Highway North, KLR & Walker Claims - Athabasca Basin

16,763 hectares along a trend that hosts some of the highest-grade uranium mines in the world

Highlights - Uranium Property

 

  • Cigar Lake1, 50% owned by Cameco, which hosts 152 million pounds (lbs) of U3O8 at 15.4% U3O8
  • McArthur River2, 70% owned by Cameco which hosts 392 million lbs of U3Oat 6.58% U3O8
  • Wheeler Project3, 90% owned by Denison Mines which hosts 109 million lbs of U3O8 in two deposits averaging 11.23% U3O8

 

Highway North Claims

The Key Lake Deposit, which is northeast of the Property, consisted of two mineralized zones which historically produced a total of 4.2 million tonnes of product at an average grade of 2.1% U3O(Harvey, 1999). 

Only 21 drill holes have been drilled on the Property thus far totaling 3,527m, between 1980 and 2008.  Surface exploration and drilling have verified the presence of uranium mineralization along the Highway Zone, with grades up to 2.31% U3O8 over 0.29 m in KLR15-086.

The KLR & Walker Claims

The KLR Claim group consists of 3,595 hectares (ha) and is contiguous to the former producing Key Lake Uranium Mine. The Key Lake Deposit consisted of two mineralized zones which historically produced a total of 4.2 million tonnes of product at an average grade of 2.1% U3O(Harvey, 1999). The Key Lake Property is now host to the Key Lake Mill, owned, and operated by Cameco which processes ore from the McArthur River uranium deposit.

The Walker, the second claim group covers an area of 10,595 ha and is contiguous to Fission 3.0 Hobo Lake uranium properties. Hosted within WMTZ, the Walker Property lies along the Key Lake Shear Zone and hosts 10 uranium showings and multiple unexplored EM targets. Both properties are easily accessible by highway. Exploration to date on the Properties has been limited.

Regional Geology and Mineralization

The deposit model for exploration on the Highway North Property has been a basement-type unconformity-related uranium deposit, such as those found at the Eagle Point, Millennium, and the Gaertner and Deilmann (Key Lake). This deposit type belongs to the class of uranium deposits where mineralization is spatially associated with unconformities that separate Proterozoic conglomeratic sandstone basins and metamorphosed basement rocks (Jefferson et al., 2007). Although rocks of the Athabasca Group and the basal unconformity do not outcrop on the Property, they likely once overlaid the basement gneisses and metapelites which now do, as the current erosional edge of the Athabasca Basin, and potential outliers, is about 50 km north of the Property.

In Saskatchewan, uranium deposits have been discovered at, above, and up to 300 m below, the Athabasca Group unconformity within basement rocks. Mineralization can occur hundreds of meters into the basement or can be up to 100 m above, in Athabasca Group sandstone. Typically, uranium is present as uraninite/pitchblende that occurs as veins and semi-massive to massive replacement bodies. Mineralization is also spatially associated with steeply-dipping, graphitic basement structures and may have been remobilized during successive structural reactivation events. Such structures can be important fluid pathways as well as structural or chemical traps for mineralization as reactivation events have likely introduced further uranium into mineralized zones and provided a means for remobilization (Jefferson, et al. 2007) (Figure 1).

Representative sections of three well-known unconformity-related uranium deposits of the eastern Athabasca Basin showing the strong spatial association of the deposits with the intersection of basement-rooted fault zones and the unconformity surface. (A) Cigar Lake deposit, consisting of predominantly unconformity ore and perched ore in the overlying sandstone. (B) Deilmann pit, Key Lake deposit, including both basement hosted and unconformity ore, controlled by the Key Lake fault. (C) Eagle Point deposit, mostly basement-hosted ore, controlled by the Collins Bay thrust and Eagle Point fault.

Location

The Property is located 70km southwest of the former producing Key Lake Uranium Mine.  Aptly named for its location along Highway 914, the Property consists of five contiguous claims totaling 2,573 hectares. The Key Lake Deposit, which is northeast of the Property, consisted of two mineralized zones which historically produced a total of 4.2 million tonnes of product at an average grade of 2.1% U3O(Harvey, 1999).  Only 21 drill holes have been drilled on the Property thus far totaling 3,527m, between 1980 and 2008.  Surface exploration and drilling have verified the presence of uranium mineralization along the Highway Zone, with grades up to 2.31% U3O8 over 0.29 m in KLR15-086.

The Company is not treating these historical results as current and has not completed sufficient work to verify such historical results. Further, the historical production from the Key Lake Deposit has not been verified independently by the Company.  While the Company is not treating these historical results and numbers as accurate, it does believe the numbers to be reliable and may be of assistance to readers.