Uranium news from Saskatchewan and elsewhere to December 5, 2014
by Greg Klein
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Fission strikes 3.72% U3O8 over 64.5 metres, delays maiden resource
All assays are in but Fission Uranium’s (TSX:FCU) highly anticipated resource for Patterson Lake South seems to have been put off. The milestone was originally scheduled for this month but in a December 1 statement president/COO Ross McElroy said, “We expect to be able to release preliminary results by early 2015.” Meanwhile the company announced last summer’s final 18 delineation holes, again flaunting the PLS trademark of high grades at shallow depths.
This batch comes entirely from R780E, by far the biggest of four zones along a 2.24-kilometre potential strike. R780E itself now extends about 164 metres at its widest point and 905 metres in strike, remaining open in all directions. The upcoming resource will focus on zones R780E and R00E.
Some of the best December 1 assays follow.
- 0.2% U3O8 over 26 metres, starting at 137.5 metres in downhole depth
- (including 1.26% over 2 metres)
A summer of round-the-clock drilling brought the
final assays prior to Patterson Lake South’s first resource.
- 0.31% over 9 metres, starting at 171 metres
- (including 1.96% over 1 metre)
- 13.84% over 10 metres, starting at 71.5 metres
- (including 29.29% over 4.5 metres)
- 0.48% over 13 metres, starting at 117.5 metres
- (including 1.17% over 4.5 metres)
- 0.83% over 30 metres, starting at 131 metres
- (including 2.09% over 10.5 metres)
- 1.24% over 6.5 metres, starting at 163.5 metres
- (including 2.5% over 2.5 metres)
- 0.4% over 14.5 metres, starting at 251.5 metres
- (including 1.02% over 4 metres)
- 0.54% over 9 metres, starting at 177 metres
- (including 3.84% over 1 metre)
- 2.61% over 9 metres, starting at 257.5 metres
- (including 8.61% over 2.5 metres)
- 0.96% over 7.5 metres, starting at 287.5 metres
- (including 2.56% over 2 metres)
- 0.36% over 15 metres, starting at 299 metres
- 7.91% over 21.9 metres, starting at 61.1 metres
- (including 17.3% over 9.5 metres)
- 0.42% over 30.5 metres, starting at 86.5 metres
- 1.49% over 4.5 metres, starting at 96 metres
- 3.72% over 64.5 metres, starting at 133.5 metres
- (including 32.53% over 6.5 metres)
- 2.34% over 11 metres, starting at 198.5 metres
- (including 11.74% over 2 metres)
- 0.8% over 10.5 metres, starting at 61 metres
- (including 1.77% over 4 metres)
- 0.27% over 21 metres, starting at 111 metres
- 0.7% over 33 metres, starting at 174 metres
- (including 2.21% over 3 metres)
- (and including 2.2% over 4 metres)
- 0.52% over 22.5 metres, starting at 184 metres
- (including 1.39% over 3 metres)
- 2.21% over 5.5 metres, starting at 210 metres
- (including 6.76% over 1.5 metres)
- 1.51% over 13.5 metres, starting at 246.5 metres
- (including 2.38% over 5 metres)
True widths weren’t available.
Fission noted that scissor drilling brought “vastly improved strength of mineralization on section 735E.” Oriented opposite to the south-to-north holes, they “provide geometry control and confirmation on the mineralization.” One scissor hole hit the star assay for this batch, 3.72% U3O8 over 64.5 metres, in an area that had previously seen only moderate results, the company stated.
With assays for 22 exploration holes still pending and a winter program in the planning stages, speculation remains on whether the company will spend more time testing the property’s lesser-known areas.
Denison drills 22.2% U3O8 over 2.5 metres at Wheeler River
The final batch of assays from Gryphon’s summer season at Denison Mines’ (TSX:DML) Wheeler River property revealed the zone’s highest grade so far, 22.2% U3O8 over 2.5 metres. Announced December 2, that hole was also the deepest, making down-plunge extensions a priority for the next round of drilling, scheduled to start next month.
As usual, the chemical assays generally show better grades than the previously reported U3O8-equivalents that came from a downhole gamma probe.
Some highlights include:
- 8.8% U3O8 over 2.5 metres, starting at 757.5 metres in downhole depth
- 1.9% over 1 metre, starting at 761.5 metres
- 2.5% over 1 metre, starting at 651.1 metres
- 9.5% over 1 metre, starting at 675.5 metres
- 1.8% over 1 metre, starting at 714.5 metres
- 2.1% over 1 metre, starting at 717.5 metres
- 22.2% over 2.5 metres, starting at 768 metres
- 1.5% over 1 metre, starting at 779 metres
- 5% over 2 metres, starting at 665 metres
- 1.5% over 1 metre, starting at 675.5 metres
- 14.6% over 2 metres, starting at 696.5 metres
- 2.7% over 2 metres, starting at 626.5 metres
The company estimates true widths at about 75%.
Wheeler River’s summer program comprised 20 holes totalling 14,937 metres, all of it at or near the newly discovered Gryphon zone.
Meanwhile, as a result of metallurgical testwork from the project’s Phoenix deposit, “a high-purity yellowcake product was produced that met all ASTM C967-13 specifications,” Denison stated. The sample grade was 19.7% U3O8, close to the average for Phoenix, which hosts 70.2 million pounds indicated.
The company closed a $14.99-million private placement in August.
With a 60% interest in Wheeler River, Denison acts as project operator. Cameco Corp TSX:CCO holds 30% of the 11,720-hectare southeastern Athabasca Basin property, leaving JCU (Canada) Exploration with the other 10%.
Lakeland Resources boosts portfolio, offers $1.88-million private placement
All acquired by staking, four new properties and five property expansions announced by Lakeland Resources TSXV:LK on November 19 increase the company’s portfolio by 40,218 hectares in and around the Basin.
The five expansions cover targets identified by historic data. Among the highlights is the 4,753-hectare addition to Lazy Edward Bay, which underwent extensive field work last summer. Now totalling 31,128 hectares, the project features eight exploration trends, many of them drill-ready. Other additions came to Lakeland’s Riou Lake, Hawkrock Rapids, Small Lake and Fedun Lake properties.
Of the new land, the 1,508-hectare Carter Lake property covers part of the Carter Lake Structural Corridor, parallel to the Patterson Structural Corridor hosting the discoveries of Fission and NexGen Energy TSXV:NXE.
If you look back to 2006 and 2007, there were probably 60 to 70 juniors active in the Basin. Right now you’ve got about 20. So if we do see this [price] resurgence continue, we’ll have that opportunity to link up with JV and strategic partners and get as many drills turning as we possibly can.—Jonathan Armes, president/CEO of Lakeland Resources
Cable Bay, a 1,077-hectare property on the Basin’s southern rim, benefits from extensive geophysics showing a trend of graphitic meta-sedimentary rocks in the basement, below 10 metres or less of Athabasca sandstone.
The 6,479-hectare Highrock property on the Basin’s southeastern margin features a moderately strong conductor that has yet to see follow-up work.
Extending beyond the Basin’s eastern rim, the 8,889-hectare Wright River project underwent an airborne survey showing a radiometric anomaly in the property’s centre. Regional lake sediment samples have graded up to 61 ppm.
Early new year plans include a 1,500-metre program on Star/Gibbon’s Creek, two adjacent properties forming one project on the Basin’s north-central rim. Also drill-ready are Lazy Edward Bay and, east of Star/Gibbon’s, Newnham Lake. More funding is expected from a $1.88-million private placement announced December 4.
“There’s not that much ground left to be had in the Basin,” Lakeland president/CEO Jonathan Armes tells ResourceClips.com. “Most of what we see as quality ground is not available. If you look back to 2006 and 2007, there were probably 60 to 70 juniors active in the Basin. Right now you’ve got about 20. So if we do see this [price] resurgence continue, we’ll have that opportunity to link up with JV and strategic partners and get as many drills turning as we possibly can.”
Read more about Lakeland Resources.
NexGen plans 18,000 metres for Rook 1, updates other properties
Funded by an $11.5-million private placement that closed last month, NexGen plans a three-rig, 18,000-metre program to start in January. Work will focus on Rook 1’s Arrow zone and along strike to the northeast and southwest, but will also test some of the project’s regional targets, the company stated on December 3. An infill ground gravity survey will precede the drilling.
Now complete are airborne VTEM and magnetometer surveys over Rook 1 as well as additional nearby land that has had little or no previous mention from NexGen, the “SW2 property portfolio which includes Bishop 1 and 2, Meanwell and R-7 claims.” Winter plans include a radon-in-water survey.
NexGen also updated what it calls its “SW3 project portfolio (Rook 2, Sandhill and Dufferin).” Rook 2 and Sandhill underwent airborne gravity surveys. Dufferin got airborne VTEM and magnetometer surveys, as did the eastern Basin Madison and 2Z Lake properties.
Rook 1 covers all the southwestern Basin’s major uranium-bearing conductor corridors, according to the company. Still pending are assays from 16 summer holes on Arrow. In October the company claimed one of the Basin’s best-ever drill results.
UEC reports 77% increase in Burke Hollow’s inferred resources
Seven trends at Uranium Energy Corp’s (NYSE MKT:UEC) Burke Hollow project in Texas now have total inferred resources of 2.9 million tons averaging 0.09% for 5.12 million pounds U3O8. About 14,152 metres of drilling in 526 holes were used to calculate the 77% increase. UEC has three additional areas of the property under consideration for drilling.
Burke Hollow, potentially an in-situ recovery operation, has an application for a radioactive material licence and mine permit currently under review.
The 7,824-hectare project lies about 80 kilometres from the company’s Hobson processing plant, the centrepiece of UEC’s “hub and spoke” properties. The portfolio includes the Palangana ISR mine, the Goliad ISR development project and nearly two dozen exploration projects, two in Paraguay and the rest in the western U.S. The company released a preliminary economic assessment for its Anderson uranium project in Arizona last September, as well as a PEA for its Slick Rock uranium-vanadium deposit in Colorado last April.
On December 2 UEC stated it secured US$5.6 million of surety bonds to replace the same amount in reclamation deposits for future decommissioning. The bonds “require cash collateral of $1.7 million, allowing for the release of $3.9 million of previously restricted cash to the company.”
Last March the company received a two-year extension on a $20-million loan.
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