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Mar. 20, 2014 03:15PM PST
Shortly after signing a letter of intent to acquire two uranium properties from International Enexco, Denison Mines announced the discovery of a new mineralized zone.
Denison Mines (TSX:DML) is flexing its acquisition muscles once again as it eyes International Enexco’s (TSXV:IEC) Athabasca Basin uranium assets.
The company announced late Wednesday a plan of arrangement to scoop up IEC’s two uranium properties, Mann Lake and Bachmann Lake, further cementing its position as a dominant landholder in Canada’s premier uranium hotspot.
Under the terms of the agreement, Denison will acquire all the issued and outstanding shares of IEC in exchange for 0.26 of a common share of Denison. IEC’s main uranium assets include a 30-percent interest in the Mann Lake exploration project and a 20-percent interest in the Bachmann Lake joint venture.
Mann Lake is located roughly 25 kilometers southwest of the McArthur River mine and, according to the company’s news release, is seated “on trend” between Cameco’s (TSX:CCO,NYSE:CCJ) Read Lake project and Denison’s 60-percent-owned Wheeler River project in the Eastern Athabasca Basin. Mann Lake is a joint venture project owned in majority by operator Cameco (52.5 percent), IEC (30 percent) and Areva (EPA:AREVA) (17 percent). The project has seen some recent drilling activity, with 11,000 meters of diamond drilling initiated in January for just under $3 million. To date, the project’s highlight is an intersection of 2.31-percent eU3O8 over 5.1 meters, including a 0.4-meter interval averaging 10.92-percent eU3O8.
Bachmann Lake, on other hand, is 80-percent owned by Denison and will slip into place as Denison’s highest-priority uranium exploration project on account of its location and the presence of strong conductors, a graphitic basement and sandstone alteration.
International Enexco’s 100-percent-owned Contact copper project will be spun out and sold to Full Metal Minerals (TSXV:FMM) in a separate transaction.
In a Cantor Fitzgerald research note, Rob Chang describes Denison’s latest news as moderately positive, commenting, “[t]he proposed transactions further strengthens the company’s already attractive portfolio and continues to make it the acquisition of choice for anyone looking to make a big push into the Basin, or looking to put a stranglehold on it.”
New discovery
As if an acquisition was not enough, Denison announced today the discovery of new high-grade mineralization that lies on trend with McArthur River. Gryphon, as the discovery has been named, is located 3 kilometers northwest of the Phoenix deposit, and was discovered during testing of the downdip extension of weak mineralization observed in two historic holes. Drill hole 556 produced an excellent result when it cut 4.6 meters grading 9.7-percent eU3O8; it is haloed by lower-grade mineralization.
Gryphon is entirely basement-hosted, and starts 691 meters downhole, which is 200 meters below the unconformity, and is wide open both updip and downdip along strike. The new discovery lies on the highly prospective “K Trend,” which so far has only seen widely spaced holes drilled. Half a dozen have tested around the Gryphon discovery.
Commenting on the discovery, Chang said that assuming a 15-meter-by-15-meter zone of influence, hole 556 on the Gryphon discovery represents somewhere in the area of 580,000 pounds of uranium.
David Sadowski, another Raymond James analyst, said Gryphon represents a “significant discovery that is likely to grow with additional drilling and as a large boost in the high-grade prospectivity of the corridor between Wheeler River and McArthur River.”
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
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Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
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Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
