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Posts tagged ‘Makena Resources Inc (MKN)’

Athabasca Basin and beyond

October 19th, 2013

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

by Greg Klein

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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

October 6th, 2013

Uranium news from Saskatchewan and elsewhere for September 28 to October 4, 2013

by Greg Klein

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Lakeland Resources begins Riou Lake ground campaign

Field work has begun at Lakeland Resources’ TSXV:LK Riou Lake project along the Athabasca Basin’s north-central rim. In an October 2 announcement the company outlined the agenda for its Gibbon’s Creek target, just three kilometres from the town of Stony Rapids. Initial work will consist of surface prospecting and boulder sampling, soil gas radon surveying, line-cutting and ground DC resistivity geophysics, with the goal of identifying winter drill targets.

The campaign follows eight months of preparation in which Lakeland studied a volume of previous data, director Ryan Fletcher tells ResourceClips.com. “There was over $3 million of geophysics from UEX and a considerable amount of work by Eldorado Nuclear before they merged into Cameco,” he says. “We’ve been going over their information.”

There was over $3 million of geophysics from UEX and a considerable amount of work by Eldorado Nuclear before they merged into Cameco. We’ve been going over their information.—Lakeland Resources
director Ryan Fletcher

Eldorado found numerous boulders grading up to 4.9% uranium oxide (U3O8) and soil samples between five and 10 parts per million uranium, compared to background levels up to 1 ppm. Geophysics showed a gravity low measuring about three kilometres by one kilometre at the end of a conductive zone over 15 kilometres long.

Fourteen historic holes found anomalous radioactivity, geochemistry or both. With the benefit of recent modelling, assays reveal a structural co-corridor up to one kilometre long and 100 metres wide. UEX Corp TSX:UEX flew its $3-million airborne geophysics in 2005, but Lakeland is the first to bring modern ground exploration techniques to the project.

Among Gibbon’s attractions are shallow depths to the unconformity, Fletcher points out. “They’re about 50 metres to 200 metres, which means more holes for our shareholders’ money. If we get a discovery it’s more likely to be open pittable, which would mean better economics and a more strategic project for M&A. That’s what Patterson Lake South had. They went from boulder results to radon results, then they found a high-grade, near-surface discovery.”

Apart from historic data and shallow targets, Fletcher cites other cost-saving potential. “Our crews are based out of the community of Stony Rapids, just a few kilometres from Gibbon’s. A year-round highway, power and all the infrastructure for exploration are basically right adjacent to the target.”

With the program managed by Athabasca veterans Dahrouge Geological Consulting, Fletcher looks forward to a steady stream of news. “For a brand new, smaller market cap company, investors are going to start getting a lot of information from the field.”

Read more about Lakeland Resources.

Fission closes $11.25-million private placement

Uranium news from Saskatchewan and elsewhere for September 28 to October 4, 2013

An $11.25-million private placement will fund Fission’s
Patterson Lake South exploration once the Alpha acquisition closes.

Assuming all approvals fall into place, a bought-deal private placement will bring $11.25 million to Patterson Lake South’s future sole owner. On October 3 Fission Uranium TSXV:FCU reported a syndicate of underwriters led by Dundee Securities agreed to buy 7.5 million subscription receipts, exchangeable into flow-through shares, at $1.50. The deal includes an option to buy an additional 15%.

Proceeds will be held in escrow until Fission closes its acquisition of Alpha Minerals TSXV:AMW, currently a 50/50 joint venture partner in PLS, and spins out its other properties. The subscribers won’t receive shares in the spinco. The entire amount’s designated for PLS exploration.

Read more about Fission’s acquisition of Alpha.

Rockgate considers alternatives to takeover by Denison

Still studying their options following an unsolicited takeover bid from Denison Mines TSX:DML, Rockgate Capital TSX:RGT directors on October 1 urged their shareholders to take no action until further notice.

Denison offered 0.192 of its share for each Rockgate share, a proposal strong enough to defeat a previously proposed Rockgate merger with Mega Uranium TSX:MGA. Nevertheless Rockgate’s board emphasized that Denison proposed a change of control, as opposed to a “merger of equals with Mega.”

Rockgate added that “in the absence of a preliminary economic assessment or other study, mining companies are commonly valued on an enterprise value/pound U3O8 multiple.” Denison’s offer works out to “a $0.09/lb multiple which is significantly below the average multiple of $4.37/lb paid on other relevant, development uranium transactions completed post the Fukushima accident,” Rockgate stated. Since September 27 “the implied Denison offer has declined a further 11%.”

Rockgate further stated that Denison sought conditions that weren’t “subject to a materiality threshold or other objective criteria, but provide Denison with sole discretion” whether to proceed. “In addition, the minimum tender condition of 90% is very high….”

Meanwhile, Rockgate added, it’s in discussion with other potential buyers, having been unable to respond to one approach when the non-solicitation agreement with Mega was in effect.

Rockgate promised to update shareholders no later than one week before the Denison offer’s October 25 expiry date.

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

Read more about uranium merger-and-acquisition activity.

Karoo signs LOI for three Zambian projects

Karoo Exploration TSXV:KE announced a letter of intent September 30 to acquire a portfolio of Zambian uranium properties from ASX-listed African Energy Resources. Under the deal Karoo would pay US$2 million and issue shares and warrants worth $500,000 at a share price “based on any offering completed by Karoo concurrent with this acquisition.”

The package includes the Chirundu, Kariba Valley and North Luangwa Valley projects. African Energy, which focuses on its Botswana coal assets, has a JORC-compliant resource for two Chirundu deposits with open pit potential. The Njame deposit shows:

  • a measured category of 2.7 million tonnes averaging 0.035% for 2.1 million pounds U3O8

  • an indicated category of 3.7 million tonnes averaging 0.025% for 2.1 million pounds

  • an inferred category of 6.6 million tonnes averaging 0.024% for 3.5 million pounds

The Gwabe deposit shows:

  • a measured category of 1.3 million tonnes averaging 0.024% for 700,000 pounds

  • an indicated category of 3.6 million tonnes averaging 0.031% for 2.5 million pounds

  • an inferred category of 800,000 tonnes averaging 0.018% for 300,000 pounds

Karoo holds five uranium exploration licences in southern Tanzania. The company began trading on September 4 following a reverse takeover involving United Uranium.

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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

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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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Athabasca Basin and beyond

September 22nd, 2013

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

by Greg Klein

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Denison files combined resources for Mutanga property in Zambia

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

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

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

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

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

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

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

Lakeland Resources options gold project to focus on Athabasca uranium

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

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

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

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

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

Read more about Lakeland Resources.

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

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

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

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Athabasca Basin and beyond

August 31st, 2013

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

by Greg Klein

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Fission proposes Alpha takeover for sole control of Patterson Lake South

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asked for more time to consider its proposal.

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

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

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

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

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

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

Ashburton finds radioactive boulders at Sienna West, reports historic data

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

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

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

Enexco/Denison drill Bachman Lake

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

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

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

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

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

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

U3O8 negotiating JV with Argentinian state-owned company

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

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

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

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

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

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

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

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

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

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

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