘young’ uranium and lead 210 which, if present, could signal the presence of uranium mineralization at greater depths.”

The company also reported receiving a letter of support for its one-year drill permit application from the Northlands Denesuline First Nation.

In early May MPVC stated preliminary results from the project’s radon-in-water survey showed, “to the author’s knowledge,” readings second only to Fission Uranium’s (TSXV:FCU) Patterson Lake South.

Contract prices, spending cuts help Ur-Energy withstand uranium’s descent

While uranium sinks to eight-year lows, on May 22 Ur-Energy TSX:URE revised its guidance for this year and next. With mid- and long-term contracts in place, customers have committed to buy approximately 518,000 pounds U3O8 at an average of $51.10 a pound this year, for projected revenues approaching $26.5 million.

As for 2015, the company so far has commitments for 630,000 pounds at an average of $50.10, for projected revenues of $31 million. With spending controls as well as managed production, Ur-Energy expects “to maintain a positive cash position throughout 2014 and 2015.”

Although its processing facility has a nameplate capacity of two million pounds annually, the company plans to keep production tied to contract obligations in 2015 “unless the market demonstrates sustained price improvement.”

Ur-Energy began ISR mining at Lost Creek in Wyoming last August.

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Athabasca Basin and beyond

March 2nd, 2014

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

by Greg Klein

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

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

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

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

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

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

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

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

Denison reports Wheeler River drill results, updates other projects

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

Hole WR-548

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

Hole WR-550

  • 18.37% over 4.7 metres, starting at 407.3 metres

Hole WR-545

  • 16.98% over 3.1 metres, starting at 403.3 metres

Hole WR-539

  • 11.63% over 3.5 metres, starting at 401.6 metres

Hole WR-538

  • 2.14% over 5.1 metres, starting at 392.4 metres

  • 0.87% over 3.3 metres, starting at 403.8 metres

  • 1.36% over 1.4 metres, starting at 408.2 metres

  • 0.11% over 2.1 metres, starting at 426.4 metres

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

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

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

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

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

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

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

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

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

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

Forum starts 3,000 metres at Clearwater

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

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

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

Lakeland Resources offers $2 million private placement for Basin exploration

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

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

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

Read more about Lakeland Resources here and here.

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Athabasca Basin and beyond

January 19th, 2014

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

by Greg Klein

Next Page 1 | 2

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

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

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

Hole PLS13-102

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

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

  • 0.12% over 9 metres, starting at 154 metres

  • 0.73% over 4 metres, starting at 171.5 metres

Hole PLS13-104

  • 0.13% over 12 metres, starting at 61 metres

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

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

  • 0.22% over 17 metres, starting at 146.5 metres

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

Hole PLS13-082

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

Hole PLS13-089

  • 0.17% over 16 metres, starting at 150 metres

  • 0.18% over 8 metres, starting at 198.5 metres

Hole PLS13-097

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

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

Hole PLS13-101

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

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

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

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

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

$50-million Uranium Participation financing bolsters commodity price confidence

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

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

A Denison Mines TSX:DML subsidiary manages Uranium Participation.

Declan grabs more ground north of Gibbon’s Creek

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

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

Read more about Lakeland Resources here and here.

Azincourt closes Peru property acquisitions

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

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

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

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

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

Read more about Azincourt’s Peru acquisitions.

Next Page 1 | 2

Athabasca Basin and beyond

October 19th, 2013

Uranium news from Saskatchewan and elsewhere for October 12 to 18, 2013

by Greg Klein

Next Page 1 | 2

Alpha/Fission upgrade R780E zone; final barge drilling shows zones open in all directions

Actual lab assays, not scintillometer readings, show the best results so far from Patterson Lake South’s R780E zone, giving it high-grade status similar to the R390E zone. Announced by 50/50 joint venture partners Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW on October 17, some highlights from hole PLS13-080 include:

  • 6.93% uranium oxide (U3O8) over 43 metres, starting at 130 metres in downhole depth

  • (including 26.73% over 2 metres)
  • (and including 15.63% over 14 metres)

  • 0.28% over 5 metres, starting at 175.5 metres

  • 0.48% over 6 metres, starting at 236.5 metres

  • 1.98% over 2.5 metres, starting at 245 metres

  • 0.16% over 11 metres, starting at 290 metres
Uranium news from Saskatchewan and elsewhere for October 12 to 18, 2013

Alpha Minerals VP of exploration
Garrett Ainsworth surveys a PLS core shack.

True widths weren’t available. The hole reached a total depth of 347 metres, encountering basement bedrock at 54 metres. At an 89-degree dip, downhole depths are close to vertical.

One day earlier the JV reported more scintillometer results, largely the stock in trade of this campaign’s announcements, for the final 10 holes drilled from barges. The hand-held device measures drill core for gamma radiation up to an off-scale reading over 9,999 counts per second. Scintillometer readings are no substitute for assays, which are pending.

The two companies didn’t always report results the same way. Some highlights from Alpha’s chart include:

R390E zone, hole PLS13-104

  • <300 to <9,999 cps over 14.5 metres, starting at 98 metres in downhole depth

  • <300 to >9,999 cps over 10.5 metres, starting at 131 metres

R780E zone

Hole PLS13-097

  • <300 to >9,999 cps over 49.5 metres, starting at 117.5 metres

  • 340 to >9,999 cps over 6 metres, starting at 228.5 metres

Hole PLS13-101

  • <300 to >9,999 cps over 17 metres, starting at 179 metres

Hole PLS13-105

  • <300 to >9,999 cps over 18.5 metres, starting at 113 metres

Hole PLS13-107

  • <300 to 8,400 cps over 24.5 metres, starting at 138.5 metres

Hole PLS13-108

  • <300 to >9,999 cps over 20 metres, starting at 152 metres

  • <300 to >9,999 cps over 21 metres, starting at 174.5 metres

  • <300 to >9,999 cps over 6.5 metres, starting at 228 metres

Hole PLS13-109

  • <300 to >9,999 cps over 10.5 metres, starting at 105.5 metres

  • <300 to >9,999 cps over 34 metres, starting at 136 metres

  • <300 to >9,999 cps over 15 metres, starting at 197 metres

Again, true widths were unavailable. Dips ranged from -85 to -89 degrees.

Alpha noted that the five zones remain open in all directions and continuity is possible between some or all of the “zones.”

The quotation marks might reflect Alpha’s previous doubt that a fifth zone had been confirmed. But elsewhere in the company’s October 16 news release Alpha refers unequivocally to five zones.

Now Fission’s the more cautious partner. Two additional holes stepped out 195 metres grid east of the most easterly zone, R945E. Although mineralization wasn’t strong, Alpha said the results extend the PLS trend by 210 metres to 1.23 kilometres. Fission, on the other hand, said the holes may extend the strike at least 200 metres. Presumably these little differences will be forgotten once Fission closes its acquisition of Alpha, which might take place in November.

Meanwhile the recently extended campaign continues with 11 land-based holes, totalling 3,700 metres, west of the lake.

NexGen finds three mineralized holes at Rook 1, plans winter drilling

With Rook 1’s Phase I now complete, NexGen Energy TSXV:NXE reported probe results for three of 12 widely spaced holes on October 16. Like the scintillometer, the downhole probe measures gamma radiation in counts per second while assays are pending. Some highlights include:

Hole RK-13-03

  • 350 to 508 cps over 0.8 metres, starting at 131.9 metres in downhole depth

  • 345 to 1,143 cps over 0.5 metres, starting at 149.9 metres

Hole RK-13-05

  • 380 to 4,379 cps over 2.7 metres, starting at 215.7 metres

  • 347 to 1,771 cps over 1.7 metres, starting at 219.2 metres

Hole RK-13-06

  • 481 to 2,297 cps over 2.1 metres, starting at 151.8 metres

True widths weren’t available. The three holes targeted three parallel conductors, one of them interpreted to be the same conductor hosting the PLS discoveries 2.1 kilometres southwest.

NexGen plans “a significantly large” winter drill campaign near the mineralized holes and on targets identified by geophysics.

The company’s portfolio includes a 70% option on the northeastern Athabasca Basin Radio project two kilometres east of Rio Tinto’s NYE:RIO Roughrider deposits. Assays are pending from Radio’s nine-hole, 3,473-metre program, which wrapped up in July.

Kivalliq to buy Nunavut uranium project in $275,000 deal

On the southern boundary of Nunavut’s Baker Lake Basin, Kivalliq Energy TSXV:KIV will acquire a 93,991-hectare property from Pacific Ridge Exploration TSXV:PEX. Subject to approvals, the deal has Kivalliq paying $55,000 to Pacific Ridge, issuing the company 600,000 shares at a deemed price of $0.25 and investing $70,000 by purchasing 1.4 million Pacific Ridge units at $0.05. Each unit would consist of one share and one-half warrant, with each whole warrant exercisable at $0.10 for a year, Kivalliq announced October 15.

The 100% acquisition doesn’t include any diamonds found on the property.

Previous work on the Baker Basin project included $7.1 million of exploration in 2006 and 2007. Among the results were:

KZ zone

  • 0.31% U3O8 over 11.5 metres, starting at 79.5 metres in downhole depth

  • (including 0.56% over 5.5 metres)

  • 0.27% over 5.8 metres, starting at 36 metres

True widths were unknown.

Lucky 7 zone

  • 0.3% over 17.3 metres, starting at 232.2 metres

  • (including 0.51% over 9 metres)

True widths were estimated between 50% and 70% of intercepts.

Four zones haven’t been fully evaluated, according to Kivalliq. The company plans to compile project data before planning additional work. The property lies 60 kilometres south of the hamlet of Baker Lake.

About 165 kilometres farther south, Kivalliq’s 137,699-hectare Angilak project has inferred resources of 43.3 million pounds U3O8, 1.88 million ounces silver, 10.4 million pounds molybdenum and 15.6 million pounds copper. The company reported new geochemical and metallurgical results in September.

Pacific Ridge focuses on projects in the Yukon’s White Gold and Klondike districts.

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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

June 29th, 2013

Uranium news from Saskatchewan and elsewhere for June 22 to 28, 2013

by Greg Klein

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Fission/Alpha strike gold at PLS, report geochem results

Patterson Lake South’s potential might go beyond the stuff of yellowcake to include yellow metal. After releasing all those high-grade, near-surface uranium assays, Alpha Minerals TSXV:AMW and Fission Uranium TSXV:FCU finally reported high-grade, near-surface gold on June 24. Where it was found, the gold frequently correlated with high-grade uranium, although the reverse wasn’t always true. But they did find gold in all three zones.

Some highlights include:

Zone R390E

  • 1.58 grams per tonne gold over 63.5 metres, starting at 82 metres in downhole depth
  • (including 8.8 g/t over 2.5 metres)
  • (and including 35.6 g/t over 0.5 metres)
  • 1.02 g/t over 53 metres, starting at 95 metres
  • (including 2.6 g/t over 10.5 metres).
Uranium news from Saskatchewan and elsewhere

Zone R00E

  • 1.9 g/t over 20.5 metres, starting at 65.5 metres.

Zone R780E

  • 1.71 g/t over 7 metres, starting at 144 metres
  • (including 4.48 g/t over 2.5 metres).

True thicknesses weren’t available. The 50/50 joint venture partners pointed to other uranium-gold occurrences in the western Athabasca Basin including Cluff Lake, which produced over 16,000 gold ounces in 1987, and the high gold grades reported from the UEX Corp TSX:UEX/AREVA Resources Canada Shea Creek JV. But Fission and Alpha cautioned that Athabasca gold typically occurs irregularly, making extraction viable only with a mineable uranium deposit.

The companies also reported that, unlike some Basin deposits, PLS has shown low arsenic values. High arsenic requires more costly processing and disposal, the partners stated.

Additionally, geochemical work showed strongly anomalous boron related to the hydrothermal alteration in and around uranium mineralization. “The extent of the alteration halo around the mineralization can enlarge the target area and be used as a guide to focus on an area in a suitable geophysical setting,” the companies stated.

Project operator Fission plans to resume drilling in July, part of a program jointly budgeted at $6.95 million.

$6-million program for PLS-area’s largest package proposed by Skyharbour, Athabasca Nuclear, Lucky Strike, Noka

The plan calls for four companies funding exploration on the Patterson Lake South area’s largest land package. Under a memorandum of understanding announced June 24, Skyharbour Resources TSXV:SYH and Athabasca Nuclear TSXV:ASC would combine their Basin properties into one 287,130-hectare bundle, with Lucky Strike Resources TSXV:LKY and Noka Resources TSXV:NX also contributing to a two-year, $6-million campaign.

The properties include Athabasca Nuclear’s Preston Lake, 26 kilometres south of the PLS discovery, and Skyharbour’s adjacent West Patterson, South Patterson and Draco properties. Also included are Skyharbour’s nearby North Patterson, RY and South Basin properties, and its 11,769-hectare Wheeler claims in the eastern Basin.

Noka and Lucky Strike already hold a 25% earn-in each on Skyharbour’s properties. The MOU would give Athabasca Nuclear a 25% option on the properties as well. The other three companies would each get 25% options on Athabasca Nuclear’s 125,375-hectare Preston Lake. Lucky Strike and Noka would each fund $1 million of exploration per year for two years, while Skyharbour and Athabasca Nuclear would each put up $500,00 a year.

Cash and shares would change hands as Noka and Lucky Strike each pay $100,000 and issue $100,000 in shares to each of Skyharbour and Athabasca Nuclear. The latter two would issue each other shares worth $100,000.

Finally, the four companies would form a JV. They hope to sign a definitive agreement by June 30.

Speaking to ResourceClips.com, Skyharbour president/CEO Jordan Trimble emphasized that the plan minimizes his company’s risk and future equity dilution. “We decided this approach made the most sense from both an exploration standpoint and a financial standpoint,” he said. “This will also create value-added synergies that will further improve our chances of raising money and making a new discovery.”

Already underway at the PLS-area properties is an airborne VTEM-plus time domain survey, to be followed by radiometrics later this summer. Another co-operative effort, the surveys are jointly funded by Skyharbour, Athabasca Nuclear, Aldrin Resource TSXV:ALN and Forum Uranium TSXV:FDC to explore their contiguous claims.

Plans call for further exploration by the newly announced strategic alliance, with operator Athabasca Nuclear consulting with the other geological teams as well as Alpha’s 43-101 technical report for PLS. “They’ve really written the book on how to discover deposits in this specific area,” Trimble said.

Read more about the four-way strategic alliance.

International Enexco JVs with Denison on Bachman Lake

A JV announced June 25 brings together International Enexco TSXV:IEC and Denison Mines TSX:DML on the Bachman Lake project, about four kilometres from Cameco Corp’s TSX:CCO proposed Millennium mine in the southeastern Basin. Enexco may earn 20% of Bachman by funding $500,000 of exploration by year-end. Denison remains project operator. The 11,419-hectare property is scheduled for a helicopter-supported 1,900-metre drill program beginning in August to focus on three conductors identified by geophysics and historic drilling.

Twenty kilometres northeast Enexco holds a 30% interest in the 3,407-hectare Mann Lake project, a JV with operator Cameco (52.5%) and AREVA Resources Canada (17.5%). In Nevada, Enexco has a feasibility study underway on its Contact copper project.

Kivalliq releases assays from its Angilak project in Nunavut

Exploration drilling on two new zones at Kivalliq Energy’s TSXV:KIV Angilak project produced a batch of assays released June 27. Some highlights from the Nunavut property show:

ML zone

  • 0.46% uranium oxide (U3O8), 0.48% copper, 0.15% molybdenum and 53.6 g/t silver over 4.3 metres, starting at 90.2 metres in downhole depth
  • (including 1.42% U3O8, 0.64% copper, 0.4% molybdenum and 139 g/t silver over 1.2 metres).

J1 zone

  • 0.06% U3O8, 0.08% copper, 0.01% molybdenum and 8.3 g/t silver over 1.3 metres, starting at 38 metres
  • 1.06% U3O8, 0.28% copper, 0.03% molybdenum and 3.6 g/t silver over 0.3 metres, starting at 60.1 metres
  • 0.56% U3O8, 0.05% copper, 0.28% molybdenum and 15.5 g/t silver over 0.6 metres, starting at 77.2 metres
  • (including 1.31% U3O8, 0.09% copper, 0.66% molybdenum and 33.9 g/t silver over 0.3 metres)
  • 0.15% U3O8, 0.05% copper, 0.07% molybdenum and 9.2 g/t silver over 0.2 metres, starting at 114.8 metres.

Intercepts are estimated true widths. Kivalliq president Jeff Ward said the two zones show geological similarity and proximity to current deposits on the project’s Lac 50 trend, which has a March 2013 inferred resource of 2.83 million tonnes averaging 0.69% U3O8, Canada’s highest-grade uranium resource outside the Athabasca Basin.

Kivalliq operates the 138,000-hectare project, 225 kilometres south of Baker Lake, in partnership with Nunavut Tunngavik Inc. Drilling resumes in July.

Macusani releases assays from Peru, says resource updates are imminent

In southeastern Peru, Macusani Yellowcake TSXV:YEL announced drill results from the Chilcuno Chico anomaly on its Kihitian property. Some highlights from the June 26 release include:

  • 0.121% U3O8 over 17 metres, starting at 220 metres in downhole depth
  • (including 0.346% over 4 metres)
  • 0.172% over 4 metres, starting at 103 metres
  • 0.032% over 41 metres, starting at 248 metres
  • (including 0.308% over 3 metres)
  • 0.056% over 16 metres, starting at 35 metres
  • 0.059% over 9 metres, starting at 232 metres
  • (including 0.163% over 2 metres).

True widths weren’t available. With 45,000 metres since 2011, drilling has delineated an area about 1,050 metres by 1,100 metres, where the Manto B zone remains open in all directions. Macusani believes the project’s Quebrada Blanca anomaly forms part of the same mineralized sequence as Manto B.

The company has two drills turning at Chilcuno Chico and two more at its Tupuramani project, also on the Macusani Plateau. Resource updates for Colibri 2 and 3/Tupuramani and for Chilcuno Chico/Quebrada Blanca are expected within days.

Read more about exploration and mining in Peru.

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