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Posts tagged ‘Millrock Resources Inc. (MRO)’

Athabasca Basin and beyond

May 3rd, 2014

Uranium news from Saskatchewan and elsewhere for April 26 to May 2, 2014

by Greg Klein

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Wheeler River JV gives up 36.8% U3O8 over 6.5 metres, Denison plans June resource

Denison Mines TSX:DML diverted attention from activity in and around the Athabasca Basin’s southwest on April 30 with huge grades from the east. Assays from seven of 11 winter holes at Zone A of the Phoenix deposit were reported along with previously released uranium oxide-equivalent (eU3O8) results from a downhole probe for the same holes. In most cases the actual U3O8 graded higher than the eU3O8, sometimes with wider intervals.

Here are the best assays, with the previous eU3O8 results in brackets:

Hole WR-538

  • 2.92% U3O8 over 5 metres, starting at 393 metres in vertical depth
  • (2.14% eU3O8 over 5.1 metres)

Hole WR-539

  • 13.12% U3O8 over 5 metres, starting at 400 metres
  • (11.63% eU3O8 over 3.5 metres)

Hole WR-545

  • 24.47% U3O8 over 3.5 metres, starting at 401.7 metres
  • (16.98% eU3O8 over 3.1 metres)

Hole WR-548

  • 36.83% U3O8 over 6.5 metres, starting at 406.8 metres
  • (29.61% eU3O8 over 6.5 metres)

Hole WR-550

  • 29.32% U3O8 over 4 metres, starting at 406.2 metres
  • (18.37% eU3O8 over 4.7 metres)

Hole WR-555

  • 15.99% U3O8 over 3 metres, starting at 404.5 metres
  • (12.92% eU3O8 over 2.7 metres)

With vertical holes and approximately horizontal mineralization, the intercepts are close to true widths, Denison stated. One of the 11 holes wasn’t assayed while three others, with core recovery below 80%, were reported with eU3O8 only.

Uranium news from Saskatchewan and elsewhere for April 26 to May 2, 2014

Still to come are assays for 16 holes from other parts of Wheeler including the newly discovered Gryphon zone, three kilometres northwest of the Phoenix deposit.

A Phoenix resource estimate is scheduled for June. Operator Denison holds a 60% interest in the project, along with Cameco Corp TSX:CCO (30%) and JCU (Canada) Exploration (10%). The 11,720-hectare property lies 35 kilometres from the Key Lake mill.

Denison also acted as operator on 10 of its 12 winter programs in the eastern Basin, which included eight drill campaigns. “Highlights included intersections of weak uranium mineralization at the Oban target area at Waterbury Lake, intersections of weak uranium mineralization and strong base metal mineralization at Hatchet Lake, and intersections of weak uranium mineralization at Bell Lake,” the company added.

In mid-April Denison announced a definitive agreement to acquire International Enexco TSXV:IEC on the same terms reported in a March letter of intent.

Patterson Lake South exploration drilling disappoints but Fission finds high radon readings

Having announced the completion of winter delineation drilling the previous week, Fission Uranium TSXV:FCU followed up on April 28 with an exploration update for Patterson Lake South. Ten holes failed to find significant radioactivity. But some radon-in-water anomalies were “on the scale of intensity as the anomalies associated with the PL-3B conductor” found last year, which the company called “a contributing factor in the success of drill collar step-outs as large as 465 metres.”

Mineralization has so far been revealed on two basement electromagnetic conductors, PL-3B and PL-3C. Last winter’s 12 exploration holes included two on PL-3C, which expanded the strike with the new R1620E zone. The most recent 10 holes, on conductors PL-1B and PL-2C, “provided encouraging data for use in upcoming drill programs,” the company stated.

PLS now consists of five zones along a 2.24-kilometre potential strike that’s open to the east and west. Still pending are assays for approximately 70 holes. Spring plans for the 31,039-hectare project have yet to be announced—as is the case for a maiden resource target date.

The company also reported the exercise of 17.97 million warrants on April 28 from a private placement that raised $28.75 million earlier that month.

Declan adds properties, releases VTEM, offers $2-million placement

Among news announced April 30 by Declan Resources TSXV:LAN are property acquisitions in Saskatchewan and Wyoming, preliminary VTEM results from Alberta and a $2-million offering.

The 10-claim Copper Mountain property in Wyoming covers most of the historic North Canning deposit which holds a non-43-101 resource averaging 0.05% uranium for approximately 6.5 million pounds U3O8, according to a reference book. The vendors get two million shares and a 2% gross overriding royalty. The Athabasca property costs Declan nine million shares. Its location wasn’t divulged.

From the Basin’s Alberta side, the company said early VTEM findings for its newly acquired Maybelle North and Richardson River properties indicate four EM trends linked to regional magnetic linears. Declan hopes further analysis will help find graphitic conductors within meta-sedimentary rocks associated with the Basin’s unconformity-style deposits.

The company also offered a private placement up to $2 million and cancelled 2.4 million options.

In March Declan announced plans for the northern Basin’s Gibbon’s Creek project, in which the company holds a $1.25-million first-year exploration commitment under a joint venture with Lakeland Resources TSXV:LK.

NexGen completes ground gravity at Rook 1’s Arrow zone, plans May drilling

Discovered last February, the Arrow zone continues to command NexGen Energy’s (TSXV:NXE) attention at its PLS-neighbouring Rook 1 project. A tightly spaced ground gravity survey extended a potential alteration system adjacent to recent drilling and along strike, the company stated April 29. The results will help NexGen choose drill targets for a three-rig program of over 13,000 metres to begin in mid-May.

So far seven of eight holes at Arrow hit mineralization, according to radiometric results from a hand-held spectrometer. Assays are still to come.

The previous week NexGen announced a property acquisition from Long Harbour Exploration TSXV:LHC.

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The Company It Keeps

March 22nd, 2011

Brixton Metals is an Emerging Player in Alaska’s Rich Kahilt District

By Ted Niles

What is it they say about first steps? That they’re the hardest? True, no doubt, but some are easier than others. Take Brixton Metals Corporation. It may be a year old and has yet to put a drill in the ground; but it boasts the largest landholding in an area of Alaska that is being spoken of as an emerging district-Kahilt.

Located 150 kilometres northwest of Anchorage, Brixton’s Kahilt Property consists of 863 claims-252 optioned from Millrock Resources Inc-that total 557 square kilometres. More important than this, though, is the company Brixton keeps. Millrock’s neighbouring Estelle Project is under option from Teck Resources Limited, which has a $3.4-million exploration program on tap this year. And Kahilt is immediately adjacent to Kiska Metals Corporation’s Whistler Project, which boasts indicated resources of 1.28 million ounces gold, 5.03 million ounces silver and 302 million pounds copper; inferred resources of 1.85 million ounces gold, 8.21 million ounces silver, and 467 million pounds copper.

Brixton Metals is an Emerging Player in Alaska's Rich Kahilt District

“So there’s Teck and Millrock,” says Brixton President/CEO Gary Thompson, “and we anticipate Kiska probably spending in the neighbourhood of $20 million there this year. We have a proposed $10-million budget. So you’re talking about a $30 million to $35 million budget for this area. We’re excited about Kahilt because we see the potential for something big. We’re in the same geological terrain as the Pebble Deposit-which is being developed by Northern Dynasty and Anglo American-and that’s one of the largest copper-gold-moly-silver deposits on the planet.”

Summer 2011 work will focus on Monte Cristo and St Eugene-the two Kahilt targets under option from Millrock. Thompson explains, “It’s relatively unexplored-Millrock spent only about $330,000 on the property-but it’s come up with two fairly large-scale targets. St Eugene appears to be a copper-gold-moly porphyry system. Monte Cristo appears to be an intrusion-related gold system. Our Alaska drill program will be somewhere in the area of 10,000 to 16,000 metres, and about 20,000 soil samples will be collected.” Rock samples from St Eugene show grades as high as 1% copper and 2.1 grams per tonne gold. Monte Cristo samples indicate up to 4.2 g/t gold.

In 2011, Brixton will also drill 5,000 metres on its Thorn Property in northern BC. The company has an option agreement with Kiska to earn up to a 51% interest in the project. Thorn exploration dates back to 1959. Thompson remarks, “It’s had a fair amount of work-about $5 million. Our sense is that the previous operators just didn’t have the right model, didn’t drill deep enough, which is a classic error. So we’re taking a fresh look at it. We’ve done some internal, back-of-the-envelope estimates on the drilling that’s been done to date on the Oban zone, and we came up with a non-compliant 43-101 resource of about 15 million ounces silver equivalent.”

It’s early days yet, but Thompson suggests that if this year’s drilling targets are met, “And in 2012 let’s assume that we’ll double those or more on our budgets,” Brixton can then provide preliminary resource calculations for Kahilt and Thorn. He adds that Brixton, which is 5% owned by Zimtu Capital, is in “finance mode” now. As of March 21, the company had a market cap of $5.17 million and traded at $0.23.

We’re excited about Kahilt because we see the potential for something big. – Gary Thompson

Thompson is unambiguous about the long term. “I don’t see us trying to go from exploration to production,” he declares. “If the resource is there, we want to drill that up and take it as far as we can. To the feasibility stage perhaps. And perhaps somewhere along the way we bring in a major partner. Or, if it’s big and juicy enough, somebody takes a run at Brixton. At the end of the day we’re trying to create value for our shareholders.”

So, apart from the promising property, what does Thompson think will inspire investor confidence in so junior a junior mining company? “Our team. [Director] George Salamis has a number of deals under his belt. Toby Hughes is our VP Exploration and has 30 years of experience. I’ve been involved in exploration since the mid 1980s; I have a gold-silver discovery to my credit. You want to look at the team. Who’s involved, can they deliver? That’s what should give investors confidence.”