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Posts tagged ‘UEX Corp (UEX)’

Athabasca Basin and beyond

May 1st, 2015

Uranium news from Saskatchewan and elsewhere to May 1, 2015

by Greg Klein

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NexGen ends winter with outstanding step-outs, plans 2015 maiden resource

Following a season in which 44 of 46 holes at Rook 1’s Arrow zone found mineralization, the last one released by NexGen Energy TSXV:NXE showed the project’s highest total composite mineralization. That April 29 announcement followed an April 23 batch of results that included some of the zone’s strongest offscale radioactivity. Although lots of assays are still pending, drilling resumes in early June with five rigs expected to sink a total of 25,000 metres. The longer-term goal is a maiden resource by December.

Winter’s record-breaker was angled hole AR-15-45b, which drilled through A2 and A3, two of the zone’s three mineralized shears. It returned a composite 226 metres of mineralization distributed within a 468-metre section starting at 391 metres in downhole depth. Included was a composite 9.8 metres that went “offscale” between 10,000 and 54,000 counts per second.

The results come from a hand-held scintillometer that measures drill core radioactivity. Readings above 10,000 cps are considered offscale due to the limitations of earlier devices. These measurements don’t substitute for assays, which have yet to arrive.

Another radioactive announcement six days earlier heralded a substantial expansion to A2’s high-grade core, some of Arrow’s strongest off-scale measurements and semi-massive to massive pitchblende that would make a geologist’s mouth water. Currently marking Arrow’s southwestern border, hole AR-15-44b stepped out 76 metres southwest along strike from AR-14-30, which last October assayed 7.54% U3O8 over 63.5 metres.

AR-15-44b found a composite 190.7 metres within a 519-metre section, starting at 430.5 metres in depth. The results included an offscale composite of 40.45 metres.

Other highlights include:

  • AR-15-43a, with 92 composite metres within a 501.5-metre section, starting at 346 metres

  • AR-15-42a, with 68.9 composite metres within a 592.5-metre section starting at 142.5 metres

Arrow now covers 515 metres by 215 metres, with mineralization found vertically at depths between 100 metres and 920 metres. Still open in all directions and at depth, the zone boasts significant off-scale mineralization at both its southwestern and northeastern extents.

Beyond Arrow, NexGen’s winter season also resulted in Rook 1’s Bow discovery.

Athabasca Basin bought deals: Fission closes $20 million, Denison announces $15 million

April 29 proved a good day for uranium financings as the Basin’s two most prominent explorers announced substantial bought deals. Fission Uranium TSX:FCU completed a private placement of 13.34 million flow-through shares at $1.50 to bring in $20.01 million. Denison Mines TSX:DML announced an agreement to purchase 12 million flow-through shares at $1.25 for $15 million, an offer that’s expected to close around May 26.

Fission’s placement started at $15 million on April 1. Within hours the figure rose to $17.4 million. With the underwriters exercising their additional 15% option, the deal closed on $20.01 million. Earlier this month the company finished its winter program at Patterson Lake South, which strived to expand and upgrade the Triple R deposit and the R600W zone, as well as explore the PLS property farther afield.

Denison also wrapped up winter work earlier this month after sinking 61 holes totalling 30,400 metres on seven projects, most of them joint ventures. Summer plans call for about 34,000 metres on eight projects, focusing on the flagship Wheeler River project, which has a maiden resource for the Gryphon zone planned for December to complement the very high-grade Phoenix deposit three kilometres southeast. Denison holds 60% of the JV with Cameco Corp TSX:CCO (30%) and JCU (Canada) Exploration (10%).

Also announced April 29, Cameco’s Q1 results showed $566 million in revenue, a 35% increase over the same period last year. Gross profit reached $129 million, a 19% increase. But a net loss attributable to shareholders sunk to $9 million, or $0.02 per share diluted, 107% below Q1 2014 performance. The company attributed blame “primarily due to higher mark-to-market losses on foreign exchange derivatives.”

In a more modest financing the following day, Kivalliq Energy TSXV:KIV closed the final tranche of a private placement totalling nearly $2.8 million. UEX Corp TSX:UEX offered a $2.5-million placement on April 21.

Phase I drilling finds U3O8 at Lakeland Resources’ Star/Gibbon’s Creek project

Assays released May 1 show a promising start to Lakeland Resources’ (TSXV:LK) Star/Gibbon’s Creek project. As a result the company plans geophysics and drilling to complement last winter’s 14-hole, 2,550-metre program on the road-accessible property a few kilometres from the town of Stony Rapids, on the Basin’s north-central rim.

Among highlights from the project’s South trend was hole GC15-03, immediately below the sub-Athabasca unconformity, which showed:

  • 333.8 ppm U3O8 over 1.1 metres, starting at 106.8 metres in downhole depth
  • (including 0.13% over 0.23 metres)

True widths weren’t available.

The hole also revealed uranium enrichment, strong hydrothermal alteration and the pathfinder elements boron, cobalt and nickel between 106.8 and 133 metres in depth.

Additional anomalous uranium came from two holes north and south of GC15-03:

Phase I drilling finds U3O8 at Lakeland Resources’ Star/Gibbon’s Creek project

Drill results show uranium enrichment, strong hydrothermal
alteration and pathfinder geochemistry for hole GC15-03.


  • 86.7 ppm over 1 metre, starting at 114.2 metres


  • 123.3 ppm over 2.1 metres, starting at 103.4 metres

GC15-02, collared near an historic hole that assayed 0.18% over 0.13 metres, showed:

  • 120.3 ppm over 1 metre, starting at 101 metres

At the South zone’s eastern end, GC15-10 returned “a strong illite clay alteration assemblage from the unconformity (80.9 metres) to 148 metres’ depth,” Lakeland stated. “This interval corresponds to a zone of strong ductile shearing and local brittle-ductile cataclastic brecciation.”

GC15-06 on the Centre zone tested an area with some of the Basin’s strongest land-based RadonEx measurements. “Highly anomalous geochemical pathfinders were noted throughout the hole, including a zone of uranium enrichment from approximately 41 metres to 109.5 metres in depth.”

The company now plans airborne electromagnetics on the project’s eastern margins, ground gravity at the South trend and additional RadonEx surveys. Further drilling around GC15-06 and the South trend will follow.

“Given the early stage of exploration at Gibbon’s Creek, results obtained from this first round of drilling are very encouraging,” said president Jonathan Armes. “The geochemical, clay and alteration results are suggestive of a nearby basement-hosted or unconformity-hosted uranium occurrence…. Lakeland will have multiple exploration programs ongoing in and around the Athabasca Basin this summer and fall, which should provide for an exciting year.”

With one of the Basin-region’s largest portfolios, Lakeland currently holds 32 properties totalling over 300,000 hectares. Among other drill-ready projects are Newnham Lake, east of Star/Gibbon’s, and Lazy Edward Bay on the Basin’s southern rim.

Last week the company appointed well-known geologist Jody Dahrouge to Lakeland’s board of directors. During his 25-year career he played a key role in Fission Energy’s acquisition of Waterbury Lake, Patterson Lake and Patterson Lake South. Waterbury Lake now hosts the J-zone discovery, while PLS holds the Triple R deposit.

Read more about Lakeland Resources’ Star/Gibbon’s Creek project.

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Athabasca Basin and beyond

April 17th, 2015

Uranium news from Saskatchewan and elsewhere to April 17, 2015

by Greg Klein

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India’s fast-emerging market becomes a Cameco customer

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

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

Uranium news from Saskatchewan and elsewhere to April 17, 2015

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

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

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

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

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

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

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

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

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

Fission finishes winter work at Patterson Lake South

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

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

Hole PLS15-330

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


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


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

  • 0.23% over 7 metres, starting at 182.5 metres


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

  • 0.37% over 12.5 metres, starting at 172.5 metres

True widths weren’t available.

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

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

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

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

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

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


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


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


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


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


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


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

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


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

Again, true widths weren’t available.

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

Read about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

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

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

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

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

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

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Athabasca Basin and beyond

March 1st, 2015

Uranium news from Saskatchewan and elsewhere to March 1, 2015

by Greg Klein

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Saskatchewan’s number two for mining jurisdictions worldwide

The province has held a top 10 position for at least five years, but last week Saskatchewan reached second place in a global survey of miners and explorers. The Fraser Institute study released February 24 rated jurisdictions for a number of factors, with the most important attributes making up the Investment Attractiveness Index. There sits Saskatchewan, second only to Finland.

The index considers responses for two separate categories, giving a 60% weight to geology and 40% to public policy. As Macdonald-Laurier Institute managing director Brian Lee Crowley told, reserves aren’t much good without policies that allow responsible development. Some comments quoted by the Fraser Institute bear that out.

Uranium news from Saskatchewan and elsewhere to February 27, 2015

A province founded on agriculture, Saskatchewan became one of
the world’s leading mining jurisdictions thanks to geology and policy.

“In Saskatchewan, ‘Duty to Consult’ is the responsibility of government, not the company. Something like the Ring of Fire fiasco in Ontario would not happen in Saskatchewan.”

“Good geoscientific support and permitting procedures which allow for timely planning and efficient support from provincial administration in addressing land access and Amerindian issues.”

“Saskatchewan is open to uranium exploration.”

Speaking to the Regina Leader-Post, survey director Kenneth Green said, “In addition to being blessed with an abundance of mineral potential, Saskatchewan gets credit for having a government with a transparent and productive approach to mining policy. The province offers a competitive taxation regime, good scientific support, efficient permitting procedures and clarity around land claims.”

More good words came from provincial Economy Minister Bill Boyd. “Clearly, there is a very good resource here in the province, whether it’s in potash, uranium or other minerals that we mine here in Saskatchewan,’’ the Leader-Post quoted him. “We’ve been able to create a business climate here in Saskatchewan that’s positive. There’s a good workforce in Saskatchewan, a trained workforce, as well.’’

Four other Canadian jurisdictions made the top 10 for investment attractiveness. Additionally the survey showed a significant improvement in Canada’s median score on the Policy Perception Index.

Read more about Canada’s performance in the global mining survey.

Download the survey.

NexGen adds third high-grade section to Rook 1’s Arrow zone

Having discovered another high-grade section of the Arrow zone with Rook 1’s best angled hole yet, NexGen Energy TSXV:NXE assigned new names to the project’s features. A1, A2 and A3 designate three mineralized shears trending northeast to southwest. The latest hole, AR-15-39, found composite mineralization totalling 89.15 metres within 436.5 metres that started at 433.5 metres in downhole depth. Scintillometer readings above 10,000 counts per second coincided with “dense accumulations of semi-massive to massive pitchblende,” the company stated February 24.

The results, from a handheld device that scans drill core for gamma radiation, are no substitute for the still-pending assays. Readings of 10,000 cps or more are called “offscale” due to the limitations of a previous model.

Drilled at a -70 dip between AR-15-37 and -38, the new hole went offscale for seven metres at A2, reinforcing “the continuity of semi-massive to massive pitchblende” in that shear. A3 revealed another 9.75 offscale metres, representing “a 200-metre down-dip extension from high-grade uranium assay intervals in drill holes AR-14-08 and -13,” NexGen added.

One week earlier the company released two holes extending mineralization 81 metres southwest along strike from Rook 1’s best hole so far—angled or vertical and “amongst the best drill results” in the Athabasca Basin.

Both holes revealed “significant dense accumulations of semi-massive to massive pitchblende,” with AR-15-37 giving composite radiation readings for 76 metres within a 264.5-metre section beginning at 405 metres in downhole depth. That included an offscale composite of 9.35 metres.

AR-15-38 showed composite mineralization of 82.35 metres within a 247.5-metre section starting at 474 metres, with a composite 4.5 metres above 10,000 cps.

NexGen also reported its third rig began drilling 400 metres northeast along Arrow’s strike. That’s where a radon-in-lake-water anomaly, 480 metres long by 20 to 150 metres wide, is “optimally situated along the southeast-dipping VTEM conductor [and] projected to reach the unconformity.”

As of February 24, drilling hit mineralization in 37 of 39 Arrow holes, with 5,519 metres of the 18,000-metre winter program complete. The zone covers about 515 metres by 215 metres, with mineralization as shallow as 100 metres and as deep as 817.5 metres in vertical depth.

Arrow remains open in all directions and at depth.

Ever modest, NexGen CEO Leigh Curyer said the zone “is quickly becoming a significant discovery on a world scale with relatively very few holes drilled.”

Fission hits high grade west of Triple R resource

Sunday’s not the usual day to release news of this nature. But March 1 begins PDAC 2015, so what better time to assert bragging rights? Whatever the reason, Fission Uranium TSX:FCU chose the day to announce a radioactive find 555 metres west of its Triple R deposit. The news reinforces interest in R600W, the most westerly of Patterson Lake South’s four zones, where five previous holes showed only low-grade mineralization.

Scintillometer readings for land-based hole PLS15-343 showed 65.5 metres of radiation starting at 105.5 metres in downhole depth, including a continuous 8.85 metres over 10,000 counts per second “with peaks up to 52,900 cps at shallow depth,” the company reported. A second radioactive interval of four metres began at 342.5 metres.

As explained in the NexGen item above, scintillometer readings are no substitute for assays, which are pending. Readings above 10,000 cps are often called “offscale” due to the limitations of earlier scintillometers.

Technical problems terminated the hole at 368 metres “in moderately altered semi-pelitic gneiss,” Fission stated.

R600W’s strike runs 30 metres with a north-south lateral width up to about 20 metres. The project’s four zones extend for a 2.24-kilometre potential strike along the PL-3B conductor. The two middle zones, R00E and R780E, comprise the Triple R resource that shook the market in January. In mid-February Fission announced nine holes that expand R780E, by far the project’s largest zone.

The $10-million, four-rig winter agenda calls for 35 holes on Triple R and R600W, along with 28 holes on regional targets, for a total of about 20,230 metres.

Read more about the Triple R resource estimate.

See an historical timeline of the PLS discovery.

Lakeland Resources bolsters its Basin portfolio

Now with 32 properties totalling over 300,000 hectares, Lakeland Resources TSXV:LK has enlarged what was already one of Saskatchewan’s largest exploration portfolios. New acquisitions announced February 20 include two land packages in the southeastern Basin’s Key Lake area, which gave up over 200 million pounds of uranium by 2002 and still hosts the Key Lake mill.

One of the area acquisitions, the KLR property, features “a significant number of historic conductors within basement rock types and at least two unexplained radiometric anomalies,” Lakeland stated. Sampling of surface rocks and lake and stream sediment brought results up to 691 ppm uranium. Historic drilling revealed 0.12% U3O8 across 0.1 metres. The new turf complements Lakeland’s existing Key Lake-region properties.

Six new claims sit adjacent to Lakeland holdings in the southwestern Basin’s Carter Lake area. The company also gained ground in the Mathews Lake area, north of Lake Athabasca and within basement rocks of the Beaverlodge Domain.

The Carson Lake property lies beyond the Basin’s northeastern margin but within the Wollaston Domain, which hosts most of the Basin’s currently operating mines.

South of the Basin, along the highly prospective Cable Bay shear zone, Lakeland picked up Black Birch East. Historic work on the 26,389-hectare property “showed a number of electromagnetic conductors and radiometric anomalies roughly coincident with the CBSZ.”

The acquisitions result from two transactions, subject to TSXV approval. One set of properties costs $40,880 and 1.12 million shares. A set of two other properties calls for $32,636 and 326,350 shares. Both transactions include a 2% NSR, half of which Lakeland may buy back for $2 million per property.

In late January the company began drilling its Star/Gibbon’s Creek project on the Basin’s north-central rim. Other drill-ready projects include Lazy Edward Bay on the Basin’s southern margin and Newnham Lake, east of Star/Gibbon’s.

In December Takara Resources TSXV:TKK took out a 50% option on Lakeland’s Fond du Lac property. Last year’s private placements brought Lakeland over $5.1 million.

Read more about Lakeland Resources’ Star/Gibbon’s Creek project.

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Structural strength

October 3rd, 2014

As drilling nears, Lakeland Resources finds more similarities between its Star/Gibbon’s project and Athabasca Basin deposits

by Greg Klein

Surface samples show gold, platinum group elements and rare earths, but Lakeland Resources TSXV:LK considers them signposts en route to a destination. The goal is uranium, the high-grade stuff the Athabasca Basin’s famous for. On its adjacent Star and Gibbon’s Creek properties, the company sees a number of geological features distinctive to Basin deposits. That puts the two properties—now one project—at the forefront of Lakeland’s large portfolio and focus of a busy autumn/winter program of field work and drilling.

Gibbon’s Creek came back to the company on September 29, with the termination of an option with Declan Resources TSXV:LAN. That now lets Lakeland “independently operate the project free and clear of any prior obligations,” the company stated. Located on the Basin’s north-central rim, the 12,771-hectare property features some of the highest RadonEx measurements reported in the Athabasca. Ground work confirmed existence of a radioactive boulder field with eight samples surpassing 1% U3O8, one of them hitting 4.28%. Another 11 samples assayed above 0.2%, with nine more below 0.2%. Anomalous values for nickel, arsenic, lead and cobalt also appeared.

As drilling nears, Lakeland Resources finds more similarities between its Star/Gibbon’s project and Basin deposits

Geologists sample part of the Star uplift, a basement outcrop
covering about 700 metres by 350 metres.

Then, three days later, the company announced exploration results from the Star property next door, where Lakeland holds an option to earn 100%. Gold accompanied by PGEs, along with some rare earths and anomalous low-grade uranium, all bode well for the high-grade kind, Lakeland stated. Of 73 rock samples, nine assayed over 0.1 gram per tonne gold, including two that surpassed 2 g/t and one that hit 3.7 g/t gold.

Of 124 soil samples, 29 exceeded 0.1 g/t gold. Six of them passed 1 g/t and one reached 2.21 g/t gold.

One area of mapping and sampling focus was the Star uplift, a basement outcrop about 700 metres by 350 metres. There, the crew found “intense hematite-chlorite alteration, a style of alteration that’s not necessarily unique to the Athabasca Basin but distinctive and it occurs with a lot of uranium deposits,” says Jody Dahrouge, president of Dahrouge Geological Consulting. “Over half the samples from this area were over 100 parts per billion gold. Many were over one gram per tonne gold. This is significant and often can lead back to new discoveries. I don’t know many soil sampling programs in or around northern Saskatchewan with this amount of gold. This is remarkable for an early-stage program.”

“Not only that, there’s up to three-quarters of a gram per tonne platinum and palladium in these samples. So you have gold, platinum and palladium, scattered rare earths, and you have low-grade uranium—presumably related to this big structural corridor that goes from north to south.”

That’s another of the project’s attractions. Dahrouge describes it as “a major regional structural lineament that’s about 30 or 40 kilometres in length, and it’s been reactivated many times over 100 million years or more. This is a key ingredient to every uranium deposit in the Athabasca Basin. Every significant uranium deposit is structurally related, you need a fault zone, you need a structure of some magnitude. Having it reactivated time and time again allows multiple generations of fluid to flow along that structure and deposition of perhaps multiple ore bodies.”

About one kilometre south of the uplift “there’s a massive alteration zone which is shown in the resistivity data set and which was drilled on its periphery in the 1970s. It hit up to 1,500 parts per million uranium proximal to this structure.”

This is a key ingredient to every uranium deposit in the Athabasca Basin. Every significant uranium deposit is structurally related, you need a fault zone, you need a structure of some magnitude. Having it reactivated time and time again allows multiple generations of fluid to flow along that structure and deposition of perhaps multiple ore bodies.—Jody Dahrouge, president of Dahrouge Geological Consulting

“A couple more kilometres south, immediately west and down-ice of the structure, is where the boulder field occurs,” where samples graded up to 4.28% U3O8. “You have three unique mineralizing systems, all within a five- to 10-kilometre distance of the same structure. Clearly something’s going on and clearly it’s related to the structure.”

That brings to mind some other major Basin discoveries. Fission Uranium’s (TSXV:FCU) Patterson Lake South and the Arrow zone on NexGen Energy’s (TSXV:NXE) Rook 1 project share the same structural corridor, Dahrouge points out. McArthur River features “a 10-kilometre-long conductor, a significant structure offsetting the basement.” Denison Mines’ (TSX:DML) Wheeler River joint venture hosts the structurally related Phoenix and Gryphon zones. “What people don’t realize is that to the southwest of those is a significant rare earth deposit at the unconformity, all within kilometres of each other, all related to presumably the same structural corridor.”

The Basin’s uranium comes from “hydrothermal systems that scavenge reams of uranium from felsic rocks, which have a high background of uranium, and then concentrate it in one place where there’s a chemical change in the waters. This is similar to how many structurally controlled gold deposits are formed, albeit maybe at slightly higher temperatures. Given the preponderance at Star of gold and PGEs, I suspect that maybe we’ve discovered a new occurrence of mineralization in the Athabasca Basin—not really unknown, because similar things have been documented before, but which could be extremely significant in size.”

Although the Basin’s gold deposits are not usually economic on their own, Cluff Lake produced over 16,000 ounces in 1987. High gold grades have also been reported from the Shea Creek JV of UEX Corp TSX:UEX and AREVA Resources Canada, as well as Patterson Lake South.

Of three 1979 drill holes in and around the Star uplift, none were assayed for gold, Dahrouge says. “But when you look at the geologists’ descriptions, they’re remarkably similar to the outcrop samples that did contain gold. So this type of alteration is fairly extensive and appears to be documented in the subsurface by drill logs.”

All things considered, the Star/Gibbon’s Creek project warrants very extensive exploration, Dahrouge maintains. Immediate plans are under discussion but could include a regional geochemical survey and additional geophysics over the alteration. The goal is to begin drilling this winter, if not sooner. “There are reams and reams of historic data that we can work with in conjunction with what we’re collecting now, so I think we can develop some realistic drill targets.”

“All the permitting’s done. We have shallow depths to the unconformity. There are no lakes or rivers so we can work year-round. The project’s just a few kilometres from a community, so we can drive to it.” Lakeland’s also sufficiently cashed up to finance the program.

“This is a regional structure,” Dahrouge emphasizes. “It’s very lengthy and there’s mineralization of various types spread out over at least five kilometres. It’s either a very big system that’s diffuse and not going to yield an ore body, or it’s more typical of these alteration systems, where if you get smoke there’s a fire somewhere. And now it’s a matter of finding that fire.”

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

Lakeland Resources regains Gibbon’s Creek uranium project

September 29th, 2014

This story has been updated and moved here.

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

July 12th, 2014

Uranium news from Saskatchewan and elsewhere for June 28 to July 11, 2014

by Greg Klein

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NexGen extends Arrow’s reach at Rook 1

The first six summer holes at the Rook 1 project’s Arrow zone have more than doubled the potential strike, NexGen Energy TSXV:NXE stated July 7. Radiometric measurements extended the 215 metres determined by eight winter holes to a potential 470-metre strike open in all directions.

Although assays have been released for the winter program, the company bases its summer results on radiation readings from a gamma spectrometer and a gamma probe. The results are no substitute for assays, which are pending.

Some of the highlights include hole RK-14-37, which totalled a composite 8.1 metres of “off-scale” radioactivity straining the spectrometer’s limit of 9,999 counts per second. The drill hit 17 anomalous intercepts totalling a composite 78.05 metres of mineralization within a 227.8-metre section beginning at 378 metres in downhole depth.

RK-14-34 found 29 intercepts totalling a composite 100.6 metres of mineralization within a 627.9-metre section that started at 221.4 metres in depth.

RK-14-31 found 35 intercepts totalling 125.8 metres of mineralization within a 430.7-metre section beginning at 221.4 metres in depth.

True widths weren’t provided. All six Arrow holes, which totalled 4,324 metres, showed visible mineralization. One hole is still in progress.

About 200 metres away, the Dagger area took in four holes totalling 1,349 metres without showing anomalous radioactivity. In addition to further Arrow drilling, “preparations have been made for regional drilling to continue at Area K (Dennis Lake),” the company stated.

Rook 1 straddles the southwestern rim of the Athabasca Basin, on the northeastern border of Fission Uranium’s (TSXV:FCU) Patterson Lake South.

Fission Uranium drills 12.35% U3O8 over 13.5 metres, 4.68% over 25 metres at PLS

More high-grade assays from Fission Uranium continue to build Patterson Lake South’s R780E zone, focus of the highly anticipated maiden resource scheduled for December. Of nine holes released July 2 from last winter’s infill drilling, all showed mineralization. A half dozen brought especially impressive results. Some highlights include:

Hole PLS14-170

  • 0.35% uranium oxide (U3O8) over 58 metres, starting at 135.5 metres in downhole depth
  • (including 1.2% over 5.5 metres)
Fission drills 13.5 metres of 12.35%, 25 metres of 4.68% at Patterson Lake South

With 39 winter holes still to report,
Fission Uranium has embarked on
a 63-hole summer campaign.

  • 0.31% over 12 metres, starting at 202 metres

  • 2.9% over 20 metres, starting at 217.5 metres
  • (including 8.35% over 4 metres)

  • 0.58% over 11 metres, starting at 260 metres

Hole PLS14-174

  • 0.8% over 25 metres, starting at 105 metres
  • (including 3.45% over 1.5 metres)
  • (and including 2.8% over 1 metre)
  • (and including 4.39% over 1.5 metres)

  • 0.87% over 13.5 metres, starting at 135 metres
  • (including 9.24% over 1 metre)

Hole PLS14-175

  • 0.7% over 21 metres, starting at 120.5 metres
  • (including 3.35% over 2.5 metres)

  • 0.38% over 26 metres, starting at 144 metres
  • (including 1.44% over 2.5 metres)

Hole PLS14-178

  • 0.12% over 25.5 metres, starting at 135.5 metres

  • 0.19% over 15 metres, starting at 164.5 metres

Hole PLS14-179

  • 2.99% over 1 metre, starting at 184.5 metres

  • 2.25% over 8.5 metres, starting at 244 metres

Hole PLS14-180

  • 0.44% over 21 metres, starting at 136.5 metres
  • (including 3.45% over 2 metres)

  • 4.68% over 25 metres, starting at 165 metres
  • (including 18.56% over 5.5 metres)

Hole PLS14-186

  • 12.35% over 13.5 metres, starting at 157 metres
  • (including 23.41% over 7 metres)

  • 1.52% over 2.5 metres, starting at 175 metres

  • 0.9% over 7 metres, starting at 188 metres
  • (including 3.61% over 1.5 metres)

True widths weren’t provided. With five PLS zones stretching east-west along a 2.24-kilometre potential strike, Fission Uranium stated these results show “the continued strong nature of uranium mineralization as the R780E zone moves eastwards.”

Still to come are assays for 39 holes from the 92-hole winter campaign. One week before unloading this latest batch of results, the company announced a 20,330-metre, 63-hole summer program that would eat $12 million of this year’s $28-million budget. As was the case last winter, most of the drilling will focus on delineation for a December resource.

Gold, PGEs and REEs suggest a “robust hydrothermal system” at Lakeland Resources’ Star uranium project

Recently compiled data shows potential for a regional hydrothermal system on Lakeland Resources’ (TSXV:LK) Star uranium property, adjacently north of the company’s Gibbon’s Creek joint venture. That’s the verdict for samples taken last year, which assayed for gold, platinum group elements and rare earth elements, as well as uranium.

The Star property covers “a quasi-circular basement uplift,” a feature considered “an ideal location for the development of uranium occurrences associated with the unconformity or sub-unconformity of the Athabasca Basin,” the company stated July 8.

One outcrop sample assayed 5.7 grams per tonne gold, 0.36 g/t platinum and 0.39 g/t palladium. Another showed 1.8 g/t gold, 0.08 g/t platinum and 0.12 g/t palladium.

A sandstone boulder revealed 257 ppm uranium and 0.3% total rare earth oxides, including 1,216 ppm dysprosium and 321 ppm yttrium. Another outcrop sample showed 6.9% TREO, predominantly light REE-enriched.

The assays further indicate potential for a regional hydrothermal system as “demonstrated by intense alteration associated with historic uranium mineralization within the Gibbons Creek property located immediately to the south,” Lakeland stated. “Within the Athabasca Basin, there are a number of projects where highly anomalous precious metals and/or rare earth elements occur in spatial relation to uranium deposits and/or mineralization. Examples of such mineralization include the Nicholson Bay and Fish Hook Bay uranium-gold-platinum group elements occurrences, and the MAW zone-Wheeler River occurrences.”

The Star project’s now slated for a near-term mapping and sampling program. Lakeland may earn a 100% interest in the property by paying $60,000 and issuing 600,000 shares over 12 months. The vendor retains the option of a 25% buyback for four times Lakeland’s exploration expenses.

Declan Resources TSXV:LAN has an option to earn 70% of the adjacent Gibbon’s Creek JV, which has shown boulder samples grading up to 4.28% U3O8 and some of the Basin’s highest-ever radon readings.

With an acquisition announced late last month, Lakeland now holds interests in 17 properties totalling 164,316 hectares in and around the Basin.

GoviEx debuts on CSE, orders enviro/social assessment for Niger project

The company began public trading just last month but GoviEx Uranium CSE:GXU has been advancing its Madaouela project in Niger since 2008. On July 2 the company announced contracts to complete an environmental and social impact assessment expected to “culminate the detailed feasibility study and environmental work already undertaken.”

Uranium news from Saskatchewan and elsewhere for June 28 to July 11, 2014

Backed by Toshiba and a Cameco subsidiary, GoviEx’s
Madaouela project in Niger moves towards feasibility.

As of March 2013 Madaouela’s seven deposits showed resources totalling 22.92 million pounds uranium oxide-equivalent (eU3O8) measured, 75.3 million pounds indicated and 24.1 million pounds inferred. Included are probable reserves of 25,300 tonnes.

Five of the deposits “have been developed to pre-feasibility level of confidence,” the company states.

The July 2 announcement quoted GoviEx chief executive Daniel Major, “Through the use of proprietary technologies never before used in Niger, our project team has presented a commercially viable project and one that seeks to limit its impact on the environment with a particular focus on limitation of dust, reduction in water usage and commercialization of the molybdenum byproduct resource.”

Executive chairman Govind Friedland’s bio lists a number of accomplishments even after he took part in the 1996 Voisey’s Bay discovery. Friedland went on to graduate from the Colorado School of Mines, provided business development services to Ivanhoe Mines and Ivanhoe Energy, and co-founded Ivanhoe Industries. Yes, he’s the son of that Friedland.

Two Niger mines operated by AREVA produce 7.5% of global supply, ranking the country as the world’s fourth-largest producer. While the government supports mining, the industry has been plagued by terrorist kidnappings and a bombing.

Fission 3.0, Azincourt report scintillometer results from PLN

One of four summer holes at Patterson Lake North shows anomalous radioactivity, JV partners Fission 3.0 TSXV:FUU and Azincourt Uranium TSXV:AAZ reported July 7. Two intercepts of 0.5 metres and 7.5 metres (not true widths) showed variable readings up to 1,450 counts per second on a hand-held scintillometer. Assays are pending.

The hole, PLN14-019, “is still in progress at 258 metres, although no further intervals of mineralization are expected,” the companies stated. The three other holes “intersected anomalous hydrothermal clay altered intervals, associated with structurally disturbed sections. This further highlights the partners’ confidence of the prospectivity and potential of the A1 conductor to host high-grade uranium mineralization.”

This summer’s five-hole program will total about 1,600 metres. Fission 3.0 acts as operator on the 27,408-hectare property, where Azincourt has a 50% earn-in.

Last April the companies reported that winter drilling failed to find radioactivity but did “confirm the high prospectivity of the target areas.”

In late May Azincourt and Macusani Yellowcake TSXV:YEL stated they would extend to June 15 a letter of intent to consolidate their Peruvian assets. That date passed without further announcement. (Update: The companies announced a definitive agreement on July 14.)

Those properties surround a project held by Fission 3.0, which holds interests in nine others in Saskatchewan and Alberta. Along with JV partner Brades Resource TSXV:BRA, Fission 3.0 announced VTEM results from their Clearwater West project in May.

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Athabasca Basin and beyond

June 28th, 2014

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

by Greg Klein

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

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

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

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

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

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

Lakeland Resources expands exploration prospects with another Athabasca Basin acquisition

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

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

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

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

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

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

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

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

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

Paladin boosts Michelin M&I to 84.1 million pounds U3O8

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

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

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

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

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

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

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

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

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

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

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Athabasca Basin and beyond

June 7th, 2014

Uranium news from Saskatchewan and elsewhere for May 31 to June 6, 2014

by Greg Klein

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NexGen assays improve on radiometric results from Rook 1’s Arrow

Where previous radiometric results found uranium mineralization in seven of eight holes, the Arrow zone at NexGen Energy’s (TSXV:NXE) Rook 1 project now shows mineralization in all eight, according to assays released June 2. The company interprets the results to reveal “multiple parallel, steeply dipping, high-grade uranium mineralization zones within broader mineralized zones” and “continuity of uranium mineralization between holes.” The best results include:

Hole RK-14-30

  • 2.94% uranium oxide (U3O8) over 6.2 metres, starting at 475 metres in downhole depth
  • (including 5.81% over 2.6 metres)
Uranium news from Saskatchewan and elsewhere for May 31 to June 6, 2014

  • 2.51% over 10 metres, starting at 508 metres
  • (including 5.84% over 0.5 metres)
  • (and including 10.26% over 1.7 metres)

  • 1.51% over 4.9 metres, starting at 549.4 metres
  • (including 12.5% over 0.4 metres)

  • 1.61% over 8.4 metres, starting at 570.6 metres
  • (including 8.57% over 0.25 metres)
  • (and including 11.6% over 0.35 metres)
  • (and including 5.1% over 0.3 metres)

Hole RK-14-27

  • 1.04% over 29 metres, starting at 235 metres
  • (including 23.5% over 0.4 metres)
  • (and including 9.42% over 1.1 metres)

Hole RK-14-21

  • 0.37% over 5.75 metres, starting at 517.25 metres
  • (including 5.77% over 0.25 metres)

True widths weren’t provided.

Some of the intercepts showed “very minor” intervals of elevated copper and lead but “potentially deleterious elements such as arsenic, selenium, cadmium and mercury generally constitute only background levels,” NexGen stated. “Arrow is essentially a mono-mineralic uranium deposit without noticeable deleterious metals or waste.”

Winter drilling at Rook 1 consisted of 17 holes totalling 7,442 metres but February’s Arrow discovery suddenly shifted focus to the new area. Arrow’s potential strike currently reaches about 215 metres, open in all directions and at depth, NexGen has stated. More drilling’s planned for summer on the property adjacently east of Fission Uranium’s (TSXV:FCU) Patterson Lake South.

Denison releases two high-grade Wheeler River assays, outlines summer plans

Also improving on previous radiometric results—and not for the first time at that project—Denison Mines TSX:DML released assays for two holes at Wheeler River’s new Gryphon zone on June 3:

Hole WR-556

  • 15.3% U3O8 over 4 metres, starting at 697.5 metres in downhole depth

Hole WR-560

  • 21.2% over 4.5 metres, starting at 759 metres

True widths were estimated at about 75%. The zone remains open in both strike directions and at depth, Denison stated.

In April the company released a batch of high-grade assays from Zone A of Wheeler’s Phoenix deposit, three kilometres southeast of Gryphon. A Phoenix resource is expected this month. But summer drilling will concentrate on Gryphon, which is slated for an 18-hole, 14,000-metre program. “Most of the drilling will consist of 50-metre step-outs along strike and down dip of the new discovery,” Denison stated. “Some of the holes will also complete drill fences 800 metres along strike to the northeast and southwest of Gryphon.” Work begins in mid-June.

With a 60% interest in the project, Denison acts as operator. Cameco Corp TSX:CCO holds 30% while JCU (Canada) Exploration holds the remainder.

Drills will also turn at three other Denison interests this summer. Crawford Lake and Bachman Lake, two more Denison-operated projects, get follow-up work on alteration zones found last year and on anomalies revealed by last winter’s geophysics. Denison holds 100% of Crawford and 80% of Bachman, where International Enexco TSXV:IEC holds the rest.

On June 4 Enexco security holders approved their company’s takeover by Denison.

Exploration drilling at the McClean Lake project will test geophysical anomalies near the McClean South deposit. McClean Lake is held 22.5% by Denison, 70% by project operator AREVA Resources Canada and 7.5% by OURD Canada. In all, the four properties get about 21,000 metres of drilling.

Additionally, Denison has geophysics planned for five properties.

Last month the company announced a $15-million budget for Canadian exploration focusing on the eastern Athabasca Basin.

UEX reports drill results from Laurie and Mirror River JV

UEX Corp TSX:UEX announced drill results from its Laurie and Mirror River projects on June 5. Joint venture partner AREVA Resources Canada acts as operator on both, located about 35 and 55 kilometres respectively east of PLS.

Five holes totalling 1,803 metres at Laurie failed to find significant radioactivity or geochemical values. But they did confirm existence of three conductors at the unconformity and found a large fault zone which will be tested for possible up-dip continuation at the unconformity.

Nor was significant radioactivity encountered in three Mirror River holes totalling 1,579 metres, although one of two conductors was confirmed.

However the projects “remain vastly underexplored and have extensive untested EM conductors that warrant additional drilling,” UEX stated.

Another western Basin project, Erica now undergoes a ground tensor magneto-telluric survey to further examine a conductive trend found by previous geophysics.

All three projects are part of a seven-property, 116,137-hectare western Basin JV package held 49.1%/50.9% by UEX and AREVA Resources Canada. Major UEX projects consist of Shea Creek and Hidden Bay, the former also held 49.1%/50.9% with AREVA, the latter held 100% by UEX. In April the company reported six holes from Black Lake, a JV with Uracan Resources TSXV:URC.

On June 6 UEX announced shareholders re-elected their board and approved management resolutions.

Pistol Bay announces winter drill results from C-5

On June 4 Pistol Bay Mining TSXV:PST released assays for two of six holes from last winter’s 3,344-metre campaign at the C-5 property, where Rio Tinto Canada Uranium Corp acts as operator. Results for hole 14CBK003 showed:

  • 0.054% U3O8 over 1.5 metres, starting at 366 metres in downhole depth
  • (including 0.071% over 0.5 metres)

Located 50 metres northeast and along strike, 14CBK005 showed:

  • 0.041% over 0.32 metres, starting at 379.82 metres

  • 0.022% over 1 metre, starting at 385 metres

True widths weren’t provided. Due to high core loss, assays for 14CBK003 “are not considered truly reflective of the mineralization,” Pistol Bay stated.

The C-4, C-5 and C-6 properties comprise a JV with Rio covering 1,624 hectares adjoining the Denison/Cameco/JCU Wheeler River project. Rio has earned 55% by paying Pistol Bay $147,000 and spending $1 million on exploration so far. The mining giant’s subsidiary may increase its stake to 75% by spending another $1 million by year-end.

Pistol Bay also holds interests in copper-gold properties contiguous with Colorado Resources’ (TSXV:CXO) North ROK discovery and Imperial Metals’ (TSX:III) Red Chris mine in British Columbia, and in a graphite property in Ontario.

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Athabasca Basin and beyond

April 6th, 2014

Uranium news from Saskatchewan and elsewhere for March 29 to April 4, 2014

by Greg Klein

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Fission Uranium stretches strike with new zone at Patterson Lake South, closes $28.75-million financing

Step-out drilling has added a new zone to Fission Uranium’s (TSXV:FCU) Patterson Lake South, shortly after infill drilling had merged other zones. Announced March 31, zone R1620E lies 465 metres east of R1155E, extending the project’s potential strike from 1.78 kilometres to 2.24 kilometres.

The results come from a hand-held scintillometer that measures gamma radiation from drill core in counts per second. Scintillometer readings are no substitute for assays, which are pending.

Uranium news from Saskatchewan and elsewhere for March 29 to April 4, 2014

The road to Patterson Lake South, where Fission has four
of its five rigs trying to merge zones into one big deposit.

Six new holes all showed mineralization, with the new zone’s inaugural hole, PLS14-196, revealing a 30-metre interval ranging between 300 cps and 6,100 cps starting at 99 metres in downhole depth. The maximum that the scintillometer can measure is 9,999 cps. Drilling on PLS14-196 continues.

Among other holes, PLS14-190, south of zone R1155E, “suggests that further step-outs to the south may be prospective,” the company stated.

Starting from the west, zone R600W has both a 30-metre east-west strike and a 30-metre north-south lateral width. About 510 metres east, discovery zone R00E has a strike of approximately 165 metres and a lateral width up to about 45 metres. Another 135 metres east sits R780E, with about 855 metres in strike and up to about 95 metres in lateral width.

Neighbouring 75 metres east, R1155E so far has just three mineralized holes. Fission Uranium declared the new zone, 465 metres east again, on the basis of a single hole over conductor PL-3C, “the suspected 1.3-kilometre-long strike extension of the mineralized PL-3B conductor” at an interpreted cross-fault, the company added.

So far 63 of a planned 100 holes totalling 30,000 metres have been sunk. The winter budget comes to $12 million but on April 1 the company announced its most recent private placement closed with gross proceeds of $28.75 million.

Three days later Fission Uranium granted insiders 6.5 million options at $1.65 for five years.

NexGen’s best-ever hole extends strike at Rook 1’s Arrow zone

NexGen Energy TSXV:NXE ended its Rook 1 winter drill program with a “massive” step-out showing the project’s best hole yet. Results for three holes released March 31 lengthen the strike to about 215 metres, open to the southwest.

The winter campaign comprised 17 holes totalling 7,442 metres, but it wasn’t until late February that the Arrow discovery diverted attention to this new zone of the PLS-adjacent project. A second hole in early March contributed to the company’s optimism. In all, seven of eight Arrow holes so far have found significant mineralization.

The results come from a hand-held spectrometer that measures drill core for radiation in counts per second. As is the case with Fission Uranium’s scintillometer readings, the results are no substitute for assays, which NexGen expects to see in about six weeks.

NexGen reports radiometric readings differently than Fission Uranium, providing a more detailed breakdown of small intercepts.

The step-out, hole RK-14-30, found a composite 47.2 metres (not true widths) of anomalous intercepts at least 0.05 metres wide measuring over 500 cps. A total of 8.3 metres surpassed the spectrometer’s maximum possible reading of 9,999 cps. Mineralization began at 84.15 metres in downhole depth, with the deepest intercept stopping at 701.45 metres.

RK-14-29 also revealed many small intercepts, with the first starting at 50.6 metres in downhole depth and the last ending at 569 metres.

RK-14-28 intercepts started at 87 metres in downhole depth, with the last ending at 549 metres.

Having closed an $11.5-million bought deal the previous week, NexGen now has about $15 million to spend. Spring breakup work will include detailed petrography and petrophysics before drilling resumes in the summer.

Denison drills 17.3% eU3O8 over 4.2 metres at new Wheeler River zone

Denison Mines TSX:DML reported a second hole on April 2 that supports last month’s discovery of the Gryphon zone at the Wheeler River JV. WR-560 was drilled 40 metres along the up-dip extension of the first hole, revealing one especially high-grade interval. The results come from a downhole probe that measures radiation in uranium oxide-equivalent (eU3O8). Although the probe is more accurate than a scintillometer or spectrometer, its readings are no substitute for assays. Nevertheless they show:

  • 0.1% eU3O8 over 1.3 metres, starting at 653.5 metres in downhole depth

  • 0.1% over 4.1 metres, starting at 676.2 metres

  • 17.3% over 4.2 metres, starting at 757.9 metres

  • 0.3% over 2.6 metres, starting at 770.7 metres

True widths are estimated at about 75%. Denison interprets these results “to be a new lens in the footwall, about 50 metres northwest of the high-grade intersection in WR-556,” Gryphon’s discovery hole. Mineralization lies approximately 200 metres beneath the unconformity and remains open in both strike directions and at depth, the company stated.

With spring break-up underway, drilling is expected to resume in early June, largely focusing on the new find. Gryphon is three kilometres northwest of the project’s Phoenix deposit, which produced a batch of drill results in February.

Denison holds a 60% interest in Wheeler and acts as operator. Cameco Corp TSX:CCO holds 30% and JCU (Canada) Exploration the rest.

Declan picks up six Alberta and Saskatchewan properties

Calling it a “six-pack” of new properties, Declan Resources TSXV:LAN announced a package of Alberta and Saskatchewan acquisitions in and around the Basin on April 1. Totalling roughly 101,000 hectares, the properties include Maurice Creek in Alberta, immediately northwest of the Northwest Athabasca project, a JV involving Cameco, Forum Uranium TSXV:FDC and NexGen that hosts the historic Maurice Bay deposit.

Two other Alberta properties, Maybelle North and Richardson River, “cover potential northerly extensions to the structure which is host to a significant uranium deposit at Dragon Lake along the Maybelle River shear zone,” Declan stated.

The other properties are Archer Lake and Jackfish Creek, also in Alberta, and Thorburn Lake in Saskatchewan.

The optioner gets $25,000 and 2.5 million shares on TSXV approval, another $125,000 within a year and a 3% gross overriding royalty with a 1% buyback clause for $1 million. To keep the properties in good standing Declan must spend $225,000 by April 17.

Declan also announced changes to its board, which now consists of David Miller, Wayne Tisdale, Michelle Gahagan, Hikmet Akin, Gordon King, Jamie Newall and Craig McLean.

Declan’s flagship is Gibbon’s Creek, a joint venture with Lakeland Resources TSXV:LK.

International Enexco reports new radiometric results from Mann Lake

The latest hole from its Mann Lake JV suggests the project has at least 300 metres of mineralized trend within the footwall of the western conductor target, International Enexco TSXV:IEC stated April 3. The results come from a downhole radiometric probe and are no substitute for assays.

Sunk 150 metres north of the project’s best interval so far, hole MN-065 showed:

  • an average 3.67% eU3O8 over 1.2 metres, starting at 689.8 metres in downhole depth

  • (including an average 6.51% over 0.7 metres)

  • (which includes an average 11.02% over 0.3 metres)

True widths weren’t available.

So far eight holes have tested about 1.8 kilometres of the target, which the company says remains prospective for its entire 3.1-kilometre length. Enexco anticipates follow-up drilling next winter along the conductor and on other areas. The southeastern Basin project is operated by JV partner Cameco, which holds 52.5%, leaving Enexco with 30% and AREVA Resources Canada 17.5%.

But how long Enexco will be involved depends on the outcome of Denison’s most recent acquisition activities. The two companies signed a letter of intent last month for an all-share deal that would give Denison all of Enexco’s Basin properties while spinning out the others. The companies currently JV on another southeastern Basin property, Bachman Lake.

Uracan/UEX drill results suggest prospective target at Black Lake

Black Lake partners Uracan Resources TSXV:URC and UEX Corp TSX:UEX reported the first six holes from their northern Basin JV on April 2, with one mineralized hole suggesting a new target. BL-148 showed:

  • 0.13% U3O8 over 0.5 metres, starting at 275 metres in downhole depth

  • 0.04% over 0.5 metres, starting at 299.5 metres

  • 0.12% over 1 metre, starting at 317 metres

True widths weren’t provided. The three intervals occur up to 19 metres below a footwall unconformity between the basement and sandstones, representing a mineralization style that “has not been encountered previously in this area of the property and represents a new prospective target,” the companies stated.

Next in line is a ground DC resistivity survey to precede further drilling and field work. Uracan may earn 60% of the 30,381-hectare project from UEX, which holds an 89.99% interest. AREVA Resources Canada holds the remaining 10.01%. UEX acts as operator.

Previous Black Lake drilling has found intervals as high as 0.69% over 4.4 metres, starting at 310 metres in downhole depth, 0.79% over 2.82 metres, starting at 310 metres, and 0.67% over 3 metres, starting at 274 metres.

The property borders Gibbon’s Creek, where JV partners Lakeland and Declan have reported boulder samples grading up to 4.28% and some of the Basin’s highest-ever radon readings.

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