Sunday 4th December 2016

Resource Clips


Posts tagged ‘Purepoint Uranium Group Inc (PTU)’

ALX Uranium welcomes Denison Mines to southwestern Athabasca Basin’s “elephant country”

October 13th, 2016

by Greg Klein | October 13, 2016

ALX Uranium TSXV:AL gets 7.5 million shares of Denison Mines TSX:DML, retains a 20% stake in the Hook-Carter project and has its portion of $12 million in spending covered as Denison moves into the southwestern Athabasca Basin. Under a deal announced October 13, Denison becomes project operator, bringing its expertise to the 16,805-hectare property in the Patterson Lake South region.

ALX Uranium welcomes Denison Mines to southwestern Athabasca Basin’s elephant country

“This is elephant country—a large property that has seen very little drilling on a geological trend with a precedent for large and high-grade uranium deposits,” commented Denison VP of exploration Dale Verran.

“The Hook-Carter property is uniquely situated on the Patterson Lake corridor, offering potential for both basement-hosted deposits, similar to Triple R and Arrow, and unconformity-hosted deposits which remain the largest and highest grade in the Athabasca Basin, namely McArthur River and Cigar Lake which are both operating mines. With Athabasca sandstone thicknesses similar to the Wheeler River project, the property plays to our team’s strengths and we are very excited to get started with exploration in 2017.”

So far Hook-Carter has undergone just eight historic holes, five of them on the property’s 15 kilometres of the Patterson Lake conductive corridor, which hosts Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSX:NXE) Rook 1 and Hook Lake, a joint venture of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada. Hook-Carter also features additional potential along significant sections of the Derkson and Carter corridors.

Subject to approvals, Denison’s work requirement calls for $3 million over the first three years. Should the company fail to meet the commitment, ALX’s stake in the property increases from 20% to 25%. Additionally, Denison funds ALX’s portion of the first $12 million in spending. The companies plan a JV three years after closing the agreement.

“Denison has made a number of world class uranium discoveries within the Athabasca Basin and, given their experience, we believe that they will advance the project diligently and methodically,” said ALX president/CEO Jon Armes. “Knowing that Hook-Carter will see considerable exploration efforts over the next 36 months, the company will focus on exploration at its other high-quality exploration projects in and around the shallow margins of the Athabasca Basin, which include Gorilla Lake, Newnham Lake, Gibbon’s Creek and Lazy Edward Bay.”

NexGen Energy’s latest discovery emphasizes PLS camp’s regional potential

August 11th, 2016

by Greg Klein | August 11, 2016

Described as “strong visible uranium mineralization” with “dense accumulations of massive to semi-massive pitchblende,” the Harpoon discovery adds another weapon to NexGen Energy’s (TSX:NXE) arsenal. Announced August 11, hole HP-16-08 features 17 metres of continuous mineralization, 4.5 metres of it “off-scale” or above the 9,999-counts-per-second limit of older scintillometers. At least one point surpassed 61,000 cps. To put that in perspective, 500 cps rates as anomalous. Impressive as they are, results like that keep in line with the Rook 1 project’s Arrow resource, the Athabasca Basin’s largest undeveloped deposit. But this hole’s located 4.7 kilometres northeast.

NexGen Energy’s latest discovery emphasizes PLS camp’s regional potential

A regional discovery 4.7 kilometres northeast of NexGen’s
Arrow deposit delivered a boxful of pitchblende treasures.

Once again demonstrating the Patterson Lake South region’s overall potential, NexGen collared HP-16-08 as a 250-metre stepout from HP-16-06, which scintillated another 1.5 metres of continuous mineralization. The company now traces 5.6 kilometres in northeasterly mineralized strike between Arrow and Harpoon. Another 300 metres northeast of Harpoon lies the Spitfire discovery of JV partners Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada.

Results for NexGen’s latest four holes, all land-based, show:

HP-16-05

  • <500 to 890 cps over 1.5 metres, starting at 292 metres in downhole depth

HP-16-06

  • <500 to 2,200 cps over 1.5 metres, starting at 303 metres

HP-16-08

  • <500 to >61,000 cps over 17 metres, starting at 220 metres

HP-16-07 returned nothing of significance. True widths weren’t available.

Calling HP-16-08 “an extremely exciting development,” CEO Leigh Curyer credited VP of exploration Garrett Ainsworth and his team for the success. The discovery has “severely elevated the prospectivity of some of the other targets we’ve got along the Patterson [conductive] corridor, and we want to be able to test those as well,” Curyer told a conference call. The seven-rig, 35,000-metre summer campaign has focused on both infill and expansion at Arrow, with about 25% of the program on regional targets. Harpoon has prompted the company to consider adding an eighth rig.

The geophysics done on [the Derkson conductive corridor] show that’s got multiple targets as well, which are identical to what we’re seeing at Arrow and what we’re learning about at Harpoon as well…. We could be there for many, many years with seven drill rigs before we truly understand the magnitude of what we’re dealing with.—Leigh Curyer,
CEO of NexGen Energy

Curyer noted the proximity of Fission Uranium’s (TSX:FCU) Patterson Lake South to the southwest, as well as Spitfire to the northeast.

Home to all the PLS discoveries so far, the Patterson corridor remains “very under-drilled and we’ve got a lot of drilling to do … until we ultimately understand the scale of the deposition,” Curyer emphasized. Rook 1 is “obviously massive and there’s not a property like it that I’m aware of on the planet.”

But he pointed out that Rook 1 hosts seven known corridors. Parallel east to Patterson is the Derkson corridor, “and the geophysics done on that show that’s got multiple targets as well, which are identical to what we’re seeing at Arrow and what we’re learning about at Harpoon as well…. We could be there for many, many years with seven drill rigs before we truly understand the magnitude of what we’re dealing with. But suffice to say at the minimum—it’s huge.”

If the company misses its H2 target for the Arrow resource update, the team will attribute that to continued drilling success, he added. A postponement to early 2017 might be necessary “to do justice” to the deposit.

NexGen’s bankroll currently holds about $91 million.

ALX Uranium readies geophysics for northern Basin, drilling for PLS vicinity

August 9th, 2016

by Greg Klein | August 9, 2016

This month has ALX Uranium TSXV:AL returning to two projects at opposite ends of Saskatchewan’s prolific Athabasca Basin. On the Basin’s northern margin, the Perch property undergoes ground gravity while the Hook-Carter project in the Patterson Lake South camp gets both gravity and drilling, the company announced August 9.

The 1,682-hectare Perch offers shallow targets along a four-kilometre-long conductor and coincident magnetic low running through the central area of the property. The 470-station gravity survey will consist of 24 900-metre lines at 100-metre spacing perpendicular to the conductor. Work begins in about a week with the crew heli-commuting from the community of Stony Rapids, 65 kilometres west.

ALX Uranium readies geophysics for northern Basin, drilling for PLS vicinity

At 16,458 hectares, Hook-Carter features northeastern extensions of three known conductive corridors, Carter, Derkson and Patterson Lake. The latter hosts at least seven discoveries on three properties, Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSX:NXE) Rook 1 and the Hook Lake JV of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada. Cameco recently enlarged another property it holds bordering Hook-Carter to the northeast.

ALX now plans gravity on two areas over the Patterson corridor and one over Derkson. Weather permitting, up to two holes will follow on each of the corridors.

Previous geophysics show the Patterson corridor extending at least 12.7 kilometres along Hook-Carter, with depth to the sub-Athabasca unconformity estimated between 320 and 500 metres.

Derkson runs about 5.8 kilometres on the property, with the unconformity estimated to be 350 to 470 metres below surface. An historic hole on the corridor about 4.5 kilometres south of Hook-Carter found 0.24% uranium and 1.35% nickel over 2.5 metres in basement rocks about five metres below the unconformity.

The Carter corridor has undergone historic geophysics but remains relatively unexplored. Two separate portions of the corridor run through the property, each for about two kilometres of strike.

Plans for the Patterson and Derkson corridors follow a recent audio-magnetic transient EM survey as well as a study of the distribution of geochemical and radiochemical signatures against interpreted litho-structural features. As a result, the three priority targets were chosen.

ALX also announced an LOI to vend its Mikwam gold property to Galena International Resources NEX:GTO.H. The price tag comes to $20,000, two million shares and a 0.5% NSR, half of which Galena may buy for $1 million.

Last month ALX announced Lon Shaver’s appointment to its advisory board. His nearly 20 years of mining sector experience includes investment banking roles with Raymond James, Merrill Lynch Canada and Midland Walwyn Capital. Shaver has also held CFO positions with a publicly listed mining company and a private technology company.

In June ALX closed the second tranche of a private placement totalling $750,000, part of a strategic partnership with Holystone Energy. That month ALX also closed the final tranche of a separate private placement totalling $348,750.

With a number of active projects in its large, highly prospective portfolio, ALX reported highly anomalous radon values at its Lazy Edward Bay project on the Basin’s southeastern margin in April. The previous month preliminary geophysical results showed gravity lows on the company’s 80%-held Gorilla Lake project on the Basin’s west side.

Read Chris Berry’s report: A Closer Look at Uranium.

Battle in the Basin

July 15th, 2016

Backed by big money, Fission and NexGen compete for uranium prominence

by Greg Klein

NexGen Energy’s July 15 move to the TSX big board (TSX:NXE) marks another milestone of the almost phenomenal progress in and around Saskatchewan’s southwestern Athabasca Basin. In March the company’s Rook 1 project came from behind to surpass the deposit size of Fission Uranium’s (TSX:FCU) more advanced Patterson Lake South. Now both companies focus on regional exploration as well as resource expansion, leaving observers wondering just how much more uranium the region has to offer.

NexGen has seven rigs onsite for its largest season ever, at least 35,000 metres. Eight summer targets include the Arrow resource, due for stepouts as well as delineation, a massive pitchblende-bearing area 180 metres southwest, the Cannon discovery to the northeast and five other conductive areas running southwest to northeast across the property.

Backed by big money, Fission and NexGen compete for uranium prominence

NexGen has an H2 resource update scheduled for Rook 1’s Arrow zone.

Fission’s summer calls for 52 holes and 15,200 metres, most of it outside the Triple R resource. The company hopes to fill in some of the gaps between the deposit and other zones along a trend now 2.58 kilometres long. Sixteen holes will test regional exploration targets.

Fission also plans further EM work and, with pre-feas in mind, a seismic survey, geotechnical borehole testing, hydrogeology wells and Phase II metallurgical studies.

Last spring’s resource estimate for NexGen’s Arrow zone used a 0.25% cutoff on four parallel shear structures to report an inferred total of 3.48 million tonnes averaging 2.63% for 201.9 million pounds U3O8. With the deposit open in most directions, the company hopes to release an expanded, upgraded resource this year.

Fission’s September 2015 estimate for the two-zone Triple R deposit used a 0.2% open pit cutoff and 0.25% underground cutoff for a resource totalling:

  • indicated: 2.01 million tonnes averaging 1.83% for 81.11 million pounds U3O8

  • inferred: 785,000 tonnes averaging 1.57% for 27.16 million pounds

The deposit remains open in multiple directions, Fission states. Triple R reached PEA last September.

Fission has the shallower deposit, about 55 to 200 metres below surface. NexGen’s resource extends to about 800 metres but it’s land-based while most of Fission’s resource and its other zones lie under a lake. Both deposits are basement-hosted, avoiding the leaking sandstone problems that plagued Cigar Lake.

Fission’s summer budget comes to $13.3 million, slightly less than NexGen’s $14 million. Fission’s well-funded following last January’s $82.2-million private placement that gave Hong Kong-based uranium trader CGN Mining a nearly 20% stake in the company. NexGen took a different approach, issuing US$60 million in convertible debentures to CEF Holdings, shared 50/50 by CK Hutchinson Holdings and CIBC. That leaves NexGen with about $100 million on hand and the possibility of paying off the debt.

Does that suggest the company contemplates production revenue in its future? CEO Leigh Curyer can give that impression. The former CFO of a Uranium One predecessor takes credit for managing South Australia’s Honeymoon project through feasibility. Late last month he announced three new staffers holding “combined experience with permitting, development and operating mines.”

By contrast Fission chairperson/CEO Dev Randhawa has openly courted suitors, as in the failed merger with Denison Mines TSX:DML that preceded the CGN deal. The question of who ends up owning how much uranium in the region inspires wide-ranging speculation. Meanwhile expansion and development of the two projects can only enhance their attractiveness.

The region’s northeasterly reach of mineralization hardly stops at Rook 1’s border, as Purepoint Uranium TSXV:PTU demonstrates at Hook Lake. Last winter’s drilling reaffirmed interest in the project’s Spitfire zone, a few kilometres beyond NexGen’s Bow discovery. The season’s last hole revealed Spitfire’s best assay yet—10.3% U3O8 over 10 metres, starting at 237.6 metres in downhole depth and including 53.5% over 1.3 metres.

Backed by money from JV partners Cameco Corp TSX:CCO and AREVA Resources Canada (39.5% each), operator Purepoint has another round of drilling in the planning stages.

ALX Uranium acquires additional claims in PLS vicinity

April 22nd, 2016

by Greg Klein | April 22, 2016

ALX Uranium TSXV:AL has signed agreements to pick up extra turf proximal to the Hook-Carter project in Saskatchewan’s Patterson Lake South camp, the company announced April 22.

Subject to approvals, ALX gets the new land for 250,000 shares at a deemed value of $0.115 each on the closing date. A 2.5% NSR applies.

ALX Uranium acquires additional claims in PLS vicinity

Geophysical results released last month verified multiple basement conductors at Hook-Carter, which covers extensions of three known conductive trends, the Carter, Derkson and Patterson corridors. Drill targets have already been established on the latter two.

The Patterson corridor hosts Fission Uranium’s (TSX:FCU) Triple R deposit and three additional zones on the company’s Patterson Lake South project. NexGen Energy’s (TSXV:NXE) adjacent Rook 1 project includes the Arrow deposit, the Athabasca Basin’s largest undeveloped resource, as well as the Bow zone. Neighbouring NexGen is the Hook Lake JV of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada, which hosts the Spitfire discovery. ALX’s Hook-Carter borders Hook Lake to the south and a Cameco property to the north.

In February Cameco signed an agreement to buy ALX claims peripheral to Hook-Carter.

Earlier this month the company reported highly anomalous radon values at its Lazy Edward Bay project on the Basin’s southeastern rim. A week earlier preliminary geophysical results showing gravity lows brought encouraging news for ALX’s 80%-held Gorilla Lake property in the western Basin. The ALX portfolio includes five active projects in the Basin region.

ALX closed a private placement first tranche of $318,000 from Holystone Energy last month, part of a strategic partnership in which Holystone would invest up to $750,000, retain the right to maintain its ownership level for three years and nominate a director.

Read Chris Berry’s report: A Closer Look at Uranium.

ALX Uranium reports highly anomalous radon at Lazy Edward Bay

April 7th, 2016

by Greg Klein | April 7, 2016

Successful financings and a prospective portfolio distinguish ALX Uranium TSXV:AL with a steady news flow from five active Athabasca Basin projects this year. The company’s most recent announcement arrived April 7 from Lazy Edward Bay, where strong radon-in-water results near an historic hole will help ALX narrow down drill targets. This follow-up survey took 143 samples over an area of 1,400 by 450 metres on the 18,916-hectare property. Work was conducted by RadonEx Ltd, whose technology helped select drill targets for Fission Uranium’s (TSX:FCU) Triple R deposit.

Straddling the Athabasca Basin’s southeastern rim, the highway-accessible Lazy Ed lies about 55 kilometres from the Key Lake mill.

ALX Uranium reports highly anomalous radon at Lazy Edward Bay

Results show eight one-point samples with highly anomalous readings of 100 picocuries per litre. Four of the samples surpassed 200 pCi/L. The results showed up approximately 200 metres northeast of historic hole LE-50, which returned basement uranium grading 908 ppm U3O8 over 0.3 metres, along with boron, nickel and other pathfinders.

“Many of the anomalous samples appear to lie along a northeast-striking linear trend in the central portion of the grid which overlies historic conductors,” ALX noted.

Electromagnetic surveys in 2005 and 2007 confirmed the conductors, while further support came from geochem and radon work in 2014 and 2015, all of which helps pinpoint high-priority drill targets.

“Given the proximity of the highly anomalous radon samples to historic drill hole LE-50, which was never followed up with drilling along strike, the results of this radon survey demonstrate the significant exploration potential at Lazy Edward Bay,” commented president Jon Armes.

With one of Saskatchewan’s largest and most highly prospective uranium portfolios, ALX has five projects scheduled for exploration this year. Last week the company announced gravity anomalies pointing to prime drill targets at the western Basin’s Gorilla Lake project, where ALX holds an 80% option.

One week earlier came geophysical confirmation of multiple basement conductors at ALX’s Hook-Carter, a 16,461-hecatre property that covers extensions of three known conductive trends. Hook-Carter sits in the southwestern Basin region that hosts Fission’s Patterson Lake South, NexGen Energy’s (TSXV:NXE) Arrow deposit and Bow zone, and the Purepoint Uranium TSXV:PTU/Cameco Corp TSX:CCO/AREVA Resources Canada Spitfire discovery.

Cameco signed an agreement in February to buy ALX claims peripheral to Hook-Carter.

In mid-March ALX closed a $318,000 first tranche of a private placement from Holystone Energy, part of a strategic partnership in which Holystone would invest up to $750,000 on TSXV approval. Howard Haugom, Holystone’s nominee to the ALX board, has been appointed an adviser until the company’s AGM. The former Simon Fraser University economics professor co-owns a national retail chain and is a partner in the private equity firm Burkehill Capital.

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

March 23rd, 2016

by Greg Klein | March 23, 2016

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

ALX Uranium found two complex models of multiple conductors at the A1 and W1/W2 areas.

 

Initial geophysical results verify multiple basement conductors on the Hook-Carter project, ALX Uranium TSXV:AL reported March 23. Analysis shows one area (W1/W2 on the map) hosting at least six conductors within a 2.5-kilometre width and another area (A1) of at least three conductors within a 1.5-kilometre width.

Results come from an airborne and ground sub-audio magnetic transient electromagnetic (HeliSAM TEM) survey over two of the project’s three conductive corridors. The complexity of the conductors calls for additional surveys such as DC resistivity and gravity to better define drill targets, ALX noted. Meanwhile study continues on the current data for final interpretation.

ALX Uranium confirms multiple conductors at PLS-region Hook-Carter project

The 16,461-hecatre property covers northeastern extensions of three known conductive trends, the Carter, Derkson and Patterson corridors. Historic and recent exploration has already identified drill targets on two of them. Depending on weather, ALX plans up to two holes on the Patterson corridor and two more along Derkson, still the project’s most advanced exploration target.

Patterson hosts Fission Uranium’s (TSX:FCU) Triple R deposit and three additional zones now stretching 2.58 kilometres along strike at Patterson Lake South. That prolific corridor also hosts the Athabasca Basin’s largest undeveloped resource at NexGen Energy’s (TSXV:NXE) Arrow deposit, as well as NexGen’s Bow zone and the Spitfire discovery at the Hook Lake JV of Purepoint Uranium TSXV:PTU, Cameco Corp TSX:CCO and AREVA Resources Canada.

The discoveries took place along an approximately 14-kilometre-long section of the Patterson corridor, about 8.5 kilometres to 22 kilometres southwest of Hook-Carter.

Last week ALX closed a $318,000 private placement first tranche, part of a strategic partnership with Holystone Energy. Pending approvals, Holystone will buy a total of 12.5 million shares for $750,000 and retain the right to participate in future financings for three years to maintain its ownership level.

Holystone’s nominee to the board of directors, Howard Haugom, has been appointed an ALX adviser until the company’s AGM. A former economics professor at Vancouver’s Simon Fraser University, Haugom co-owns a national retail chain and is a partner in the private equity firm Burkehill Capital.

In January ALX announced winter/summer exploration plans for four other Basin properties, as well as Hook-Carter.

Last month Cameco signed a purchase agreement for ALX claims peripheral to Hook-Carter.

ALX Uranium prepares for southwestern Athabasca Basin geophysics and drilling

March 9th, 2016

by Greg Klein | March 9, 2016

ALX Uranium prepares for southwestern Athabasca Basin geophysics and drilling

A map shows ALX’s targets in relation to the uranium
discoveries of Saskatchewan’s southwestern Athabasca Basin region.

 

The prolific Patterson corridor gets additional attention as ALX Uranium TSXV:AL readies a new campaign for its Hook-Carter property. The corridor hosts seven discoveries in the southwestern Athabasca Basin area including the Triple R deposit, as well as the R1620E, R600W and R840W zones of Fission Uranium’s (TSX:FCU) Patterson Lake South, the Arrow deposit and Bow zone of NexGen Energy’s (TSXV:NXE) neighbouring Rook 1, and the Spitfire discovery at the Purepoint Uranium TSXV:PTU/Cameco Corp TSX:CCO/AREVA Resources Canada JV’s Hook Lake. The Patterson corridor extends at least 12.7 kilometres northeast, running through ALX’s Hook-Carter property. Hook-Carter also hosts the Carter and Derkson conductive corridors running parallel on each side of Patterson.

The Patterson discoveries show predominately basement-hosted uranium associated with gravity low or resistivity geophysical anomalies, electromagnetic conductors and in some cases highly anomalous radon geochemistry, features that can help guide further exploration, ALX pointed out.

ALX Uranium prepares for southwestern Athabasca Basin geophysics and drilling

Extending 5.8 kilometres along the Hook-Carter property, Derkson has previously undergone airborne gravity, magnetics, MegaTEM and VTEM, as well as ground resistivity and TDEM surveys. An historic hole on the corridor about 10 kilometres southwest of Hook-Carter assayed 0.24% U3O8 over 2.5 metres in basement rocks.

The Carter corridor has undergone less activity, but historic work included airborne MegaTEM and VTEM surveys.

Over the next few weeks ALX plans an advanced airborne and ground sub-audio magnetic transient EM (HeliSAM TEM) survey to further explore the parallel conductors. “The survey configuration combines the cost-effective capabilities of an airborne system to survey large areas with the precision and high power of a more expensive ground loop EM system,” the company stated.

Weather permitting, ALX also plans to drill up to two holes along the Patterson corridor and another two along Derkson, the project’s most advanced exploration target.

The news comes one day after the company announced a strategic partnership with Holystone Energy Company. Pending approvals, Holystone will buy 12.5 million shares at $0.06 for $750,000 and appoint a director to ALX’s board. Holystone would also have the right to take part in future financings for three years to maintain its pro-rata ownership.

Two weeks earlier ALX announced Cameco signed a purchase agreement for claims peripheral to Hook-Carter.

Arrow hits uranium bullseye

March 3rd, 2016

But NexGen Energy’s already pushing for an H2 resource update

by Greg Klein

But NexGen Energy’s already pushing for an H2 resource update

Fast-paced progress has distinguished NexGen’s
Rook 1 project since the Arrow discovery.

A maiden resource showing the Athabasca Basin’s largest undeveloped uranium deposit comes barely two years after NexGen Energy TSXV:NXE discovered the Arrow zone on its Rook 1 property. And CEO Leigh Curyer anticipates more good news as soon as this winter’s assays arrive. Hence an update’s anticipated later this year and a further milestone—possibly going straight to pre-feasibility—seems likely for 2017. With an inferred 201.9 million pounds U3O8, a grade 26 times the global average and $31 million to spend, this company’s not wasting any time.

Although considerably deeper and so far limited to the inferred category, Arrow outnumbers Fission Uranium’s (TSX:FCU) neighbouring Patterson Lake South for tonnage, grade and pounds.

With a 0.25% cutoff, NexGen provided separate numbers for four stacked shear structures, one of them bursting with a stupendous high-grade area.

  • A1 shear: 380,000 tonnes averaging 0.5% for 4.2 million pounds U3O8
  • A2: 1.48 million tonnes averaging 0.85% for 27.6 million pounds
  • A2 high grade: 410,000 tonnes averaging 13.26% for 120.5 million pounds
  • A3: 1.13 million tonnes averaging 1.9% for 47.3 million pounds
  • A4: 80,000 tonnes averaging 1.35% for 2.3 million pounds

  • Total: 3.48 million tonnes averaging 2.63% for 201.9 million pounds

The report bases its numbers on 59,796 metres completed by last October, in which 80 of 82 holes hit mineralization. Currently 645 metres in strike, the resource has a lateral width of 235 metres. It begins 100 metres below surface, just below the unconformity, and extends 820 metres vertically. The deposit remains open in all directions.

The 0.25% cutoff compares to a global average mine grade of 0.1% and, as Curyer emphasized in his March 3 conference call, remains “incredibly robust under any measure of analysis.” Even at a 10% cutoff, Arrow would have 101.3 million pounds, according to data provided.

By comparison, Fission’s September 2015 PLS update used a 0.2% open pit cutoff and 0.25% underground cutoff, showing:

  • indicated: 2.01 million tonnes averaging 1.83% for 81.11 million pounds U3O8

  • inferred: 785,000 tonnes averaging 1.57% for 27.16 million pounds

The first and most advanced of the discoveries, PLS reached its preliminary economic assessment last September. But Curyer boasts of having the southwestern Basin’s “most dominant land position … covering all nine uranium-bearing conductive corridors in the region.” Running through Arrow are nine kilometres of the Patterson corridor, which also hosts Rook 1’s Bow discovery, 3.7 kilometres northeast along strike of Arrow, and Fission’s PLS. Some other companies working the corridor include Cameco Corp TSX:CCO, ALX Uranium TSXV:AL and a joint venture of Cameco, AREVA Resources Canada and Purepoint Uranium TSXV:PTU, which discovered the Spitfire zone.

But NexGen Energy’s already pushing for an H2 resource update

NexGen claims “some of the best drill intercepts
on a grade/thickness basis ever publicly recorded.”

Like PLS, Arrow sits within basement rock, where development would presumably avoid any Cigar Lake-type adventures. But Arrow’s “uniquely 100% land-based,” Curyer points out.

Although obviously proud of this achievement, Curyer repeatedly emphasized there’s more to come. Preliminary results from the 30,000-metre winter program show some of Arrow’s highest radioactivity and have already added another 25 metres in strike.

The resource is “effectively going to be out of date as soon as those assays are returned,” he enthuses. “It’s blown that high-grade domain wide open and that’s why we’re already expecting to do an updated resource in the latter half of 2016.”

The property’s currently under attack by six rigs. Three focus on delineation, two others seek possible Arrow extensions to the northeast and southwest, while another searches for separate zones along the northeast-southwest corridor.

Apart from the “unprecedented speed” of just two years to build the Basin’s third-largest deposit (after the McArthur River and Cigar Lake operations), NexGen said the resource “truly sets one for the record books in terms of cost of discovery”—about 13 cents a pound U3O8.

“Throughout history there have been a discrete number of Tier 1 discoveries across the various commodities worldwide which have occurred during downturns or flat commodity price environments,” Curyer said. “These discoveries have demonstrated significant value creation and kick-started a sustained quality of investment environment for the entire resources sector.” Rook 1, he maintains, holds “potential to join that exclusive club.”

The high-grade camp

February 25th, 2016

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

by Greg Klein

Renewed interest in the southwestern Athabasca Basin area’s Patterson Lake South camp comes from Cameco Corp TSX:CCO, as the giant signs a purchase agreement with ALX Uranium TSXV:AL. The merchandise consists of 27 claims totalling 7,064 hectares peripheral to ALX’s Hook-Carter property. That leaves ALX with a more closely consolidated PLS camp position of 16,461 hectares.

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

Most of the vended claims are isolated from Hook-Carter’s main contiguous block, states ALX’s February 25 announcement. They also “include a small, northeastern portion of the main block, covering ground with depths to the unconformity much deeper than the main parts of the property where ALX intends to focus its exploration.”

The development might portray Cameco in an acquisitive mood, following the previous day’s news that the company had optioned 60% of CanAlaska Uranium’s (TSXV:CVV) West McArthur project in the eastern Basin.

ALX president/CEO Jon Armes says the Hook-Carter transaction benefits both parties. ALX gets $170,000 and, on some claims, a 1% net refining returns royalty that can be reduced to 0.25% by paying ALX $750,000. Other claims have a 2% NRR reducible to 1% for $500,000. Cameco, he says, gets to “tidy up its land position” in the PLS area, making concerted exploration more viable.

“A lot of that ground is 600-plus metres to the unconformity,” Armes points out. “When you start drilling 1,000-metre holes at $400 a metre, that’s quite a costly endeavour for a junior. When you’ve got little bits and pieces, you’re not typically going to drill a 16-hectare piece when you’re surrounded by Cameco.”

The sale “provides ALX with some significant hard dollars, certainly more than we paid in our staking and other costs, and we maintain a small underlying royalty,” he adds. “The chance of Cameco making a discovery northeast of us would only benefit us.”

Cameco bolsters its PLS presence as ALX Uranium tightens its land position

Before-and-after maps show geographical advantages to
both Cameco and ALX Uranium. Click for a larger view.

ALX retains land covering the Patterson corridor, hosting three attention-grabbing projects, as well as the parallel Carter and Derkson corridors. Winter plans currently under evaluation include ground electromagnetics to define deep conductors and possibly drilling, Armes says.

Encouraging news continues from the camp’s standouts, Fission Uranium’s (TSX:FCU) Patterson Lake South, NexGen Energy’s (TSXV:NXE) Arrow zone and Bow discovery, and the Cameco/AREVA Resources Canada/Purepoint Uranium TSXV:PTU Spitfire zone.

Fission’s $7.9-million, 39-hole, 13,000-metre winter program aims to expand the Triple R deposit and do some exploration too. On the latter front, one hole recently added 135 metres to the project’s potential strike, now consisting of five zones along a 2.47-kilometre trend. Three of the zones lie outside Triple R’s January 2015 resource. That estimate, showing 79.61 million pounds indicated and another 25.88 million pounds inferred at shallow depths, formed the basis of a September preliminary economic assessment envisioning PLS as potentially one of the world’s lowest-cost uranium mines.

In January Fission closed an $82.2-million strategic investment, giving a Chinese uranium trader nearly 20% of the company.

Next-door neighbour NexGen has six rigs drilling a 30,000-metre winter program on the Rook 1 project’s Arrow zone. Last month the company announced its best assay so far, 10% U3O8 over 78 metres, including 38.29% over 12 metres. The project’s previous record-holder was 9.72% over 35.5 metres.

Earlier this month came more superlatives—Arrow’s “most significant accumulations of massive pitchblende” and scintillometer results showing the project’s “most intense mineralization to date.”

More recently NexGen added 25 metres to Arrow’s strike, now 670 metres with a lateral width of up to 235 metres and mineralization ranging from depths of 100 metres to 920 metres. The zone remains open in all directions and at depth. NexGen plans Arrow’s maiden resource for H1 release.

The company closed a $21-million bought deal in December, following last May’s $23.74-million private placement.

At Spitfire, project operator Purepoint announced an expansion to the mineralized area early this month with a 130-metre stepout that returned 0.67% eU3O8 over 10.1 metres, including 9.2% over 0.6 metres. Results came from a downhole probe that measures uranium oxide-equivalent. The winter schedule calls for at least 14 holes and 6,000 metres. Purepoint holds a 21% stake in the joint venture, with big guys Cameco and AREVA sharing the rest. Purepoint ended last year by closing a $204,000 private placement.

Looking at the Basin’s opposite side, ALX also announced assay results from last fall’s seven-hole, 1,005-metre campaign at Gibbon’s Creek. Although significant radioactivity failed to materialize, anomalous uranium (up to 297 ppm), nickel, copper and boron came from the basement near a previous hole that showed strongly anomalous geochemical pathfinders. ALX will evaluate further exploration after integrating drill results with regional and property-scale data.

With Hook-Carter now under consideration for ground EM and a possible drill program, the company last month announced exploration plans for four other projects. On the agenda are ground gravity for Gorilla Lake and Perch, a radon-in-lake survey for Lazy Edward Bay and ground EM for Newnham Lake. ALX holds one of the Basin’s largest uranium portfolios.

Late last month the company closed tranche two of a private placement totalling $358,500.