Uranium-Gold Projects, Otish Mountains, Québec


Overview

ABE Resources’ two main uranium projects are located in the Otish Mountains region of central Quebec, Canada and are located 350km north-east of the town of Chibougamau. All season and major forestry roads come within 150km of the projects which are serviced by float planes at this time. The Otish basin is a 160 km long by 50 km wide Proterozoïc (1.7-2.0 Billion year old) sedimentary basin. It is one of a number of early to mid-Proterozoïc basins in Canada and around the world that host, or has the potential to host, uranium deposits. Of the several known Proterozoïc sedimentary basins in Canada, U3O8 production from the Huronian Basin in Ontario totalled more than 350M lbs from over twenty large tonnage, low grade (0.1%) deposits between 1957 and 1996. Huronian uranium deposits are paleoplacers in quartz pebble conglomerates near the base of the Basin sequence, just above the unconformity. The Athabasca Basin in Saskatchewan has cumulative resources to date exceeding 1.4B lbs of U3O8, including over 750M lbs from the Cigar Lake and McArthur River deposits alone. Athabasca deposits are unconformity deposits where fault controlled, remobilized uranium mineralization is deposited at the interface between the basement rocks and the overlying quartzitic sediments.

Regional

Rocks of the Otish Basin unconformably overly older Archean Superior Province metasediments, gneisses and intrusives and are truncated to the south by the younger Grenville orogenic front. The Otish Supergroup is composed of the kilometer-thick Indicator Group which fines upwards from polymictic conglomerates to massive sandstones and is overlain by the Peribonka Group which consists of low energy sandstones, carbonates and siltstones. The Otish Supergroup rocks are generally subhorizontal and are cut by a series of olivine gabbro dykes and sills which are more prevalent in the eastern part of the Basin. Strong N010E and N060E basement-rooted fault patterns have been developed and reactivated in the Otish Basin. Known mineralization is spatially related to these structures. Historic exploration in the Basin searched for both Huronian and Athabasca uranium deposit models, but results point to an Otish specific model whereby hydrothermal mineralization ascends reactivated faults and is deposited either in favourable coarse sedimentary units lower in the stratigraphy (Matoush model) or else in favourable structurally prepared fracture zones in sediments and intrusives further up in the stratigraphy (“L” model). In both cases, mineralization is located between 400 metres and 1.5 km above the unconformity. Two known deposits in the Otish together host almost 35M lbs U3O8. These resources have mostly been defined since 2006, an indication of the early potential of the Basin to host very significant uranium resources and move towards becoming a new producing uranium mining camp.


Lavoie Project


Location

The Lavoie project is located 350km north-east of the town of Chibougamau. ABE Resources has an option to acquire a 50% interest in the property from equal co-owners Areva Resources Canada and Soquem Inc.


History

The Lavoie property hosts the “L” uranium-gold deposit discovered in 1980 by SÉRU Nucléaire Canada Ltée (today AREVA). Between 1981 and 1985, the mineralized trend was drilled over a strike length of 1.7 km. The 600 meter long main lense of the deposit was estimated to contain resources of 385,000 metric tons grading 0.7% eU3O8 for approximately 5.9 million pounds of uranium oxide (this historic resource is not compliant with NI 43-101). The project was dormant from 1985 to June, 2008 when ABE Resources optioned the property. ABE Resources has since drilled 83 holes for 11,280 meters, completing the definition drilling of the main lense on 25 meter centers. An initial NI 43-101 conformable resource estimate by InnovEplo Inc of Val d’Or was released March 2, 2010 and reported Indicated Resources of 3.9M lbs U3O8 in 391,000 tons grading 0.45% eU3O8 and Inferred Resources of 9.26M lbs U3O8 in 794,000 tons grading 0.56% eU3O8 based on a 0.1% lower cut-off grade. Minimal drilling is required to significantly upgrade the Inferred Resources to the Indicated category.



Deposit

The “L” deposit mineralized trend is recognized over a 1.7 km strike length. The main lense (Main & Contact zones) of the “L” deposit is located less than 100 metres below surface but well over a kilometer above the basement unconformity. It is sub-horizontal and extends for over 600 metres in length by a few tens of metres in height and width. The main uranium mineralization occurs at the contact between flat-lying sedimentary units of the Peribonka Group and a N070E striking sub-vertical gabbro intrusive where the latter protrudes into the sediments. Mineralizing fluids ascended reactivated fault structures which were the loci of intrusive emplacement and subsequent localized shearing, fracturation and structural preparation. Mineralization occurs in veins and fractures within and adjacent to the structures in both the intrusive and sediments. Satellite lenses (Gab-1 to 4) are present along strike from the main lense and are typically hosted in shear structures in gabbro. Two phases of mineralization are present. Primary uranium-albite mineralization was later overprinted and likely partially remobilized by a gold-rich polymetallic phase. Insufficient data does not yet allow for reliable gold resource estimations.


The Lavoie project compares favorably with other significant uranium projects in Canada. The initial size and shallow setting of the resource (all above 160 meter depth) suggest excellent potential for future development. With likely 1.5+ km depth to the basement unconformity, the project also has significant potential for “Matoush” style mineralization as demonstrated by Strateco Resources 80km west of Lavoie. ABE Resources’ recent discovery of surface-exposed high grade uranium-gold mineralization on its 100% owned nearby Epsilon property further suggests the area has tremendous potential for additional discoveries and opportunities for development.


Epsilon Project


Location

The 100% owned Epsilon Property consists of 102 contiguous mineral claims covering 5,352 hectares located approximately 10 kilometres west of ABE Resources’ Lavoie Property in the Otish Mountains. The property was acquired in mid-2008 in exchange for a $25,000 payment and the issuance of 200,000 shares of the Company to the vendor. The Vendor retains a 2% net smelter return royalty on future production, of which 1% can be acquired by ABE Resources at any time for $1.0 million.

Geology

The geological setting of the Epsilon property is very similar to that of the Lavoie property. The property is mostly covered by Peribonka Group Siltstones and is traversed by a series of narrow gabbro intrusive dykes which form a property scale, unusual pseudo-circular structure. The siltsones are the same as those that cover the favorable sandstones which host the “L” deposit on the Lavoie property. The presence of numerous gabbro dykes in this setting is considered highly favorable for the discovery of “L” type deposit occurrences.

History

SÉRU Nucléaire Canada Ltée (today AREVA) did regional reconnaissance mapping and prospecting on the Epsilon property in 1979 and 1980 leading to the discovery and staking of the “S” high grade Uranium-Gold occurrence. With the added discovery the same year of the “L” occurrence 15 km to the east of the “S” showing, SÉRU embarked on a massive staking rush, acquiring up to 3,000 contiguous claims in the central Otish area in order to protect these discoveries of a previously unknown deposit type. Between 1980 and 1985, SÉRU cut 185 kilometres of grids on the northeast, east and south portions of the Epsilon Property and completed 80 drill holes for a total of 8,045 metres, second only to the “L” deposit drilling in terms of their exploration commitment in the Otish at that time. Three targets were the subject of the work programs: the “S” showing, the A-29 Zone and the Lac Gaschet area. The original “S” showing is covered by two claims owned by a third party but its extensions are covered by the Epsilon Property. Although high grades of uranium and gold were discovered at surface and in drilling at the “S” showing, SÉRU did not believe at the time that the occurrence had significant potential. Anomalous values were also returned from drilling of the A-29 anomaly further south on the property. Drilling in the Lac Gaschet area in the southern part of the property confirmed the area is covered by siltstones. No other work was performed on this property after 1985 and the claims eventually lapsed from lack of renewal credits. In mid-2008, ABE Resources acquired the property from a prospector-geologist. All the historic work was done outside the area where ABE Resources discovered the Epsilon A & B occurrences in 2008 and 2009.

Recent Exploration

Since acquiring the property in August 2008, ABE Resources has completed property-wide close spaced helicopter-borne spectrometric and magnetic surveys, as well as a very close-spaced helicopter-borne spectrometric survey over the 6 km diameter pseudo-circular magnetic structure with which all known uranium occurrences on the property are spatially related.


Epsilon-A Discovery

Follow-up ground prospecting of the first spectrometric survey led to the discovery of the Epsilon-A occurrence which is located immediately west of Epsilon Lake itself. Two grab samples were taken from the Epsilon-A occurrence and returned the following results:


In late June 2009, stripping, mapping and sampling were undertaken on the Epsilon-A occurrence. The stripped outcrop was approximately 25 metres long by 8 metres wide, with the southernmost 10 metres showing mineralization associated with stacked shallow dipping fractures in laminated sandstones near a contact with gabbro intrusive and returned the following results:


Results of the stripping and sampling program on Epsilon-A are very encouraging, in particular with respect to gold content and distribution. More work is warranted in this area.

Epsilon-B Discovery

The detailed airborne radiometric survey completed over the property scale circular magnetic structure led directly to the discovery of the Epsilon-B occurrence located 750 metres southwest of the Epsilon-A occurrence. Four grab samples were extracted from the stripped discovery outcrop using a rock saw and returned the following results:


A mechanical shovel was mobilized to the Epsilon-B site in September 2009 in order to expose the bedrock under deeper overburden where the highly anomalous radioactivity persists for over 100 metres and possibly farther. The exposed outcrop area is approximately 30m by 15m. Strongly silicified and mineralized sandstones make up 90% of the exposed outcrop and are locally covered by a metre thick strongly fractured, hematized and albitized sandstone unit which is in direct contact with an overlying gabbro intrusive sill. This is identical to the “L” deposit setting. The upper sandstone unit is strongly mineralized with disseminated and fracture filling vein-type uranium and polymetallic minerals. Most of this upper unit has been eroded at the exposed outcrop level. Two cross-cutting channels were sawed across the silicified sandstones where mineralization consists of widespread oxidized uranium minerals (yellow uranophane) as well as very fine grained disseminated poylmetallic minerals. Results are as follows:



The new Epsilon-B occurrence was found to have numerous and striking similarities with the “L” Deposit. The geological setting is essentially identical and suggests this new discovery could quickly develop into a significant near surface uranium resource. The results from the channel sampling confirmed the widespread distribution of, and significant grades for uranium and certain other metals throughout the outcrop. Based on the numerous similarities between the Epsilon-B occurrence and the “L” deposit, ABE Resources believes it is likely the mineralization continues laterally along strike below overburden cover as well as at depth. Two large representative samples (55kg each) were taken from the upper unit and sent to SRC Geoanalytical Laboratories where they were homogenized and five sub-samples were taken for U-Au assay from each large sample. Average grades for the first sample were 3.274% U3O8 and 14.82 g/t Au, and 0.658% U3O8 and 3.41 g/t Au for the second large sample.

Three small grab samples were also taken from this upper unit where centimetric veins of massive pitchblende and polymetallic mineralization were observed. Values returned 0.62% to 51.77% U3O8, 9.3 to 958.5 grams of silver per tonne, 0.24% to 20.5% lead and 0.81 to 86.6 grams of gold per tonne. Results follow:



At this early stage of evaluation, it appears the gold enriched polymetallic component of the mineralization on the Epsilon Property is more prevalent and widespread than on the Lavoie Property, which could significantly impact any future deposit economic evaluation in this area. Furthermore, Matoush-type fault controlled, coarse sandstone hosted uranium mineralization is likely to occur at depth on the Epsilon Property as well as on the Lavoie Property. Polymetallic mineralization emplaced after uranium mineralization could also be hosted at depth in different structural settings. The early potential of the recent Epsilon discoveries and the significant resource of the Lavoie project suggest ABE Resources has the potential to develop very significant uranium resources in this area of the Otish Mountains.


Jolin Gold Project


ABE Resources’ 100% owned Jolin gold project is located 60 km northeast of Val d’Or, Quebec.


The Jolin project was extensively drilled in the late 1980’s, resulting in a historic resource estimate of 180,000 tons @ 6.6 g/t Au in the Indicated category and 240,000 tons @ 8.2 g/t Au in the Inferred category. These resources are not conformable and pre-date NI 43-101 and therefore cannot be relied upon. In-house evaluations based on historic results suggest good vein and grade continuity and potential for multiple lenses, as well as potential at depth. ABE Resources drilled one hole 1,000 feet below historic drilling and intersected 3.5 g/t Au over 4.8m at a vertical depth of 2,300 feet.


St. Stephen Nickel-Copper-Cobalt Project


ABE Resources’ 100% owned St. Stephen property is located in the southwest corner of New Brunswick at the border with Maine. ABE Resources has optioned the property to Continental Nickel Inc. (CNI), which can acquire up to a 75% interest through cash payments, share issuances and work programs over several years. Multiple small outcropping and shallow lying magmatic sulphide bodies occur on the property, including several which were mostly worked pre-1960 and had significant Ni-Cu-Co resources grading approximately 1% Ni and 0.5% Cu. The most significant of these is the well known Rogers Farm deposit. CNI has identified several new, priority EM geophysical targets which will be drill-tested in 2010.


Corporate Contacts


Yves Rougerie
Co-Chairman, President & CEO
yrougerie@abitex.ca

François Ruel
Co-Chairman
francoisruel@rogers.blackberry.net

ABE Resources Inc.
1090, boulevard des Pins
Val d'Or, Québec, Canada J9P 4T2
info@abitex.ca  ;  www.abitex.ca
Tel. 819-874-6200  ;  Fax 819-874-6202


Share Structure




Links


Abitex Reports High Grade U3O8 And Gold Results From Epsilon Project


Corporate Profile on Stockhouse


Executives:
 Yves  Rougerie
Yves Rougerie
Co-Chairman, President & CEO

Yves Rougerie, P.Geo. is a graduate of the University of Quebec (UQAM) in Earth Sciences and has accumulated over 30 years of experience in the mining exploration and development business. Mr. Rougerie was named President and CEO of the Company in March 2007 and became Co-Chairman in September 2008. He has since negotiated an option and joint venture agreement for the Lavoie Uranium-gold property with AREVA and SOQUEM as well as the acquisitions of privately-owned explorer Central Uranium Corporation and of the Epsilon U-Au property. Throughout his career, Mr. Rougerie has worked for several companies, including AREVA from 1979 to 1985 and AUR Resources from 1986 to 1996, and has spent the last 14 years with Abitex. He played a significant role in the discovery, definition and development phases of Aur Resources' world-class Louvicourt Cu-Zn-Ag-Au Mine near Val-d'Or, and had previously participated in the initial discovery and definition of the “L” uranium-gold deposit in the Otish Mountains, Quebec. Mr Rougerie has acquired a wide range of experience in exploration techniques and project management pertaining to Uranium, narrow-vein Gold and VMS Cu-Zn deposits.

 François  Ruel
François Ruel
Co-Chairman

François Ruel was the founding President and CEO of Central Uranium Corporation from May 2007 until its acquisition by Abitex in September 2008 at which time he became a Director and Co-Chairman of the Corporation. Prior to that, he was Executive Vice-President of Equity Capital Markets for Desjardins Securities from March 2002 to May 2007. Mr. Ruel has a B.Sc. in Economics and over twenty years' experience in the financial industry. He is now the President and CEO of Tundra Finance Inc.