Tuesday 25th October 2016

Resource Clips

Posts tagged ‘Athabasca Uranium Inc (UAX)’

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.

Next Page 1 | 2

Athabasca Basin and beyond

June 14th, 2014

Uranium news from Saskatchewan and elsewhere for June 7 to 13, 2014

by Greg Klein

Next Page 1 | 2

Strateco turns to Saskatchewan while Quebec uranium inquiry comes under fire

For the $123 million spent on it so far, the project has a resource showing 7.78 million pounds U3O8 indicated and 19.22 million pounds inferred. It also has an underground exploration permit issued by the Canadian Nuclear Safety Commission. But Quebec’s moratorium on uranium activity has finally caused Strateco Resources TSX:RSC to shut down its Matoush camp in the province’s Otish Basin. Now with a $1.4-million financing that the company hopes will save its TSX listing, Strateco’s focusing on a Saskatchewan project acquired from Denison Mines TSX:DML.

Strateco turns to Saskatchewan while Quebec uranium inquiry comes under fire

Now mothballed, Strateco’s Matoush project has a 2012 resource
showing 7.78 million pounds U3O8 indicated and
19.22 million pounds inferred.

In a June 12 announcement, Strateco attributed Matoush’s cost-cutting closure to Quebec’s refusal to issue an exploration permit. Some of the project’s facilities and equipment have been sold. The company has already launched legal action over the permit refusal.

Strateco also closed a private placement to try to prevent a TSX delisting. The company raised $1.4 million from Sentient Executive GP IV, an insider.

Meanwhile a Strateco subsidiary, SeqUr Exploration Inc, issued just under 15 million Strateco shares to take on the Jasper Lake package, a 60% option on four eastern Athabasca properties totalling 45,271 hectares that Strateco negotiated with Denison late last year. SeqUr also closed a $100,000 private placement with Sentient. The subsidiary plans exploration “in the coming months.”

Two days before the Strateco announcements a Quebec inquiry into uranium mining and exploration was challenged again, this time by a group of 70 “scientists and professionals from industry and academia.” In an open letter distributed June 10, the group questioned the inquiry chairperson’s neutrality as well as the utility of the proceedings.

Quebec’s environmental watchdog, le Bureau d’audiences publiques sur l’environnement (BAPE), began hearings last month in a process expected to last 12 to 18 months. Until a decision is made whether to allow uranium activity, the moratorium imposed in March 2013 remains in effect. But Labrador, Greenland and Queensland have “recently lifted moratoria that they now perceive as unjustified,” the group maintained.

Calling Louis-Gilles Francoeur’s appointment as chairperson “perplexing,” the open letter stated, “Throughout his career, Mr. Francoeur has tended to echo uranium industry critics. The BAPE is an institution founded on the principle of absolute neutrality. What would become of the BAPE’s credibility if a former mining executive were appointed chairman of the commission?”

Francoeur was selected during the province’s previous Parti Quebecois government.

“Exploration for and development of any mineral, including uranium, cannot go against the public interest,” the group pointed out. But, the signatories argued, “We are heading into a process that was borne of uranium fear-mongering fuelled by an archaic and biased view of the mining industry.” They questioned whether the hearings, with a price tag they peg at over $2 million, “should even be held.”

Quoting November 2013 poll numbers, the group said Saskatchewan’s uranium industry has the support of about 80% of the population, “including 76% of people in the communities and reserves of northern Saskatchewan, where the uranium mines are found.”

The group also noted some environmentalists support nuclear energy, as indicated by “the latest report of the Intergovernmental Panel on Climate Change, an organization established by the United Nations Environment Programme and free from suspicion of complicity with industry.”

The 70 concluded that the industry already faces strict regulations. “It is impossible for any uranium deposit to be developed, and then mined, without the project meeting the most stringent standards and being subject to public hearings,” they stated. “The Canadian Nuclear Safety Commission (CNSC), a globally recognized agency with no ties to industry, sets the standards and has permanent monitoring and, if needed, enforcement powers over all nuclear industry activities.”

The communique follows a similar challenge last month by the Quebec Mineral Exploration Association. The organization called for Francoeur to be replaced, describing his previous statements on the subject as “prejudicial and non-scientific.” A coalition of Quebec natives, doctors and environmentalists, however, have argued for an outright ban on the industry.

Last month Strateco, which has previously stated its intention to take part in the BAPE inquiry, threatened legal action should Quebec not replace Francoeur.

Denison closes acquisition of International Enexco

Its takeover by Denison complete, International Enexco delisted on June 10. Expansionist Denison now holds former Enexco assets in the eastern Athabasca Basin consisting of a 30% interest in Mann Lake and an additional 20% in Bachman Lake, giving Denison full control over the latter project. The company now shares the Mann Lake joint venture with Cameco Corp TSX:CCO (52.5%) and AREVA Resources Canada (17.5%).

A spinco gets Enexco’s U.S. non-uranium properties including the Contact copper project, which approaches pre-feasibility in Nevada.

The transaction went through without the public acrimony that initially ensued when Denison snatched Rockgate Capital from its proposed merger with Mega Uranium TSX:MGA late last year. At the time, Denison stated its intention to spin out its foreign assets and concentrate on the Athabasca Basin.

Next Page 1 | 2

Athabasca Basin and beyond

December 22nd, 2013

Uranium news from Saskatchewan and elsewhere for December 14 to 20, 2013

by Greg Klein

Next Page 1 | 2

News flash: Fission Uranium releases assays—actual lab assays—from Patterson Lake South

Frenetic as activity has been at Patterson Lake South, assays have been trickling in at a most leisurely pace. Results released by Fission Uranium TSXV:FCU on December 18 come from three holes that were drilled last summer and had scintillometer results reported in August and September. The backlog of assays, from about 50 holes, can only increase speculation about when the project’s maiden resource might appear and what it might show.

Uranium news from Saskatchewan and elsewhere for December 14 to 20, 2013

Even so, these results continue to impress with high-grade, near-surface intervals. Taken from R945E, the most easterly of six zones along a 1.78-kilometre trend, some of the better assays show 7.91% uranium oxide (U3O8) over 14 metres, 1.59% over 40 metres and 3.69% over 13.5 metres. One Russian doll interval-within-an-interval-within-an-interval graded 43.7% over 0.5 metres.

Highlights show:

Hole PLS13-084

  • 0.11% U3O8 over 8 metres, starting at 129.5 metres in downhole depth

  • 0.27% over 25.5 metres, starting at 156.5 metres

  • 0.3% over 7 metres, starting at 195 metres

  • 0.13% over 12.5 metres, starting at 206.5 metres

  • 3.69% over 13.5 metres, starting at 232.5 metres
  • (including 9.12% over 1 metre)
  • (and including 7.27% over 4.5 metres)

Hole PLS13-092

  • 0.84% over 16 metres, starting at 163 metres
  • (including 1.62% over 4 metres)
  • (and including 6.22% over 0.5 metres)

  • 0.15% over 7.5 metres, starting at 196 metres

Hole PLS13-096

  • 0.3% over 7.5 metres, starting at 98 metres

  • 1.59% over 40 metres, starting at 138 metres
  • (including 14.22% over 3 metres)

  • 2.4% over 11 metres, starting at 186 metres
  • (including 6.91% over 2 metres)

  • 7.91% over 14 metres, starting at 249.5 metres
  • (including 18.2% over 5.5 metres)
  • (which includes 43.7% over 0.5 metres)

True widths were unavailable. Drilling was vertical or near-vertical, with dips of 90, -88 and -89 degrees respectively.

The previous week, PLS’s now sole owner closed a $12.87-million financing for the project’s “most aggressive drill program to date” with about 100 holes totalling 30,000 metres, along with further geophysics. Winter is not a quiet time in the Athabasca Basin.

Lakeland recruits more expertise while planning Gibbon’s Creek winter program

Two more Lakeland Resources’ TSXV:LK appointments bring additional experience to the company’s management and board. December 16 and 19 announcements reported Neil McCallum joining as director and Frances Petryshen as corporate secretary.

McCallum, a project manager with Dahrouge Geological Consulting, has served a number of companies with target generation, hiring, logistics, land management, data compilation, project reviews and management.

“Among the first Basin projects I worked on was staking the Waterbury Lake project that started with Strathmore Minerals and turned into Fission Energy,” McCallum says. Fission Energy’s 60% interest in Waterbury was the main impetus for Denison Mines’ TSX:DML acquisition of the company earlier this year. The project’s J zone now shows an indicated resource of 291,000 tonnes averaging 2% for 12.81 million pounds U3O8.

“Also with Dahrouge, I worked on the Patterson Lake project, which morphed into Patterson Lake South,” McCallum adds. “Part of that work back in 2004 was digging through historic data, looking for projects that had been passed over by some of the major companies. So I’ve been familiar with the Basin since that time.”

His involvement in a variety of projects with prospect generator Zimtu Capital TSXV:ZC led him to Lakeland, a Zimtu core holding, about a year ago. “Having worked with Zimtu and Ryan Fletcher, I found I like the way he operates. He’s similar to me in that he’s a young guy who thinks outside the box. When you work with different projects and different teams you can look at the Basin from a different angle. I think that’s what people like Ryan and myself bring to the table—a bit of a different perspective.”

We’ll continue building our team and our projects so that when uranium’s price environment changes, which it will, we’ll be very well established.—Lakeland Resources
director Ryan Fletcher

As a Lakeland director, McCallum will play a wider role in the company than before. “A big part of Lakeland’s goal is to find projects either by staking or linking up with other companies,” he explains. “So a lot of what I’ll do is review those projects on a technical basis to make informed decisions.”

Fletcher reinforces those comments. “Our group has worked with Neil for several years now and I’ve seen the impact he’s had on other projects. But he’s also focused a lot on uranium and the Athabasca Basin. He has a talent for looking at historic data, filing through the assessment reports and putting it all into context. He’s already been helping with project management on our Gibbon’s Creek/Riou Lake project, but now he’s joining the board to represent shareholders and drive shareholder value.”

As corporate secretary Frances Petryshen brings 25 years of experience specializing in corporate compliance and governance for public, private and not-for-profit organizations. She’s been a director and officer with several public and private companies including CanAlaska Uranium TSX:CVV, where she worked from 2007 to 2012.

Petryshen is an accredited director and a fellow with the Institute of Chartered Secretaries and Administrators, where she currently serves as director and chairperson of the British Columbia branch.

“Her appointment is another important step towards adding the right people to deliver as we grow the company and expand our exploration and activity in the Athabasca,” said Lakeland president/CEO Jonathan Armes in a statement accompanying the announcement. “Frances will be an important contributor and a trusted adviser and associate to our team.”

The news follows several recent Lakeland announcements including the appointments of mining specialists Sam Wong as CFO and Canon Bryan as adviser, JVs with Declan Resources TSXV:LAN and Star Minerals Group TSXV:SUV, and a research report by Zimtu research and communications officer Derek Hamill.

With summer/autumn field work complete, planning now takes place for the 12,771-hectare Gibbon’s Creek winter campaign. “We’ll be very active throughout the new year as well,” Fletcher says. “We’ll continue building our team and our projects so that when uranium’s price environment changes, which it will, we’ll be very well established.”

Mega Uranium to get Energy Fuels’ interest in Bayswater; EFR signs KEPCO agreement

Under a share swap announced December 19, Energy Fuels TSX:EFR signed an agreement to exchange all its Bayswater Uranium TSXV:BYU stock with Mega Uranium TSX:MGA for 1.7 million newly issued Mega shares. Energy Fuels got the 11.5% interest in Bayswater on taking over Strathmore Minerals in September. Subject to all approvals, the co-signers expect to close the transaction by January 17.

The companies are hardly unacquainted. Energy Fuels is already a Mega shareholder. Mega, meanwhile, owns about 17% of NexGen Energy TSXV:NXE. Although Mega lost its bid for Rockgate Capital TSX:RGT in October, the following month it picked up 28% of the ASX-listed Toro Energy in return for Mega’s Lake Maitland pre-development project in Western Australia. Energy Fuels holds a 5% gross production royalty on the Reno Creek uranium project, which last March reached pre-feasibility under a Bayswater affiliate.

Energy Fuels supplies about 25% of American uranium production. In November the company suspended development of its Canyon mine in Arizona due to low commodity prices and legal action challenging the U.S. Forest Service’s approval of the mine.

On December 17 the company announced a strategic relationship agreement with the Korea Electric Power Corp. But details were lost in Energy Fuels’ vaguely written news release.

Ur-Energy offered 50% discount on Pathfinder Mines, AREVA to get 5% royalty

A revised agreement offers Ur-Energy TSX:URE a half-price deal on Pathfinder Mines and its two former Wyoming mines with historic resources. The acquisition was originally priced at US$13.25 million in July 2012. Now, “in recognition of current market conditions,” AREVA affiliate COGEMA Resources will let go of Pathfinder for approximately $6.625 million in return for a 5% gross royalty on Pathfinder’s Shirley Basin property. The royalty remains subject to caps depending on uranium’s price. Ur-Energy has already put $1.325 million into escrow. Some other details have yet to be negotiated, the company stated.

Three days after that December 16 announcement, the company reported a private placement expected to close on December 20 for approximately $5.18 million. The money was earmarked for the Pathfinder acquisition.

Earlier in December Ur-Energy reported a first shipment of 35,000 pounds U3O8 left its Lost Creek mine in Wyoming. Lost Creek’s resource update was released in November.

In late October the company closed a $34-million Wyoming state loan after having previously borrowed $35 million from RMB Australia Holdings Ltd.

Uranium exploration finds frac sand potential on Declan Resources’ Firebag River

Initial field work by Dahrouge Geological Consulting shows potential for high-quality frac sand on Declan Resources’ Firebag River property in northeastern Alberta, the company announced December 18. Samples from depths of less than two metres revealed “high silica content, quality sphericity and roundness values, and a high percentage of sand falling within the preferred 20/40 and 40/70 mesh sizes,” Declan stated.

Using figures from consulting firm PacWest, a December 2 Wall Street Journal report says oil and gas companies have boosted sand demand 25% since 2011, with another 20% increase expected over the next two years.

Declan intends to follow up on the finding “along with its principal objective of uranium exploration” at the 50,000-hectare property just southwest of the Basin. One day earlier the company released silver-copper results from its Nimini Hills property in Sierra Leone. In early December Declan signed a JV on Lakeland Resources’ Gibbon’s Creek project, a four-year option which would inject an extra $1.25 million into the property’s 2014 drill program.

Next Page 1 | 2

Athabasca Basin and beyond

July 20th, 2013

Uranium news from Saskatchewan and elsewhere for July 13 to 19, 2013

by Greg Klein

Next Page 1 | 2

Step-out hole extends PLS zone by 15 metres

The first hole of Patterson Lake South’s summer program found 85.5 metres of “the most abundant off-scale mineralization of any hole drilled on the property,” stated Fission Uranium TSXV:FCU president/COO Ross McElroy. In dual announcements made July 18, Fission and 50/50 joint venture partner Alpha Minerals TSXV:AMW said scintillometer readings show the step-out extends the R390E zone 15 metres grid west. R390E is the middle of three zones along an 850-metre northeast-southwest trend.

Although its readings aren’t substitutes for assays, the scintillometer determines radioactivity by measuring gamma ray particles in counts per second, up to an off-scale reading of more than 9,999 cps. Results for PLS13-072 show:

Uranium news from Saskatchewan and elsewhere for July 13 to 19, 2013

Alpha/Fission’s $6.95-million summer drill program has begun,
with the first hole extending one zone by 15 metres.

  • <300 to >9,999 cps over 85.5 metres, starting at 62 metres in downhole depth
  • (including 1,100 to >9,999 cps over 16.5 metres)
  • (and including 5,000 to >9,999 cps over 6.9 metres)
  • (and including <300 to 8,600 cps over 5 metres)
  • (and including <300 to 720 cps over 2.5 metres).

Assays are pending. True widths weren’t available. Drilling on the hole was suspended due to mechanical failure. All PLS holes will get a radiometric probe to assess radioactivity more accurately.

Interestingly, the drill found no Devonian sandstone between the overburden and the basement bedrock, which started at 55.7 metres’ depth. “This may be a result of the RC rig casing past the overburden and bedrock contact, and so the presence or absence of Devonian sandstone is inconclusive,” stated Alpha’s news release. “Alternatively, the lack of Devonian sandstone and presence of shallower mineralization may indicate that the bedrock source of the high-grade uranium boulders is possibly approaching further to the west of PLS13-072. Other step-out drill holes may resolve this.”

The program uses two diamond rigs in addition to the reverse circulation drill. With a $6.95-million budget, the 44-hole, 11,000-metre drill campaign and ground geophysics surveys continue on the 31,000-hectare property two kilometres from Highway 955.

Fission applies for boulder-finding patent

Along with collaborator Special Projects Inc, Fission wants to patent the system used to discover the PLS high-grade uranium boulder field. Calling it “an invention entitled System and Method for Aerial Surveying or Mapping of Radioactive Deposits,” Fission announced the application on July 16.

The company explained that radiometric surveys can be affected by a number of variables including weather, topography and cosmic activity, as well as more controllable factors such as sensor height and aircraft speed. The invention “is particularly sensitive to addressing these variables,” Fission stated.

The news release didn’t specify the invention of new technology.

Forum extends Key Lake-area holdings

Towards the Athabasca Basin’s southeast corner, Forum Uranium TSXV:FDC picked up the Highrock South property, adding another 1,381 hectares to its Key Lake area holdings. The company’s July 17 announcement states the property “is a continuation of the prospective Key Lake/Black Forest conductive trend” that hosted Cameco Corp’s TSX:CCO former deposits and the geology “compares favourably” with PLS. Highrock South lies about 15 kilometres south of the world’s largest high-grade uranium mill.

Forum pays $2,500, issues 25,000 shares and grants a 2% NSR. The company holds six other projects totalling over 90,000 hectares in the area, as well as other projects in Saskatchewan and Nunavut’s Thelon Basin.

Brades moves into Athabasca Basin

Brades Resource TSXV:BRA marked its Saskatchewan entry with the Lorne Lake acquisition announced July 16. The approximately 39,450-hectare property shows “extensive regional faulting and lineaments and covers one of only three identified cross-cutting major fault structures located in the western Athabasca Basin,” as well as “favourable magnetic geophysical data,” the company stated.

In return, Brades will issue a total of 3.5 million shares to two vendors including Ryan Kalt, who will also get a 2% NSR. On closing the deal, Kalt becomes a company insider.

On July 19 Brades announced the appointment of Evany Hung as CFO, replacing Christopher Cherry. The company also holds the 14,133-hectare BRC porphyry copper-gold property in northwestern British Columbia.

Noka retains Dahrouge Geological Consulting

On July 18 Noka Resources TSXV:NX announced it retained Dahrouge Geological Consulting to manage and explore Noka’s Athabasca Basin properties. Dahrouge and its predecessor, Halferdahl & Associates, have over 40 years’ experience with mineral projects, including over 30 years in uranium, Noka stated. The announcement credited Jody Dahrouge and his team with “the conceptualization and acquisition of several uranium properties within the Athabasca Basin, most notably these include such projects as Waterbury Lake (J zone), Patterson Lake and in part Patterson Lake South.”

Noka’s properties include Clearwater and Athabasca North, as well as a 25% earn-in on the Western Athabasca Syndicate Project, a four-company strategic alliance with Skyharbour Resources TSXV:SYH, Athabasca Nuclear TSXV:ASC and Lucky Strike Resources TSXV:LKY that’s exploring the PLS-area’s largest land package.

Read more about the Western Athabasca Syndicate Project.

Paladin reports quarterly revenue of $107.4 million, record production

Paladin Energy’s TSX:PDN quarterly report, released July 16, showed sales revenue for three months ending June 30 of US$107.4 million. The company sold 2.32 million pounds of uranium oxide (U3O8) at an average price of $46.22 a pound.

Both of the company’s mines achieved quarterly production records. Langer Heinrich in Namibia produced 1.35 million pounds U3O8 while Kayelekera in Malawi gave up 789,430 pounds for a combined 2.14 million pounds, up 8% from the previous quarter. Fiscal 2013 production met guidance with 8.25 million pounds. The fiscal 2014 forecast ranges from 8.3 million to 8.7 million pounds.

The company also stated it had cut production costs by 9% at Langer Heinrich and 24% at Kayelekera, compared with June 2012. Paladin has been negotiating the sale of a minority interest in Langer Heinrich.

As for the company’s other projects, its Michelin property in Labrador has more exploration planned for summer and a resource update scheduled for next quarter. At Western Australia’s Manyingee project, work continues on an updated resource and hydrogeological modelling. Exploration on its Agadez property in Niger, however, has been suspended following the May 23 terrorist attacks that hit a military barracks and a uranium mine operated by AREVA.

In April Paladin became sole owner of the Angela project in Northern Territory, with an inferred resource of 30.8 million pounds, after buying Cameco’s 50% interest. Paladin also holds other Australian properties.

Cameco wants Canada to allow foreign ownership, Paladin concurs

Cameco “has broken ranks with the Canadian government by taking the position that Australian companies should be able to wholly own uranium mines in the country,” reported Australia’s Financial Review (subscription required) on July 15. Not surprisingly the journal added that John Borshoff, managing director/CEO of Australia’s Paladin, “says Canada must heed the words of one of its biggest companies and prioritize lifting restrictions on foreign ownership.”

Next Page 1 | 2

Athabasca Basin updated

May 11th, 2013

A review of Saskatchewan uranium activity from April 27 to May 10, 2013

by Greg Klein

Next Page 1 | 2

Fission/Alpha conduct radon survey at Patterson Lake South

What? Two weeks without assays from Patterson Lake South? No scintillometer readings either? Taking a break from reporting drill results, Fission Uranium TSXV:FCU and Alpha Minerals TSXV:AMW instead revealed a survey showing “the strongest radon-in-water anomaly to date,” the companies stated on May 6. That result was 13.3 pCi/L, found about 170 metres northeast along strike of the project’s R780E zone.

By the way, pCi/L stands for “picocuries per litre.” But you knew that, didn’t you? Regardless, all those picolitres per whatever suggest good news for a project that based its initial drill targets on these measurements of radon gas, which is released by radioactivity. Those targets found two of three discovery zones featuring the high-grade, near-surface assays that sparked the acquisition rush around the southwestern rim of Saskatchewan’s Athabasca Basin.

Overall the survey found six radon anomalies, in addition to the original five, “all associated with known conductors and offsetting structures.” One anomaly was found as far as 1,500 metres along strike of R780E. The 50-50 joint venture partners now plan summer drilling from barges on the lake and further radon surveys next winter.

Forum, NexGen release NW Athabasca assays

A JV within a JV, Forum Uranium TSXV:FDC and NexGen Energy TSXV:NXE reported assays on May 9 for their Northwest Athabasca project. Highlights from Zone A show:

  • 0.14% U3O8 over 3 metres, starting at 80.5 metres
  • 1.34% over 3 metres, starting at 88.5 metres
  • (including 1.86% over 1.5 metres)
  • (which includes 2.48% over 0.5 metres).

True widths weren’t available.

A result from the Barney zone showed:

  • 2.32% U3O8 over 0.5 metres, starting at 169 metres.

Still pending are assays for a 30-metre interval of uranium mineralization at the project’s Otis West zone, the partners stated. Zone A lies on the north side of the Maurice Bay deposit, which has an historic, non-43-101 resource of 1.5 million pounds uranium averaging 0.6% U3O8.

Forum and NexGen may earn 30% each of the project, which would leave Cameco Corp TSX:CCO a 27.5% interest in its JV with AREVA Resources, which holds the remaining 12.5%. Forum acts as project operator. NexGen made its Venture debut on April 23.

Yellowjacket offers $600,000 private placement, plans airborne survey

Saskatchewan uranium activity April 27 to May 10, 2013

Having announced a $600,000 offering on April 30, Yellowjacket Resources TSXV:YJK followed up on May 10 with plans to begin flying its claims in the Patterson Lake South vicinity later this month. “The airborne survey will cover approximately 2,910 line-kilometres using VTEM-plus, EM and magnetometer arrays, with an additional 1,700 line-kilometres of radiometric sensor coverage,” the company stated. Results are expected in late July.

The private placement would issue up to 5 million units at $0.12, with each unit consisting of one share and one-half share warrant. Each whole warrant will be exercisable for a share at $0.20 for 18 months. If the shares trade at or above a volume-weighted average of $0.30 for more than 10 consecutive trading days, any unexercised warrants will expire 30 days after the company issues written notice.

Yellowjacket will use the proceeds for its Saskatchewan uranium projects and general working capital. With over 158,000 hectares, the company says it’s the largest claim holder in the Patterson Lake area.

Zadar acquisition approved

Zadar Ventures’ TSXV:ZAD 100% option on the Bull Run project cleared TSXV approval, the company reported on May 10. First announced April 17, the 9,185-hectare acquisition consists of three blocks in the southwestern Basin. In return Zadar pays $265,000 and issues 550,000 shares over six years, as well as spending $50,000 by July 2015 and $100,000 by July 2016.

Last month the company picked up the 2,729-hectare Upper Poulton Lake property adjoining the Richmond Lake project, part of the former Fission Energy portfolio acquired by Denison Mines TSX:DML in April. The same month Zadar announced completion of its 60% earn-in on the 17,300-hectare Whiskey Gap uranium project in southwestern Alberta.

Athabasca Uranium expands

Athabasca Uranium’s TSXV:UAX eastside Basin portfolio grew by 10,157 hectares with the Fisher River option announced May 7. Three kilometres north of the company’s Keefe Lake project, it’s contiguous with the southern part of UAX’s McCarthy Lake project and some Denison claims.

The property’s Fisher River zone features “conductive targets near or at the unconformity and associated with faulting” which the company stated “are typically the mainstay of uranium exploration” in the Basin.

Additionally the zone “appears to be crosscut by a series of northwest lineaments, which is significant as secondary faulting greatly improves a target’s quality—deposits such as Shea Creek and McArthur River are unequivocally associated with cross-faulting. Unconformity depths at Fisher are shallow, estimated to be between 125 to 170 metres,” the company added.

The vendor gets $10,000 and 3 million shares up front and another $500,000 by the fourth anniversary, along with a 1% NSR. Athabasca Uranium may buy back half the NSR for $1 million.

The company also announced it’s reviewing a recently completed model of its Keefe Lake project by the University of Saskatchewan geophysical team prior to determining the Phase 3 drill program. Athabasca Uranium holds over 70,000 hectares in the eastern Basin.

Uravan to fly Stewardson Lake, review Halliday Lake

Uravan Minerals TSXV:UVN reported on May 7 news from its Stewardson Lake and Halliday Lake projects, both under option to Cameco. Stewardson, in the south-central Basin, will get a heli-borne EM survey over 779 line-kilometres with 500-metre spacing in June. A ground EM survey will follow, along with geochemical sampling on the 21,349-hectare property. The company is now interpreting ground geophysics undertaken last March on the 2,169-hectare Halliday project in the eastern Basin.

While Uravan acts as project operator, Cameco has an option to earn up to 70% of the two projects by funding a total of $22 million.

Next Page 1 | 2