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Posts tagged ‘Roughrider Exploration Ltd (REL)’

Athabasca Basin and beyond

April 2nd, 2015

Uranium news from Saskatchewan and elsewhere to April 2, 2015

by Greg Klein

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

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

Uranium news from Saskatchewan and elsewhere to April 2, 2015

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

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

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

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

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

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

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

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

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

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

True widths weren’t provided.

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

Read about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

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

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

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

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

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

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

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

Uranium news from Saskatchewan and elsewhere to April 2, 2015

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

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

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

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

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

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

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

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Athabasca Basin and beyond

February 14th, 2015

Uranium news from Saskatchewan and elsewhere to February 13, 2015

by Greg Klein

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Fission Uranium expands main zone at PLS

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

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

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

Read about the Patterson Lake South resource estimate.

See an historical timeline of the Patterson Lake South saga.

Fission Uranium buys into Fission 3.0

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

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

Uranium news from Saskatchewan and elsewhere to February 13, 2015

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

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

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

NexGen honoured for 2014 performance, reports 2015 progress

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

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

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

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

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

Denison reports eU3O8 from Mann Lake and Wheeler River

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

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

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

Three holes at Wheeler River’s Gryphon zone showed:

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

  • 2.9% over 2.4 metres, starting at 764.2 metres

  • 2.8% over 2.4 metres, starting at 786.3 metres

  • 9% over 4.6 metres, starting at 641.6 metres

True thickness is estimated at about 75%.

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Athabasca Basin and beyond

December 5th, 2014

Uranium news from Saskatchewan and elsewhere to December 5, 2014

by Greg Klein

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Fission strikes 3.72% U3O8 over 64.5 metres, delays maiden resource

All assays are in but Fission Uranium’s (TSX:FCU) highly anticipated resource for Patterson Lake South seems to have been put off. The milestone was originally scheduled for this month but in a December 1 statement president/COO Ross McElroy said, “We expect to be able to release preliminary results by early 2015.” Meanwhile the company announced last summer’s final 18 delineation holes, again flaunting the PLS trademark of high grades at shallow depths.

This batch comes entirely from R780E, by far the biggest of four zones along a 2.24-kilometre potential strike. R780E itself now extends about 164 metres at its widest point and 905 metres in strike, remaining open in all directions. The upcoming resource will focus on zones R780E and R00E.

Some of the best December 1 assays follow.

Hole PLS14-275

  • 0.2% U3O8 over 26 metres, starting at 137.5 metres in downhole depth
  • (including 1.26% over 2 metres)
Uranium news from Saskatchewan and elsewhere to December 5, 2014

A summer of round-the-clock drilling brought the
final assays prior to Patterson Lake South’s first resource.

  • 0.31% over 9 metres, starting at 171 metres
  • (including 1.96% over 1 metre)

PLS14-276

  • 13.84% over 10 metres, starting at 71.5 metres
  • (including 29.29% over 4.5 metres)

PLS14-278

  • 0.48% over 13 metres, starting at 117.5 metres
  • (including 1.17% over 4.5 metres)

PLS14-279

  • 0.83% over 30 metres, starting at 131 metres
  • (including 2.09% over 10.5 metres)

  • 1.24% over 6.5 metres, starting at 163.5 metres
  • (including 2.5% over 2.5 metres)

PLS14-282

  • 0.4% over 14.5 metres, starting at 251.5 metres
  • (including 1.02% over 4 metres)

PLS14-283

  • 0.54% over 9 metres, starting at 177 metres
  • (including 3.84% over 1 metre)

  • 2.61% over 9 metres, starting at 257.5 metres
  • (including 8.61% over 2.5 metres)

PLS14-285

  • 0.96% over 7.5 metres, starting at 287.5 metres
  • (including 2.56% over 2 metres)

  • 0.36% over 15 metres, starting at 299 metres

PLS14-286

  • 7.91% over 21.9 metres, starting at 61.1 metres
  • (including 17.3% over 9.5 metres)

  • 0.42% over 30.5 metres, starting at 86.5 metres

  • 1.49% over 4.5 metres, starting at 96 metres

PLS14-290

  • 3.72% over 64.5 metres, starting at 133.5 metres
  • (including 32.53% over 6.5 metres)

PLS14-293

  • 2.34% over 11 metres, starting at 198.5 metres
  • (including 11.74% over 2 metres)

PLS14-294

  • 0.8% over 10.5 metres, starting at 61 metres
  • (including 1.77% over 4 metres)

  • 0.27% over 21 metres, starting at 111 metres

PLS14-296

  • 0.7% over 33 metres, starting at 174 metres
  • (including 2.21% over 3 metres)
  • (and including 2.2% over 4 metres)

PLS14-297

  • 0.52% over 22.5 metres, starting at 184 metres
  • (including 1.39% over 3 metres)

  • 2.21% over 5.5 metres, starting at 210 metres
  • (including 6.76% over 1.5 metres)

PLS14-298

  • 1.51% over 13.5 metres, starting at 246.5 metres
  • (including 2.38% over 5 metres)

True widths weren’t available.

Fission noted that scissor drilling brought “vastly improved strength of mineralization on section 735E.” Oriented opposite to the south-to-north holes, they “provide geometry control and confirmation on the mineralization.” One scissor hole hit the star assay for this batch, 3.72% U3O8 over 64.5 metres, in an area that had previously seen only moderate results, the company stated.

With assays for 22 exploration holes still pending and a winter program in the planning stages, speculation remains on whether the company will spend more time testing the property’s lesser-known areas.

Denison drills 22.2% U3O8 over 2.5 metres at Wheeler River

The final batch of assays from Gryphon’s summer season at Denison Mines’ (TSX:DML) Wheeler River property revealed the zone’s highest grade so far, 22.2% U3O8 over 2.5 metres. Announced December 2, that hole was also the deepest, making down-plunge extensions a priority for the next round of drilling, scheduled to start next month.

As usual, the chemical assays generally show better grades than the previously reported U3O8-equivalents that came from a downhole gamma probe.

Some highlights include:

Hole WR-571

  • 8.8% U3O8 over 2.5 metres, starting at 757.5 metres in downhole depth

  • 1.9% over 1 metre, starting at 761.5 metres

WR-572

  • 2.5% over 1 metre, starting at 651.1 metres

  • 9.5% over 1 metre, starting at 675.5 metres

  • 1.8% over 1 metre, starting at 714.5 metres

  • 2.1% over 1 metre, starting at 717.5 metres

WR-573D1

  • 22.2% over 2.5 metres, starting at 768 metres

  • 1.5% over 1 metre, starting at 779 metres

WR-574

  • 5% over 2 metres, starting at 665 metres

  • 1.5% over 1 metre, starting at 675.5 metres

  • 14.6% over 2 metres, starting at 696.5 metres

WR-581

  • 2.7% over 2 metres, starting at 626.5 metres

The company estimates true widths at about 75%.

Wheeler River’s summer program comprised 20 holes totalling 14,937 metres, all of it at or near the newly discovered Gryphon zone.

Meanwhile, as a result of metallurgical testwork from the project’s Phoenix deposit, “a high-purity yellowcake product was produced that met all ASTM C967-13 specifications,” Denison stated. The sample grade was 19.7% U3O8, close to the average for Phoenix, which hosts 70.2 million pounds indicated.

The company closed a $14.99-million private placement in August.

With a 60% interest in Wheeler River, Denison acts as project operator. Cameco Corp TSX:CCO holds 30% of the 11,720-hectare southeastern Athabasca Basin property, leaving JCU (Canada) Exploration with the other 10%.

Lakeland Resources boosts portfolio, offers $1.88-million private placement

All acquired by staking, four new properties and five property expansions announced by Lakeland Resources TSXV:LK on November 19 increase the company’s portfolio by 40,218 hectares in and around the Basin.

The five expansions cover targets identified by historic data. Among the highlights is the 4,753-hectare addition to Lazy Edward Bay, which underwent extensive field work last summer. Now totalling 31,128 hectares, the project features eight exploration trends, many of them drill-ready. Other additions came to Lakeland’s Riou Lake, Hawkrock Rapids, Small Lake and Fedun Lake properties.

Of the new land, the 1,508-hectare Carter Lake property covers part of the Carter Lake Structural Corridor, parallel to the Patterson Structural Corridor hosting the discoveries of Fission and NexGen Energy TSXV:NXE.

If you look back to 2006 and 2007, there were probably 60 to 70 juniors active in the Basin. Right now you’ve got about 20. So if we do see this [price] resurgence continue, we’ll have that opportunity to link up with JV and strategic partners and get as many drills turning as we possibly can.—Jonathan Armes, president/CEO of Lakeland Resources

Cable Bay, a 1,077-hectare property on the Basin’s southern rim, benefits from extensive geophysics showing a trend of graphitic meta-sedimentary rocks in the basement, below 10 metres or less of Athabasca sandstone.

The 6,479-hectare Highrock property on the Basin’s southeastern margin features a moderately strong conductor that has yet to see follow-up work.

Extending beyond the Basin’s eastern rim, the 8,889-hectare Wright River project underwent an airborne survey showing a radiometric anomaly in the property’s centre. Regional lake sediment samples have graded up to 61 ppm.

Early new year plans include a 1,500-metre program on Star/Gibbon’s Creek, two adjacent properties forming one project on the Basin’s north-central rim. Also drill-ready are Lazy Edward Bay and, east of Star/Gibbon’s, Newnham Lake. More funding is expected from a $1.88-million private placement announced December 4.

“There’s not that much ground left to be had in the Basin,” Lakeland president/CEO Jonathan Armes tells ResourceClips.com. “Most of what we see as quality ground is not available. If you look back to 2006 and 2007, there were probably 60 to 70 juniors active in the Basin. Right now you’ve got about 20. So if we do see this [price] resurgence continue, we’ll have that opportunity to link up with JV and strategic partners and get as many drills turning as we possibly can.”

Read more about Lakeland Resources.

NexGen plans 18,000 metres for Rook 1, updates other properties

Funded by an $11.5-million private placement that closed last month, NexGen plans a three-rig, 18,000-metre program to start in January. Work will focus on Rook 1’s Arrow zone and along strike to the northeast and southwest, but will also test some of the project’s regional targets, the company stated on December 3. An infill ground gravity survey will precede the drilling.

Now complete are airborne VTEM and magnetometer surveys over Rook 1 as well as additional nearby land that has had little or no previous mention from NexGen, the “SW2 property portfolio which includes Bishop 1 and 2, Meanwell and R-7 claims.” Winter plans include a radon-in-water survey.

NexGen also updated what it calls its “SW3 project portfolio (Rook 2, Sandhill and Dufferin).” Rook 2 and Sandhill underwent airborne gravity surveys. Dufferin got airborne VTEM and magnetometer surveys, as did the eastern Basin Madison and 2Z Lake properties.

Rook 1 covers all the southwestern Basin’s major uranium-bearing conductor corridors, according to the company. Still pending are assays from 16 summer holes on Arrow. In October the company claimed one of the Basin’s best-ever drill results.

UEC reports 77% increase in Burke Hollow’s inferred resources

Seven trends at Uranium Energy Corp’s (NYSE MKT:UEC) Burke Hollow project in Texas now have total inferred resources of 2.9 million tons averaging 0.09% for 5.12 million pounds U3O8. About 14,152 metres of drilling in 526 holes were used to calculate the 77% increase. UEC has three additional areas of the property under consideration for drilling.

Burke Hollow, potentially an in-situ recovery operation, has an application for a radioactive material licence and mine permit currently under review.

The 7,824-hectare project lies about 80 kilometres from the company’s Hobson processing plant, the centrepiece of UEC’s “hub and spoke” properties. The portfolio includes the Palangana ISR mine, the Goliad ISR development project and nearly two dozen exploration projects, two in Paraguay and the rest in the western U.S. The company released a preliminary economic assessment for its Anderson uranium project in Arizona last September, as well as a PEA for its Slick Rock uranium-vanadium deposit in Colorado last April.

On December 2 UEC stated it secured US$5.6 million of surety bonds to replace the same amount in reclamation deposits for future decommissioning. The bonds “require cash collateral of $1.7 million, allowing for the release of $3.9 million of previously restricted cash to the company.”

Last March the company received a two-year extension on a $20-million loan.

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Athabasca Basin and beyond

November 15th, 2014

Uranium news from Saskatchewan and elsewhere to November 14, 2014

by Greg Klein

Next Page 1 | 2

Kivalliq’s Nunavut property reveals new drill priority

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

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

Uranium news from Saskatchewan and elsewhere to November 14, 2014

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

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

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

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

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

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

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

A big piece of Strateco brings Toro Energy to Canada

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

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

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

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

Toro anticipates closing the deals by mid-December.

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

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

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

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

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

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

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

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

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Athabasca Basin and beyond

October 31st, 2014

Uranium news from Saskatchewan and elsewhere to October 31, 2014

by Greg Klein

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Fission hits 8.53% over 24 metres at Patterson Lake South

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

 

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

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

Some of the best results follow:

Hole PLS14-253

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

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

PLS14-254

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

PLS14-256

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

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

PLS14-257

  • 5.02% over 5 metres, starting at 256.5 metres

PLS14-259

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

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

PLS14-261

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

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

PLS14-263

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

PLS14-264

  • 0.27% over 22.5 metres, starting at 191.5 metres

  • 0.37% over 19.5 metres, starting at 216.5 metres

PLS14-270

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

PLS14-271

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

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

True widths weren’t provided.

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

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

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

Uranium news from Saskatchewan and elsewhere to October 31, 2014

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

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

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

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

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

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

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

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

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

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

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

Read more about Lakeland Resources.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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Athabasca Basin and beyond

September 13th, 2014

Uranium news from Saskatchewan and elsewhere for September 6 to 12, 2014

by Greg Klein

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Fission fattens main zone at Patterson Lake South

Fission Uranium TSXV:FCU continues to widen Patterson Lake South’s R780E, where all the zone’s 54 summer holes so far have hit mineralization. Of 11 released September 8, one hole has extended the zone’s lateral width to more than 164 metres at one point. Two others confirm the previous merger of R780E with R1155E, formerly the next zone to the east.

That stretched R780E to 930 metres of continuous strike. It remains the largest of four zones along a 2.24-kilometre potential strike that’s open to the east and west.

Uranium news from Saskatchewan and elsewhere for September 6 to 12, 2014

As usual with scintillometer results, a disclaimer applies. These readings come from a hand-held device that measures drill core radiation in counts per second. The results are no substitute for assays, which are pending.

The standout of this batch was hole PLS14-286, which showed a composite of 97.2 metres of mineralization (not true width) that started at 60.8 metres and stopped at 173 metres in downhole depth.

Some other highlights included PLS14-276, which revealed 75 metres composite mineralization between 69.5 metres and 279.5 metres in depth. PLS14-283 gave up a composite 82 metres between 115 metres and 355 metres in depth.

While the summer program focuses on delineation for a December resource, last month’s widening of the main zone prompted Fission to add 10 step-outs totalling 4,700 metres to a seasonal campaign now expected to sink 73 holes for 25,000 metres. Still to come are assays for 12 of last winter’s 92 holes.

UEX plans 10,000-metre program after reviewing Hidden Bay’s historic data

A project that’s seen over four decades of exploration will get a $2.5-million, 10,000-metre winter campaign thanks to today’s better understanding of the Athabasca Basin’s basement-hosted deposits. Five target areas at UEX Corp’s (TSX:UEX) Hidden Bay property have been chosen following the first review of historic data, which includes a database of 1,800 holes. Less than a quarter of them reached more than 25 metres below the unconformity, demonstrating “the historic unwavering focus of previous exploration operators in the search for classic unconformity deposits and sandstone depths of zero to 175 metres,” according to a September 8 statement.

Two of the target areas show clay alteration in the basement, less than 75 metres from surface, similar to that of the Cameco Corp TSX:CCO/JCU (Canada) Millennium deposit. One clay alteration zone shows anomalous uranium over several metres both within the zone and in adjacent drill holes, UEX added. The company intends to analyze core from six other targets in the coming year.

The relatively recent grasp of basement-style deposits has led other companies to review historic work too, as is the case with Lakeland Resources’ (TSXV:LK) Newnham Lake project.

UEX’s 57,000-hectare eastern Basin Hidden Bay holds three deposits totalling:

  • indicated: 10.37 million tonnes averaging 0.16% for 36.62 million pounds U3O8

  • inferred: 1.11 million tonnes averaging 0.11% for 2.71 million pounds

In June the company reported drill results from the Laurie and Mirror River projects, part of a joint venture held 49.1% by UEX and 50.9% by operator AREVA Resources Canada. Last April UEX released six holes from Black Lake, a JV with Uracan Resources TSXV:URC. UEX last updated its Shea Creek flagship, another 49.1%/50.9% JV with AREVA, in November.

On September 11 UEX announced a $2-million private placement. Cameco holds the right to participate to maintain its approximately 21.95% interest in UEX.

McArthur River/Key Lake labour dispute ends

With a tentative collective agreement signed by Cameco and the United Steelworkers, preparations are underway to resume operations at the McArthur River mine and Key Lake mill. Workers had been off the job since August 29, when the company issued a lockout notice in response to the union’s strike notice. Cameco announced on September 12 that the union would recommend its members vote in favour of the new contract.

The USW represents 535 workers out of about 900 Cameco staff and nearly 750 employees on long-term contracts at the mine and mill.

“The operations were maintained in a safe shutdown state by salaried Cameco employees and unionized personnel under an essential services agreement with the union,” the company stated.

Some commentators credited the dispute for uranium’s convalescing price, which reached $32.75 on September 8.

Cameco holds a 70% interest in the mine and 83% of the mill. AREVA holds the rest.

The previous week Reuters stated work had resumed at the delay-prone Cigar Lake mine, a JV with Cameco, AREVA, Idemitsu Canada Resources and TEPCO Resources.

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Athabasca Basin and beyond

August 30th, 2014

Uranium news from Saskatchewan and elsewhere for August 23 to 29, 2014

by Greg Klein

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Patterson Lake South’s main zone swallows neighbour as Fission’s summer progresses

Fission Uranium TSXV:FCU has once again merged Patterson Lake South’s R780E zone with a neighbour. Of seven summer holes announced August 26, one “demonstrated the continuity between the shallow depth, high-grade R780E to the west and the R1155E zone to the east,” the company stated. That extends the zone’s strike by 75 metres to 930 metres. “All seven holes returned wide mineralization,” Fission added.

The project now has four zones along a 2.24-kilometre potential strike that remains open to the east and west.

These results come from a handheld scintillometer that measures drill core radiation in counts per second. The readings are no substitute for assays, which are still to come.

In addition to the easterly expansion, R780E’s high-grade mineralization has extended 15 metres west, prompting plans for further drilling there in an attempt to upgrade the area.

Among other highlights, one hole revealed a total of 103 metres (not true width) of mineralization over a 146-metre section, starting at a downhole depth of 57.5 metres. Another gave up a composite 49.5 metres starting at 63 metres in depth.

The week before Fission had announced a widening of R780E. As a result the company added 10 more step-out holes to a summer program that has focused on delineation drilling for a December resource. Additionally, an exploration hole released another week earlier found mineralization 17 kilometres from the discovery area.

While radiometric results continue to come from summer drilling, the company still has assays pending for 12 of last winter’s 92 holes.

NexGen hole-in-progress tests depth of Rook 1 high-grade mineralization

Uranium news from Saskatchewan and elsewhere for August 23 to 29, 2014

Uranium-bearing massive pitchblende from hole AR-14-30, which set a project record for composite “off-scale” mineralization at NexGen’s Rook 1.

Vying for attention with Fission, next-door neighbour NexGen Energy TSXV:NXE proclaimed “a landmark drill hole” from its Rook 1 project on August 26. AR-14-30 revealed a composite 186.9 metres of mineralization (not true thickness) within a 287.7-metre section starting at 298.3 metres in vertical depth. The hole was still in progress.

As is the case for Fission’s latest batch, these scintillometer results don’t substitute for assays, which will follow.

The Arrow zone’s first vertical hole, AR-14-30 tests the depth of high grades reported for AR-14-15, an angled hole collared roughly 225 metres away. So far AR-14-30 has set a Rook 1 record for composite “off-scale” mineralization (above 9,999 cps) totalling 53.85 metres.

The previous week NexGen reported radiometric results for step-out drilling that extended Arrow’s width by 35 metres. The zone’s now 215 metres wide and 515 metres in strike, remaining open in all directions.

Lakeland Resources expands Newnham Lake property to revisit historic work

On the Basin’s northeastern rim, Lakeland Resources TSXV:LK has expanded its Newnham Lake property to about 24,500 hectares, bringing into one package an area that’s seen extensive previous exploration—but work that predated current knowledge of the region’s deeper basement-style mineralization.

Announced August 27, the property now includes “the entire folded and faulted, graphitic meta-pelite trend which was the subject of the historic work,” the company stated. Over 140 drill holes tested the trend by 1984, focusing on the unconformity separating the sandstone from the basement rock below. But most holes stopped less than 25 metres past the unconformity.

More recent Basin discoveries have shown rich mineralization deeper into the basement. Last March Denison Mines TSX:DML heralded its Wheeler River project’s newly found Gryphon zone, with high-grade mineralization about 200 metres beneath the sub-Athabasca unconformity. This summer’s standout assay graded 21.2% U3O8 over 4.5 metres.

Nevertheless historic work at Newnham did show promise. Immediately below the unconformity, a 20-centimetre interval revealed 0.2% U3O8, along with high nickel, arsenic and lead values. Another hole found a 20-centimetre interval of 0.13% in the basement, while a third showed 0.038% over one metre directly above the unconformity.

Between 1997 and 2011, the property underwent ground and airborne geophysics, including an electromagnetic survey that identified drill targets yet to be tested. That recent work was conducted by JNR Resources when Rick Kusmirski served as president/CEO. Now he’s a Lakeland director and, as corporate communications manager Roger Leschuk says, “He sees unfinished business there.”

Adding to a busy summer of news, Lakeland announced plans the previous week for its Star, Lazy Edward Bay and Fond du Lac projects, as well as the appointment of uranium veteran Steven Khan to the board of directors.

Read more about Lakeland Resources.

Northern Uranium drills NW Manitoba

Drilling has begun on Northern Uranium’s (TSXV:UNO) Northwest Manitoba project, the company announced August 27. Some 39 high-priority land targets, and seven high-priority and five not-so-high-priority lake targets were selected following geophysics, “exceptionally anomalous radon results” and prospecting that found boulders grading up to 66% U3O8. The company, formerly MPVC Inc, holds an 80% option on the property from CanAlaska Uranium TSXV:CVV.

The Wollaston area has also attracted attention from Kivalliq Energy TSXV:KIV, Roughrider Exploration TSXV:REL and Athabasca Nuclear TSXV:ASC.

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Athabasca Basin and beyond

August 9th, 2014

Uranium news from Saskatchewan and elsewhere for August 2 to 8, 2014

by Greg Klein

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High grades, wide intervals from neighbours Fission and NexGen

Nearly simultaneous announcements from two adjacent projects once again evoke a sense of wonder about the Athabasca Basin’s southwestern rim. Fission Uranium’s (TSXV:FCU) Patterson Lake South still comes out ahead with an August 7 best result of 12.12% U3O8 over 27 metres. Still, NexGen Energy’s (TSXV:NXE) same-day best of 3.42% over 22.35 metres can hardly be dismissed. Fission also retains the shallower depths. But NexGen’s relatively recent Arrow discovery suggests something big might have spread beyond Fission’s 31,039-hectare property.

First, a look at NexGen.

Two days after announcing the “strongest and shallowest mineralization to date” from Rook 1’s Arrow zone, the company rushed to market with two stock-propelling assays from a single hole. Announced August 7, the results come from AR-14-15, the zone’s 15th hole so far. NexGen released the numbers in a sort of Russian doll formation of intervals within intervals, showing ever-higher grades as the widths contracted:

  • 3.42% uranium oxide (U3O8) over 22.35 metres, starting at 564 metres in downhole depth
  • (including 10.72% over 6.85 metres)
  • (which includes 15.74% over 4.5 metres)
  • (which includes 26.1% over 2.6 metres)
  • (which includes 55.8% over 0.45 metres)

  • 1.52% over 32 metres, starting at 594 metres
  • (including 2.98% over 15.85 metres)
  • (which includes 10.4% over 3.15 metres)
  • (which includes 43.7% over 0.35 metres)

True widths weren’t provided but the hole was sunk at a dip of -70 degrees.

Uranium news from Saskatchewan and elsewhere for August 2 to 8, 2014

The assays follow an August 5 batch of radiometric readings. Those eight holes, which included AR-14-15, extend Arrow’s strike by 45 metres to about 515 metres in length for a zone that’s up to 180 metres wide and open in all directions. Encouraged by a near 100% hit rate, the company has increased its summer program from 13,500 metres to 18,500 metres of drilling.

These results come from a handheld scintillometer that measures gamma radiation from drill core in counts per second. They’re no substitute for assays.

The zone’s shallowest finding came from hole AR-14-20, which showed a composite of 51.3 metres of mineralization within a 284.45-metre section starting at 118.55 metres in downhole depth. True widths weren’t provided.

The strongest results came from AR-14-15.

Two regional holes totalling 558 metres at Rook 1’s Area K failed to find mineralization. The company now plans regional drilling at Area A on an electromagnetic conductor that NexGen interprets to be PL-3B, which hosts the PLS discovery. Rook 1 has two other conductors as well.

Not including one abandoned hole, the eight Arrow holes bring the zone’s total to 22 so far. Just one failed to find mineralization. Radiometric results have been reported previously for the first six summer holes, while assays have been released for last winter’s eight-hole campaign.

With Arrow clearly the project’s focus, NexGen has changed Rook 1’s protocol for identifying holes. Arrow hole numbers now begin with the letters AR, while regional holes retain the prefix RK.

AR-14-15’s assay came out with remarkable speed. Both NexGen and Fission use the same lab (SRC Geoanalytical Laboratories in Saskatoon). But while Fission is still releasing assays from last winter’s drilling, months after publishing their radiometric results, NexGen somehow released a summer assay just two days after reporting the same hole’s radiometrics.

Fission hits with six holes from winter, 12 from summer

As has been the case for most of last winter’s PLS drilling, the half-dozen holes released August 7 came from the project’s R780E zone, the middle and largest of five zones along a 2.24-kilometre potential strike. Fission’s most outstanding results showed:

Hole PLS14-201

  • 2.51% U3O8 over 12 metres, starting at 128 metres
  • (including 5.6% over 5 metres)

  • 12.12% over 27 metres, starting at 149 metres
  • (including 26.41% over 12 metres)

PLS14-205

  • 0.54% over 43 metres, starting at 132.5 metres
  • (including 1.54% over 7.5 metres)

  • 2.65% over 10 metres, starting at 229 metres
  • (including 11.57% over 1.5 metres)

  • 0.59% over 35.5 metres, starting at 251.5 metres

PLS14-213

  • 4.05% over 34 metres, starting at 147.5 metres
  • (including 11.37% over 11 metres)

True widths weren’t provided. One additional hole on the R00E zone failed to find significant mineralization. Still to come are assays for another 17 holes from last winter’s 92-hole program.

Like NexGen, Fission’s assays followed radiometric results by two days. And, like NexGen, those measurements expand the size of a zone. Taking advantage of barge-based angle drilling, a new technique first announced the previous week, the crew sunk 12 angled holes into the lake, all of them showing wide mineralization.

Hole PLS14-248 expanded the zone’s eastern half approximately 40 metres south while PLS14-236 showed mineralization about 50 metres north. The usual scintillometer disclaimer applies.

The $12-million, 63-hole summer program continues its progress towards a December resource.

U3O8 Corp Argentinian PEA sees payback in 2.5 years

U3O8 Corp TSX:UWE emphasized low cash costs as the company announced a preliminary economic assessment for its Laguna Salada deposit in Argentina on August 5. The deposit’s characteristics would make it “competitive with low-cost in-situ recovery uranium projects and with high-grade deposits in the Athabasca Basin,” the company stated.

Taking into consideration a vanadium credit and a 3% NSR, cash costs for the 10-year mine life would average $21.62 per pound of uranium. The study estimates even lower initial cash costs of $16.14 a pound as production starts in higher-grade zones, bringing payback in just 2.5 years.

Using U.S. dollars for all figures, the PEA forecast a $134-million capex and used a 7.5% discount rate to calculate a net present value of $55 million and an 18% post-tax internal rate of return. The numbers were based on presumed prices of $60 a pound U3O8 and $5.50 a pound vanadium.

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Athabasca Basin and beyond

July 19th, 2014

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

by Greg Klein

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High-grade U3O8 helps Fission delineate

Still enthusiastically proving that high grades can come from shallow depths, Fission Uranium TSXV:FCU released more assays from winter drilling on July 14. Six infill holes from the central portion of R780E, the middle and largest of five zones, complemented the previous week’s batch from the zone’s eastern area. An additional hole from R1155E proved less impressive but provided the strongest results so far from that zone.

Some highlights from R780E show:

Hole PLS14-172

  • 2.1% uranium oxide (U3O8) over 28 metres, starting at 86 metres in downhole depth
  • (including 5.88% over 8.5 metres)
Uranium news from Saskatchewan and elsewhere for July 12 to 18, 2014

With five barges afloat over Patterson Lake South, Fission Uranium
has another season to drill prior to releasing a December resource.

  • 0.23% over 11 metres, starting at 131.5 metres

  • 0.54% over 18 metres, starting at 168 metres
  • (including 1.62% over 4.5 metres)

  • 0.6% over 10 metres, starting at 224 metres

Hole PLS14-181

  • 0.46% over 27.5 metres, starting at 118 metres
  • (including 1% over 9 metres)

  • 6.01% over 17.5 metres, starting at 148 metres
  • (including 23.53% over 4 metres)

Hole PLS14-183

  • 0.14% over 18 metres, starting at 109 metres

  • 0.21% over 10.5 metres, starting at 147 metres

  • 0.66% over 13.5 metres, starting at 176.5 metres
  • (including 1.22% over 5.5 metres)

  • 1.63% over 3.5 metres, starting at 193.5 metres

  • 1.1% over 6.5 metres, starting at 213 metres

  • 0.48% over 6 metres, starting at 244 metres
  • (including 1.11% over 2 metres)

Hole PLS14-184

  • 2.02% over 14.5 metres, starting at 110.5 metres
  • (including 8.31% over 2 metres)

  • 7.66% over 2 metres, starting at 136 metres

  • 1.65% over 19 metres, starting at 158.5 metres
  • (including 4.45% over 3.5 metres)

Hole PLS14-189

  • 1.93% over 15 metres, starting at 262.5 metres

  • 0.44% over 13 metres, starting at 281 metres
  • (including 1.03% over 4.5 metres)

Hole PLS14-191

  • 0.22% over 6.5 metres, starting at 99 metres

  • 0.62% over 9 metres, starting at 122 metres
  • (including 1.7% over 2.5 metres)

  • 1% over 3.5 metres, starting at 152.5 metres

On the R1155E zone, the better results from PLS14-191 showed:

  • 0.2% over 8 metres, starting at 197.5 metres
  • (including 1.28% over 0.5 metres)

  • 0.33% over 3.5 metres, starting at 211 metres

  • 0.1% over 5.5 metres, starting at 359 metres

True widths weren’t provided. Fission Uranium stated PLS14-191 “opens up the potential to discover increased amounts and higher grades of mineralization from this area, including further to the south and within the 75-metre gap separating R780E and R1155E.” The 31,039-hectare project’s 2.24-kilometre potential strike remains open to the east and west.

Still to come are assays for 32 holes from last winter’s 92-hole program. Now underway is a 63-hole, 20,330-metre campaign worth $12 million to focus on R780E. That would bring the project’s total to about 263 holes totalling around 83,500 metres. December’s the deadline for the maiden resource.

Cigar Lake suspended as Cameco encounters freezing failure

Progress continues on the technological challenge of extracting Cigar Lake’s uranium deposit—but not “as quickly as expected,” Cameco Corp TSX:CCO conceded July 16. As a result production has been suspended to allow some areas of the mine to freeze more thoroughly. In an innovative method to prevent flooding “where the water-saturated Athabasca sandstone meets the underlying basement rocks,” the company injects and freezes a brine solution around the rock body. Water jet boring then extracts the ore. (Watch a video here.) Now Cameco has stopped operations to allow “additional freezing.”

Noting that the McClean Lake mill, 70 kilometres away, hasn’t started processing Cigar Lake feed, the suspension “will allow more continuous production at the mine once the mill is operational.” Cameco anticipates a couple of months’ delay that will affect 2014 production, which was originally estimated at 770 to 1,100 tonnes of uranium concentrate. The long-term annual target of 18 million pounds U3O8 by 2018 remains unaffected.

The company will provide another update during its July 31 Q2 discussion.

Flooding in 2006 and 2008 had already set back development at the eastside Athabasca Basin mine, which began construction in 2005. The first ore shipment finally left Cigar Lake in March. McClean Lake was scheduled to begin processing last quarter, following modifications to the leaching circuit.

The world’s second-largest high-grade uranium deposit, Cigar Lake holds grades 100 times the global average. The joint venture is held 50.025% by Cameco, 37.1% by AREVA Resources Canada, 7.875% by Idemitsu Canada Resources and 5% by TEPCO Resources.

Another JV, McClean Lake is held 70% by AREVA, 22.5% by Denison Mines TSX:DML and 7.5% by OURD Canada.

Read more about Cigar Lake.

Athabasca Nuclear/Strike Graphite merger would combine uranium and diamond projects

Exploration in two Saskatchewan plays would come together under one entity should a merger go through between Athabasca Nuclear TSXV:ASC and Strike Graphite TSXV:SRK. The companies announced that intention on July 15, subject to conditions and approvals. Athabasca Nuclear holds a number of uranium properties including its Preston Lake flagship, which the company operates for the four-company Western Athabasca Syndicate. Strike has received conditional TSXV approval for its 80% acquisition of two properties in the Sask Craton that are contiguous to the Pikoo diamond discovery made last November by North Arrow Minerals TSXV:NAR.

The deal would exchange one Athabasca Nuclear share for each Strike share, with a similar swap of options and warrants. Strike would then become a wholly owned subsidiary of Athabasca Nuclear but presumably would not be called Nuclear Strike. Athabasca Nuclear would be held 73.9% by its current shareholders and 26.1% by Strike shareholders. Athabasca Nuclear’s officers and BOD would remain unchanged, except for the board addition of Blair Way, now a Strike director.

Among the deal’s conditions is two-thirds approval by Strike shareholders. The companies hope to consummate by September 20.

Read about diamond mining and exploration in Canada here and here.

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