PRESTON URANIUM PROPERTY, ATHABASCA BASIN, SASKATCHEWAN, CANADA
WAY LAKE URANIUM PROJECT, EASTERN FLANK OF THE ATHABASCA BASIN
Skyharbour Resources (TSX-V: SYH) is a uranium exploration company actively advancing projects totaling over 390,000 hectares in the prolific Athabasca Basin of Saskatchewan, Canada. In May 2014, Skyharbour announced the purchase of 100% interests in the Way and Yurchison Lake Uranium Projects from Denison (TSX:DML) totaling 103,552 hectares on the east side of the Basin. At the Way Lake property, an initial NI 43-101 mineral resource estimate was released in 2012 on the property for the Fraser Lakes Zone B consisting of 7.0 million pounds U3O8 inferred at an average grade of 0.03% U3O8 and 5.3 million pounds ThO2 inferred at an average grade of 0.023% ThO2 within 10.4 million tonnes using a cutoff grade of 0.01% U3O8. On the north side of project at the Hook Lake target, high grade mineralization has been discovered with up to 48% U3O8 in historic grab samples from a massive pitchblende vein. The source of this high grade uranium mineralization has yet to be discovered.
Skyharbour also holds interest in one of the largest land packages strategically located near Fission Uranium’s (TSX-V: FCU) Patterson Lake South (“PLS”) high-grade uranium discovery (9.08% U3O8 over 54.5m in hole PLS 13-075) as well as NexGen Energy’s (TSX-V: NXE) recent discovery on their Rook 1 Project. These new discoveries demonstrate the potential for high-grade uranium on the margins of the western side of the Basin where significantly less exploration has been carried out. Skyharbour’s properties were acquired for their interpreted favourable geology for the occurrence of PLS style uranium mineralization.
Skyharbour is partners with three other companies in the Western Athabasca Syndicate which was formed to explore the PLS property package in an operationally effective, cost efficient manner. Each of the companies has an option to earn in 25% by incurring exploration expenditures over two years totaling a combined $6 million. Skyharbour is the operator of the project and will fund $1 million with the three partner companies funding the remaining $5 million. Fifteen high-priority drill target areas at the flagship Preston Project associated with eight prospective exploration corridors have been successfully delineated through the extensive exploration carried out thus far. A first-pass drill program was recently completed.
Skyharbour also has a 60% interest in the Mann Lake Uranium Project located on the east side of the Basin 25 km SW of Cameco’s McArthur River Mine. The project boasts highly prospective geology and geochemistry, and a robust discovery potential as identified by the historic work consisting of over $3 million in exploration including drilling. The property is also adjacent to the Mann Lake Joint Venture operated by Cameco (52.5%) with partners Denison Mines (30%) and AREVA (17.5%) where high-grade, basement-hosted uranium mineralization was recently discovered.
James G. Pettit
Position: Director, Chairman of the Board
Jim Pettit is a Director of Cypress Development Corp. Mr. Pettit is currently serving as a director on the Boards of 6 public resource companies and offers over 20 years of experience within the industry specializing in finance, corporate governance, management and compliance. He specializes in the early stage development of private as well as public companies. His background over the past 20 plus years has been focused primarily within the resource sector where he has managed and directed junior resource companies through good times and bad.
Jordan Trimble, B.Sc., CFA
Position: Director, President and CEO
Jordan Trimble is the President and Chief Executive Officer of Skyharbour Resources. Mr. Trimble holds a Bachelor of Science Degree with a Minor in Commerce from UBC and he is a CFA® charterholder. He has worked in the resource industry in various roles with numerous TSX Venture listed companies specializing in corporate finance and strategy, shareholder communications, marketing, deal structuring and capital raising. Mr. Trimble has an extensive network of institutional and retail investors as well as resource industry professionals bringing valuable relationships to the Company. He has appeared on BNN several times and has given presentations at numerous resource conferences across North America. Mr. Trimble has completed the Canadian Securities Course and Technical Analysis Course offered through CSI as well as several geology, exploration and mining courses.
Richard Kusmirski, P.Geo, M.Sc.
Position: Director, Head Technical Advisor, and Qualified Person
Rick Kusmirski, P.Geo, M.Sc., Head of Advisory Board, has over 40 years of exploration experience in North America and overseas, and has actively participated in the discovery of a number of uranium, gold and base metal deposits. For several years, in his capacity as Exploration Manager, he directed Cameco Corporation's (TSX: CCO) uranium exploration projects in the Athabasca Basin. In 1999, Rick joined JNR Resources becoming Vice President of Exploration in 2000. Subsequently, he directed the exploration program that led to the discovery of the Maverick Zone on the Moore Lake uranium joint venture in the Athabasca Basin in Saskatchewan with partner Kennecott Canada. Rick became JNR's President and CEO in January of 2001. In February of 2013, Denison Mines Corp. (TSX: DML) successfully acquired all of the outstanding shares of JNR by way of a friendly all-share take-over bid.
Donald C. Huston
Don Huston is a independent Director of Skyharbour Resources Ltd. He has been associated with the mineral exploration industry for over 30 years and has extensive experience as a financier and in-field manager of numerous mineral exploration projects in North America. He was born and raised in Red Lake, Ontario and spent 15 years as a geophysical contractor with C.D. Huston & Sons Ltd. as mineral exploration consultants in northern Ontario, Manitoba, and Saskatchewan. Mr. Huston serves as a Director of 5 Canadian public resource companies.
Amanda Chow, CMA
Amanda Chow serves as an independent Director of Skyharbour Resources Ltd. Ms. Chow is a Certified Management Accountant (CMA) and a graduate of Simon Fraser University where she earned her Bachelor of Business Administration degree. She began working with public companies in 1999.
Donald G. Myers
Don Myers serves as a non-executive Director of Skyharbour Resources Ltd. Mr. Myers is the Director of Corporate Communications at 98 Corporate Group Resources Ltd., which provides public company administrative management services including venture capital financing, business development, accounting and corporate communications. He has thirty years of experience in public company management and investor relations having helped raise over $350 million in venture capital for resource and technology companies listed on the TSX Venture or the NASDAQ and Toronto Stock Exchanges. Don's background includes holding the position of an independent director or as an executive officer providing the investor relations of several publicly traded Canadian resource and technology companies listed on the TSX Venture, the NASDAQ and the Toronto Stock Exchanges.
Thomas S. Drolet, BEng, MSc, DIC
Position: Technical Advisor
Mr. Drolet is a uranium and nuclear industry specialist and principal of energy consultancy Drolet & Associates Energy Services Inc. Mr. Drolet has had a plus-40-year career in the energy sector, where he spent 26 years with Ontario Hydro in various engineering, research and operations functions. He formed and headed Canada's research and development program into fusion (CFFTP) in 1982 and then moved into international commercial work with Ontario Hydro International, where he was named president and CEO in 1993. Mr. Drolet was then appointed managing director of American Electric Power Canada, and president of Canadian Energy Opportunities Inc. where he was involved in mergers, acquisitions and other consulting activities in the Canadian and U.S. power sectors. Mr. Drolet earned a bachelor's degree in chemical engineering from Royal Military College of Canada, a Master of Science degree in nuclear technology/chemical engineering, and a DIC from Imperial College, University of London, England. He is a frequent guest and keynote speaker on nuclear energy at global conferences.
- Largest land position and property package (approximately 700,000 acres) strategically located around Fission Uranium's (TSX-V: FCU) Patterson Lake South (“PLS”) high-grade uranium discovery on the western flank of the Athabasca Basin
- Adjacent to the South of NexGen Energy's (TSX-V: NXE) Rook 1 project (recently announced 'Arrow Discovery')
- Western Athabasca Syndicate consisting of Skyharbour Resources as the project operator, Athabasca Nuclear (TSX-V: ASC), Noka Resources (TSX-V: NX) and Lucky Strike Resources (TSX-V: LKY); the goal of the strategic partnership is to explore and develop its large uranium property package in the Basin
- $6,000,000 of exploration expenditures planned on the properties over the next two years of which Skyharbour will fund $1,000,000 with the three partner companies funding the remaining $5,000,000
- In the current market environment, Skyharbour believes the syndicate model is the most cost-efficient and operationally-effective structure to conduct a large exploratory program without substantial equity dilution to current and future shareholders
- Flagship property — Preston Uranium Project
- VTEM plus survey completed in August 2013 mapped over 300 kilometres of graphitic-type conductor segments, some approaching 10 kilometres in length, in the eastern blocks of the Preston Lake Property
- Initial interpretation of the radiometric data has identified areas with elevated uranium counts that can be correlated along and between multiple lines which may indicate the presence of radioactive boulder trains or in situ uranium mineralization
- Radon surveys successfully identified a number of radon in water anomalies occurring both as clusters and as discrete point anomalies in places that appear to follow basement conductor trends identified by the 2013 VTEM survey
- The 2013 exploration program saw a total of 42 rock, 653 soil, 404 radon in water, 181 radon in soil, 766 biogeochemical, and 253 lake sediment samples collected and analyzed, in addition to 1,046 square kilometres of airborne VTEM and 876 square kilometres of airborne radiometric surveys
- This was one of the largest regional exploration programs carried out in the Athabasca Basin during the year
- Fifteen high-priority drill target areas associated with eight prospective exploration corridors have been successfully delineated through this extensive summer airborne geophysics and ground evaluation
- Of the fifteen areas associated with the exploration corridors, the most prospective areas will be further assessed by grid based radon surveys as well as gravity and EM surveys; this program commenced in December and will extend through February, 2014
- The extensive field work data was used for final targeting for the first-pass drill program
- Initial drill program commenced in mid-March, 2014 with approximately 2,000 metres in 9 holes
- Seven of the holes intersected a broad, hydrothermally altered and reactivated, structural zone
- Five of the holes returned elevated radioactivity and intersected multiple graphitic units within sheared and altered basement lithologies
- The alteration commonly consists of pervasive chlorite, hematite and clay development; features which are common to uranium mineralization in the Athabasca Basin
- The Syndicate’s Technical Team considers these findings in the early stages of the first drill program to be a significant breakthrough towards locating shallow uranium mineralization
- Given the size of the property, exploration to date has only focused on approximately 40% the land package leaving significant exploration upside potential in untested areas
- Over $3.7 million has been invested thus far by the Syndicate in exploration on the property between geophysical surveys, follow-up ground work and drilling
PATTERSON LAKE AREA DISCOVERIES (SOUTHWEST ATHABASCA BASIN, SASKATCHEWAN)
Fission Uranium 2012 - 2014 Program: Patterson Lake South Project
Latest Update from the Field
- Multiple zones: Five open-ended mineralized zones situated along a 2.24 km strike trend.
- Shallow depth: Mineralization commences at the top of the bedrock surface at a depth of approximately 50 metres below the surface.
- Rapid progression: Discovery of high-grade uranium mineralization (R00E zone) in 4 drill holes over a 10m x 10m area was made in November 2012. In 2013 an additional 81 holes defined mineralization in 7 zones along a 1.78km trend. In Winter 2014 an additional 80 holes resulted in merging 4 mineralized zones (R390E, R585E, R780E and R945E) into one larger and more continuous zone (R780E) and further extended the strike length of the R780E zone an additional 125m
- Winter 2014 drilling: Drilling complete; final assays pending.
NexGen Energy 2013 - 2014 Program: Rook 1 (Arrow Discovery)
Latest Update from the Field
- New uranium discovery at the Arrow Target northeast of the PLS discovery
- RK-14-30 intersected 30 individual zones of uranium mineralization totaling 124.1 meters at 0.68% U3O8 weighted average
- Summer drill program recently commenced
SKYHARBOUR AND SYNDICATE'S EXPLORATION PROGRAM 2014
Winter Drill Program (March, 2014)
On March 17, 2014, Skyharbour and Syndicate commenced its inaugural diamond-drilling program on its flagship Preston Uranium Property in the southwest Athabasca Basin. Three initial target areas, out of a growing target base currently standing at fifteen, were selected by the Syndicate’s Technical Committee for immediate drilling based on encouraging fieldwork results and coincident anomalies from ground gravity, airborne and ground EM and magnetics (graphitic conductors and structures), radon, soil, biogeochem, lake sediment, and geological mapping surveys. This drill campaign represents the first modern-day drill exploration program on the Preston Uranium Property.
- Approximately 2,000 metre drill program
- 8-10 holes
- Depths of 100 metres - 350 metres
The majority of the work in this drill campaign will be focused on the Swoosh target where five separate drill pads will test a combination of EM conductors, complex structures, gravity lows, anomalous geochemistry and elevated radon values. This target is a high-priority area given the coincident geological, magnetic, EM, gravity and radon anomalies that are evidence of strong fluid interaction and potential uranium mineralization as seen at other recent discoveries in the region.
Six holes were completed to depths of between 200 and 360 metres downhole at the Swoosh target, while one hole was abandoned due to poor drilling conditions. Overburden depth varies from 4 to 38 metres and immediately overlies basement rock. All seven of the holes intersected a broad, hydrothermally altered and reactivated, structural zone. Five of the holes returned elevated radioactivity and intersected multiple graphitic units within sheared and altered basement lithologies. The alteration commonly consists of pervasive chlorite, hematite and clay development; features which are common to uranium mineralization in the Athabasca Basin. The Syndicate’s Technical Team considers these findings in the early stages of the first drill program to be a significant breakthrough towards locating shallow uranium mineralization. Additional field work and drilling is being planned at the Swoosh target for later in the year.
Phase 4: Winter Program (December, 2013 - February, 2014)
Of the fifteen high-priority areas associated with the exploration corridors, the most prospective areas are being further assessed by grid based radon surveys as well as gravity and EM surveys. This program commenced in December and will extend through February. Data from the winter program will be used for final targeting in advance of drilling anticipated to commence in March, 2014.
Jordan Trimble, President and CEO of Skyharbour, stated: “The initial data and findings from the first couple of phases of field work are very encouraging and have greatly exceeded our expectations. In particular, the highly anomalous radon discoveries coincident with prominent geophysical targets illustrate the prospectivity of our ground as we expeditiously forge ahead with the exploration at Preston Lake. We continue to advance and value-add the property, and our focus is now narrowing to high-priority areas as we refine targets to a drill-ready state.”
SKYHARBOUR AND SYNDICATE'S EXPLORATION PROGRAM 2013
Phases 2-3: Follow-Up Ground Program (August - November, 2013)
This first-pass phase of ground exploration, Phase 2, included boulder prospecting using hand held scintillometers, radon and silt sampling using both helicopter and boat support, geochemical and radon soil sampling, geological mapping and prospecting, and biogeochemical sampling. The Syndicate is employing a systematic, proven and cost-efficient exploration methodology that has led to numerous uranium discoveries in the region and throughout the Athabasca Basin.
During the Phase 2 fieldwork, water samples from lakes, local swamps and ponds were collected using a float equipped helicopter and boats. Sample targets included both regional reconnaissance areas and fourteen high-priority targets identified by the Syndicate’s Technical Committee from the Phase 1 Geophysical Surveys. The samples were analyzed for radon in the field by the geologists using a Pylon AB5 Series Portable Radiation Monitor which provides real time analysis of radon levels in both water and soil.
The survey successfully identified a number of radon in water anomalies occurring both as clusters and as discrete point anomalies. The larger clusters are typically kilometre-scale or greater and are in places that appear to follow basement conductor trends identified by the 2013 VTEM survey. Nine water samples collected returned radon values in excess of 23 pCi/l (picocuries per litre) with a peak value of 98 pCi/l. Further, two of the radon anomaly clusters are associated with areas identified as being underlain by metasediments. Anomalous radon in water readings are values above the survey background reading of 3 pCi/l.
Radon geochemistry of lake-bottom water, sediment, and ground is a well-known exploration tool in the Athabasca Basin of Northern Saskatchewan. Radon distribution around a body of uranium mineralization occurs primarily due to groundwater circulation and associated structural conduits, and develops subsequent to the formation of a uranium deposit making it a strong indicator for the presence of uranium mineralization. Radon anomalies coincident with basement conductors and associated structure are primary drill targets. Radon in water survey results were instrumental in identifying first pass drill targets at the nearby PLS discovery and helped vector in on most of the high-grade discovery zones (see Fission’s May 6, 2013 News Release – New Radon Survey Identifies Strongest Anomaly to Date).
In addition, a total of 217 km of scintillometer surveying was completed over areas of interest identified by the 2013 radiometric survey. A total of twenty-five discrete geographic areas on the Preston Lake Property have been identified with counts per second (cps) of greater than 1,000 using an RS-125/RS-120 Spectrometer / Scintillometer, with a maximum count of 5,200 counts per second. Two of the anomalies are associated with meta-sedimentary units.
A Phase 3 exploration program has also been completed at the Preston Lake Property. The program included ground work focused on high-priority areas identified from the findings to date, including the radon in water anomalies.
The 2013 summer exploration program (Phases 1 - 3) was completed in mid-October in which a total of 42 rock, 653 soil, 404 radon in water, 181 radon in soil, 766 biogeochemical, and 253 lake sediment samples were collected and analyzed, in addition to 1,046 square kilometres of airborne VTEM and 876 square kilometres of airborne radiometric surveys. This was one of the largest regional exploration programs carried out in the Athabasca Basin during the year, and totalled over $1.5 million in expenditures on the Preston Lake property.
Fifteen drill target areas associated with eight highly prospective exploration corridors have been successfully delineated through the extensive summer airborne geophysics and ground evaluation. Given the size of the property, exploration to date has only focused on approximately half of the land package leaving significant exploration upside potential in untested areas.
Phase 1: Airborne Geophysical Surveys
An aggressive work program is underway to systematically explore the Western Athabasca Syndicate Property Package using proven regional exploration methodologies. A VTEM plus time domain survey on the Preston Lake Property has been completed and this type of survey has been used to locate basement conductors similar to the structures that host the high-grade uranium discoveries at Fission's PLS project. A tightly spaced airborne radiometric survey was flown to locate uranium boulder trains and in-situ uranium mineralization. Phil Robertshaw (P.Geo., Saskatchewan) is reviewing the geophysical data and will be providing detailed interpretation of the VTEM plus and radiometric data. A sophisticated targeting matrix is being used to identify and prioritize areas for ground-based follow-up. Targets are being prioritized based on a detailed criteria set consisting of similar geological features and exploratory indicators present at the nearby PLS discovery.
The VTEM plus survey completed in August, 2013 mapped over 300 kilometres of graphitic-type conductor segments, some approaching 10 kilometres in length, in the eastern blocks of the Preston Lake Property. Basement geological trends in the furthest western block are oriented NW-SE, while those in the eastern blocks are W-SW to E-NE which is similar to Fission's PLS high-grade uranium discovery area. Cross-cutting structural features and flexures affecting the conductor traces, which are often associated with the high-grade uranium deposits of the Athabasca Basin, including the PLS discovery, are of particular interest. Initial interpretation of the radiometric data has identified areas with elevated uranium counts that can be correlated along and between multiple lines which may indicate the presence of radioactive boulder trains or in situ uranium mineralization. These radiometric features, particularly where possible source areas coincide with prospective EM conductors, are high-priority targets for follow-up ground work as this is the signature that led to the PLS discovery.
Terralogic Exploration Inc. field crews have also completed a preliminary assessment of a small part of the Preston Lake South claims block within the Preston Lake Property that was identified in an initial review of historic exploration data. The larger area contains clusters of anomalous uranium-in-lake sediment samples, anomalous uranium values in rock samples (up to 5.6 ppm), and the presence of kilometre-scale northeast-southwest trending graphitic faults associated with sulphides and anomalous radioactivity as identified with scintillometers. Field crews also completed preliminary water radon sampling, prospecting and scintillometer surveying.
Acquisition and Property Highlights:
- Skyharbour acquired 100% of two highly prospective uranium projects from Denison totaling over 85,000 hectares on the east side of the Athabasca Basin for $20,000 in cash and two million common shares
- Drilling to date on Way Lake Project totals over 20,000 metres in 105 holes with over $10 million having been invested in previous exploration across six, near-surface target areas on the extensive property
- Way Lake hosts a shallow, NI 43-101 compliant inferred mineral resource totaling 6,960,681 pounds of U3O8 and 5,339,219 pounds of ThO2 at Fraser Lakes Zone B
- Geological and geochemical features show distinct similarities to high grade, basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider
- Exploration potential of the 6 by 7 kilometre Fraser Lakes target area is considered exceptional, including resource expansion potential along strike and at depth at the Zone B uranium deposit
- The historic Hook Lake target area at the north end of the Way Lake property yielded high grade uranium grab samples of up to 48% U3O8 in a massive pitchblende vein exposed at surface
- To date, operators have been unable to definitively explain and locate the source of the high grade uranium mineralization
- Previous exploration at Way Lake has consisted of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area
- A focused exploration program is recommended for the Way Lake Project including defining additional resources at the Fraser Lakes Zone B deposit as well as exploratory drilling on other high-potential targets throughout the property
Way Lake Uranium Project Introduction
The Way Lake Uranium Project is comprised of 17 contiguous claims totaling 72,578 hectares located 55 kilometres east of the Key Lake mine in northern Saskatchewan. Uranium mineralization discovered to date at Way Lake is shallow and is hosted in two geological settings with the northern half of the property characterized by structurally controlled uranium mineralization (Hook Lake, West Way and Nob Hill zones), whereas the southern half hosts classic Athabasca-style basement mineralization associated with well-developed EM conductors (EWA, Walker and Fraser Lakes zones). Drilling to date on the Way Lake Project totals over 20,000 metres in 105 holes. Over $10 million has been invested in exploration consisting of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area.
Fraser Lakes Target Area
Uranium showings in the Fraser Lakes area (Zone A, Zone B, North and T-Bone) were discovered by ground prospecting of airborne geophysical targets. The mineralized zones are contained within a 65 kilometre long, folded EM conductor system comprised of Wollaston Group graphitic pelitic gneisses and uraniferous granitic pegmatites. Drill testing at Fraser Lakes North intersected low-grade, basement-hosted uranium-thorium mineralization. The drill holes exhibit evidence of major structural reactivation, significant clay alteration, uranium remobilization and basinal brine fluid circulation, all of which are prominent characteristics of the most significant basement-hosted uranium deposits in the Athabasca Basin (e.g. Eagle Point, Millennium, P-Patch and Roughrider). In the T-Bone Lake area, uranium mineralization is accompanied by significant structural disruption and local clay alteration of the host rocks. A major clay-filled fault system intersected in drill holes yielded PIMA infrared spectroscopy results that indicate a preponderance of illite; an important clay mineral that accompanies many of the significant uranium deposits in the Athabasca Basin.
Fraser Lakes Zone B Uranium and Thorium Deposit
NI 43-101 Compliant Resource Estimate on the Fraser Lakes Zone B
Discovered in 2008, Zone B is located within the broader 6 kilometre by 7 kilometre Fraser Lakes target area where multiple mineralized zones have been discovered along a 65 kilometre long, folded EM conductor system comprised of Wollaston Group graphitic pelitic gneisses and uraniferous granitic pegmatites. Diamond drilling consisting of 25 holes totaling 4,603 metres has defined a zone of moderately dipping, multiple-stacked uranium and thorium mineralized horizons down to 175 metres that is open to the southwest and east-northeast as well as at depth. Uranium and thorium mineralization is accompanied by highly anomalous concentrations of base metals, rare earth elements and other pathfinder elements. The style of uranium mineralization associated with intrusive rocks is commonly referred to as “Rössing type” mineralization named after the largest, longest-running open pit uranium mine in the world, the Rössing Mine operated by Rio Tinto in Namibia.
JNR Resources Inc., a company acquired by Denison in 2013, announced an initial mineral resource estimate in 2012 for the Fraser Lakes Zone B of 6,960,681 pounds U3O8 inferred at an average grade of 0.03% U3O8 and 5,339,219 pounds ThO2 inferred at an average grade of 0.023% ThO2 within 10,354,926 tonnes using a cutoff grade of 0.01% U3O8. The independent NI 43-101 technical report supporting this mineral resource estimate was filed on SEDAR on September 26, 2012 by JNR Resources. Independent qualified persons, Dr. Allan Armitage, P.Geo., and Alan Sexton, M.Sc., P.Geo., of GeoVector Management Inc., are responsible for the contents of the technical report and comments related to the resource estimate and its parameters.
The exploration potential of the Fraser Lakes target area is considered exceptional, including the resource expansion potential of the current deposit at Zone B. Geological and geochemical features show distinct similarities to high-grade, basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Hooke Lake Target Area
On the northern side of the Way Lake property at the Hook Lake target, high grade uranium mineralization has been discovered with up to 48% U3O8 in historic grab samples accompanied by significant lead (up to 8.8%), rare earth element and thorium enrichment, and anomalous boron, cobalt and vanadium. The massive pitchblende vein containing the high grade uranium mineralization is hosted in basement intrusive rocks exposed at surface and occupies a 1.0-metre wide by minimum 10-metre long dilational jog in a brittle-ductile shear zone. The mineralization has similarities to the Eagle Point uranium deposit being structurally-controlled, vein-type, high grade, and likely part of the feeder system to more typical high grade, unconformity uranium deposits. Previous operators have been unable to definitively explain and locate the source of the high grade uranium in the massive pitchblende vein that assayed up to 48% U3O8.
Other High Priority Target Areas
At the EWA target located on the southern portion of the Way Lake property, up to 0.492% U3O8 and 1,300 ppm lead were obtained from grab samples. Eight holes drilled in 2008 intersected variably radioactive granitic pegmatite dykes including an intercept of 0.082% U3O8 over 6.5 metres. The Nob Hill target in the central part of the property hosts vein-type uranium mineralization and includes a drill intercept of 0.018% U3O8 over 5.0 metres. The Walker Lake, Walker South and Walker River showings occur along a conductive trend that covers some 60 kilometres of structurally displaced EM conductors in the southwest portion of the property. Historic reconnaissance drilling has intersected strongly clay and/or chlorite altered, sheared and faulted graphitic pelites containing anomalous uranium, copper, nickel, zinc and molybdenum. The West Way target at the northern end of the property consists of vein-hosted uranium mineralization and includes grab samples that returned up to 0.492% U3O8.
Potential Future Work Programs
A focused exploration program is recommended for the Way Lake property. The primary objectives are to define additional resources at the Fraser Lakes B Zone by establishing the potential for extension of the mineralized zone to the east and west of the currently defined deposit. In addition, further interpretation of geochecmical and assay data in conjunction with geological and structural analysis will improve the effectiveness of targeting for future drill programs. Work priorities include Hook Lake Area and further delineating a potential source for the high-grade uranium boulder.
Richard Kusmirski, P.Geo., M.Sc., geologist for Skyharbour, is the Qualified Person as defined by National Instrument 43-101 and has approved the technical information on this website.
Total Outstanding — 44.6 million shares
Fully Diluted — 74.7 million shares
Corporate Profile on Stockhouse