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Posts tagged ‘Noka Resources Inc (NX)’

Athabasca Basin and beyond

July 26th, 2014

Uranium news from Saskatchewan and elsewhere for July 19 to 25, 2014

by Greg Klein

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3.78% U3O8 over 49 metres helps Fission build Patterson Lake South

High grades and wide intervals at relatively shallow depths continue to characterize Fission Uranium’s (TSXV:FCU) Patterson Lake South. Of eight holes released July 21, all showed mineralization, six substantially. Three standout assays boasted 3.78% U3O8 over 49 metres, 3.96% over 40 metres and 5.34% over 25.5 metres. The entire octet came from R780E, the middle and largest of five zones along a 2.24-kilometre potential strike that remains open to the east and west. Some highlights include:

Hole PLS14-192

  • 0.53% uranium oxide (U3O8) over 51 metres, starting at 110 metres in downhole depth
  • (including 2.36% over 5.5 metres)

  • 0.48% over 12.5 metres, starting at 191.5 metres
  • (including 1.27% over 4 metres)
Uranium news from Saskatchewan and elsewhere for July 19 to 25, 2014

PLS14-193

  • 1.62% over 2 metres, starting at 162 metres

PLS14-194

  • 0.86% over 2.5 metres, starting at 187 metres

PLS14-195

  • 0.64% over 4.5 metres, starting at 244 metres
  • (including 2.81% over 1 metre)

PLS14-197

  • 0.81% over 8 metres, starting at 87.5 metres
  • (including 3.65% over 1.5 metres)

  • 5.34% over 25.5 metres, starting at 102.5 metres
  • (including 15.81% over 5 metres)
  • (and including 8.4% over 4 metres)

  • 1.24% over 3.5 metres, starting at 151 metres

  • 2.61% over 13 metres, starting at 157 metres
  • (including 20.04% over 1.5 metres)

  • 2.17% over 2.5 metres, starting at 175.5 metres

PLS14-198

  • 3.96% over 40 metres, starting at 95 metres
  • (including 10.35% over 14 metres)

PLS14-199

  • 0.11% over 6.5 metres, starting at 209 metres

  • 0.42% over 10.5 metres, starting at 233.5 metres
  • (including 3.07% over 1 metre)

PLS14-200

  • 3.78% over 49 metres, starting at 109.5 metres
  • (including 9.34% over 10 metres)
  • (and including 26.32% over 1 metre)
  • (and including 9% over 3.5 metres)

  • 1.16% over 5 metres, starting at 221 metres

True widths weren’t provided.

PLS14-199, along with the previously released PLS14-189 which included 1.93% over 15 metres, sits on the eastern edge of R780E. Their assays prompted Fission to suggest the possibility of closing a 75-metre gap between R780E and R1155E to the east. R780E currently has a strike length of about 855 metres.

While laboratory boffins analyze the final two dozen holes from last winter’s 92, Fission’s field crew continues with a 63-hole, 20,330-metre summer campaign. About 30% of the program will be exploration. But the priority is to delineate a maiden resource scheduled for December.

Ur-Energy reports 8.81 million pounds eU3O8 M&I at Shirley Basin

Ur-Energy TSX:URE released a resource estimate on July 22 for what it calls a “well-defined, high-grade uranium roll front deposit at very favourable production depths.” In the vicinity of the company’s Lost Creek in-situ recovery operation, the Wyoming property came with Ur-Energy’s discount acquisition of Pathfinder Mines. The resource was broken down into two areas:

Fab trend

  • measured: 1.06 million tonnes averaging 0.28% for 6.57 million pounds uranium oxide-equivalent (eU3O8)

  • indicated: 413,674 tonnes averaging 0.12% for 1.08 million pounds

Area 5

  • measured: 176,900 tonnes averaging 0.24% for 947,000 pounds

  • indicated: 84,367 tonnes averaging 0.11% for 214,000 pounds

The M&I total for both areas comes to 8.81 million pounds eU3O8.

The estimate was based on approximately 3,200 historic holes totalling about 366,000 metres sunk before 1992 and on Ur-Energy’s confirmation drilling that finished last May. Resources start at an average depth of about 95 metres. The company stated it’s “moving at a rapid pace to advance the data collection programs necessary to support amendment applications to the existing mining permits and licences.”

The previous week Ur-Energy announced its Lost Creek plant recovered 116,707 pounds U3O8 in Q2. The company set its Q3 production target at 200,000 pounds.

Two new properties expand Lakeland Resources’ Basin-area portfolio

Two more acquisitions announced July 21 solidify Lakeland Resources’ (TSXV:LK) position as one of the largest landholders in and around the Athabasca Basin. Both projects benefit from previous exploration but show greater potential with more recent methodology.

The 20,218-hectare Newnham Lake property sits contiguous to Lakeland’s Karen Lake project around the Basin’s northeastern rim. Depth to the basement rock is expected to be from zero to around 100 metres, the company stated.

Newnham Lake covers parts of a roughly 25-kilometre-long folded and faulted conductive trend that attracted over 140 drill holes by 1984. But, following the understanding of the time, most holes stopped less than 25 metres past the sub-Athabasca unconformity. More recent knowledge of the Basin’s basement-hosted unconformity-style deposits brings new potential to the project.

Previous work did show extensive alteration and anomalous geochemistry along with highly anomalous uranium, nickel and other pathfinders. Several targets remain to be tested.

When we do see that price turnaround that’s been forecast for 2015, we expect to see more joint venture interest in our projects. There’s not a whole hell of a lot of ground left to be had.—Jonathan Armes, president/CEO
of Lakeland Resources

Historic lake and stream sediment samples from Karen Lake, a Lakeland property contiguously northeast, also revealed uranium, nickel and other pathfinders. Historic overburden samples showed over 1% uranium.

Southeast of Newnham and just beyond the Basin, the approximately 21,000-hectare Hatchet Lake sits east of Lakeland’s Fond du Lac property. Although Hatchet covers part of an interpreted extension of the same basement graphitic meta-sedimentary basin, it’s seen little exploration.

As uranium continues to struggle near record-low prices Lakeland president/CEO Jonathan Armes sees this as “a good time to get value for money, advance projects to the drill-ready stage and ideally secure partners to take them to the next level.”

“When we do see that price turnaround that’s been forecast for 2015, we expect to see more joint venture interest in our projects,” he adds. “There’s not a whole hell of a lot of ground left to be had. When companies come back to the table, they’re going to have to partner up. That’s the kind of opportunity we’ll be looking for.”

Helping evaluate the properties are Lakeland advisers with long experience in the Basin. Richard Kusmirski is a veteran of Cameco Corp TSX:CCO and JNR Resources, which became a Denison Mines TSX:DML acquisition. John Gingerich’s background includes Noranda and Eldorado Nuclear, a predecessor of Cameco. They’re working with a new generation of geos from Dahrouge Geological Consulting that includes Lakeland director Neil McCallum.

“They’re compiling all the historic data and reinterpreting it in view of what we know today,” Armes says. “It’s an interesting dynamic to see the guys, old and young, bantering about. It brings new ideas on how to approach things.”

Lakeland may earn a 100% interest in Newnham Lake by paying $100,000 and issuing 2.5 million shares over two years. The vendor retains a 2.5% gross overriding royalty with a 1% buyback provision. Hatchet Lake goes for $13,500, 500,000 shares and a 2.5% GORR, again with a 1% buyback.

The company remains cashed up with approximately $2.5 million in the till, Armes points out. “In the meantime we’ll have some exploration news coming this summer.”

Read more about Lakeland Resources.

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Athabasca Basin and beyond

June 28th, 2014

Uranium news from Saskatchewan and elsewhere for June 21 to 27, 2014

by Greg Klein

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Fission about to start $12-million summer program, targets December resource

Apparently hoping to get something really big for Christmas, Fission Uranium TSXV:FCU has yet more delineation drilling planned for Patterson Lake South this summer. Some 63 holes totalling about 20,330 metres are scheduled to start imminently, with 43 closely spaced holes sunk from barges over the lake. The campaign calls for up to four rigs to help produce a maiden resource for December. The focus is R780E, which merged with three other zones last winter to become by far the biggest of five PLS zones along a 2.24-kilometre potential strike.

Uranium news from Saskatchewan and elsewhere for June 21 to 27, 2014

Twenty holes will test electromagnetic conductors prioritized by geophysical and radon-in-water surveys. Fission stated its 31,039-hectare property “remains highly prospective for several kilometres both in the immediate area of known mineralization and along strike in both the WSW and ENE directions.”

The company also plans metallurgical and petrographic studies “to evaluate important characteristics of uranium recovery and rock characteristics, including work on gold recovery.” Back in June 2013 the former Fission Energy/Alpha Minerals joint venture reported gold results from PLS.

A batch of assays released June 16 left 48 holes to report from last winter’s 92. Was that number a fluke?

Lakeland Resources expands exploration prospects with another Athabasca Basin acquisition

With the Fond du Lac project announced June 25, the Lakeland Resources TSXV:LK portfolio now totals 17 properties in and around the Athabasca Basin. The 2,827-hectare newcomer straddles the rim of the northeastern Basin in the vicinity of the company’s Small Lake, Karen Lake and Hidden Bay properties.

Featuring relatively shallow depth to the unconformity, Fond du Lac underwent regional airborne and geochemical surveys, ground EM, magnetic and gravity surveys, and one drill hole by 1984. More recent work confirmed a conductive target and roughly coincident uranium and pathfinder element geochemical anomalies.

“Over the last 30 years there’s been a lot of improvement in how you assess these properties,” corporate communications manager Roger Leschuk tells ResourceClips.com. “Back in the ’70s and ’80s they worked to the best of their knowledge and technology of the time. Now people like Neil McCallum and Jody Dahrouge [of Dahrouge Geological Consulting] can come along and look at it in a different light. So the historic data is just a starting point.”

Subject to TSXV approval, Lakeland gets the 100% interest by issuing 200,000 shares to Anthem Resources TSXV:AYN, which retains a 1.5% NSR.

“The property comes with a $50,000 work commitment by year-end, but we’ll likely spend more on a program that would include a radon survey and boulder-sampling,” Leschuk says. “We want to get it to the drill-ready stage.”

We’re well-financed, we have more cash than we had a year ago and we intend to continue advancing our projects and looking for good partners. We have a busy summer ahead with more news coming.—Roger Leschuk, corporate
communications manager
for Lakeland Resources

Lakeland’s 17 properties now cover 164,316 hectares. In April the company expanded its Lazy Edward Bay project. Two weeks before that Lakeland picked up five other acquisitions. Gibbon’s Creek, the company’s joint venture with Declan Resources TSXV:LAN, has shown surface boulders grading up to 4.28% U3O8 and some of the Basin’s highest radon readings.

“We’re well-financed, we have more cash than we had a year ago and we intend to continue advancing our projects and looking for good partners,” Leschuk adds. “We have a busy summer ahead with more news coming.”

Lakeland also announced its May 30 trading debut on the OTCQX under the symbol LRESF. “The OTCQX is a highly visible trading platform that has emerged as the world’s leading, premier cross-listing venture for international issuers that wish to benefit from U.S. trading and investor demand without diluting their current shareholder base,” the company stated.

Paladin boosts Michelin M&I to 84.1 million pounds U3O8

Although low uranium prices have forced Paladin Energy TSX:PDN to cut back on production, the company continues to build resources for the future. On June 26 Paladin released a substantial upgrade to its Michelin deposit in Labrador, boasting a 25% increase to the measured and indicated categories. The open pit portion uses a cutoff of 0.025% U3O8 to show:

  • measured:10.46 million tonnes averaging 0.0938% for 21.63 million pounds U3O8

  • indicated:5.93 million tonnes averaging 0.0937% for 12.26 million pounds

  • measured and indicated:16.4 million tonnes averaging 0.0938% for 33.89 million pounds

  • inferred:1.64 million tonnes averaging 0.1343% for 4.86 million pounds

Beginning 230 metres below surface, the underground portion uses a 0.05% cutoff to show:

  • measured:5.11 million tonnes averaging 0.1104% for 12.45 million pounds

  • indicated:16 million tonnes averaging 0.1072% for 37.8 million pounds

  • measured and indicated:21.11 million tonnes averaging 0.108% for 50.24 million pounds

  • inferred:7.17 million tonnes averaging 0.114% for 18.02 million pounds

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Athabasca Basin and beyond

May 24th, 2014

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

by Greg Klein

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Kivalliq signs LOI with Westham Resources on Saskatchewan Genesis property

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

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

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

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

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

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

UEC adds one Texas property, “releases” another

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

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

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

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

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

Unity picks up historic Uranium City region property

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

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

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

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

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

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

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

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

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

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

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

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

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

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Athabasca Basin and beyond

May 17th, 2014

Uranium news from Saskatchewan and elsewhere for May 10 to 16, 2014

by Greg Klein

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Cameco suspends Millennium mine proposal

Declining uranium prices have forced Cameco Corp TSX:CCO to postpone its Millennium mine proposal. On May 16 the Canadian Nuclear Safety Commission stated a public hearing for a licence application scheduled for June had been adjourned at Cameco’s request. A brief message on the company’s website blamed “poor economic conditions in world uranium markets.”

Figures from 2009 credited the project with an indicated resource of 46.8 million pounds uranium oxide (U3O8) averaging 4.53% uranium. A 2013 environmental impact statement forecast an initial 10-year lifespan, but anticipated extensions if further resources were found. Ore would have been shipped 36 kilometres south to the Key Lake mill, held 83% by Cameco and 17% by AREVA Resources Canada.

Uranium news from Saskatchewan and elsewhere for May 10 to 16, 2014

Although just last month Cameco expressed optimism in uranium’s
long-term outlook, the company blamed market conditions as it
withdrew its Millennium licence application.

Uranium prices have continued their slide to new record lows. Although there’s no spot price for the metal, UX Consulting’s most recent indicator, published May 12, came to $29 a pound.

In last month’s Q1 report, Cameco expressed optimism about the long-term outlook, expecting “an increase in annual uranium consumption from today’s 170 million pounds to about 240 million pounds” over the next decade.

In March Cameco finally put its Cigar Lake mine into production, nine years after construction began and 33 years after its discovery.

The CNSC left the door open for Cameco to make a future request that its licence application be considered by the commission, which would then call a public hearing.

Fission Uranium hits 30 metres of 2.58% U3O8 at Patterson Lake South

Fission Uranium TSXV:FCU unloaded assays for eight more holes from Patterson Lake South on May 13, all of them from the R780E zone. This week’s star, PLS14-158, marks the eastern-most R780E hole for which assays have been released, boosting the company’s optimism in the deposit’s eastward potential. Some of the best results show:

Hole PLS14-141

  • 0.72% U3O8 over 11 metres, starting at 163 metres in downhole depth
  • (including 2.04% over 3 metres)

  • 0.77% over 6 metres, starting at 187.5 metres
  • (including 2.31% over 1.5 metres)

PLS14-143

  • 0.26% over 14 metres, starting at 145 metres

  • 0.41% over 5 metres, starting at 248 metres
  • (including 1.06% over 1.5 metres)

PLS14-144

  • 0.79% over 19 metres, starting at 127.5 metres
  • (including 3.21% over 3.5 metres)

  • 0.46% over 7.5 metres, starting at 151.5 metres

  • 0.3% over 8.5 metres, starting at 196 metres
  • (including 1.43% over 1 metre)

  • 2.07% over 3 metres, starting at 208 metres
  • (including 3.21% over 1.5 metres)

PLS14-148

  • 1.83% over 3.5 metres, starting at 154.5 metres
  • (including 2.9% over 2 metres)

  • 0.63% over 5 metres, starting at 192.5 metres

PLS14-149

  • 0.2% over 17.5 metres, starting at 117.5 metres

PLS14-150

  • 2.94% over 7 metres, starting at 219 metres
  • (including 5.58% over 3.5 metres)

  • 0.22% over 19.5 metres, starting at 285.5 metres

PLS14-157

  • 0.35% over 6.5 metres, starting at 125 metres

  • 0.29% over 14.5 metres, starting at 168.5 metres

PLS14-158

  • 0.72% over 8 metres, starting at 141 metres

  • 2.58% over 30 metres, starting at 152 metres
  • (including 22.02% over 1 metre)
  • (and including 8.57% over 5 metres)

  • 6.85% over 10 metres, starting at 232.5 metres
  • (including 12.23% over 5.5 metres)

  • 3.53% over 4.5 metres, starting at 253.5 metres
  • (including 11.95% over 1 metre)

True widths weren’t provided. R780E is the middle of five zones, and the largest of all five, along a 2.24-kilometre potential strike that’s open both to the east and west. With assays released for 30 winter holes so far, lab results are pending for approximately 62 more.

Although winter exploration drilling fell short of exciting, the season’s focus was on infill drilling to define a maiden resource that will—on some unspecified date—debut to an intensely curious audience.

Powertech files Kyrgyzstan resource held 80% by proposed merger partner, updates South Dakota licence challenge

Powertech Uranium TSX:PWE has filed an inferred resource for the Kyzyl Ompul licence in Kyrgyzstan, the company announced on May 13. The 42,379-hectare project is held 80% by Azarga Resources Ltd, which plans to merge with Powertech. The resource uses a 0.01% cutoff to show 15.13 tonnes averaging 0.022% for 7.51 million pounds U3O8 inferred.

Powertech described the Kok Moinok main zone as about 700 metres along an east-west strike, 600 metres north-south and 10 to 30 metres in depth. The report also included two conceptual exploration target area estimates.

Although Powertech acknowledged that access to the project was blocked by political unrest in 2005 and 2010, the company maintained that “the main risk factors at this stage are commodity prices….”

Last year Kyrgyzstan managed to fall a few spots to the very bottom of the Fraser Institute’s policy perception index and achieved near-bottom rankings for several other categories in the annual poll of mining professionals. But a May 7 Financial Post article by Peter Koven pointed out that despite public opposition, social unrest and ongoing government policy threats, Centerra Gold’s (TSX:CG) Kyrgyzstan mine “continues to run and churn out cash.”

The Kyzyl Ompul licence expires at the end of 2015. Read more about the Powertech/Azarga merger here and here.

On May 14 Powertech updated events following a challenge to its operating licence for the company’s Dewey-Burdock project in South Dakota. In oral hearings the previous day, opponents questioned procedures followed by the U.S. Nuclear Regulatory Commission to determine the importance of possible native religious sites in the area.

As the hearings continue, the NRC’s Atomic Safety and Licensing Board will decide whether Dewey-Burdock’s licence becomes effective or remains on hold until a formal hearing in August. Read more about the licence challenge.

MPVC begins drilling Maguire Lake target at NW Manitoba

Drilling has begun at MPVC Inc’s (TSXV:UNO) Northwest Manitoba project, the company announced May 14. While winter conditions persist, a diamond drill will focus on Maguire Lake. Preliminary radon measurements from the lake reported the previous week were, to the company’s knowledge, second only to PLS for a water-based survey. MPVC will also bring in a rotary air blast drill, which is intended to test shallow targets quickly.

With ground gravity survey results now in hand, the company has filled in gaps between three earlier sets of data, extending previously identified gravity lows and discovering new gravity lows.

To earn 80% of the 143,603-hectare project from CanAlaska Uranium TSXV:CVV, MPVC must spend $3.2 million on exploration by 2015.

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Athabasca Basin and beyond

May 10th, 2014

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

by Greg Klein

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Paladin releases Labrador infill results, plans Q2 resource update

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

Hole M14-151

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

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

Hole M14-154

  • 0.14% over 15 metres, starting at 214 metres

  • 0.13% over 8 metres, starting at 256 metres

Hole M14-156

  • 0.095% over 12 metres, starting at 230 metres

Hole M14-158

  • 0.096% over 16 metres, starting at 191 metres

Hole M14-162

  • 0.102% over 28 metres, starting at 348 metres

Hole M14-163

  • 0.114% over 9 metres, starting at 355 metres

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

Michelin’s resource currently shows:

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Western Athabasca Syndicate reports initial Preston drill results

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

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

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

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

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

Anfield collects Colorado claims

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

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

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

European Uranium refines portfolio sale, intends to pursue other assets

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

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

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

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

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

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Athabasca Basin and beyond

April 19th, 2014

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

by Greg Klein

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Fission Uranium releases second batch of winter assays from Patterson Lake South

With its first set of Patterson Lake South assays since February 19 and only the second since winter drilling began in mid-January, Fission Uranium TSXV:FCU reported 12 holes on April 14. Nine showed high grades and all came from zone R780E, the third of five zones along a 2.24-kilometre west-east potential strike that remains open at both ends. Among the best assays were:

Hole PLS14-125

  • 0.46% uranium oxide (U3O8) over 56.5 metres, starting at 119.5 metres in downhole depth
  • (including 1.91% over 6 metres)
  • (and including 1.71% over 2.5 metres)

  • 0.21% over 12 metres, starting at 225.5 metres

Hole PLS14-126

  • 1.3% over 8.5 metres, starting at 152.5 metres
  • (including 4.44% over 1 metre)

  • 2.41% over 5.5 metres, starting at 178 metres
  • (including 4.66% over 2 metres)

  • 0.96% over 5 metres, starting at 230 metres

Hole PLS14-128

  • 0.46% over 6 metres, starting at 167.5 metres

  • 6.74% over 4 metres, starting at 216.5 metres
  • (including 13.04% over 2 metres)

Hole PLS14-130

  • 0.47% over 17 metres, starting at 84.5 metres
  • (including 1.57% over 3.5 metres)

  • 3% over 4 metres, starting at 142.5 metres
  • (including 11.1% over 1 metre)

Hole PLS14-131

  • 0.22% over 22.5 metres, starting at 168.5 metres

  • 0.3% over 30.5 metres, starting at 199.5 metres
  • (including 0.93% over 3.5 metres)

  • 0.34% over 21.5 metres, starting at 234.5 metres

Hole PLS14-132

  • 0.4% over 12.5 metres, starting at 72 metres
  • (including 3.28% over 1 metre)

  • 0.72% over 46 metres, starting at 134.5 metres
  • (including 2.41% over 10.5 metres)

  • 1.54% over 5.5 metres, starting at 216 metres
  • (including 2.74% over 3 metres)

  • 4.03% over 8 metres, starting at 226.5 metres
  • (including 8.48% over 3.5 metres)

Hole PLS14-133

  • 0.9% over 13.5 metres, starting at 167 metres
  • (including 8.37% over 1 metre)

  • 0.48% over 21.5 metres, starting at 184 metres
  • (including 1.03% over 5 metres)

Hole PLS14-136

  • 0.92% over 41 metres, starting at 119 metres
  • (including 2.59% over 8 metres)
  • (and including 3.69% over 2.5 metres)

True widths were unavailable.

The previous week Fission Uranium stated 70 holes had been completed out of a planned 100 winter holes totalling approximately 30,000 metres. About 85 holes, using four rigs, will concentrate on delineation. A fifth rig explores outside the main mineralized trend. The 31,039-hectare project’s winter budget comes to $12 million, including geophysics. No target date has been announced for the project’s highly anticipated maiden resource.

Macusani Yellowcake, Azincourt sign LOI to consolidate Peruvian properties

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

Azincourt’s Macusani project, on Peru’s Macusani plateau
and surrounded by Macusani Yellowcake, borders a Fission 3.0
property also called Macusani.

Under a letter of intent announced April 17, Macusani Yellowcake TSXV:YEL would swallow up additional properties held by Azincourt Uranium TSXV:AAZ but surrounded by Macusani in southeastern Peru. The deal would give Azincourt 68.35 million Macusani shares, representing about 30% of the company following the transaction. Macusani would then control over 949 square kilometres hosting “one of the largest undeveloped uranium projects in the world,” the two companies stated.

Macusani’s current package, on Peru’s Macusani plateau, hosts four low-grade deposits that offer low-cost mining potential, according to a December preliminary economic assessment. August resource estimates total 321,000 pounds U3O8 measured, 31.15 million pounds indicated and 30.08 million pounds inferred.

Azincourt completed the acquisition of its two Peruvian assets in January, before contracting technical studies on them. An historic, non-43-101 resource released in 2011 for Azincourt’s 4,900-hectare, now confusingly named Macusani project showed 5.69 million pounds measured, 12.52 million pounds indicated and 17.42 million pounds inferred. The company’s 9,600-hectare Muñani project has undergone airborne geophysics and ground work but has yet to be drilled. Prior to Azincourt’s acquisition, the two projects had lain dormant for two years following Fukushima.

On closing the deal Macusani anticipates a new PEA that would “easily” incorporate the new properties into its existing mine plan.

The consolidated turf would then surround some 51 square kilometres held by Fission 3.0 TSXV:FUU. The Fission Energy spinco collaborates with Azincourt on their PLS-adjacent PLN joint venture.

Definitive agreement advances Denison’s acquisition of Enexco

Denison Mines TSX:DML moved closer to its planned acquisition of International Enexco TSXV:IEC with a definitive agreement announced April 14. Terms of the all-share deal remain unchanged from the LOI reported last month.

In early April Denison reported radiometric results from the Wheeler River JV’s newly discovered Gryphon zone. More radiometric results followed the next day from Enexco’s Mann Lake JV.

Forum announces initial drill results from Clearwater

Spring break-up brought an early end to the Clearwater project’s first drill program, but Forum Uranium TSXV:FDC identified “five major structural trends with reactivated graphitic shear zones [and] alteration,” according to an April 17 statement. Core from two holes showed “locally elevated radioactivity” up to 300 counts per second.

Nine holes totalling 2,310 metres tested widely spaced targets “including a number of gravity lows, radon anomalies and EM conductors both on strike and running parallel” to the PLS trend, the company added. Forum expects to have more detailed results by early June.

The program focused on the 9,910-hectare project’s northern claim, which borders the southwest of PLS and is slated for summer follow-up work. Clearwater’s southern claim, with conductive trends, radiometric anomalies and significant values for uranium in lake sediment, has yet to be drilled.

In late March the company resumed drilling at its Northwest Athabasca project, a JV with NexGen Energy TSXV:NXE, Cameco Corp TSX:CCO and AREVA Resources Canada. Forum holds other properties in Nunavut and the northeastern Athabasca Basin.

Fission 3.0, Brades report initial radiometric and VTEM results from Clearwater West

Fission 3.0 and Brades Resource TSXV:BRA reported initial interpretations of two airborne surveys over their Clearwater West project on April 15. A radiometric survey using patent-pending equipment and methodology found a cluster of anomalies on the eastern 10 kilometres of the property where historic data shows EM conductors, the partners stated. Ground prospecting will follow up this summer.

A VTEM survey suggests the property’s east side hosts EM conductors that might continue from the PLS property bordering to the north. More detailed evaluation will follow.

The project’s $700,000 first-year program will also include ground geophysics and geochemical surveys including radon measurements. Fission 3.0 acts as operator on the 11,835-hectare property. Brades holds a three-year option to earn 50%.

Western Athabasca Syndicate to expand Swoosh drill program

The four-company Western Athabasca Syndicate reported preliminary drill results from its Preston property on April 15. Five holes totalling 986 metres tested the Swoosh target, a six-kilometre corridor identified by gravity, magnetic and EM surveys, and coinciding with surficial geochemical anomalies, the alliance stated. The group consists of Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC, Noka Resources TSXV:NX and Lucky Strike Resources TSXV:LKY.

All five holes hit a hydrothermally altered and reactivated structural zone. A downhole probe found elevated radioactivity in three holes, including one interval of 802 cps over 1.95 metres (not true width) starting at 186.68 metres in downhole depth. Four holes reached depths between 200 and 275 metres. A fifth was abandoned due to poor conditions. More detailed evaluation is expected in May.

Backed by an expanded budget, drilling will continue at Swoosh until late April. The following month the syndicate will test two other targets, CHA and Fin. Athabasca Nuclear acts as operator on the 246,643-hectare property.

On April 14 Ryan Kalt formally became Athabasca Nuclear’s CEO, having already held the position on an interim basis. Kalt has been prominent in acquiring Basin properties, including Preston, and as a director shifted the company to uranium exploration. With a 21.25% stake, he’s also the company’s largest shareholder. On April 15 Athabasca Nuclear announced an advance notice bylaw.

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Athabasca Basin and beyond

March 22nd, 2014

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

by Greg Klein

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

  • (including 9.7% over 4.6 metres)

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

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

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

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

Fission Uranium merges two more zones at Patterson Lake South

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Athabasca Basin and beyond

March 9th, 2014

Uranium news from Saskatchewan and elsewhere for March 1 to 7, 2014

by Greg Klein

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Fission Uranium merges two zones, narrows gap between two others at Patterson Lake South

Fission Uranium merges two zones, narrows gap between two others at Patterson Lake South

Fission Uranium has four of its five rigs trying
to fill the gaps in the now six-zone PLS project.

With several zones stretched along a 1.78-kilometre potential strike at Patterson Lake South, Fission Uranium TSXV:FCU obviously wants to find one big, shallow, high-grade deposit. That dream came closer to reality with radiometric results released March 5 and 7. Zones R780E and R945E are now one, forever intertwined, while the gap between two zones to the west has been narrowed.

Scintillometer results from 20 holes released March 5 show mineralization at depths as shallow as 54 metres and as deep as 459 metres. Thirteen holes showed off-scale intervals, reaching the maximum 9,999 counts per second on the hand-held device that measures drill core for gamma radiation. Scintillometer readings are no substitute for assays, which are pending.

Apart from the hope of merging more zones—the goal of this winter’s drill program—Fission Uranium sees expansion potential. The best hole of this batch was the most easterly of the newly merged zone, which “bodes extremely well for high-grade expansion to the east.”

Two days later Fission Uranium unveiled scintillometer results for four more holes, each from a different zone, starting with R780E and moving west to the discovery zone. The interval nearest to surface started at 51 metres and the deepest ended at 276 metres. Intervals from one hole showed a total of 16.18 metres of off-scale radioactivity, while another hole gave up an off-scale composite of 2.65 metres. The gap between R390E and R585E has been narrowed to about 60 metres.

With 36 of the planned 85 winter holes complete, Fission Uranium claims a 100% hit rate. The company has one rig exploring outside the mineralized trend and four others attacking the gaps between these six zones:

The discovery zone, R00E, has a 165-metre strike and a lateral width up to about 45 metres. About 135 metres east, R390E has a 255-metre strike and a lateral width up to about 50 metres. Sixty metres east again, R585E has a 75-metre strike and a lateral width up to about 20 metres. About 105 metres east, R780E now has an approximately 270-metre strike, as a result of subsuming R945E. The lateral width reaches up to about 90 metres.

R780E’s geology “is similar to other zones,” Fission Uranium stated, “consisting of mineralization primarily associated with sequences of steeply south-dipping pelitic lithology with localized mylonites and cataclasites.”

Two other zones at the eastern and western extremities, R1155E and R600W, bring the potential strike to 1.78 kilometres.

Two weeks earlier Fission Uranium released lab assays from R585E that showed the project’s best hole ever—or maybe that should be “so far.”

Update: On March 10 Fission released its “second-best” radiometric results from PLS. Read more.

NexGen announces $10-million bought deal for Athabasca Basin exploration

Uranium news from Saskatchewan and elsewhere for March 1 to 7, 2014

With Fission Uranium’s PLS rigs in the background, NexGen drills Rook 1.

A $10-million bought deal for NexGen Energy TSXV:NXE reinforces the company’s new prominence in Athabasca Basin uranium exploration. Announced March 4, the private placement follows news of radiometric results from a new area of the company’s Rook 1 project, which is adjacent to PLS.

Subject to approvals, the deal involves 22.3 million units at $0.45 and gives the underwriters an option to buy an additional 15%. Each unit consists of a share and one-half warrant, with each entire warrant exercisable at $0.65 for two years. Proceeds will go to Basin exploration, working capital and general corporate purposes.

NexGen’s stock took off with the February 19 release of radiometric readings from the first hole in Rook 1’s Arrow area, which the company called “a totally new zone of uranium mineralization.” The news propelled the company from a 52-week low of $0.225 to a 52-week high of $0.65 in two days. The stock closed March 7 at $0.49.

Meanwhile NexGen has moved its other rig to Arrow to focus two drills on the new area.

NexGen holds several properties in the Basin. But it has yet to release results from last summer’s nine-hole campaign on the Radio project, where the company has a 70% earn-in.

NexGen expects to close the bought deal by March 26.

Zadar announces 2014 plans for PNE and Pasfield projects

With permit applications submitted, Zadar Ventures TSXV:ZAD announced plans for two projects on March 3. The 15,292-hectare PNE, about 11 kilometres northeast of PLS, has about 3,500 metres scheduled for winter and summer drilling, along with ground-based geophysics. Previously identified radon anomalies and conductive trends will help determine targets.

Plans for the 37,445-hectare Pasfield Lake property, within the Cable Bay shear zone in the east-central Basin, include airborne and ground geophysics and a proposed 3,800 metres of drilling “followed by a staged program of uranium exploration culminating in [a] 32,000-metre drilling program,” the company stated.

Pasfield Lake is one of a number of properties that Zadar acquired from Canterra Minerals TSXV:CTM late last year.

Noka Resources/Alpha Exploration begin radon surveys on Carpenter Lake

Radon surveys on lake water and sediment have begun at Carpenter Lake on the Basin’s south-central edge. Announced March 4 by Noka Resources TSXV:NX and Alpha Exploration TSXV:AEX, the four-to-five-week agenda will include sampling from about a thousand locations over a 16-kilometre stretch of the Cable Bay shear zone, which the companies have described as a “major regional shear zone with known uranium enrichment.”

Spring and summer plans for the 20,637-hectare property include high-resolution airborne radiometrics to search for near-surface uranium boulders, followed by ground prospecting and geochemical sampling. The work is part of the Alpha Minerals spinco’s 60% earn-in from Noka, a member of the Western Athabasca Syndicate that plans to drill its PLS-vicinity Preston Lake property this month.

Late last month Noka closed a $1.13-million private placement. Alpha Exploration announced plans for other projects in December and January.

Hodgins Auctioneers pursues Basin uranium claims

A company specializing in auctioning equipment and real estate has signed a conditional agreement to acquire uranium interests in the Basin. Under a deal announced March 6 with Majesta Resources Inc, Hodgins Auctioneers TSXV:HA would get a 25% interest in a 39,125-hectare contiguous package that comes within 10 kilometres of the Key Lake mill.

Apart from TSXV approval, the transaction hinges on raising a $350,000 private placement.

An initial 25% would cost Hodgins $100,000 in cash or debt, two million shares and $300,000 in exploration spending. An additional 35% would require an extra four million shares and $400,000 in spending. A further 30% would call for another $400,000 cash or debt and two million shares.

Hodgins attributed a “low cost relative to similar transactions in the area due to the relationship between two of the insiders of the corporation and the party which owns the mineral claims.” Majesta would act as project operator.

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Athabasca Basin and beyond

March 2nd, 2014

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

by Greg Klein

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

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

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

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

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

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

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

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

Denison reports Wheeler River drill results, updates other projects

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

Hole WR-548

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

Hole WR-550

  • 18.37% over 4.7 metres, starting at 407.3 metres

Hole WR-545

  • 16.98% over 3.1 metres, starting at 403.3 metres

Hole WR-539

  • 11.63% over 3.5 metres, starting at 401.6 metres

Hole WR-538

  • 2.14% over 5.1 metres, starting at 392.4 metres

  • 0.87% over 3.3 metres, starting at 403.8 metres

  • 1.36% over 1.4 metres, starting at 408.2 metres

  • 0.11% over 2.1 metres, starting at 426.4 metres

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

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

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

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

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

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

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

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

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

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

Forum starts 3,000 metres at Clearwater

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

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

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

Lakeland Resources offers $2 million private placement for Basin exploration

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

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

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

Read more about Lakeland Resources here and here.

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Athabasca Basin and beyond

February 22nd, 2014

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

by Greg Klein

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New “zone” at Rook 1 rocks NexGen stock

Judging by share performance, radiometric readings from NexGen Energy’s TSXV:NXE Rook 1 project far outshone next-door neighbour Fission Uranium’s TSXV:FCU Patterson Lake South last week—even though PLS assays showed its best hole yet. Possibly a bit premature, NexGen claimed the first hole in Rook 1’s Arrow area constitutes “a totally new zone of uranium mineralization.” Then again, the company also refers to intercepts as “zones.”

NexGen’s February 19 announcement said scintillometer readings showed a number of significant radioactive intervals in a hole that’s still being drilled. By “significant,” the company means at least five centimetres above 500 counts per second from a hand-held device that measures gamma ray particles in cps.

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

NexGen’s first hole in the Arrow area of Rook 1 stole attention
from Patterson Lake South and catapulted the company’s stock.

Results so far show well over a dozen “significant” intervals ranging from 0.05 metres to 1.65 metres in width. They occurred between downhole depths of 207.8 metres and 319.1 metres.

Radiometric readings are no substitute for assays, which are pending.

The company’s now revising its original 6,000-metre program “to substantially expand the program at Arrow and the other 11 western-located Rook 1 target areas,” according to CEO Leigh Curyer.

Last summer’s drilling found three mineralized holes roughly four kilometres southwest of Arrow, closer to the PLS boundary.

NexGen’s stock soared. Having previously closed on a 52-week low of $0.225, it shot up to a 52-week high of $0.65 in two days, before closing February 21 on $0.53.

Another best hole to date from Fission Uranium’s Patterson Lake South

Although upstaged by NexGen’s same-day announcement, Fission Uranium once again outperformed previous results by reporting its “strongest mineralized hole to date” from PLS on February 19.

The celeb du jour is hole PLS14-129 on zone R585E, the fourth of seven zones along a southwest-northeast potential strike of 1.78 kilometres. The zone itself has a defined strike of 30 metres and a lateral width of about 10 metres.

Of eight intervals reported, the best results show:

  • 13.66% uranium oxide (U3O8) over 38 metres, starting at 56 metres in downhole depth
  • (including 38.49% over 10.5 metres)

  • 11.19% over 31.5 metres, starting at 108.5 metres
  • (including 27.57% over 12 metres)

  • 6.82% over 11.5 metres, starting at 145.5 metres
  • (including 20.28% over 2.5 metres)

  • 3.37% over 12.5 metres, starting at 160 metres
  • (including 9.57% over 4 metres)

True widths weren’t available. Drilling was vertical.

“Nothing less than phenomenal,” was president/COO and chief geologist Ross McElroy’s immodest appraisal. The grade-times-thickness value nearly doubled that of the previous best hole, which dates back to September on the neighbouring R390E zone.

Last week Fission Uranium released a batch of radiometric readings for seven holes from four zones. The $12-million campaign, which includes ground geophysics as well as 90 holes totalling 30,000 metres, continues.

Anthem reports initial drill results from Hatchet Lake JV with Denison

Anthem Resources TSXV:AYN released preliminary drill results from Hatchet Lake, a joint venture with Denison Mines TSX:DML, on February 20. The 10-hole, 2,025-metre program on the Athabasca Basin’s eastern edge found no significant mineralization but a downhole radiometric probe intersected anomalous radioactivity in four holes.

The campaign also found prospective features “including strong fracturing, de-silicification (sanding) and clay and hematite alteration in the sandstone, and weak to strong chlorite and clay alteration, graphitic fault zones and sulphide mineralization in the basement,” Anthem stated. Assays are still to come.

Anthem’s cash position prevented a contribution to Hatchet’s $750,000 budget and the $300,000 IP survey on the Murphy Lake property, also part of the JV. As a result, Anthem’s interest dropped from 50% to about 41%. Denison acts as project operator.

Forum to acquire northeastern Basin property from Anthem

The same day as the Hatchet Lake news, Anthem and Forum Uranium TSXV:FDC announced an agreement to move a Basin property from the former to the latter. Forum will get the 14,205-hectare Fir Island claims on the Basin’s northeastern margin for 300,000 shares and a 1.5% NSR, of which Anthem may buy two-thirds for $1 million.

With little or no sandstone cover and road access within two kilometres, the property lies directly on a major structure, the Black Lake Shear Zone, and adjacent to the former Nisto mine, Forum stated. Previous geophysical and geochemical surveys identified several shallow drill targets which Forum plans to refine through ground gravity work.

Two weeks earlier the company announced it would buy two sets of claims from Agnico Eagle Mines TSX:AEM to consolidate Forum’s North Thelon project in Nunavut.

This month Forum plans to begin drilling 12 to 15 holes totalling 3,000 metres at its 9,910-hectare PLS-adjacent Clearwater project. The company’s eastside Basin 40%/60% Henday JV has $150,000 worth of summer magnetic and electromagnetic surveys planned by project operator Rio Tinto NYE:RIO.

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