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Resource Clips

Posts tagged ‘Noka Resources Inc (NX)’

Allied forces

July 23rd, 2015

Lakeland Resources and Alpha Exploration plan a strategic Athabasca Basin combination

by Greg Klein

Lakeland Resources and Alpha Exploration sign merger agreement

Among the new company’s exploration priorities would be the combination of
Lakeland’s Carter Lake and Alpha’s Hook Lake, on conductive corridors
and proximal to uranium discoveries northeast of Patterson Lake South.


The news followed the Fission Uranium TSX:FCU/Denison Mines TSX:DML announcement by two weeks yet Jonathan Armes says, “I don’t think there’s a better fit in the Basin.” Revealed July 22, the proposed combination of Lakeland Resources TSXV:LK and Alpha Exploration TSXV:AEX would bring together “our treasuries, our dream team of directors and technical advisers, and of course our properties. There’s synergies especially in the Carter Lake-Hook Lake projects. We’d have 15 kilometres of virtually untested corridors on strike with the Patterson Lake South, Arrow and Spitfire uranium discoveries.”

Lakeland’s CEO sees Basin companies divided by a big gap in market capitalization, where one group of explorers struggles with caps of $3 million or less while the next group starts with $13 million or more. “We want to tighten our share structure and provide more leverage to our existing shareholders,” Armes explains. “We think that having 41 million shares and $3 million in the bank would put us in a different category from a lot of our peers right now. We could execute probably two drill programs before the Christmas break. And, given our treasuries, people and properties, we’d have the ability to raise additional funds.”

The unified portfolio would feature “a string of Tier 1 drill targets,” including a combination of Lakeland’s Carter Lake and Alpha’s Hook Lake, now held 100% each by their respective companies. Together they cover an approximately 15-kilometre length of the PLS conductive corridor hosting Fission’s Triple R deposit and R600W zone, as well as the Arrow zone of NexGen Energy TSXV:NXE and the Spitfire zone of Cameco Corp TSX:CCO, AREVA Resources Canada and Purepoint Uranium TSXV:PTU.

Lakeland Resources and Alpha Exploration plan a strategic Athabasca Basin merger

Three other priorities from Alpha’s portfolio include Kelic Lake, Carpenter Lake and Gorilla Lake. Alpha holds a 100% option on Kelic, straddling the southern Basin’s rim east of PLS. East of Kelic and just south of the rim, Alpha holds the larger part of a 60/40 joint venture with Noka Resources TSXV:NX on Carpenter. East of the former Cluff Lake mine Alpha holds 80% of Gorilla, a JV with 20% partner Logan Resources TSXV:LGR. Results are pending for geophysics flown over the three properties earlier this year.

Three more Lakeland priorities, held 100%, include Gibbon’s Creek on the Basin’s north-central rim, Newnham Lake to the east and, on the southern rim, Lazy Edward Bay. The company considers Lazy Edward and Newnham drill-ready. Last winter’s Phase I drilling at Gibbon’s, meanwhile, brought near-surface intervals grading to 333.8 ppm U3O8 over 1.1 metres, including 0.13% over 0.23 metres.

As president/CEO/director of the merged entity, Armes would co-manage with Alpha CEO Michael Gunning, who would become executive chairperson. Alpha VP of exploration Sierd Eriks would retain his position. Each company would nominate three candidates to the six-person board.

Over the coming weeks geologists and Lakeland directors Neil McCallum and Jody Dahrouge will work with Eriks and Gunning to “set priorities, establish a timetable and put together a 24- to 36-month strategy of drilling,” Armes says. “Any or all of these eight projects have the potential of a significant discovery.” As for some non-core assets, the team would consider putting them up for JVs or sale.

Of the approximately $3-million combined treasury, roughly one-third would consist of “hard dollars” and the remainder subject to flow-through commitments.

The deal does, however, call for a hiatus on non-essential summer exploration prior to closing.

Subject to all approvals and a shareholder vote planned for early September, the arrangement begins with a three-to-one reverse split for Lakeland followed by the company exchanging one new share for every two Alpha shares. As a result, Lakeland shareholders would get about 60% of the new company’s 41 million shares, with the rest in the hands of Alpha shareholders.

“Both groups are excited about getting together our teams, our treasuries and our projects,” Armes says. “Everything lines up. In my opinion there’s no better merger that could happen in the Basin.”

Disclaimer: Lakeland Resources Inc is a client of OnPage Media Corp, the publisher of The principals of OnPage Media may hold shares in Lakeland Resources.

Athabasca Basin and beyond

April 17th, 2015

Uranium news from Saskatchewan and elsewhere to April 17, 2015

by Greg Klein

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India’s fast-emerging market becomes a Cameco customer

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

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

Uranium news from Saskatchewan and elsewhere to April 17, 2015

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

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

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

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

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

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

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

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

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

Fission finishes winter work at Patterson Lake South

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

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

Hole PLS15-330

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


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


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

  • 0.23% over 7 metres, starting at 182.5 metres


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

  • 0.37% over 12.5 metres, starting at 172.5 metres

True widths weren’t available.

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

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

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

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

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

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


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


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


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


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


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


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

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


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

Again, true widths weren’t available.

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

Read about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

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

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

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

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

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

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Athabasca Basin and beyond

April 2nd, 2015

Uranium news from Saskatchewan and elsewhere to April 2, 2015

by Greg Klein

Next Page 1 | 2

Financing flows for Fission as successful drilling continues at Patterson Lake South

Just hours after announcing a $15-million bought deal on April 1, Fission Uranium TSX:FCU reported an upward revision to $17.4 million, capping a flurry of encouraging drill results from Patterson Lake South. The previous day Fission released radiometric readings for 15 mineralized holes over four zones. A week earlier came assays as high as 3.36% U3O8 over 44 metres at the newly revitalized R600W zone. And two days before that the company released step-outs that increased the main R780E zone laterally, vertically and along strike.

Uranium news from Saskatchewan and elsewhere to April 2, 2015

Scintillometer measurements released March 31 expanded the footprints of zones R600W, R780E and R1620E, the company stated, while also hitting “a new, possibly parallel, high-grade interval” 30 metres north of R600W. Two holes between R00E and R780E suggest potential for closing the deposit’s 225-metre gap, Fission stated.

Drilling now extends R600W’s strike to 60 metres, up from 45 metres reported on March 18 and twice the length previous to that. The lateral width stands at about 30 metres, while the zone remains open in all directions. R1620E now runs 45 metres in strike based on three holes, one newly reported. R780E saw high-grade expansion on four lines.

Scintillometer results come from a hand-held device that measures drill core radiation in counts per second. The readings are no substitute for the still-pending assays.

Among the March 31 highlights, R780E’s hole PLS15-369 showed 78 metres of total composite mineralization over a 281.5-metre section starting at 76 metres in downhole depth. Included was a composite 5.24 metres above 10,000 cps, a level sometimes termed “off-scale” due to the limitations of earlier scintillometers.

In the same zone, PLS15-375 hit a composite 59.5 metres over a 134-metre section starting at 75.5 metres in depth. A composite 5.08 metres went off-scale.

A March 23 batch of scintillometer results for 19 step-outs showed mineralization in all but two, contributing to the extensions laterally, vertically and along strike.

Back to the March 31 results, PLS15-367 in the R600W zone found continuous mineralization for 56 metres starting at 98 metres, with a composite four metres surpassing 10,000 cps.

Five holes also found mineralization at the R00E zone, part of the Triple R deposit and site of the PLS discovery. R00E’s strike runs 125 metres with a lateral width maxing at 47 metres.

Assays for hole PLS15-343 released March 25 confirm Fission’s increasing interest in the R600W zone. One outstanding interval hit:

  • 3.36% U3O8 over 44 metres, starting at 107 metres in downhole depth
  • (including 14.74% over 9 metres)

True widths weren’t provided.

Along with successful results, the winter program’s been blessed with drilling speed and efficiency as well as favourable weather. Who knows, maybe there’s even a 43-101-unreportable alignment of the stars. At any rate, progress has inspired a $3-million, 28-hole, 6,270-metre addition to the season’s campaign, now expected to total about 91 holes and 26,500 metres. R780E and R600W remain priorities.

Read about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

NexGen claims new Rook 1 discovery, releases more high grades from Arrow zone

Regional drilling now has NexGen Energy TSXV:NXE talking about “two discoveries developing in proximity to one another” at the Rook 1 project next door to PLS. Work has focused on the Arrow zone but, about 3.7 kilometres northeast and along trend, two of 10 holes have stoked the company’s optimism in the newly named Bow discovery.

Scintillometer results released March 31 for hole BO-15-10 showed one metre starting at 206.5 metres in downhole depth that ranged from under 500 counts per second to 1,400 cps. Another interval showed 1.5 metres starting at 210 metres in depth, ranging from under 500 cps to an “offscale” 10,200 cps.

That hole stepped out 66 metres east of BO-15-02, which showed three metres starting at 202 metres in depth ranging from under 500 to 1,350 cps.

Eight other holes brought intercepts of less than 500 cps, below NexGen’s threshold for mineralization.

True widths weren’t provided for the angled holes. As is usual with the scintillometer disclaimer, the results are no substitute for assays, which will follow.

The targets followed highly anomalous radon-in-lake-water readings coinciding with an extension of the VTEM conductor that hosts Arrow and a parallel conductor to the north. “These radon anomalies are optimally situated along breaks and kinks in the VTEM conductors,” NexGen stated.

Uranium news from Saskatchewan and elsewhere to April 2, 2015

Pitchblende mineralization from NexGen’s Bow discovery,
3.7 kilometres northeast of Rook 1’s Arrow zone.

Back at Arrow, more scintillometer results released March 23 indicated high-grade expansions to A2 and A3, two of the zone’s three mineralized shears, NexGen stated.

The project’s best angled hole so far, AR-15-41 hit total composite mineralization for 205.2 metres within a 439-metre section, starting at 384.5 metres in downhole depth. Included was an offscale composite of 24.5 metres.

AR-15-39w1 showed a composite 124.5 metres within 514.5 metres starting at 438 metres. A composite 8.35 metres went offscale.

AR-15-40b intersected a 15-metre composite within 321.5 metres starting at 373 metres that included 1.3 metres above 10,000 cps.

The A2 shear now runs 88 metres along strike and 340 metres vertically; A3 runs 73 metres along strike and 420 metres vertically. The Arrow zone covers 515 metres by 215 metres, with mineralization found at vertical depths ranging from 100 metres to 905 metres. Arrow remains open in all directions and at depth.

With a second rig directed at Bow, Rook 1 now has four drills turning. The company has added at least 2,000 additional metres to the winter program, which should total about 20,000 metres.

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Athabasca Basin and beyond

March 21st, 2015

Uranium news from Saskatchewan and elsewhere to March 20, 2015

by Greg Klein

Next Page 1 | 2

Step-outs renew Fission’s interest west of PLS resource

The zone’s five previous holes found disappointingly low grades but Fission Uranium’s (TSX:FCU) most recent drilling brings new attention to R600W, 555 metres west of the Triple R deposit that surprised even some of the more optimistic Patterson Lake South-watchers. The most westerly of four PLS zones got five more holes this season, four showing mineralization in basement rock and three suggesting high grades over significant widths, the company announced March 18.

These results, no substitute for the still-pending assays, come from a scintillometer that measures drill core radiation in counts per second.

Hole PLS15-364, 570 metres west of Triple R, hit a composite total of 45.5 metres of mineralization over a 61-metre section starting at 107 metres in downhole depth. A composite 6.44 metres surpassed 10,000 cps, a level sometimes termed “offscale” due to the limitations of earlier scintillometers.

PLS15-352 revealed a continuous 56.5-metre intercept starting at 102.5 metres that included continuous “offscale” readings for 11.77 metres. PLS15-360 showed 25 continuous metres starting at 111 metres, while PLS15-364 gave up 40.5 continuous metres starting at 107 metres.

True widths weren’t available.

The angled holes have expanded the zone’s strike to 45 metres, a 50% increase that extends PLS’s potential strike from 2.24 to 2.25 kilometres. R600W’s lateral width extends up to about 30 metres. Results have “substantially increased our understanding of the geometry and tenure of the mineralization,” said Fission COO/chief geologist Ross McElroy.

While delineation continues at Triple R, R600W has more drilling to come.

Read more about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

NexGen continues to find high grades at Rook 1’s Arrow zone

Its first two batches of winter assays once again have NexGen Energy’s (TSXV:NXE) Rook 1 project vying for attention with Fission’s Patterson Lake South. On March 17 NexGen announced the project’s widest high-grade interval yet, hitting 70 metres of 2.2% U3O8. Two days later the company confirmed an 88-metre strike extension from AR-14-30, an outstanding hole released last October. The results come from Rook 1’s Arrow zone, defined last month as three mineralized shears named A1, A2 and A3.

The star hole from the first batch, AR-15-34b, was a 30-metre step-out from October’s AR-14-30, centrepiece of the A2 shear. Although the new hole’s other intercepts fell far short in grade and thickness, these intervals brought redemption, the first from A2, the second from A1:

  • 2.2% U3O8 over 70 metres, starting at 522 metres in downhole depth
  • (including 8.95% over 11 metres)

  • 0.12% over 32 metres, starting at 697 metres

As for some other highlights:


  • 0.26% over 12.5 metres, starting at 548.5 metres


  • 0.33% over 18.5 metres, starting at 394.5 metres

  • 0.49% over 12 metres, starting at 553.5 metres


  • 0.32% over 51 metres, starting at 167 metres

  • 0.1% over 61.5 metres, starting at 248 metres

True widths weren’t available. AR-14-36 was a vertical hole. The others were sunk at a dip of -70 or -75 degrees.

Assays for two angled holes released two days later inspired additional confidence in A2. Highlights show:


  • 2.46% over 16.5 metres, starting at 580.5 metres
  • (including 12.85% over 3 metres)

  • 0.34% over 13.5 metres, starting at 602 metres

  • 2.88% over 40 metres, starting at 621.5 metres
  • (including 4.92% over 22 metres)


  • 0.75% over 6 metres, starting at 664 metres

  • 0.9% over 32 metres, starting at 583.5 metres

Again, true widths weren’t provided. The latter hole confirms an 88-metre strike expansion southwest of AR-14-30, NexGen stated.

The Arrow zone covers about 515 metres by 215 metres with mineralization starting at about 100 metres in depth and now extending to 820 metres. The zone remains open in all directions and at depth.

NexGen has further drilling planned for the A2 shear as well as the newly discovered high-grade area within A3. At last count the season’s program had completed 38 holes, according to the March 19 press release, or 39, according to a February 24 statement. Roughly a third of the 18,000-metre winter agenda has been drilled.

Phase I drilling finds anomalous radioactivity at Lakeland Resources’ Star/Gibbon’s Creek

Uranium news from Saskatchewan and elsewhere to March 20, 2015

The first round of drilling went radioactive at
Lakeland Resources’ Star/Gibbon’s Creek project.

Lakeland Resources TSXV:LK wrapped up a successful 14-hole, 2,550-metre winter program by reporting anomalous radioactivity at its Star/Gibbon’s Creek project on the Athabasca Basin’s northern rim. While assays are pending, initial results also reveal “alteration suggestive of a proximal basement-hosted or unconformity-hosted uranium occurrence,” said company president Jonathan Armes on March 12.

Six holes along a corridor about 1.5 to two kilometres long struck the unconformity at depths of less than 125 metres, finding either anomalous radioactivity, alteration or both. The results confirm the trend as a high-priority target.

Three other holes along a one-kilometre corridor near the head of the Gibbon’s Creek boulder field found the unconformity at depths of less than 110 metres, again intersecting either anomalous radioactivity, alteration or both and confirming another high-priority target.

The readings come from a downhole scintillometer and are no substitute for assays, which will follow. Lakeland attributes background radioactivity to readings of 10 to 100 cps. Results show these anomalous levels of at least 800 cps over 0.3 metres:

Hole GC15-01

  • An average 1,104 cps over 0.4 metres starting at 81.2 metres in downhole depth. The maximum level hit 1,379 cps.


  • An average 1,204 cps over 0.3 metres starting at 99 metres, with a maximum of 1,589 cps

  • An average 1,072 cps over 0.7 metres starting at 99.6 metres, with a maximum of 1,312 cps


  • An average 2,828 cps over 1 metre starting at 107.1 metres, with a maximum of 7,926 cps


  • An average 1,415 cps over 0.6 metres starting at 102.9 metres, with a maximum of 1,740 cps

True widths weren’t available. Along with the other anomalous results, hole GC15-03 is considered highly anomalous.

To further solidify targets, the project also underwent a 270-station ground gravity survey.

“During the coming weeks we will be in receipt of geochemical results for uranium and pathfinder elements such as boron, nickel, cobalt and arsenic,” Armes stated. “As with other historic uranium discoveries within the Athabasca Basin, each successful drill program helps guide the next towards the discovery of a new uranium occurrence.”

The road-accessible project sits a few kilometres from the town of Stony Rapids, with nearby infrastructure.

Lakeland also holds drill-ready projects at Newnham Lake, east of Star/Gibbon’s, and Lazy Edward Bay on the Basin’s southern rim. Late last month the company expanded its holdings to 32 properties totalling over 300,000 hectares, one of the largest portfolios in the Basin region.

As of March 12 Lakeland’s treasury held close to $3 million.

Read more about the Star/Gibbon’s Creek project.

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Athabasca Basin and beyond

February 14th, 2015

Uranium news from Saskatchewan and elsewhere to February 13, 2015

by Greg Klein

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Fission Uranium expands main zone at PLS

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

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

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

Read about the Patterson Lake South resource estimate.

See an historical timeline of the Patterson Lake South saga.

Fission Uranium buys into Fission 3.0

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

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

Uranium news from Saskatchewan and elsewhere to February 13, 2015

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

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

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

NexGen honoured for 2014 performance, reports 2015 progress

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

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

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

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

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

Denison reports eU3O8 from Mann Lake and Wheeler River

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

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

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

Three holes at Wheeler River’s Gryphon zone showed:

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

  • 2.9% over 2.4 metres, starting at 764.2 metres

  • 2.8% over 2.4 metres, starting at 786.3 metres

  • 9% over 4.6 metres, starting at 641.6 metres

True thickness is estimated at about 75%.

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Athabasca Basin and beyond

November 15th, 2014

Uranium news from Saskatchewan and elsewhere to November 14, 2014

by Greg Klein

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Kivalliq’s Nunavut property reveals new drill priority

Heralding its “most advanced, drill-ready target outside of the Lac 50 trend,” Kivalliq Energy TSXV:KIV announced the Angilak project’s Dipole target on November 12. The new area came to light after a 1,335-line-kilometre VTEM survey and 1,514 soil samples south of the 111,476-hectare property’s Lac 50 deposit in Nunavut.

Preliminary analysis confirms geophysical targets at Dipole and the RIB area, Kivalliq stated. The company expects final VTEM data shortly to further define targets south of Lac 50.

Uranium news from Saskatchewan and elsewhere to November 14, 2014

Located 225 kilometres south of the hamlet of Baker Lake,
Angilak has an exploration season lasting from April to September.

Enzyme leach soil samples showed 379 anomalous uranium results, about a quarter of the total, ranging from 6 ppb up to 285 ppb uranium, placing the results in the 75th percentile. Out of that group, 77 samples made the 95th percentile. The sampling has “significantly upgraded” drill targets in the Hot and KU areas, as well as Dipole.

Kivalliq describes the latter area, 27 kilometres southwest of Lac 50, as “a distinct, two-kilometre-long geophysical anomaly having a coincident boulder assay of 2.24% U3O8, now confirmed by an anomalous uranium-in-soil trend over 3.4 kilometres of strike length” with anomalous copper, molybdenum and silver.

This year’s work also confirmed a conductor in the RIB area, which has “geological similarities with both Dipole and Lac 50,” the company added. Soil samples showed a 3.6-kilometre-long geochemical trend with uranium values ranging from 6 ppb to 61.9 ppb.

Historic 1970s drilling at RIB found shallow mineralization up to 0.19% U3O8 over 9.3 metres (including 0.52% over 2.6 metres) and 1.61% over 0.7 metres.

Lac 50’s January 2013 inferred resource used a 0.2% cutoff to show 2.83 million tonnes averaging 0.69% for 43.3 million pounds U3O8. The inferred category also shows 1.88 million ounces silver, 10.4 million pounds molybdenum and 15.6 million pounds copper.

In late October Kivalliq announced a 1,914-hectare addition to its Genesis project in Saskatchewan and Manitoba, where Roughrider Exploration TSXV:REL funds exploration through an 85% earn-in.

A big piece of Strateco brings Toro Energy to Canada

An ASX-listed uranium company would gain a substantial portion of Strateco Resources TSX:RSC under an agreement announced November 3. Toro Energy would issue shares to obtain a chunk of the Sentient Group’s holdings in Strateco and SeqUr Exploration, a Strateco subsidiary. As a result, Toro would hold 19.8% of Strateco shares, $14.1 million of secured convertible notes receivable in Strateco, a $3-million senior secured first ranking loan receivable in Strateco and five million SeqUr shares, representing 25% of the subsidiary.

Sentient’s interest in Strateco would drop from 27.13% to about 8%. Sentient would also hold 800 convertible notes representing $800,000 secured by Strateco assets.

Toro’s Wiluna project is “set to become Western Australia’s first-ever uranium mine,” according to Strateco. “Toro has shown clear interest in the Matoush project, as well as in SeqUr’s uranium projects in Saskatchewan. Toro’s experience … permitting the Wiluna project, in an area formerly under moratorium, will certainly be an asset for Strateco.” The latter company’s Matoush project in Quebec has been stalled by a moratorium while a provincial inquiry into uranium takes place.

The transaction is part of a wider deal that includes Sentient’s AU$10-million placement into Toro, with another AU$10 million to fund the Wiluna flagship. Sentient now holds 18.9% of Toro, in which Oz Minerals holds 21.9% and Mega Uranium TSX:MGA 21.5%.

Toro anticipates closing the deals by mid-December.

Hook Lake JV proposes $2.9-million 2015 budget, Purepoint announces

Hook Lake partners will be on the hook for $2.9 million worth of exploration next year, if the joint venture committee’s proposals go through. Purepoint Uranium TSXV:PTU announced November 11 that a final decision on the budget, which would cover 4,200 metres of drilling, would follow geophysical results and a detailed drill plan. An airborne magnetic and VTEM-plus survey finished last month north of the project’s Spitfire zone. Beginning soon will be a ground EM survey to pinpoint drill targets on the 28,683-hectare property five kilometres northeast of Fission Uranium’s (TSX:FCU) Patterson Lake South discovery.

Purepoint announced the Spitfire zone last March and released additional drill results in May.

The Hook Lake JV consists of Cameco Corp TSX:CCO (39.5%), AREVA Resources Canada (39.5%) and Purepoint (21%). The latter company’s share of the budget would come to about $310,000.

Western Athabasca Syndicate, Aben, Alpha update Preston, Mann Lake and Carpenter Lake

A recent analysis of airborne geophysics confirms existing drill targets at the 246,643-hectare Preston property, the Western Athabasca Syndicate reported November 13. The four-company group has further geophysical and geochemical work planned for early 2015, along with land- and lake-based drilling.

Some $3.75 million worth of expenditures so far have identified 15 target areas on the southwestern Athabasca Basin PLS-proximal property. In July the companies released results from Preston’s initial drill campaign of nine holes totalling 1,902 metres.

Skyharbour Resources TSXV:SYH currently acts as project operator for partners Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY.

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Athabasca Basin and beyond

October 31st, 2014

Uranium news from Saskatchewan and elsewhere to October 31, 2014

by Greg Klein

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Fission hits 8.53% over 24 metres at Patterson Lake South

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


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

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

Some of the best results follow:

Hole PLS14-253

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

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


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


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

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


  • 5.02% over 5 metres, starting at 256.5 metres


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

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


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

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


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


  • 0.27% over 22.5 metres, starting at 191.5 metres

  • 0.37% over 19.5 metres, starting at 216.5 metres


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


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

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

True widths weren’t provided.

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

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

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

Uranium news from Saskatchewan and elsewhere to October 31, 2014

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

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

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

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

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

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

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

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

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

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

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

Read more about Lakeland Resources.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Athabasca Basin and beyond

September 19th, 2014

Uranium news from Saskatchewan and elsewhere for September 13 to 19, 2014

by Greg Klein

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NexGen ends season with high-grade assays from Rook 1

A summer of largely successful drilling has come to a close at NexGen Energy’s (TSXV:NXE) Rook 1 project. Patterson Lake South’s neighbour got 33 holes totalling 18,885 metres, with 24 of the holes focusing on the Arrow zone. Radiometric results for the final two holes, released September 17, confirm the 515-metre strike for a zone that’s 215 metres wide and open in all directions. At the same time NexGen released the season’s first batch of assays, which the company said confirms mineralization indicated by previously reported radiometrics.

The last two holes were sunk vertically 15 metres northeast and southwest from the project’s previously released “landmark.” One hole found intersections totalling 123.9 metres of mineralization (not true width), with the shallowest intercept starting at 328.15 metres in vertical depth. The other showed a composite total of 107.9 metres of mineralization starting at 186 metres in depth.

These results come from a hand-held device that measures drill core radiation in counts per second. They’re no substitute for assays, which have yet to come for most of the season’s holes.

But assays for six earlier holes also released September 17 correlate well with the previously reported radiometric results, NexGen stated. Some highlights include:

Hole RK-14-31

  • 0.13% U3O8 over 28.2 metres, starting at 292.5 metres in downhole depth
Uranium news from Saskatchewan and elsewhere for September 13 to 19, 2014

  • 0.38% over 5.55 metres, starting at 618.1 metres

  • 0.29% over 3.9 metres, starting at 639.1 metres

  • 5.91% over 1.3 metres, starting at 650.8 metres

Hole RK-14-32

  • 0.17% over 7.6 metres, starting at 502.2 metres

  • 0.65% over 1.35 metres, starting at 514.3 metres

Hole RK-14-34

  • 0.12% over 96.75 metres, starting at 181.25 metres

  • 6.56% over 1.2 metres, starting at 540 metres

  • 0.12% over 3.7 metres, starting at 606.3 metres

  • 0.67% over 3.6 metres, starting at 621.9 metres

Hole RK-14-35

  • 0.21% over 2.85 metres, starting at 524.35 metres

  • 0.9% over 3.3 metres, starting at 600.55 metres

Hole RK-14-37

  • 0.1% over 7.5 metres, starting at 386.5 metres

  • 0.12% over 13.5 metres, starting at 401 metres

  • 1.08% over 18.25 metres, starting at 456.8 metres

  • 1.96% over 3.05 metres, starting at 482.4 metres

  • 2.66% over 0.65 metres, starting at 499.3 metres

  • 1.24% over 2 metres, starting at 505.45 metres

  • 1.31% over 11.85 metres, starting at 522.4 metres

  • 0.17% over 5.8 metres, starting at 541.2 metres

  • 5.35% over 4.6 metres, starting at 569.6 metres

Hole RK-14-39

  • 0.9% over 3.55 metres, starting at 540.7 metres

True widths were unavailable.

Thirty of 32 holes sunk on the Arrow zone over two seasons have shown mineralization. But not so with the project’s regional drilling, where five holes proved barren. The company still hopes they’ll show pathfinder elements.

Boasting a working capital of $6.5 million, NexGen’s now planning its winter campaign.

Uranium Energy Corp releases PEA for Anderson project

An Arizona project amenable to conventional mining and heap leach recovery would require low capital costs to produce a total of 16 million pounds of uranium over 14 years, according to a preliminary economic assessment announced September 16 by Uranium Energy Corp NYSE MKT:UEC.

Quoting all amounts in U.S. dollars, assuming a uranium price of $60 and using a 10% discount rate, the study calculated the Anderson project’s after-tax net present value at $76.4 million and the internal rate of return at 42%. With uranium at $65 a pound, the NPV comes to $101.1 million with a 50% IRR.

The initial capex comes to $43.9 million with an additional $8 million for four years of pre-production including development drilling, designing the mine and heap leach operation, as well as permitting. Another $87.6 million would be needed through years four to eight as the operation makes the transition from open pit to highwall and underground mining.

Heap leach recovery would produce a resin which would be processed at Energy Fuels’ (TSX:EFR) White Mesa mill in Utah.

The project has indicated resources showing 15.5 million pounds uranium oxide-equivalent for an open pit and another 1.5 million pounds underground. The inferred resources have 2.5 million pounds eU3O8 in the pit and 9.5 million pounds underground.

Future studies will examine vanadium as a byproduct.

UEC operates the Palangana in-situ recovery mine, Hobson processing plant and advanced-stage Goliad and Burke Hollow projects in Texas. Last April the company completed a PEA for its Slick Rock uranium-vanadium deposit in Colorado. UEC holds over 20 projects in the western U.S. and two more in Paraguay.

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Athabasca Basin and beyond

September 6th, 2014

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

by Greg Klein

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

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

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

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

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

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

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

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

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

Fission 3.0/Azincourt finish summer drilling at PLN

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

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

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

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

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

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

Macusani completes acquisition of Azincourt’s Peruvian properties

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

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

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Athabasca Basin and beyond

August 23rd, 2014

Uranium news from Saskatchewan and elsewhere for August 9 to 22, 2014

by Greg Klein

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Fission widens main zone, plans more step-outs, arranges $12.5-million bought deal

Although infill drilling has been the priority for Fission Uranium’s (TSXV:FCU) summer program, two step-outs have widened Patterson Lake South’s R780E zone, inspiring a 10-hole addition to the campaign. Radiometric results for nine holes released August 18 include one that extended the zone about 30 metres north and another 15 metres south. All nine holes returned wide mineralization, the company stated.

Uranium news from Saskatchewan and elsewhere for August 9 to 22, 2014

R780E is the middle and largest of five zones along a 2.24-kilometre potential strike that’s open to the east and west.

These results, which are no substitute for assays, come from a handheld scintillometer that measures drill core for radiation in counts per second. Last month Fission replaced its old model, which maxed out at 9,999 cps, with a new-fangled gadget capable of measuring up to 65,535 cps. But the company still refers to anything above four nines to be “off-scale.”

By that standard several intervals were well off-scale, with a few reaching past 60,000 cps.

Another innovation introduced last month is barge-based angled drilling, allowing a better understanding of the geometry of mineralization beneath the lake. Encouraged by the widening of R780E, Fission plans another 10 step-outs. That adds 4,700 metres to a summer agenda now expected to total 25,000 metres in 73 holes.

There seems to be little worry about paying for all that. On August 18 Fission announced a $12.52-million bought deal that’s expected to close around September 23. Roughly three months later comes the maiden resource’s due date.

Winter assays reported August 13 further boosted confidence in R780E, while a summer exploration hole released two days earlier showed interesting radiometric results 17 kilometres away. Read more.

NexGen steps out to widen Rook 1’s Arrow zone

If any company can compete with Fission’s top spot as the Athabasca Basin’s number one newsmaker, it might be next-door neighbour NexGen Energy TSXV:NXE. Four “aggressive” step-out holes have extended the company’s Rook 1 Arrow zone from 180 metres to 215 metres in width for a zone that’s 515 metres in strike and open in all directions. The northwest-southeast fence of drilling announced August 20 has also revealed “multiple sub-vertical stacked mineralized shear zones” increasing the company’s hopes of finding additional high-grade areas.

One of the five holes failed to find significant mineralization.

Like Fission’s August 18 news, the results come from scintillometer readings that don’t substitute for assays, which are pending.

So far 25 of 27 Arrow holes totalling 15,318 metres have shown mineralization. Another three holes at Area A, however, failed to find anomalous radioactivity. They tested an electromagnetic conductor that NexGen interprets to be PL-3B, which hosts the PLS discovery.

Lakeland Resources updates three projects, appoints uranium veteran to board

As a busy summer progresses, Lakeland Resources TSXV:LK reported a new addition to its board and further work on one of the largest portfolios in and around the Basin. On August 20 the company announced the appointment of director Steven Khan, a veteran of Canadian investment and corporate governance with specific experience in raising funds and forging joint ventures for uranium companies. The next day Lakeland released a progress update for three of its projects.

The projects are Star, Lazy Edward Bay and Fond du Lac on the northern, southern and eastern margins of the Basin respectively. “That’s the shallowest depth—the depth to the unconformity becomes more shallow as you get closer to the Basin’s margin,” explains president/CEO Jonathan Armes. “At Gibbon’s Creek our target depths are between about 80 and 120 metres below surface. We hope the others will fall into that kind of range so we’ll be drilling 150- to 200-metre holes.”

At the Star property, crews from Dahrouge Geological Consulting have just wrapped up six days of sampling and mapping. They picked up some 73 rock samples and 124 soil samples around a basement outcrop that’s shown anomalous concentrations of gold, platinum group elements and rare earth elements, as well as highly anomalous uranium. The combination suggests a strong hydrothermal system.

“Those are typical pathfinders for uranium in the Basin,” says Armes. “At Patterson Lake South they had gold grades running two or three grams. So with the first pass on our exploration program in late 2013 we had gold grades of four or five grams.”

Lakeland holds a 100% earn-in option on Star, which has year-round road access from the town of Stony Rapids a few kilometres away.

Now that permits have arrived, mobilization to Lazy Edward Bay should begin ASAP, he adds. Under initial scrutiny will be the BAY trend, actually two parallel conductive trends, which will undergo a RadonEx survey. Field crews will also search out boulders or other signs of unconformity-style mineralization.

“We have Lazy Edward drill targets already but a lot of them were defined by yesterday’s technology,” Armes explains. “We’ll use RadonEx and other work to re-interpret the historic data to better define targets.” In all, the property has six known trends.

Lakeland adviser Rick Kusmirski knows the property from his time as president/CEO of JNR Resources. “He dug up some historic data which is very helpful to identify areas to focus on. There’s some historic areas we want to re-visit.”

Also in line for RadonEx is Fond du Lac, initially targeting a coincident geochemical and conductive target. Geologist and Lakeland director Neil McCallum thinks historic work “missed it by a couple of hundred metres,” Armes says.

But while the summer activity continues, he also looks further ahead “from a treasury standpoint as well as our projects. We’re convinced that 2015 is going to see a significant move in uranium prices. If we ever re-visit 2006 and 2007 levels, when there were 50, 60, 70 juniors active, we hope to be ready and get as many drill programs going as possible through the joint venture and prospect generator model, along with any programs we focus on 100% ourselves.”

[Khan’s JV work with Sumitomo and Kepco] was certainly a great experience in negotiating and concluding contracts, and working with them on the joint management committees. That built long-term relationships but also gave me insight into the Asian psyche and some of the issues they have to deal with.—Steven Khan, director
of Lakeland Resources

Just one day before the exploration update, Lakeland announced Steven Khan’s appointment as director. His background includes key positions with uranium companies Energy Fuels TSX:EFR, Strathmore Minerals and Fission Uranium’s predecessor, Fission Energy. He helped found the latter company, holding the role of executive VP. Khan served as president/chairperson of Strathmore Minerals until last year’s takeover by Energy Fuels, where he stayed on as a director until recently.

Khan played an instrumental part in the negotiating team that brought Japan’s Sumitomo Corp into a JV on Strathmore’s Roca Honda project in New Mexico. He also helped bring the Korea Electric Power Corp into two other JVs, with Strathmore on the Gas Hills project in Wyoming and with Fission, leading to the Waterbury Lake discovery.

Khan has nearly 20 years of experience in all aspects of the Canadian investment industry, including fundraising for early-stage private and public companies.

A confluence of factors convinced him to join Lakeland, he says. “I’ve had a long-term relationship with some of the company’s principals and I’ve always been interested in returning to the Athabasca Basin arena after I left Fission Energy in 2010. Strathmore was more focused on the U.S., where I spent the last number of years. That combination of moving back to the Basin, working with a group of people I respect and seeing a number of properties that have potential presented an opportunity for me.”

He says his work with Sumitomo and Kepco “was certainly a great experience in negotiating and concluding contracts, and working with them on the joint management committees. That built long-term relationships but also gave me insight into the Asian psyche and some of the issues they have to deal with.”

Khan thinks Asian companies might revive their previous interest in early-stage explorers. “Before Fukushima they were attracted to earlier-stage projects like Fission had at the time, as well as more advanced projects like those of Strathmore in the U.S. When uranium prices come back I think they’ll be forced to return to earlier-stage projects because most of the advanced projects will have been tied up.”

As for uranium’s current price, “its resurgence has been muted and is taking longer than expected. But I think that in the medium to longer term, demand will certainly outstrip supply.”

“I’m quite excited about getting involved with the Lakeland team and I think the opportunity for the sector is attractive,” Khan emphasizes. “I think there’s going to be more Athabasca Basin discoveries and that bodes well for companies like Lakeland that are properly positioned and properly financed. So for me the timing is good and the interplay of several factors is favourable.”

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