Tuesday 6th December 2016

Resource Clips


Posts tagged ‘mali’

BCSC warns against DFRF Enterprises’ “economically impossible” returns

May 6th, 2015

by Greg Klein | May 6, 2015

A company that claims to mine 10 tonnes of gold per month and manage $144 billion in assets has been hit by an investor alert from the British Columbia Securities Commission. The May 6 communique warns against buying “memberships or other securities of DFRF Enterprises LLC, DFRF Enterprises Ltd or other companies associated with Daniel Fernandez Rojo Filho.” Claims that investments will return 15% per month are “economically impossible,” the BCSC cautioned, while a promise that DFRF will soon begin trading on a stock exchange is illegal.

BCSC warns investors about DFRF Enterprises’ “economically impossible” returns

A screengrab shows Daniel Filho
in a DFRF promotional video.

The BCSC stated Filho made the following claims, several of which “are characteristic of investment fraud”:

  • Investors’ principal is guaranteed and safe

  • Investors’ funds are held offshore

  • Filho manages $144 billion in assets

  • DFRF extracts 10 tonnes of gold per month in Mali

  • The company donates 25% of profits to humanitarian causes

  • Members who refer new members get 10% commissions

The BCSC urged anyone who’s been approached by or has information about DFRF or Filho to contact the commission at (604) 899-6854 or 1-800-373-6393.

Filho was recently named “Brazilian Personality of the Year,” according to a story distributed by Accesswire on May 4 and attributed to FAME magazine. Calling him “a man able to turn paper into gold,” the account stated, “the 47-year-old entrepreneur has a history rich with charitable organizations and projects. In the 1990s his work in social and philanthropic areas allowed the construction of 409 churches, 47 schools and 19 hospitals around the world.” The story claimed that he currently manages “more than 50 businesses around the world, providing more than 10,000 jobs.”

The story also claimed, “His holdings already include a bank in Switzerland, multiple airlines and a network of hotels and restaurants.”

But “as with any successful business, Daniel’s efforts have been attacked by numerous competitors who have launched fake websites and published unfounded accusations about him and his thriving companies,” the story insisted.

One critical website stated that DFRF is the subject of a lawsuit in Massachusetts and that someone with the same name as Filho had operated a pyramid scheme in Florida.

Read more about fraud prevention.

Athabasca Basin and beyond

May 10th, 2014

Uranium news from Saskatchewan and elsewhere for May 3 to 9, 2014

by Greg Klein

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Paladin releases Labrador infill results, plans Q2 resource update

From Labrador’s Central Mineral Belt, Paladin Energy TSX:PDN announced winter infill drilling results on May 7. Thirteen holes sunk 3,871 metres into the Michelin deposit, with each hole finding mineralization and six revealing significant intervals, the company stated. The best results showed:

Hole M14-151

  • 0.109% uranium oxide-equivalent (eU3O8) over 10 metres, starting at 302 metres in downhole depth
Uranium news from Saskatchewan and elsewhere for May 3 to 9, 2014

Paladin considers Labrador’s Central Mineral Belt “one of the
few remaining under-explored uranium districts globally.”

Hole M14-154

  • 0.14% over 15 metres, starting at 214 metres

  • 0.13% over 8 metres, starting at 256 metres

Hole M14-156

  • 0.095% over 12 metres, starting at 230 metres

Hole M14-158

  • 0.096% over 16 metres, starting at 191 metres

Hole M14-162

  • 0.102% over 28 metres, starting at 348 metres

Hole M14-163

  • 0.114% over 9 metres, starting at 355 metres

Information about true widths wasn’t provided. The deposit remains open in both directions and at depth. On the agenda is a Q2 resource update in which Paladin hopes the last few years of drilling will boost confidence as well as produce a small size increase.

Michelin’s resource currently shows:

  • measured: 7.1 million tonnes averaging 0.08% for 13.06 million pounds U3O8

  • indicated: 23 million tonnes averaging 0.11% for 54.06 million pounds

  • inferred: 16 million tonnes averaging 0.1% for 36.09 million pounds

Adding in five other deposits within 50 kilometres of a potential Michelin mill, the CMB project totals:

  • measured: 8.1 million tonnes averaging 0.08% for 15.1 million pounds

  • indicated: 32 million tonnes averaging 0.1% for 68.7 million pounds

  • inferred: 29.1 million tonnes averaging 0.08% for 53 million pounds

Three kilometres south of Michelin, two holes totalling 561 metres failed to find depth extensions to the Rainbow deposit. But Paladin considers the Michelin-Rainbow trend highly prospective as a result of radiometric surveying, mapping, prospecting and some drilling. Interpretation of a 608-line-kilometre ground magnetic survey will help guide exploration in the Michelin vicinity. More drilling is planned for next winter.

Paladin holds interests in five other exploration projects in Australia and another in Niger. Last February, declining prices forced the company to place its Kayelekera mine in Malawi on care and maintenance. Paladin hopes to close the sale of a 25% interest in its Langer Heinrich flagship in Namibia in June.

Northwest Manitoba radon-in-water might be second only to PLS, MPVC says

Having reported results of a land-based radon survey last month, MPVC Inc TSXV:UNO announced preliminary but optimistic findings from a radon-in-water survey at its Northwest Manitoba project on May 7. “To the author’s knowledge” only Fission Uranium’s (TSXV:FCU) Patterson Lake South has shown higher readings for a water-based survey, MPVC stated. More detailed analysis could change the results by about 10% either way.

Of the 1,399 samples from Maguire Lake, 41 showed results above 100 picocuries per litre (pCi/L), 14 went beyond 200 pCi/L, eight exceeded 300 pCi/L and four surpassed 400 pCi/L.

The readings extend linear trends identified in last month’s land-based survey results, MPVC added.

Still to come are results from a ground gravity survey to fill in areas missed by a 2012 survey. The area has also undergone an airborne magnetic/VLF/radiometric survey in 2006 and an airborne VTEM survey in 2007.

Among future work, the company plans to scan drill cuttings with a high-resolution gamma spectrometer system to “detect young uranium which is not radioactive and therefore not detectible with other field instruments…. The detection of anomalous young uranium, radon or lead 210 ascending along fractures would signal the presence of a uranium deposit at depth.” Drilling might descend as far as 1,000 metres in search of deeper deposits.

Previous prospecting in the area has found in-situ mineralization up to 9.5% U3O8 and boulders grading above 65%.

The company’s 80% option with CanAlaska Uranium TSXV:CVV calls for $3.2 million worth of exploration on the 143,603-hectare project by 2015.

Western Athabasca Syndicate reports initial Preston drill results

The four-company Western Athabasca Syndicate announced preliminary results from seven holes totalling 1,571 metres on their Preston property’s Swoosh target May 6. Five holes showed elevated radioactivity measured by a handheld spectrometer and a downhole probe. The project’s best hole so far, PN14007, found 12 radioactive intervals, one of them 1,432 counts per second over 0.75 metres (not true width). The results are no substitute for assays, which are expected in early June.

The alliance consists of Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY.

Six holes reached downhole depths between 200 and 350 metres while poor drilling conditions eliminated one hole. But all seven “intersected a broad, hydrothermally altered and reactivated structural zone,” the syndicate stated. The six-kilometre-long Swoosh was defined by gravity, magnetic and electromagnetic surveys, and surficial geochemical anomalies.

This month the companies plan at least one hole on each of two other targets, Fin and CHA. Swoosh is slated for additional field work and drilling later this year.

Athabasca Nuclear acts as project operator on the 246,643-hectare Preston property, which the syndicate credits with 15 prospective targets.

Anfield collects Colorado claims

Anfield Resources TSXV:ARY has once again expanded its western U.S. turf with 239 unpatented mining claims on federal land in Colorado. As a result the company now “has access to mineral rights” on more than 7,082 hectares in historic uranium and vanadium districts in Colorado and Utah, according to the May 8 announcement.

Subject to approvals, Anfield gets the claims from Alamosa Mining Corp for 1.95 million shares and three years of payments totalling US$600,000.

The company previously announced Utah acquisitions in March and January. All the Utah and Colorado claims lie within a 193-kilometre radius of Energy Fuels’ (TSX:EFR) White Mesa mill. Anfield also holds claims in Arizona.

European Uranium refines portfolio sale, intends to pursue other assets

On May 9 European Uranium Resources TSXV:EUU announced that the planned sale of its entire portfolio has reached a share purchase agreement with Forte Energy that replaces the companies’ previous binding heads of agreement. As in the original deal, the ASX/AIM-listed company issues EUU 915.93 million shares, valued at $7.5 million, and pays EUU $1 million. The latter retains a 1% production royalty.

But the new arrangement calls for the shares to be issued in instalments to avoid breaching the Australia Takeovers Prohibition. On closing, EUU would get 19.9% of the shares with the rest following “from time to time.”

Nor will EUU distribute Forte shares to its own shareholders. Instead it will sell some of them over time to fund its operations. EUU stated the deal would provide initial funding to pursue options or acquisitions “in multiple commodities in the general European area.”

The Forte deal came together shortly after EUU’s planned merger with Portex Minerals CSE:PAX fell through. EUU’s portfolio consists of two Slovakian uranium projects.

The company closed a $100,000 private placement with Forte in mid-April.

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Athabasca Basin and beyond

March 22nd, 2014

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

by Greg Klein

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Denison signs LOI to acquire International Enexco, finds new Wheeler River zone

The expansionist Denison Mines TSX:DML announced another potential acquisition with a letter of intent to take over one of its joint venture partners, International Enexco TSXV:IEC. The March 19 after-market announcement had Denison chairperson Lukas Lundin saying his company “continues to focus on becoming the pre-eminent exploration company in the Athabasca Basin.”

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

The acquisition of JV partner Enexco would give Denison full ownership
of Bachman Lake, one of the company’s priority projects.

The plan of arrangement would exchange each Enexco share for 0.26 of a Denison share plus an undetermined portion of a spinco or subsidiary that would hold Enexco’s assets outside the Basin.

The deal would have Enexco shareholders owning about 2.1% of Denison. The latter company already holds about 8.4% of Enexco, along with another 1.8 million warrants.

The LOI includes a non-solicitation covenant on the part of Enexco, while Denison has the right to match any superior proposal.

The two companies JV together on the 11,419-hectare Bachman Lake property four kilometres west of Cameco Corp’s TSX:CCO proposed Millennium mine in the southeastern Basin. Enexco holds a 20% interest. Operator Denison describes the project as one of the company’s highest priorities “due to its location in the southeast Athabasca Basin and the presence of strong conductors, graphitic basement and sandstone alteration.”

Mann Lake, another JV 20 klicks northeast, is held 30% by Enexco, 52.5% by Cameco and 17.5% by AREVA Resources Canada. The 3,407-hectare property lies on trend between Cameco’s Read Lake and Denison’s 60%-held Wheeler River projects.

In Nevada, Enexco’s 100%-held Contact copper project is currently working towards feasibility.

Denison’s most recent acquisition closed in January, after the company grabbed Rockgate Capital to thwart its proposed merger with Mega Uranium TSX:MGA. Rockgate’s directors initially characterized Denison’s manoeuvre as an “unsolicited opportunistic hostile takeover bid.” As a result Denison gained the advanced-stage Falea uranium-silver-copper project in Mali. The company had said it intended to spin out its non-Athabasca projects.

Enexco valued the combined Denison/spinco offers at $0.64 for an Enexco share, a 63% premium over its March 19 close of $0.39, after having been trading between a 52-week low of $0.23 and a 52-week high of $0.48. But by March 21 close the stock had reached $0.53. With 47.79 million shares outstanding, the company had a market cap of $22.68 million.

Denison closed March 19 on $1.74 and March 21 on $1.72. With 484.68 million shares outstanding, its market cap came to $833.65 million.

One day after the LOI announcement, Denison’s Wheeler River JV returned to prominence with a high-grade hole from the newly found Gryphon zone, three kilometres northwest of the Phoenix deposit.

The one interval reported, from hole WR-556, showed:

  • 3.7% uranium oxide-equivalent (eU3O8) over 12.6 metres, starting at 691 metres in downhole depth

  • (including 9.7% over 4.6 metres)

True thickness was about 70%. The results come from a downhole radiometric probe which, although more accurate than a scintillometer, are no substitute for assays.

As project operator, Denison targeted two historic holes where it found “a basement wedge that has been faulted up into the sandstone and then encountered a large interval of graphitic basement, within which is a zone of alteration and mineralization 140 metres down-dip of the old drill holes.”

Gryphon’s mineralization lies “approximately 200 metres beneath the sub-Athabasca unconformity and is open in both strike directions and down-dip,” the company added.

In late February Denison released radiometric results for eight holes on the Phoenix deposit and briefly updated some other projects.

Fission Uranium merges two more zones at Patterson Lake South

Back on the subject of M&A, Fission Uranium TSXV:FCU might be considered an acquisition waiting to happen. On March 17, for the second time in less than two weeks, the company said it merged two zones at Patterson Lake South, evidently part of its ambition to demonstrate one big deposit before the company gets swallowed by a bigger fish.

Radiometric results closed an approximately 60-metre gap, joining zone R585E to its former neighbour to the west, R390E. The project now has five zones, three of them high-grade, along a 1.78-kilometre potential strike. The $12-million winter program’s primary goal is to delete the word “potential.”

The news followed a March 5 announcement that drilling had merged two other zones into R780E and a March 10 announcement of the project’s second-strongest radiometric results. Of eight holes released March 17, five showed intervals of 9,999 counts per second, the highest possible reading on the hand-held scintillometer that measures radioactivity from drill core. Scintillometer readings are no substitute for assays, which are pending.

Maximum readings for three holes showed composites of 15.25 metres, 7.14 metres and 5.85 metres. Of all mineralized intercepts, the interval closest to surface began at 60 metres in downhole depth, while the deepest stopped at 373 metres.

Of the three high-grade zones, R00E shows a 165-metre strike and lateral width up to about 45 metres. About 135 metres east, the newly expanded R390E has an approximately 390-metre strike and lateral width up to about 50 metres. About 75 metres east again, R780E shows an approximately 300-metre strike and lateral width up to about 95 metres.

Two additional zones, R1155E and R600W, sit at the eastern and western ends of the 1.78-kilometre stretch.

Fission Uranium has four drills trying to connect the high-grade zones and a fifth exploring outside the mineralized area just south of the Basin.

Lakeland/Declan JV announces Gibbon’s Creek plans, Lakeland closes oversubscribed $2.83-million financing

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

Boulder samples at the Lakeland/Declan Gibbon’s Creek JV assayed up to 4.28% U3O8, while radon measurements returned some of the Basin’s highest results.

One day after announcing imminent exploration plans for its Gibbon’s Creek project, Lakeland Resources TSXV:LK closed an oversubscribed private placement for $2.83 million. With JV partner Declan Resources TSXV:LAN spending a first-year commitment of $1.25 million on their Gibbon’s flagship, Lakeland can now turn to its 14 other Basin projects.

Gibbon’s is about to get a ground electromagnetic survey to confirm historic work prior to an anticipated drill program of up to 15 shallow holes totalling 2,500 metres. Results released in January from the 12,771-hectare project showed some of the highest radon gas levels ever measured in the Basin, along with surface boulders grading up to 4.28% U3O8. The property is about a 10-minute drive from the northern Basin town of Stony Rapids.

Lakeland’s other properties dot the northern, eastern and southern sections of the Basin.

“Several of our projects are at that stage where we just need to do line-cutting, resistivity and RadonEx to identify drill targets,” president/CEO Jonathan Armes told ResourceClips.com. “But with all these projects, we know we can’t do them all. We’ll continue to develop other joint venture possibilities, while at the same time compiling data on the projects to identify those we want to focus on.”

Read more about Gibbon’s Creek and Lakeland’s 15-property Basin portfolio.

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Uranium M&A: Denison Mines signs LOI to acquire International Enexco

March 19th, 2014

This story has been moved here.

Athabasca Basin and beyond

November 23rd, 2013

Uranium news from Saskatchewan and elsewhere for November 16 to 22, 2013

by Greg Klein

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Azincourt to acquire Peruvian company from Cameco and Vena for $2 million

So far best known for its 50% interest in the Patterson Lake North joint venture with Fission Uranium TSXV:FCU, Azincourt Uranium TSXV:AAZ plans to acquire an advanced-stage uranium project in Peru. Under definitive share purchase agreements announced November 22, the $8.1-million market cap Athabasca Basin junior proposes to buy Minergia S.A.C. from 50/50 co-owners Cameco Corp TSX:CCO and Vena Resources TSX:VEM. As well as the 4,900-hectare Macusani project, Minergia comes with its younger sister, 9,600-hectare Muñani, both in southeastern Peru.

Subject to approvals, the deal would have Azincourt give Cameco and Vena $750,000 worth of shares and $250,000 each. Vena chairman/CEO Juan Vegarra would join Azincourt as an independent director. Azincourt would spend between $1.5 million and $2 million on the projects annually.

The deal would also allow Vena to buy Cameco’s portion of Azincourt shares for the purchase price plus 50% of any increase in the market price.

In a statement accompanying Vena’s announcement, Vegarra noted that Azincourt president/CEO Ted O’Connor is “the former director of Cameco’s corporate development group who was responsible for overseeing Cameco’s significant investment in Minergia.”

With over $12 million of work between 2007 and 2011, Macusani comes with an historic resource that was released in September 2011. Using a 0.009% cutoff, five of the property’s nine areas show:

  • measured: 10.39 million short tons averaging 0.025% for 5.69 million pounds uranium oxide (U3O8)

  • indicated: 34.16 million tons averaging 0.018% for 12.52 million pounds

  • inferred: 37.79 million tons averaging 0.02% for 17.42 million pounds

The project could offer low-cost open pit, acid heap leach potential, according to Azincourt.

As for Muñani, it shows uranium mineralization in sandstone and outcrops, has undergone airborne geophysics and ground prospecting, and has drill targets ready, Azincourt stated.

Although two years of depressed prices have pushed the projects into dormancy, Azincourt plans to complete community agreements and permitting prior to another drill program.

Vena also announced that Silvia Dedios has been named general manager following David Bent’s resignation. Walter Cuba becomes project manager to work with Azincourt on Minergia’s uranium assets.

Last June Vena dropped out of negotiations with a private Peruvian company to create a JV for three other Vena projects. In August the company settled $150,350 of debt for 1.64 million shares.

Azincourt and Fission update winter plans for Patterson Lake North

Back in the Basin, Azincourt and Fission updated their previously announced winter plans for Patterson Lake North on November 18. The program now includes a radon survey at Hodge Lake as well as further electromagnetic work and eight to 10 holes totalling 2,500 to 3,000 metres.

Initial results from a five-kilometre ground magnetotelluric survey over the northern part of an eight-kilometre VTEM conductive trend suggest it comprises a series of parallel west-dipping basement EM conductors, the JV stated. Further EM work will increase resolution and orient a resistivity survey scheduled for next summer. “Many structurally controlled high-grade uranium occurrences in the Athabasca Basin are related to hydrothermal alteration systems associated with basement EM conductors,” the companies emphasized. Drill targets will be refined by identifying an EM basement conductor with a resistivity low signature, especially when associated with a cross-cutting interpreted structural feature, the partners explained.

Diamond drilling is slated to begin in January, after the holes have been pre-collared with RC rigs.

Azincourt is earning a 50% interest in the 27,408-hectare project adjacent to Fission’s better-known project, the Patterson Lake South JV with Alpha Minerals TSXV:AMW. Fission acts as operator on both projects.

Denison considers compulsory acquisition as Rockgate takeover now 86% complete

Delighted with “such overwhelming enthusiasm,” Denison Mines TSX:DML president/CEO Ron Hochstein announced on November 18 his company has so far nabbed 100.54 million shares for 86% control of Rockgate Capital TSX:RGT. In another extension to the offer—the final one, this time—Denison now says Rockgate laggards have until November 29 to throw in their lot with the victor.

If the company can get just 4% more of Rockgate’s total shares, Denison intends to acquire the rest through a compulsory acquisition. Otherwise the aggressive uranium miner/explorer will try an “amalgamation or other corporate reorganization” to part the hold-outs from their holdings. On October 30 Denison stated it was lowering the minimum tender condition from 90% to two-thirds of outstanding shares.

At that time directors of the two companies softened their positions considerably. Rockgate president/CEO Karl Kottmeier initially denounced the Denison offer as an “unsolicited opportunistic hostile takeover bid” which scuttled Rockgate’s proposed merger with Mega Uranium TSX:MGA. Rockgate’s board did, however, reluctantly recommend shareholder acceptance.

Read more here and here.

Read more about uranium merger-and-acquisition activity.

Read about Denison’s Q3 report.

Denison moves its people into Rockgate management/board positions

Rockgate’s changing of the guard, meanwhile, presages its takeover. The company announced five departures from its seven-person board on November 22. Gone are Doug Ford, Edward Ford, Allen Ambrose, Gord Neal and Phil Williams. Replacing them are Denison directors Ron Hochstein, Robert Dengler and Catherine Stefan, with William Rand becoming chairperson.

Rockgate’s Karl Kottmeier, Doug Ford and Kirk Gamely step down from management, although Kottmeier and Bryan Hyde will remain on Rockgate’s board to smooth the transition of its flagship Falea project in southwestern Mali, which was scheduled for pre-feasibility in early 2014. Denison’s Hochstein now becomes Rockgate president/CEO, David Cates CFO and Sheila Colman corporate secretary.

Denison has said that on acquiring Rockgate it will spin out its African assets to concentrate on the Athabasca Basin.

Mega Uranium closes Australian sale, gains 28% of Toro Energy

Undeterred by its Rockgate failure, Mega has now picked up 28% of an ASX-listed company with “one of the larger pre-development uranium projects worldwide.” That results from the completed sale of Mega’s Lake Maitland property in Western Australia to Toro Energy. In a deal valued at about AU$37 million last August, Mega gets about 28% of Toro shares and fills Toro board positions with Mega executive VP of corporate affairs Richard Patricio and executive VP for Australia Richard Homsany, the Toronto-listed company announced November 19.

Blue Sky drills Ivana project in Argentina, offers $500,000 private placement

Uranium news from Saskatchewan and elsewhere for November 16 to 22, 2013

Located in Argentina’s Rio Negro province, Blue Sky’s
Ivana project currently undergoes a 2,000-metre drill program.

Now underway at Blue Sky Uranium’s TSXV:BSK Ivana project in Argentina, a nine-hole, 2,000-metre drill campaign targets shallow, roll-front uranium mineralization to 400 metres in depth. Announced November 18, Phase I work also includes ground geophysics. The 71,300-hectare property has previously undergone airborne radiometrics, sampling, prospecting, mapping and trenching.

AREVA funds the work under an option to spend $2 million by December 31 on Blue Sky’s Argentinian properties. On completion, AREVA may fund an additional $3 million on one project, or $4 million combined on two projects, to earn a 51% interest by the end of 2017. In addition to the project in Rio Negro province, Blue Sky currently focuses on its Sierra Colonia property in central Chubut province.

The company also announced a private placement of 10 million units at $0.05 for $500,000. Each unit consists of one share and one transferable warrant exercisable at $0.10 for two years.

Ground gravity survey underway on Aldrin Resource’s Triple M

Announced by Aldrin Resource TSXV:ALN on November 20, a ground gravity survey on the PLS-vicinity Triple M property intends to find extensively altered basement rocks associated with two bedrock conductive anomalies shown in last summer’s VTEM survey. Identified by anomalous gravity lows, extensively altered rocks are associated with strong uranium mineralization elsewhere in the region, the company stated. Triple M’s schedule calls for completion of the gravity survey by year-end.

The previous week Aldrin released initial radon results from 527 sample sites. The company also plans to buy the 49,275-hectare Virgin property around the Basin’s south-central edge.

Zadar Ventures acquires two more properties from Canterra Minerals

With two new acquisitions just south of the Basin’s southeastern rim, Zadar Ventures TSXV:ZAD has signed another definitive purchase agreement. The deal, announced November 20, has Zadar issuing 160,000 shares to Canterra Minerals TSXV:CTM and 170,000 to African Oil Corp in return for the 5,831-hectare Highrock and the 5,583-hectare Riverlake projects. Canterra retains a 2% NSR on both properties, of which Zadar may buy half for $1 million.

Both properties have seen historic EM surveys, soil sampling and drilling. Radioactive pitchblende pebbles found immediately west of Highrock might have originated on the property, Zadar stated. Highrock sits eight kilometres from Cameco’s former Key Lake mine.

Riverlake features a 1,200-metre by 600-metre soil anomaly with uranium values up to 0.0374% over three EM conductors with a combined strike of five kilometres, Zadar added. A hole drilled in 2008 found 63 metres of radioactivity five to 10 times the background level.

In September the company announced its acquisition of the 37,445-hectare Pasfield Lake property, also from Canterra. Earlier that month Zadar reported finding radioactive boulders on its PLS-vicinity PNE project.

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Athabasca Basin and beyond

November 3rd, 2013

Uranium news from Saskatchewan and elsewhere for October 26 to November 1, 2013

by Greg Klein

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Alpha/Fission hit 5.98% U3O8 over 17.5 metres, including 19.51% over 5.5 metres

With so many scintillometer results announced already, assays for the same holes can be anti-climactic. But that’s the way Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW have orchestrated their Patterson Lake South campaign, now giving observers a near sense of déjà vu. Assays from four holes announced October 29 add little to the news of August 8, although results from the lab are much more reliable than those from the hand-held radiation-detecting gizmo. The assays come from R00E, the farthest southwest of the project’s five zones.

Hole PLS13-074

  • 0.13% uranium oxide (U3O8) over 2.5 metres, starting at 65 metres in downhole depth

PLS13-076

  • 0.09% over 2 metres, starting at 178.5 metres

  • 0.08% over 1.5 metres, starting at 183 metres

  • 0.16% over 4.5 metres, starting at 186.5 metres

PLS13-077

  • 0.39% over 11.5 metres, starting at 59 metres

  • 0.13% over 15.5 metres, starting at 73 metres

PLS13-079

  • 5.98% over 17.5 metres, starting at 83 metres

  • (including 19.51% over 5 metres) (Update: On November 4 the JV partners corrected the intercept width from 5.5 metres to 5 metres.)

True widths were unavailable. Three of the holes were vertical, while 079 dipped at -75 degrees. That hole expands the zone’s high-grade southern area, the companies stated, while all four holes confirm R00E’s east-west strike at 165 metres. The zone remains open in all directions.

With the summer barge-based campaign complete, attention now turns to a land-based program west of R00E. Fission acts as project operator on the 50/50 joint venture until its acquisition of Alpha closes. Fission shareholders will vote on the deal’s spinout aspect on November 28.

(Update: On November 4 the JV announced a sixth PLS zone west of the discovery. Read more.)

Rio Tinto plans winter drilling at Purepoint’s Red Willow

Purepoint Uranium Group TSXV:PTU announced plans on October 29 by Rio Tinto Exploration Canada for 2,500 metres of drilling at Red Willow, a 25,612-hectare property on the Athabasca Basin’s eastern edge. Rio identified targets based on historic drill logs and more recent geophysical and geochemical work. The company built a 28-person camp last summer.

Depth to unconformity in the area varies from zero to 80 metres, Purepoint stated. The company says five major deposits—JEB, Midwest, Cigar Lake, McArthur River and Millennium—“are located along a NE to SW mine trend that extends through the Red Willow project.”

Rio has so far spent about $2.25 million out of a $5-million commitment to earn an initial 51% interest by December 31, 2015. The giant’s Canadian subsidiary may earn 80% by spending $22.5 million by the end of 2021.

In early October Purepoint announced a winter drill campaign for the Hook Lake JV held 21% by Purepoint and 39.5% each by Cameco Corp TSX:CCO and AREVA Resources Canada.

Strong Q3 financials surprise Cameco shareholders

Despite historic low uranium prices, Cameco came out with Q3 earnings far beyond the same period last year. In his October 29 statement, president/CEO Tim Gitzel attributed the success to a contracting strategy “providing us with higher average realized prices that are well above the current uranium spot price.”

Uranium news from Saskatchewan and elsewhere for October 26 to November 1, 2013

Rabbit Lake was one of three Cameco operations that received
10-year licence renewals the same week that the company
surprised investors with an especially strong quarterly report.

Adjusted net earnings for three months ending September 30 came to $208 million, a 324% increase over Q3 2012 or, at 53 cents a share, a 342% increase. Year-to-date figures came to $295 million (up 48%) and 75 cents a share (up 47%).

Gitzel added that Cameco’s “starting to see some of the cost benefits of the restructuring we undertook earlier” and plans to “take advantage of the opportunity we see in the long term.”

However the company’s statement noted “there have been some deferrals of future projects due to uranium prices insufficient to support new production. The deferrals will not directly impact the near-term market, but could have an effect on the longer term outlook for the uranium industry. Complicating the supply outlook further is the possibility of some projects, primarily driven by sovereign interests, moving forward despite market conditions.”

The company forecast strong long-term fundamentals, mostly to China which has “reaffirmed its substantial growth targets out to 2020 and indicated plans to pursue further growth out to 2030. Their growth is palpable as construction on two more reactors began during the third quarter, bringing the total under construction to 30.”

As for Cameco’s long-delayed Cigar Lake mine, the company’s sticking to its current plan of Q1 2014 production and Q2 milling.

But while junior exploration flourishes, especially in the Athabasca Basin, the major plans a 15% to 20% cut in exploration spending this year.

Three Cameco operations get 10-year licence renewals

Licences for Cameco’s Key Lake, McArthur River and Rabbit Lake operations have been renewed for 10 years, the Canadian Nuclear Safety Commission announced October 29. The CNSC granted the extensions after three days of public meetings that heard from the company, 27 interveners and CNSC staff. The commission agreed to Cameco’s request for 10-year renewals, twice the previous term.

MillenMin finds radioactive outcrops on east Basin properties, reports AGM results

MillenMin Ventures TSXV:MVM completed initial field work at two eastside Basin properties, the 2,759-hectare Highrock Lake NE and 1,648-hectare Smalley Lake W. Work included prospecting, outcrop mapping and examination of previously found mineralization, the company announced October 28.

Grab samples from radioactive outcrops on both properties have been sent for assays. MillenMin first announced its foray into uranium last May and has staked 11 claims totalling about 18,983 hectares in and around the Basin.

On October 31 the company reported AGM results with directors re-elected, auditors re-appointed and other business approved.

Declan options northeastern Alberta property

Southwest of the Basin’s Alberta extremity, Declan Resources TSXV:LAN has optioned the 50,000-hectare Firebag River property. Previous geophysical survey data “shows a complex pattern of magnetic lows and highs, truncated or offset in the northern part of the property by the Marguerite River Fault,” Declan stated on October 29. Exploration in 1977 “confirmed the presence of a southwest-oriented fault zone and a geochemical anomaly with 11 ppm cobalt in lake sediments atop this structure,” the company added.

The deal would have Declan paying $85,000, issuing five million shares over two years and spending $3 million over three years. The optioner retains a 2% NSR on metals and a 4% gross overriding royalty on non-metallic commodities.

In September Declan announced an option to acquire the Patterson Lake Northeast property. The company plans to engage Dahrouge Geological Consulting to explore its uranium properties.

Rockgate takeover offer: Denison softens conditions, extends deadline

Denison Mines TSX:DML advanced its attempted takeover of Rockgate Capital TSX:RGT by lowering the minimum tender condition from 90% to two-thirds of outstanding shares. In an October 30 statement Denison also extended the offer’s deadline again, this time to November 18, and dropped conditions related to staff retention and consulting agreements.

The same day Rockgate said insiders agreed not to exercise their options unless another company comes up with a better offer. Denison had requested a cease trade order on 11 million Rockgate options granted on September 30, which Denison termed “improper defensive tactics.” The British Columbia Securities Commission didn’t agree. But rather than risk Denison withdrawing its offer, Rockgate insiders “put the interests of the shareholders of Rockgate before their own personal interests and agreed to amend the terms of the options,” company president/CEO Karl Kottmeier said.

The tone of the companies’ statements has warmed considerably since Kottmeier labelled Denison’s offer an “unsolicited opportunistic hostile takeover bid.” Denison president/CEO Ron Hochstein thanked Kottmeier and the Rockgate board “for their contributions to allowing the offer to proceed towards a successful conclusion.”

Meanwhile Rockgate continues prefeasibility work on its flagship Falea uranium-silver-copper project in Mali.

Read how Denison’s offer defeated Rockgate’s proposed merger with Mega Uranium.

Read more about uranium merger-and-acquisition activity.

Lakeland Resources’ JV partner New Dimension to drill for gold

Lakeland Resources TSXV:LK announced on October 31 an imminent drill campaign of at least 1,800 metres by JV partner New Dimension Resources TSXV:NDR on the Midas gold property in north-central Ontario. Lakeland optioned the project to New Dimension in September in order to focus on Saskatchewan uranium exploration. But Lakeland will retain a 30% interest in Midas carried to an initial 43-101 resource estimate.

I’m excited that the project’s going to continue to be worked while we focus on uranium.—Jonathan Armes, president/CEO
of Lakeland Resources

“New Dimension is a great group to work with and the deal was easy to do,” Lakeland president/CEO Jonathan Armes tells ResourceClips.com. “I’m excited that the project’s going to continue to be worked while we focus on uranium. The onus is on them to explore that project and we share in any benefits that result.”

The previous week Lakeland closed a private placement for a total of $1,057,718 and announced the appointment of Basin veteran John Gingerich to the company’s advisory board. Field work continues on Lakeland’s Riou Lake uranium project.

Read more about Lakeland Resources.

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Athabasca Basin and beyond

October 26th, 2013

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

by Greg Klein

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Forum reports radon results from PLS-adjacent Clearwater

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

Forum’s results for three grids show:

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

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

  • Mungo grid: Up to 0.92 pCi/m2/s

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

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

Lakeland Resources appoints expert adviser, closes second tranche

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

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

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

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

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

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

Read more about Lakeland Resources.

Rockgate reluctantly recommends Denison bid, Denison extends deadline

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

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

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

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

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

Read about other uranium merger-and-acquisition activity.

Zadar completes PNE Phase II, grants options

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

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

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

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Rockgate directors “reluctantly” recommend Denison offer to shareholders

October 21st, 2013

by Greg Klein | October 21, 2013

With no white knight in sight, Rockgate Capital TSX:RGT directors reluctantly recommended shareholders accept Denison Mines’ TSX:DML “unsolicited opportunistic hostile takeover bid.” The October 21 announcement came after negotiations between financial adviser Dundee Securities and potential third party bidders failed to produce a superior offer.

Denison’s bid came through suddenly on September 17, just eight days before Rockgate shareholders were to vote on a proposed merger with Mega Uranium TSX:MGA. Rockgate directors called off the vote, noted several criticisms with Denison’s offer and recommended shareholders take no action pending further study and negotiations. Denison valued its offer, 0.192 of a Denison share for each Rockgate share, at about $26.7 million, a 38% premium over the Mega offer, based on September 16 prices.

For Rockgate to be subject to an unsolicited opportunistic hostile takeover bid at this crucial stage is disappointing to say the least.—Karl Kottmeier, president/CEO
of Rockgate Capital

In a statement accompanying Rockgate’s October 21 announcement, an obviously discouraged president/CEO Karl Kottmeier recounted how the company overcame seven years of tribulation only to succumb to Denison:

Over the past seven years Rockgate has developed the Falea uranium-silver-copper deposit into a potentially world class asset. We have raised over $90 million to fund that effort, weathered poor market conditions, the Fukushima disaster, a coup d’état in Mali, and an Al Qaeda invasion and occupation of almost half of the country, yet despite these significant challenges remained focused on building the Falea asset and responsibly managing the company. For Rockgate to be subject to an unsolicited opportunistic hostile takeover bid at this crucial stage is disappointing to say the least. We had hoped that shareholders of Rockgate would receive greater value from the strong fundamentals of the Falea project and not just based on the size of Rockgate’s cash reserves.

Updated last December, Falea’s resource estimate shows:

  • a measured category of 1.39 million tonnes averaging 0.14% for 4.29 million pounds uranium oxide (U3O8)

  • an indicated category of 14.28 million tonnes averaging 0.08% for 25.29 million pounds

  • an inferred category of 15.35 million tonnes averaging 0.05% for 15.69 million pounds

Rockgate had a pre-feasibility study scheduled for January release.

Should its Rockgate proposal succeed, Denison has stated it will spin out its African assets to focus on Saskatchewan’s Athabasca Basin. In September, following a review by the Ontario Securities Commission, the company filed a new NI 43-101 to replace two previous reports for its Mutanga project in Zambia.

Rockgate also stated it would not oppose Denison’s request that the British Columbia Securities Commission impose a cease trade order on options granted to directors and senior staff. Denison had termed the options “improper defensive tactics.”

Denison’s offer remains open until October 25.

Rockgate shares opened October 21 at $0.19, half a cent above their previous close, dropped back to $0.185, rose to $0.205, then closed on $0.20. With 116.9 million shares outstanding, the market cap came to $23.38 million.

Denison opened the day at $1.03, a penny below the previous close and reached a high of $1.08 before closing on $1.07. The company had 449.93 million shares outstanding for a $481.42-million market cap.

Read more about Denison’s and Mega’s competing proposals for Rockgate.

Read more about uranium merger-and-acquisition activity.

Athabasca Basin and beyond

October 12th, 2013

Uranium news from Saskatchewan and elsewhere for October 5 to 11, 2013

by Greg Klein

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Alpha/Fission expand summer drilling, lengthen strike by 15 metres

Having mostly conducted barge drilling east of their Patterson Lake South discovery, Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW now plan to head west with a $2.25-million, 11-hole, 3,700-metre, land-based expansion to their current campaign. The 50/50 joint venture partners will take advantage of their buoyant financing as lake conditions change with the season.

Previous drilling on the area between 360 and 860 metres west of the R00E zone showed clay alteration, anomalous radioactivity and elevated uranium results, according to the companies’ October 7 announcements. The area has also undergone electromagnetic and DC resistivity mapping, as well as a more recent RadonEx survey. The latter found anomalous radon levels north of the PL-3B EM conductor, an intriguing find since R00E zone mineralization has been situated consistently north of the same conductor.

Uranium news from Saskatchewan and elsewhere for October 5 to 11, 2013

A successful summer of exploration and financing motivated Alpha
and Fission to expand their current Patterson Lake South campaign.

In total, the expansion brings the PLS summer budget to $9.2 million, with 49 holes totalling 14,700 metres.

Two days after that announcement, the JV reported results from the opposite side of PLS, the eastern-most hole of the eastern-most zone. And while finding new superlatives for the project can’t always be easy, the partners aren’t without inspiration. This time they say scintillometer readings show “the largest accumulation of mineralized intervals in any drill hole at PLS to date.”

The results come from a hand-held device that measures drill core gamma ray particles in counts per second up to a maximum off-scale reading of over 9,999 cps. Scintillometer results are no substitute for assays, which will follow.

Drilled to a total depth of 368 metres, PLS13-099 found the basement unconformity at 59.8 metres without encountering sandstone. The results show:

  • <300 to 640 cps over 4.5 metres, starting at 101 metres in downhole depth

  • <300 to >9,999 cps over 105 metres, starting at 108.5 metres

  • <300 to >9,999 cps over 30.5 metres, starting at 222.5 metres

  • 500 to >9,999 cps over 1 metre, starting at 256.5 metres

  • <300 to 1,000 cps over 3 metres, starting at 278 metres

True widths weren’t available. With a dip of -88 degrees, downhole depths are close to vertical.

This is the fourth of four holes sunk so far in zone R945E, which parallels the PL-3B conductor and coincides with the project’s strongest radon-in-water anomaly. The hole extends the strike length by 15 metres to 1.035 kilometres.

Fission acts as project operator. The company expects to close its acquisition of Alpha as early as November 2013.

Forsys updates Namibian resources

Forsys Metals’ TSX:FSY Norasa project in Namibia moved closer to production with a resource update announced October 7. The news release provided separate cutoff grades of 0.01% for the Valencia deposit and 0.016% for the Namibplaas deposit, but combined the tonnage and contained pounds for both deposits. The resource shows:

  • a measured category of 17 million tonnes averaging 0.02% for 7 million pounds uranium oxide (U3O8)

  • an indicated category of 221 million tonnes averaging 0.019% for 96 million pounds

  • an inferred category of 50 million tonnes averaging 0.019% for 22 million pounds

Both deposits remain open along strike and at depth, the company stated.

The project has a reserve estimate scheduled for Q1 2014 release and feasibility for Q3. Assuming positive results, funding and other hurdles are cleared, the company hopes to begin construction late next year and start commercial open pit production in Q2 2016.

Fission/Azincourt find eight-kilometre conductive trend, announce plans for PLN

Along with JV partner Fission, Azincourt Uranium TSXV:AAZ announced airborne VTEM results from their PLS-adjacent Patterson Lake North project on October 8. Conductive basement rocks trending north-south for eight kilometres on the property’s northern section represent “the possible extension of the Saskatoon Lake Conductor system which hosts the Shea Creek uranium deposits,” the companies stated. Additional data is now being gathered through a ground magnetotelluric survey.

Still to come is a ground EM survey for the central part of the property to target a conductive metasedimentary belt that coincides with a structural offset at the unconformity. On the project’s southern area, another ground EM survey will follow up on a prospective trend parallel to the PLS discovery. The team has also collected 16 outcrop and 56 soil samples, and re-logged historic core.

Winter drilling will include eight to 10 holes totalling 2,500 to 3,000 metres. Fission acts as project operator with Azincourt earning a 50% interest. Highway 955 bisects the 27,408-hectare property.

Purepoint plans Hook Lake winter drill campaign

Following up on last winter’s drilling, Purepoint Uranium TSXV:PTU plans to sink more Hook Lake holes, focusing on the same conductive trend that hosts the PLS discovery about five kilometres away. EM surveying has identified three prospective structural corridors, each with multiple conductors, Purepoint added. The program will consist of about 5,000 metres with a $2.5-million budget, according to an October 8 announcement. But it wasn’t clear whether those numbers include previous work.

Purepoint holds a 21% interest in Hook Lake. JV partners Cameco Corp TSX:CCO and AREVA Resources Canada each hold 39.5%. Purepoint has interests in 10 other active Athabasca Basin projects, the company states.

Aldrin to acquire 49,275-hectare Basin property, offers $1-million private placement

Under an agreement announced October 8, Aldrin Resource TSXV:ALN will buy the 49,275-hectare Virgin property, three contiguous blocks around the Basin’s south-central rim. One of them sits adjacent to Cameco’s Centennial property. The deal has Aldrin paying $75,000 and issuing a total of five million shares to four vendors who retain a 3% NSR or, should the property produce diamonds, a 3% gross overriding royalty on the gems. A similar diamond provision was part of Aldrin’s 70% PLS-adjacent Triple M acquisition from the same vendors last April.

Aldrin also announced a private placement offering up to 10 million units at $0.10 for gross proceeds of $1 million. Each unit consists of one share and one warrant exercisable at $0.20 for a year. Proceeds will go to Triple M exploration and general working capital.

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Athabasca Basin and beyond

September 29th, 2013

Uranium news from Saskatchewan and elsewhere for September 21 to 27, 2013

by Greg Klein

Next Page 1 | 2

Alpha/Fission extend one PLS zone, disagree about certainty of a “fifth zone”

The news from Patterson Lake South continues to impress—even when the joint venture partners don’t interpret it quite the same way. Fission Uranium TSXV:FCU says a 150-metre step-out found a “fifth high-grade zone.” Alpha Minerals TSXV:AMW prefers to call it a “potential” fifth high-grade zone. Either way, the September 23 news was one of three announcements last week that included an extension to an existing zone’s strike length.

Uranium news from Saskatchewan and elsewhere for September 21 to 27, 2013

Patterson Lake South now has a fifth zone—or a
potential fifth zone, depending on whom you listen to.

The new or potential new zone sits about halfway between the R390E and R780E zones, which are either the second and third of four zones, or the second and fourth of five zones, along a 1.02-kilometre southwest-northeast trend. With luck future drill results will bring Alpha into agreement with Fission, thereby simplifying sentence structure.

Hole PLS13-085 was collared 150 metres grid east of R390E, reached a depth of 317 metres and struck the basement unconformity at 62.4 metres without encountering sandstone. Preliminary results come from a hand-held scintillometer, which measures radiation up to an off-scale level of more than 9,999 counts per second. Scintillometer readings are no substitute for assays, which are pending. Some highlights showed:

  • <300 to >9,999 cps over 33.5 metres, starting at 67 metres in downhole depth

  • <300 to 2,200 cps over 9.5 metres, starting at 111 metres

  • <300 to >9,999 cps over 16.5 metres, starting at 123 metres

  • <300 to >9,999 cps over 9.5 metres, starting at 160.5 metres

True widths weren’t available. With a -89 degree dip, downhole depths were close to vertical depths.

Two days later, and with greater unanimity, the 50/50 partners released assays for holes that had previously reported scintillometer readings. Ranking as one of the best PLS holes so far, PLS13-072 reached a total depth of 209 metres. It found no sandstone and struck the basement unconformity at 55.7 metres. Some highlights include:

  • 8.15% uranium oxide (U3O8) over 34.5 metres, starting at 61 metres in downhole depth

  • (including 19.28% over 7.5 metres)

  • (and including 21.53% over 4 metres)

  • 0.58% over 11 metres, starting at 98.5 metres

  • 0.57% over 8.5 metres, starting at 125 metres

  • (including 1.61% over 2.5 metres)

  • 2.22% over 6.5 metres, starting at 137 metres

  • (including 10.65% over 1 metre)

With an -89 degree dip, the depths were close to vertical.

PLS13-073 struck sandstone at 50 metres and the basement unconformity at 53 metres, before stopping at 248 metres. Some highlights include:

  • 0.25% over 19.5 metres, starting at 102 metres in vertical depth

  • (including 0.92% over 3 metres)

  • 0.59% over 10 metres, starting at 132.5 metres

  • (including 4.81% over 1 metre)

True thicknesses are still to come.

When their scintillometer readings were reported earlier (here and here), the two holes extended R390E’s strike 15 metres grid west and 15 metres grid east respectively. But on September 27 the JV announced a further extension, bringing the zone’s strike to about 255 metres and suggesting the possibility “of extending the zone south along the entire length of the corridor as it becomes further delineated.” Here are some highlights from the eight holes reported:

Hole PLS13-087A reached a total depth of 227 metres, encountering sandstone at 50 metres and the basement unconformity at 50.9 metres.

  • <300 to >9,999 cps over 14.5 metres, starting at 68.5 metres in downhole depth

  • <300 to 2,100 cps over 17 metres, starting at 98 metres

Hole PLS13-088 reached a total depth of 296 metres, encountering sandstone at 53 metres and the basement unconformity at 54.3 metres.

  • <300 to 9,800 cps over 23.5 metres, starting at 80 metres in downhole depth

  • 400 to 8,100 cps over 8 metres, starting at 135 metres

Hole PLS13-094 reached a total depth of 272.3 metres, encountering sandstone at 50.7 metres and the basement unconformity at 53.4 metres.

  • <300 to >9,999 cps over 12 metres, starting at 130 metres in downhole depth

Hole PLS13-095 reached a total depth of 275 metres, encountering sandstone at 47.6 metres and the basement unconformity at 51.7 metres.

  • <300 to >9,999 cps over 11.5 metres, starting at 68 metres in downhole depth

  • <300 to >9,999 cps over 7 metres, starting at 93.5 metres

  • <300 to 5,800 cps over 33 metres, starting at 116 metres

Hole PLS13-100 reached a total depth of 263 metres, encountering sandstone at 53 metres and the basement unconformity at 53.3 metres.

  • 790 to >9,999 cps over 6 metres, starting at 53 metres in downhole depth

  • <300 to 8,000 cps over 20 metres, starting at 99.5 metres

  • <300 to>9,999 cps over 8.5 metres, starting at 134 metres

Hole PLS13-102 reached a total depth of 275 metres, encountering sandstone at 58.3 metres and the basement unconformity at 58.8 metres.

  • <300 to 6,000 cps over 29 metres, starting at 103 metres in downhole depth

  • <300 to >9,999 cps over 10.5 metres, starting at 137.5 metres

Again, true thicknesses were unavailable. With dips ranging from -84 to -89 degrees, downhole depths were close to vertical. Assays are pending for these holes but this summer’s drilling has extended R390E more than four-fold from last winter’s 60-metre strike.

Fission acts as project operator on the current $6.95-million program. On September 18 the partners signed a definitive agreement for Fission’s acquisition of Alpha and sole control over PLS, with the companies’ other assets to be spun out into two separate companies.

Rockgate rejects Mega merger, mulls Denison deal and other possibilities

Just one day before their shareholders were to vote on a merger with Mega Uranium TSX:MGA, Rockgate Capital TSX:RGT directors scuttled the proposal. Although a “superior” offer from Denison Mines TSX:DML led to their September 24 announcement, Rockgate directors expressed reservations, said they needed more time for due diligence and expressed interest in receiving other offers.

Read more about Mega’s and Denison’s competing ambitions for Rockgate.

Read more about uranium merger-and-acquisition activity.

Rockgate delineates Falea project’s 880 zone in Mali

Meanwhile work continues on the object of those affections, Rockgate’s Falea flagship in southwestern Mali. On September 26 the company released assays from four holes on the 880 zone, which was discovered last fall. The results show:

  • 0.59% U3O8, 45.7 grams per tonne silver and 0.17% copper over 2.7 metres, starting at 301.4 metres in downhole depth

  • 0.06% U3O8, 118.3 g/t silver and 0.78% copper over 2 metres, starting at 303 metres

  • 0.12% U3O8, 86.3 g/t silver and 0.52% copper over 3 metres, starting at 320 metres

  • 0.17% U3O8, 17.1 g/t silver and 0.16% copper over 4 metres, starting at 304.5 metres

  • (including 1.13% U3O8, 96 g/t silver and 1.14% copper over 0.5 metres)

Intercepts are estimated at 96% to 100% of true widths. Mineralization remains open in several directions, the company stated.

This year’s 19-hole, 5,910-metre program included 14 holes totalling 4,563 metres on the 880 zone’s 500-metre strike length. Another five holes totalling 1,347 metres tested the project’s Central zone. The 880 zone has yet to be included in Falea’s resource estimate. Released last December, it shows:

  • a measured category of 1.39 million tonnes averaging 0.14% U3O8 for 4.29 million pounds U3O8, with 3.52 million ounces silver and 6.05 million pounds copper

  • an indicated category of 14.28 million tonnes averaging 0.08% U3O8 for 25.29 million pounds U3O8, with 24.43 million ounces silver and 68.17 million pounds copper

  • an inferred category of 15.35 million tonnes averaging 0.05% U3O8 for 15.69 million pounds U3O8, with 8.91 million ounces silver and 81.19 million pounds copper

Rockgate plans to incorporate the 880 zone into an updated resource, likely to coincide with a pre-feasibility study scheduled for completion early next year. The company says it’s been “entirely unaffected” by last year’s military coup and this year’s fighting between French troops and al-Qaida-linked rebels.

NexGen completes two-thirds of Rook 1 drilling, awaits Radio assays

Uranium news from Saskatchewan and elsewhere for September 21 to 27, 2013

Brecciated core from NexGen Energy’s Rook 1 drill program.

NexGen Energy TSXV:NXE updated its PLS-adjacent Rook 1 drill campaign September 25. With 3,000 metres planned, the company has sunk eight holes totalling 1,957 metres on an area about 700 metres along interpreted extensions of the PLS 3B conductor and a parallel conductor approximately 800 metres east.

“All holes intersected varying types of structural zones in basement lithologies, ranging from small fractures through to wide, heavily brecciated material,” the company stated. Scintillometer readings found intercepts of elevated levels in several holes, while all eight holes reached shallow basement rock at downhole depths ranging from 48.7 metres to 82.6 metres. Weather permitting, drilling will continue to October. Winter drilling is planned for the same area.

Assays are still pending from NexGen’s nine-hole, 3,473-metre campaign at Radio, where the company holds a 70% option two kilometres east of Rio Tinto’s NYE:RIO Roughrider deposits on the northeastern Basin. In late August NexGen closed $5 million in private placements.

Canadian International Minerals options two claim groups to Rio Grande;
Rio Grande offers $900,000 private placement, grants options

Canadian International Minerals TSXV:CIN announced on September 24 it optioned Rio Grande Mining TSXV:RGV a 75% interest in the Britts Lake East and Firebag East/Descharme claims about 35 kilometres southwest of PLS. Under the agreement Rio Grande would pay a total of $100,000 and issue Canadian International 500,000 shares. Rio Grande would also spend $250,000 by year one, $500,000 by year two and $1.5 million by year three. The companies didn’t specify whether those are aggregate or separate yearly figures.

Canadian International retains a 2% NSR, of which Rio Grande may buy half for $1 million. Canadian International will act as project operator on a planned winter campaign to include radon and helium surveys, as well as lake sediment sampling on the 18,041-hectare package.

Canadian International also holds a 50% interest in each of two other Saskatchewan uranium prospects, the 4,639-hectare Coflin Lake property and the 34,762-hectare Clearwater property.

On September 25 Rio Grande announced a private placement of up to $900,000, consisting of six million units at $0.10 and another 2.5 million units at $0.12. The company also granted 900,000 options to insiders at $0.12 for five years.

Western Athabasca Syndicate reports radon and radiometric anomalies at Preston Lake

A four-company strategic alliance focused on the PLS area’s Western Athabasca Syndicate project reported anomalous radon and scintillometer findings on September 26. Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY stated an initial radon-in-water survey found nine of 291 samples measuring over 23 picocuries per litre, with the highest reaching 98 pCi/L. The anomalies appear as both clusters and discrete point anomalies, the companies added. Fission and Alpha based their initial PLS drill targets on these measurements of radon gas.

Additionally, WASP’s 217-kilometre scintillometer survey found 25 areas radiating over 1,000 cps, more than twice the typical background level. More Phase II results are pending while Phase III field work continues with the intention of identifying drill targets.

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