Laramide Resources Ltd. (" Laramide " or the " Company ") (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) is pleased to announce that further to the news release of November 9, 2023 the A$12 million placement to institutional and sophisticated investors pursuant to s708 of the Corporations Act (Cwth) 2001 in Australia has completed. Funds have been received and CDIs are being issued.
Proceeds from the Placement will be used to accelerate development projects in the USA , to ramp up drilling at the companies advanced exploration assets in Australia during the next field season and general working capital and transaction costs.
The Placement is comprised of the issue of 20,000,000 Chess Depositary Interests ("CDI") at an issue price of A$0.60 per CDI ("Offer Price"). Each new CDI issued under the placement will rank equally with existing CDIs on issue and each CDI will represent a beneficial interest in 1 common share of the Company. Bell Potter Securities Limited ("Bell Potter") acted as lead manager and bookrunner to the Placement.
This announcement was authorised for release to the ASX by the Board of Laramide Resources Ltd.
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About Laramide Resources Ltd.:
Laramide is focused on exploring and developing high-quality uranium assets in Australia and the western United States . The company's portfolio comprises five advanced uranium projects in districts with historical production or superior geological prospectivity. Each asset has been carefully chosen for their size, production potential, and are considered late-stage, low-technical risk projects.
The Westmoreland project in Queensland, Australia , is one of the largest uranium development assets held by a junior mining company. This project has a PEA that describes an economically robust, open-pit mining project with a mine-life of 13 years. Additionally, the adjacent Murphy Project in the Northern Territory of Australia is a greenfield asset that Laramide strategically acquired to control the majority of the mineralized system along the Westmoreland trend.
In the United States , Laramide's assets include the NRC licensed Crownpoint-Churchrock Uranium Project, which is proposed to be developed using in-situ recovery ("ISR") production methodology. The Company also owns the La Jara Mesa project in the historic Grants mining district of New Mexico and an underground project, called La Sal , in Lisbon Valley, Utah .
Forward-looking Statements and Cautionary Language
This release includes certain statements that may be deemed to be "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that management of the Company expect, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as "expects", "anticipates", "believes", "plans", "projects", "intends", "estimates", "envisages", "potential", "possible", "strategy", "goals", "objectives", or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions. Actual results or developments may differ materially from those in forward-looking statements. Laramide disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, save and except as may be required by applicable securities laws.
Since forward-looking information address future events and conditions, by their very nature they involve inherent risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of factors and risks. These include, but are not limited to, exploration and production for uranium; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of resource estimates; health, safety and environmental risks; worldwide demand for uranium; uranium price and other commodity price and exchange rate fluctuations; environmental risks; competition; incorrect assessment of the value of acquisitions; ability to access sufficient capital from internal and external sources; and changes in legislation, including but not limited to tax laws, royalties and environmental regulations.
Laramide Resources Ltd. (" Laramide " or the " Company ") (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) is pleased to announce the results of its annual and special meeting of shareholders (the "Meeting") held on Tuesday, May 30, 2023 in Toronto .
A total of 90,446,193 common shares of the Company ("Common Shares") were represented and all matters presented for approval at the Meeting have been duly authorized and approved. Shareholders voted in favour of all matters brought before the Meeting, as follows:
(i) election of all management nominees to the Board of Directors of the Company;
(ii) appointment of RSM Canada LLP as auditors of the Company for the ensuing year and authorization of the directors to fix their remuneration;
(iii) renewal of the stock option plan of the Company.
The five nominees proposed by management were elected by shareholders, with the detailed results for the election of directors of the management proxy votes received, including those at the meeting, were as follows:
Name
Shares Voted For (#)
Shares Voted For (%)
Shares Against (#)
Shares Against (%)
John Booth
67,567,125
84.48
12,415,706
15.52
Marc Henderson
70,684,070
88.37
9,298,761
11.63
Jacqueline Allison
75,870,276
94.86
4,112,555
5.14
Raffi Babikian
70,182,827
87.75
9,800,004
12.25
Scott Patterson
75,946,431
94.95
4,036,400
5.05
The formal report on voting results with respect to all matters voted upon at the meeting is filed on SEDAR.
About Laramide Resources:
Laramide is focused on exploring and developing high-quality uranium assets in Australia and the western United States . The Company's portfolio comprises five advanced uranium projects in districts with historical production or superior geological prospectivity. Each asset has been carefully chosen for its size and production potential, and all are considered late-stage, low-technical risk projects.
The Westmoreland Project in Queensland, Australia , is one of the largest uranium development assets held by a junior mining company. This project has a PEA that describes an economically robust, open-pit mining project with a mine life of 13 years. Additionally, the adjacent Murphy Project in the Northern Territory of Australia is a greenfield asset that Laramide strategically acquired to control the majority of the mineralized system along the Westmoreland trend.
In the United States , Laramide's assets include the NRC licensed Crownpoint-Churchrock Uranium Project, which is proposed to be developed using in-situ recovery ("ISR") production methodology. The Company also owns the La Jara Mesa Project in the historic Grants mining district of New Mexico and an underground project, called La Sal , in Lisbon Valley, Utah .
Laramide Resources Ltd. (" Laramide " or the " Company ") (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) is pleased to announce completion of the initial diamond drilling phase of the project ramp-up at its 100% owned NRC licensed Crownpoint-Churchrock Uranium Project, near Gallup, New Mexico, USA ("Crownpoint"). The diamond drill program, having a total drilled length of 6,030 feet (1,838 meters) was comprised of seven drill holes located in areas of uranium mineralization within Section 17, Township 16 North South, Range 16 West and located along the boundary between Section 17 and Section 8. Three of these drill holes were "twin holes" drilled within 20 feet (ft) of historic drill holes designed to confirm the stratigraphic position of uranium mineralization, the relative thicknesses of mineralized intervals, the range of uranium grades that were encountered in the historical drill holes and to provide drill core for chemical assays and radiometric equilibrium analysis. The project is being managed by NuFuels, Inc., a wholly owned subsidiary of Laramide Resources Ltd., which oversees Laramide's uranium asset portfolio in the United States . As reported on December 13, 2022 and January 23, 2023 Laramide has appointed SLR International Corporation ("SLR") of Denver, Colorado, to complete an NI 43-101 Preliminary Economic Assessment ("PEA") with respect to the Churchrock Uranium Project (the "Project").
Crownpoint consists of two discrete ISR-amenable deposits, Crownpoint and Churchrock, covered by a single NRC license (SUA-1580). The PEA envisions that uranium will be mined by in situ recovery (ISR) methods at only the Churchrock location and recovered in a proposed new processing facility at the nearby Crownpoint location where significant project infrastructure already exists. When completed in Q2 2023, the PEA will provide estimates of project economics based on ISR mining of estimated mineral resources in Section 8 of the Churchrock NRC license area, recovery factors, and life-of-project permitting, capital, operating, and reclamation cost estimates for the mine area and the proposed Crownpoint processing facility.
The recent drilling conducted at Churchrock confirmed that historical drilling results are suitable for resource estimations and agreed with previous studies showing there is low risk of depletion of chemical uranium compared to radiometric uranium in the Churchrock mineralization, and will also provide core for the test work necessary to obtain the New Mexico Aquifer Discharge Permit, the final material permit needed for the project. Upon completion of drilling, each drill hole on the Project was logged with a suite of geophysical tools including natural-gamma, spontaneous potential (SP), and resistivity. All downhole logging was conducted by COLOG. Natural gamma logging is an industry-standard procedure for estimating equivalent uranium grades and was utilized in historic drill campaigns at Churchrock. Recovered drill core from the new holes was logged by project geologists for lithology and mineralization, and one-half splits were collected for direct geochemical analysis of uranium at Energy Laboratories, Inc. in Casper, Wyoming.
The results of the recent drilling confirmed the location and tenor of uranium roll fronts at Churchrock (Figure 2). Chemical assays of uranium were compared to recent and historic gamma-equivalent uranium grades from the Westwater Canyon B Sand (Jmw B) which was the primary target of the 2022 drill program and the primary mineralized sand targeted for ISR mining in Section 8 are shown in Table 1. Chemical assays show an average thickness of 18.3 ft of 0.061% U 3 O 8 , compared to a gamma-equivalent average thickness of 21.7 ft at 0.045% eU 3 O 8. Comparing historic twin holes against holes completed in 2022 for equivalent grade (Table 2) showed an average thickness of 15.8 ft at 0.039% eU 3 O 8 compared to an average thickness of 20.5 ft at 0.046% U 3 O 8 from the nearby historic holes. Both comparisons favorably validate that the historic drilling results are suitable for declaring Mineral Resources.
From a grade thickness standpoint (grade thickness ("GT") defined as the grade multiplied by the thickness of a mineralized intercept), all of the holes tabled below had GT's in excess of 0.3 %-ft which is the minimum GT considered typical for mining by ISR.
Table 1: Comparison of Gamma-Indicated and Chemically-Measured Uranium in 2022 Drill Holes
2022 Drill Hole
Thickness (ft)
Gamma- Indicated U3O8 (%)
Grade x Thickness*
Thickness (ft)
Chemical U3O8 (%)
Grade x Thickness *
DHID-01
27.0
0.064
1.73
27.0
0.064
1.73
DHID-02
34.3
0.044
1.49
22.0
0.058
1.27
DHID-05
15.0
0.051
0.77
14.0
0.065
0.91
DHID-06
25.1
0.036
0.90
22.5
0.052
1.17
DHID-07
7.3
0.030
0.22
6.0
0.067
0.40
Average
21.7
0.045
0.98
18.3
0.061
1.12
*Grade-Thickness is the average grade across the mineralized interval multiplied by the cumulative thickness of the mineralized interval.
Table 2: Comparison of Gamma-Indicated and Chemically-Indicated Uranium in Twin Holes
2022 Drill Hole
Thickness (ft)
Chemical U3O8 (%)
Grade x Thickness*
Historic Drill Hole
Thickness (ft)
Gamma- Indicated U3O8 (%)
Grade x Thickness*
DHID-05
15.0
0.051
0.77
S17- DH51/28
15.5
0.054
0.84
DHID-06
25.1
0.036
0.90
S17- DH51/30
28.5
0.053
1.51
DHID-07
7.3
0.030
0.22
S17- DH51/32
17.5
0.032
0.56
Average
15.8
0.039
0.62
20.5
0.046
0.95
*Grade-Thickness is the average grade across the mineralized interval multiplied by the cumulative thickness of the mineralized interval .
Mineralized core from the recently completed program will also be used by NuFuels in a planned laboratory-scale program carried out jointly with the US Department of Energy's Los Alamos, New Mexico laboratories to demonstrate the capacity to restore groundwater geochemical conditions to levels that existed prior to uranium recovery through the application of ISR methods. The objectives for this program are as follows:
Complete a bench level testing program in support of the New Mexico State discharge permit application;
Replicate the in-situ uranium chemistry and recovery characteristics at the laboratory scale;
Determine ISR mining reaction kinetics data specific to the ore body;
Duplicate expected reverse osmosis (RO) restoration chemistry characteristics and evaluate the results;
Examine uranium and other trace element concentrations after simulated reverse osmosis treatment and sulfide treatment;
Record pH and clay mineralogy of the (laboratory) leached samples; and,
Examine uranium and other potential trace metals concentrations for rebound during a post restoration stability period.
Background on Churchrock properties:
The Churchrock properties within the Crownpoint Project consist of 4,053 acres within the historic Grants Mining District in McKinley County, New Mexico . The Project is a compilation of significant historical work completed by major mining and energy companies. The United States Nuclear Regulatory Commission (NRC) has granted a license for production of uranium from sections of Churchrock.
In 2017, SLR formerly known as Roscoe Postle Associates Inc. ("RPA") produced a Technical Report on the Churchrock properties from drill hole data available as of September 2017. Data from previous operators was consolidated and digitized resulting in a database of 1,667 drill holes totaling 1,841,545 ft of drilling. Using a 0.5 ft-% eU 3 O 8 Grade Thickness (GT) cut-off, the Inferred Mineral Resource totals 33.9 million short tons (Mst) at an average grade of 0.08% eU 3 O 8 for a contained metal content of 50.8 million pounds (Mlb) U 3 O 8 .
The current Mineral Resource is classified as Inferred based on the historic nature of the drilling data and drill hole density along mineralized trends contained within the sandstone units of the Brushy Basin and Westwater Canyon Members of the Morrison Formation.
A discharge permit for the underground injection and control associated with the Project will be required by New Mexico Water Quality Control Commission rules. Test work in support of this discharge permit is described above.
Technical information contained in this news release has been reviewed and approved by Mark B. Mathisen , C.P.G., Principal Geologist, SLR Consulting International Corp. who is considered to be a Qualified Person as defined in "National Instrument 43-101, Standards of Disclosure for Mineral Projects".
Laramide is engaged in the exploration and development of high-quality uranium assets. Its wholly owned uranium assets are in Australia and the United States . Each of Laramide's portfolio of five advanced uranium projects have been chosen for their production potential. Laramide's Westmoreland project, in Queensland, Australia , is one of the largest projects currently held by a junior mining company. Its U.S. assets include Crownpoint-Churchrock Uranium Project which covers two project areas including, a large ISR project and a former uranium mining operation; La Jara Mesa in the historic Grants, New Mexico mining district; and La Sal , a fully permitted, underground project in Lisbon Valley, Utah .
This press release contains forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.
Laramide Resources Ltd. (" Laramide " or the " Company ") (TSX: LAM) (ASX: LAM) (OTCQX: LMRXF) is pleased to announce that the Company and Extract Advisors LLC acting as agent for and on behalf of the Lenders (the " Agent "), completed an amendment (the " Amendment ") to the existing term loan made by the Lenders in favour of Laramide Resources Ltd. (the " Term Loan "), which includes, among other things, (i) a two year extension of the maturity date of the Term Loan from March 31, 2023 to March 31, 2025 (ii) the reduction of the outstanding facility from USD$4,500,000 to USD$3,500,000 with a USD$1,000,000 repayment made concurrent with the signing of the Amendment Agreement (iii) no prepayment of the Term Loan before the Maturity date and (iv) the Company may request conversion of the loan at any time after September 20, 2023 after the shares of the Company have traded on the TSX for $1.00 on a volume weighted basis for ten consecutive days. The conversion price remains at $0.40 per share.
Laramide is engaged in the exploration and development of high-quality uranium assets. Its wholly owned uranium assets are in Australia and the United States . Each of Laramide's portfolio of five advanced uranium projects have been chosen for their production potential. Laramide's Westmoreland project, in Queensland, Australia , is one of the largest projects currently held by a junior mining company. Its U.S. assets include Crownpoint /Churchrock which covers two project areas including, a large ISR project and a former uranium mining operation; the La Jara Mesa in the historic Grants, New Mexico mining district; and La Sal , a fully permitted, underground project in Lisbon Valley, Utah .
This press release contains forward-looking statements. The actual results could differ materially from a conclusion, forecast or projection in the forward-looking information. Certain material factors or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information.
Aura Energy Limited (ASX: AEE, AIM: AURA) (“Aura” or “the Company”) is pleased to announce that the Company has applied for multiple highly prospective exploration tenements adjacent to and surrounding its existing Tiris Uranium Project ("Tiris” or “Tiris Project”) in Mauritania.
KEY POINTS:
Aura Energy Ltd has applied for an additional ~13,000 km2 of exploration tenements in the Tiris Uranium Province in Mauritania.
The new exploration license applications target areas with strong synergies with the Tiris West resource of 11.2Mlbs (16.4Mt @ 305ppm U3O8)1.
The goal is to confirm Aura’s radiometric analysis that the Tiris region is a world-class uranium province.
Aura believes the Tiris Uranium Project now has the potential to confirm a world-class scale.
The Tiris Project's Front-End Engineering Design (FEED) study is approaching completion, with Tiris East exploration and preconstruction activities to commence shortly.
Aura is delighted that His Excellency Mr. Nany Chrougha, Mauritania’s Minister of Mines, is supporting His Excellency President Mohamed Ould Cheikh El Ghazouani’s goal of ensuring the development of a strong resources industry in Mauritania. This goal has seen the reopening of the Mining Cadastre and the Ministry has begun accepting applications for exploration tenure, including Aura’s application.
Aura has completed the application processes and filed exploration tenure applications covering an extensive 13,000 km2. The new tenure application areas were selected following a detailed 12-month evaluation program based on historical drilling and radiometric data and analogues from the Company’s successful uranium discoveries, which underpin the Tiris Uranium Project. This analysis led to the recent Exploration Target announced for the existing Tiris East Resource areas2, for which drilling is planned to commence before the end of 2023. The Company is confident that the proven model for successful exploration can be extended across the wider Tiris Zemmour region by extending the exploration footprint.
Subject to the successful granting of these applications, Aura will work to progressively confirm and test exploration targets within these tenements through 2024 and 2025.
Figure 1 - Exploration Tenement Applications
Chairman Phil Mitchell commented:
“Our geologists are confident that the Tiris Zemmour region of Mauritania is a world-class uranium region, similar in importance to the uranium market as the Pilbara region in Western Australia is for iron ore. We believe Aura’s uranium-enriched carnotite zone extends across the north-eastern Mauritania area of Tiris Zemmour, and our exploration success to date provides validation for pursuing further strong growth platform for Aura’s shareholders and our Mauritanian partners.
“With the potential for our current Tiris West resource to be materially expanded, the Company strategy is to:
progressing development of the already defined resource in Tiris East as a new uranium producer; and
undertaking a significant resource expansion exploration study on the new tenure.”
Aura’s Managing Director and CEO David Woodall said,
"Aura Energy has already established a commanding position with its Mineral and Reserves and Resources at Tiris West, which has put us in a position to consider a final investment development decision in the coming months.
“Combined with our recently announced Exploration Target, these tenement applications – if successful – will give us an opportunity to be a driving force to realise the full potential of this region, which we believe could be truly world-class in scale.
“Our development strategy for Tiris is complemented by our exploration strategy, which aims to grow our resources and allow scaled-up production over time in a capital-efficient manner.
“We look forward to working with our stakeholders to progress our applications, ultimately growing the Tiris Project into a global-scale project that contributes to Mauritania's economic and social development.”
This article includes content from Aura Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
In the mining industry, strategic partnerships not only help projects move forward, but also offer a better return on investment for stakeholders.
Joint ventures have long existed as a tactic through which junior miners can raise funds to develop greenfield and brownfield projects. In the face of an increasingly volatile global market, these partnerships are likely to become even more prevalent.
It's important for uranium investors to understand the different types of strategic partnerships and their benefits, particularly as they pertain to the uranium-rich Athabasca Basin.
Strategic partnerships in mining
Within the mining industry, there are generally two kinds of strategic partnerships.
Joint ventures pool the resources of two or more companies that seek to develop the same project or resource. These may be formed between multiple mining companies of any size and level of expertise. They're often used as a means of allowing a non-domestic investor to gain a foothold in a new region.
According to mining lawyer Khaled Abdel-Barr, junior explorers often sign joint venture agreements with senior mining companies for mutually beneficial arrangements that leverage each other’s strengths. The senior company typically provides geological expertise, technical knowledge, contacts and data sets, while the junior partner is often the property holder.
An earn-in agreement, meanwhile, is a legal contract between the owner of a mining or exploration project and a second party. It establishes a means by which the second party might acquire an interest in the project.
Equity partnerships are a less common type of agreement within the mining sector. Compared to joint ventures and earn-in agreements, they're somewhat simpler, with one company simply acquiring a stake in another company or one of its projects. Such partnerships represent a common growth strategy.
Strategic partnerships may be formed in a few different ways, but generally, they start with the potential partners identifying a project that might benefit from a strategic alliance. Oversight for these partnerships is frequently provided by a committee comprising members from all stakeholders. In some cases, a joint venture may also include an earn-in agreement, while in others, one company might eventually acquire the project from the other with a single purchase.
Partnerships in a growing uranium demand landscape
Strategic partnerships can be immensely beneficial for a multitude of reasons. For one, they let companies pool their resources, allowing them to achieve a level of success beyond what would have been possible had the companies worked alone. These partnerships also enable the sharing of knowledge and expertise, in some cases even providing a company with a guaranteed market for a product.
Within the mining sector, these partnerships can help circumvent many of the most significant barriers to growth and development. In addition to making the allocation of public and private sector funding more efficient, collaboration can provide companies access to markets that might otherwise be closed to them, such as China. Strategic collaboration also allows mining companies to pool their exploration and research efforts, eliminating redundancies and freeing up resources for other revenue-generating pursuits.
Though the benefits are many, it's important to note these partnerships are not entirely without risk. There are many factors a company needs to consider before entering into an agreement of this nature, including project deadlines, responsibilities and potential shared debt. Both companies must also evaluate whether the project or asset being targeted by the partnership is worthwhile.
Noteworthy partnerships in the Athabasca Basin
Within the Athabasca Basin, where a significant number of uranium exploration and development activities are transpiring, there are a few notable strategic partnerships taking place.
The first is an option agreement signed in May between North Shore Uranium (TSXV:NSU) and Skyharbour Resources (TSXV:SYH) pertaining to South Falcon, a 42,906 hectare property containing 11 mineral claims. Under the agreement, North Shore has an earn-in option to acquire an initial 80 percent interest in the property with the potential for 100 percent ownership. Over the next three years, North Shore will be required to fulfill combined cash, share issuance and exploration expenditure commitments of C$5.3 million, with C$3.55 million of that being exploration expenditures, and will have the option to purchase the remaining 20 percent for C$10 million in cash and shares.
There's also the earn-in agreement between Carmanah Minerals (CSE:CARM) and Marvel Discovery (TSXV:MARV) for Marvel's Walker uranium claims. Upon completion of the agreement, which was announced in late 2022, Marvel and Carmanah will each own 50 percent of the property.
Stallion Discoveries (TSXV:STUD) announced a joint venture with ATHA Energy (CSE:SASK) in Q2 that could potentially quadruple Stallion's land position to 715,450 acres as it would allow Stallion the option to acquire a 70 percent interest in 47 of ATHA's mineral claims. This could result in the largest contiguous project in the Western Athabasca Basin, and it would border some of the most significant projects in the region.
Lastly, uranium exploration company Standard Uranium (TSXV:STND) recently announced its transition to a project generator business model as it expanded its holdings in the Southeastern Athabasca Basin. With ownership of six projects totaling over 65,000 hectares, the company is seeking strategic partners to further advance its exploration and development efforts.
While it's too early to predict the outcome of these joint ventures, one can look at a few of the most successful partnerships in the region as an indication. Cigar Lake is, without a doubt, the most significant of these. A joint venture between Cameco (TSX:CCO,NYSE:CCJ) (54.5 percent), Orano Canada (40.5 percent) and TEPCO Resources (5 percent), Cigar Lake is the highest-grade uranium mine in the world.
As the largest underdeveloped uranium project in the Eastern Athabasca Basin, Wheeler River hosts two high-grade uranium deposits. Situated in close proximity to critical infrastructure, the project is the result of a joint venture between Denison Mines (TSX:DML) and JCU Exploration Company. Denison owns 90 percent of the project and is responsible for operations, while JCU owns the remaining 10 percent. As of August 2021, Denison also maintains a 50 percent ownership stake in JCU.
Investor takeaway
For mining companies, strategic partnerships represent an effective way to pool resources, maximize profits and counteract market challenges. Collaboration between companies can greatly improve the outlook of both parties, opening up new avenues of innovation and growth that may have otherwise been out of reach. For investors, strategic partnerships can lead to incredibly promising investment opportunities.
This INNSpired article is sponsored by North Shore Uranium (TSXV:NSU). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by North Shore Uraniumin order to help investors learn more about the company. North Shore Uranium is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with North Shore Uranium and seek advice from a qualified investment advisor.
Nuclear Fuels (CSE:NF) focuses on the Kaycee Uranium Project in Wyoming seeking to prove up known historic resource and work towards a 43-101 compliant resource of 15 million pounds of uranium. Drilling at the Kaycee Uranium Project includes multiple uranium intercepts of ore-grade thickness and high-grade mineralization showing potential for ISR extraction, an environmentally responsible and economically superior uranium extraction process.
The company’s other assets include the Bootheel Project in Wyoming (uranium), the Moonshine Project in Arizona (uranium), and the LAB Project in Labrador (uranium and rare earth elements). Through this portfolio of projects, Nuclear Fuels is confident it can develop a safe, environmentally superior, and reliable source of domestic uranium, thereby reducing foreign supply dependence and ultimately contributing to the global energy transition.
Majority of the Kaycee Uranium Project is not well-explored, with drilling concentrated on approximately 10 percent of the area. The company has begun a 200-hole drill program focused on confirming and expanding historic uranium drill intersections as well as identifying new high-priority targets.
Company Highlights
Nuclear Fuels is a uranium exploration company focused on district-scale in-situ recovery (ISR) projects in proven and prolific jurisdictions such as Wyoming.
The company is focused on its flagship Kaycee Uranium Project, located in Wyoming’s Powder River Basin. Their goal is to prove up known historic resource and work towards a 43-101 compliant resource of 15 million pounds of uranium. The inaugural 200-hole drill program is currently underway at the Kaycee Project.
Positive drill results at Kaycee Project to date, including multiple uranium intercepts of ore-grade thickness and high-grade mineralization showing potential for ISR extraction.
Wyoming is the leading uranium-producing state in the US, home to the largest known uranium ore reserves in the country. It is also a jurisdiction that supports energy development, being among a handful of US states with an ‘Agreement State’ status, which provides a streamlined permitting program for new uranium projects.
Nuclear Fuels acquired the Kaycee Project from enCore Energy which retains back-in right for a 51 percent stake in the project by paying 2.5 times the exploration expenditures and carrying it to production in case of any major discovery at Kaycee. This provides Nuclear Fuels with a pathway to production.
The company is focused on exploring for uranium that is amenable to ISR technology, a process that is environmentally responsible and economically superior. It extracts the uranium in a non-invasive process through the use of natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.
enCore Energy Corp. is the company’s largest shareholder with a 19.9 percent stake, while management and other insiders hold approximately a 10 percent stake.
The company is led by industry experts with extensive experience and credentials in uranium exploration and development, and all aspects of ISR uranium operations.
In the rising global demand for carbon-free sources of energy production, Nuclear Fuels is well positioned to provide a reliable supply of domestic uranium and critical metal resources.
The US is the world’s largest consumer of nuclear energy, with 20 percent of its electric grid fueled by nuclear energy, yet most of its uranium fuel is imported.
Uranium prices continue to rise as the shortage of uranium supplies for the West continues to grow.
This Nuclear Fuels profile is part of a paid investor education campaign.*
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) ("Purepoint" or the "Company") announced a non-brokered private placement (the "Offering") of up to 47,619,048 flow-through units (the "Flow-Through Units") at a price of $0.0525 per unit for aggregate gross proceeds up to $2,500,000. Each Flow-Through Unit consists of one common share of the Company to be issued on a "flow through" basis pursuant to the Income Tax Act (Canada) (each a "Flow-Through Share") and one common share purchase warrant. Each warrant entitles its holder to purchase one common share of the Company (each a "Warrant Share") at an exercise price of $0.07 per share for a period of 24 months from the date of issuance.
The net proceeds of the Offering will be used for the exploration and advancement of the Company's projects in the Athabasca Basin, Saskatchewan. The gross proceeds of the Flow-Through Shares sold under the Offering will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)) which qualify as a "flow-through critical mineral mining expenditure" for purposes of the Income Tax Act (Canada) related to the exploration program of the Company to be conducted on the Company's properties located in the Province of Saskatchewan. The Company will renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2023. The Canadian Exploration Expenses to be renounced by the Company will qualify for the critical mineral exploration tax credit under the Income Tax Act (Canada).
In connection with the Offering, the Company has agreed to pay to certain finders facilitating the Offering including Red Cloud Securities Inc. (collectively, the "Finders"), a cash commission equal to 6% of the gross proceeds of the Offering raised through the Finders and issue to the Finders non-transferrable compensation warrants (the "Compensation Warrants") to purchase in aggregate such number of common shares of the Company (the "Compensation Warrant Shares") as equal to 6% of the number of Flow-Through Units sold through the Finders under the Offering. Each Compensation Warrant entitles its holder to purchase one Compensation Warrant Share at an exercise price of $0.0525 per share for a period of 24 months from the date of issuance.
The completion of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary regulatory and corporate approvals, including the approval of the listing of the Flow-Through Shares, the Warrant Shares and the Compensation Warrant Shares on the TSX Venture Exchange. Resale of the securities of the Company distributed under the Offering will be subject to a statutory hold period in Canada of four months and one day following the closing date of the Offering.
About Purepoint
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) actively operates a uranium exploration pipeline of nine advanced projects in Canada's Athabasca Basin. In addition to its flagship joint venture project at Hook Lake with partners Cameco and Orano and a second joint venture with Cameco at Smart Lake, Purepoint also holds seven 100% owned projects with proven uranium rich targets. With an aggressive exploration program underway on multiple projects, Purepoint is emerging as the preeminent uranium explorer in the world's richest uranium district.
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Disclosure regarding forward-looking statements
This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events. Such forward-looking information can include without limitation statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of the Company. These risks and uncertainties could cause actual results and the Company's plans and objectives to differ materially from those expressed in the forward-looking information. Actual results and future events could differ materially from those anticipated in such information. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice.
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Nuclear Fuels (CSE:NF) is a uranium exploration company focused on the Kaycee Uranium Project in Wyoming.
The company’s flagship Kaycee Project is located in Wyoming’s Powder River Basin, with the goal to advance the project to production. With existing historic resources of nearly 2.5 million pounds (Mlbs) of uranium, the project has the potential to become a large-scale uranium producer. A 200-hole drill program is currently underway at the Kaycee Project.
Wyoming is the USA's leading uranium-producing state, home to the largest known uranium ore reserves in the US. Wyoming is also a jurisdiction that supports energy development, being among a handful of US states with an ‘Agreement State’ status, which provides for a “one-window” streamlined permitting program for new uranium projects.
Nuclear Fuel’s Kaycee Project is potentially amenable for in-situ recovery (ISR) extraction technology, an environmentally responsible and economically superior uranium extraction process, with over 60 percent of all uranium extractions globally using this technology.
In addition to the Kaycee Project, some of the company’s other assets include the Bootheel Project in Wyoming (uranium), the Moonshine Project in Arizona (uranium), and the LAB Project in Labrador (uranium and rare earth elements). Through this portfolio of projects, Nuclear Fuels is confident it can develop a safe, environmentally superior, and reliable source of domestic uranium, thereby reducing foreign supply dependence and ultimately contributing to the global energy transition.
The drill program is underway at Nuclear Fuels’ priority Kaycee Uranium Project
Some of the most important challenges faced by the world today are climate change and energy security. Nuclear energy can play an important role in addressing these concerns.
First, nuclear energy is a clean and carbon-free energy source. It is the largest source of carbon-free electricity in the US, as it generates electricity without harmful pollutants such as nitrogen oxide, sulfur dioxide, particulate matter, or mercury. Second, nuclear energy has a small land footprint meaning it can produce relatively large amounts of power using small land mass. Typically, a 1,000-MW nuclear plant requires around 1 square mile to operate. In comparison, wind farms require 360 times more land area to produce the same amount of electricity, and solar photovoltaic plants require 75 times more space, according to the Nuclear Energy Institute. Third, nuclear fuel is extremely energy-dense. For perspective, a 1-inch-tall uranium pellet creates as much energy as 17,000 cubic feet of natural gas, 120 gallons of oil, or 1 ton of coal. Lastly, nuclear energy is relatively safer than other options. It scores very favorably in terms of death rates per unit of electricity production. It has a very low score as compared to a very high score for coal and brown coal.
Given these benefits, the world today is experiencing a nuclear renaissance. Roughly 200 nuclear reactors are currently under construction or planned – an increase of more than 40 percent of the currently operating nuclear fleet. In Japan, 10 reactors have restarted, and 16 additional reactors have applied for restarts. Likewise, the UK plans to build eight new nuclear reactors to increase its energy production. Moreover, the US has a heavy reliance on nuclear energy. Approximately 20 percent of electricity generated in the US comes from nuclear energy sources, according to data from the US Department of Energy. However, about 95 percent of the uranium that fuels America’s nuclear reactors is imported. The continued increase in the price of uranium is fueling the drive to accelerate uranium exploration in the US to boost domestic production.
To produce large amounts of nuclear energy, the US needs domestically produced uranium fuel. Currently, the majority of uranium is imported from foreign producers such as Russia, Kazakhstan and China. To reduce dependence on foreign uranium supply, the US is seeking to strengthen its domestic supply sources. Nuclear Fuels is well positioned to become a leading domestic supplier of uranium with its flagship project, the Kaycee Project in Wyoming.
Wyoming is a proven and effective uranium permitting jurisdiction. Its status as an Agreement State ensures permitting and advancing uranium projects are more efficient and streamlined compared to most other states. It is also important to note that most uranium production in Wyoming, especially in the Powder River Basin, involves the ISR extraction method. Wyoming hosts at least 10 ISR operations that have produced more than 45 Mlbs of U3O8.
What is in-situ recovery?
In-situ recovery (ISR) offers a minimally intrusive, eco-friendly and economically competitive approach to mineral extraction. It’s been proven a successful technique for obtaining uranium, especially from lower-grade deposits that might not warrant conventional open pit or underground mining due to costs. Unlike traditional mining, ISR doesn’t involve open pits, waste dumps or tailings, making it more environmentally considerate. This method also streamlines the permitting, development and remediation processes. With ISR, uranium is extracted without disturbing the surface, and once the process is complete, the land is restored to its original state and purpose.
Since its appearance in the 1960s, ISR technology has evolved significantly. Today, it’s a controllable, safe and benign uranium production method that is highly regulated in the US. Today, ISR accounts for about 70 percent of global uranium production. Some nations, like Kazakhstan and Australia, still employ strong chemicals like sulfuric acid for extraction. Many companies in the US opt for a mix of oxygen and sodium bicarbonate in the local groundwater, which extracts uranium with minimal environmental impact and at a near-neutral pH.
With ISR, uranium extraction is accomplished in liquid form through injection and recovery wells. Oxygen is injected with water and no toxic chemicals are used. Compared to conventional mining, it saves a significant amount of water. The use of this technology leads to minimal surface disruption, no tailings and no waste piles. Land and water revert to the original use category once the extraction is completed.
Company Highlights
Nuclear Fuels is a uranium exploration company focused on district-scale in-situ recovery (ISR) projects in proven and prolific jurisdictions such as Wyoming.
The company is focused on its flagship Kaycee Uranium Project, located in Wyoming’s Powder River Basin. Their goal is to prove up known historic resource and work towards a 43-101 compliant resource of 15 million pounds of uranium. The inaugural 200-hole drill program is currently underway at the Kaycee Project.
Positive drill results at Kaycee Project to date, including multiple uranium intercepts of ore-grade thickness and high-grade mineralization showing potential for ISR extraction.
Wyoming is the leading uranium-producing state in the US, home to the largest known uranium ore reserves in the country. It is also a jurisdiction that supports energy development, being among a handful of US states with an ‘Agreement State’ status, which provides a streamlined permitting program for new uranium projects.
Nuclear Fuels acquired the Kaycee Project from enCore Energy which retains back-in right for a 51 percent stake in the project by paying 2.5 times the exploration expenditures and carrying it to production in case of any major discovery at Kaycee. This provides Nuclear Fuels with a pathway to production.
The company is focused on exploring for uranium that is amenable to ISR technology, a process that is environmentally responsible and economically superior. It extracts the uranium in a non-invasive process through the use of natural groundwater and oxygen, coupled with a proven ion exchange process, to recover the uranium.
enCore Energy Corp. is the company’s largest shareholder with a 19.9 percent stake, while management and other insiders hold approximately a 10 percent stake.
The company is led by industry experts with extensive experience and credentials in uranium exploration and development, and all aspects of ISR uranium operations.
In the rising global demand for carbon-free sources of energy production, Nuclear Fuels is well positioned to provide a reliable supply of domestic uranium and critical metal resources.
The US is the world’s largest consumer of nuclear energy, with 20 percent of its electric grid fueled by nuclear energy, yet most of its uranium fuel is imported.
Uranium prices continue to rise as the shortage of uranium supplies for the West continues to grow
Key Project
Kaycee Project, Wyoming
The Kaycee Project is the company’s flagship asset. It is the largest ISR exploration project located in Wyoming’s Powder River Basin (PRB) and covers a 33-mile mineralized trend with over 110 miles of identified roll fronts and consists of more than 42 square miles of mineral rights. The project comprises three historically productive sandstone formations - Wasatch, Fort Union and Lance - that are mineralized and potentially amenable to ISR extraction. For the first time since the 1980s, the Kaycee Project is now held by a single company.
With over 3,800 drill holes, historic drilling has confirmed uranium mineralization in all three historically productive sandstones within the PRB, occurring over more than 1,000 feet of vertical section. The majority of the project is not well-explored, with drilling concentrated on approximately 10 percent of the area. The company has begun a 200-hole drill program focused on confirming and expanding historic uranium drill intersections as well as identifying new high-priority targets. The first phase of the current drill program is focused on the Saddle Zone which hosts a historic resource of 519,000 lbs. The initial results from the first 12 holes of the program have been encouraging. High-grade mineralization was encountered in five holes with grade thickness (GT) ranging from 0.441 to 0.908. The highest-grade intercept is 3 feet of 0.240 percent eU3O8. Five holes have a GT of >0.3 which is considered suitable for inclusion in a wellfield.
Table of Significant Results
Drill holes reported returned significant zones of uranium mineralization with >2 ft thickness at or above a grade cut-off of 0.02 percent eU3O8.Percent eU3O8 is a measure of gamma intensity from a decay product of uranium and is not a direct measurement of uranium. Numerous comparisons of eU3O8 and chemical assays of Powder River Basin core samples indicate that eU3O8 is a reasonable indicator of the actual uranium assay. Grade thickness, or GT, is defined as the product of the mineral grade multiplied by the thickness of the mineralization.Bold type represents potentially ISR recoverable uranium with a GT of >0.3 which is considered suitable for inclusion in a wellfield.
Nuclear Fuels acquired this project from enCore Energy Corp., which retains a back-in right for 51 percent of the project by paying 2.5 times the exploration costs and carrying the project to production upon Nuclear Fuels establishing a minimum of an NI 43-101 compliant resource of 15 Mlbs U3O8. This provides a clear path to production in case of major discovery at Kaycee.
Other Projects
Bootheel Project, Wyoming
This project is in Southeast Wyoming and consists of roll-front mineralized zones identified in three distinct, stacked sandstone formations. Historic metallurgical testing has indicated better-than-average uranium recovery kinetics and aquifer rehabilitation. A historic NI 43-101 report in 2007, includes an indicated resource of 1.443 million (Mt) @ 0.038 percent U3O8 for 1.089 Mlbs U3O8, and inferred resource of 4.399 Mt @ 0.037 percent U3O8 for 3.249 Mlbs U3O8.
Bobcat Uranium Project, Wyoming
This project is located in the Shirley Basin, 25 miles south of Casper, Wyoming in Albany County. The Shirley Basin was a proven and prolific producer of uranium credited with over 84 million pounds produced between 1959 and 1992 from producers including Getty Oil Company, Texaco, Pathfinder Mines Corporation, and Cogema Mining. Moreover, the Shirley Basin was home to the first commercial use of the ISR technique to extract uranium from sandstone-host deposits.
Moonshine Project, Arizona
The Moonshine Springs Project is located in Mohave County, Arizona. The project comprises approximately 1,000 acres, including 23 owned lode mining claims along with seven lode mining claims and 320 acres of fee land held under lease. This property was earlier explored during the 1970s and 1980s by Exxon Corp and later by Pathfinder.
This project consists of at least three stratigraphic zones, where the sandstone-hosted uranium occurs. The upper two zones lie at an average depth of 170 feet and are considered open pit candidates with the lower zone lying at a depth of 760 feet. The project is amenable to ISR with a historic resource of 2.4 Mlbs grading 0.16 percent U3O8. The company is currently working on a drill plan and permitting for drilling in 2024. The aim is to establish an NI 43-101 compliant resource.
LAB Project, Labrador
This project has the potential for uranium outcrop grades up to 6.7 percent and numerous highly enriched rare earth element occurrences along the 112-kilometer trend.
Initial exploration work is planned to follow up on significant uranium targets discovered in 2009. Results are pending from the 2023 snow machine-based scintillometer survey and sampling program, and subsequent and ongoing helicopter-based prospect and sampling program.
Lisbon Valley Project, Utah
This project is in the Lisbon Valley Uranium District in Southeast Utah and covers approximately 2,211 acres. The project has two claim blocks – LS and JB. The LS claim group is located southeast and adjacent to the Lisbon mine, which was operational between 1972 and 1988, producing approximately 22 Mlbs of U3O8. Historical drilling at LS claim dating back to 2007 reported uranium mineralization amounting to 17.5 feet grading 0.11 percent U3O8.
Management Team
William M. Sheriff – Chairman
William Sheriff is the founder and presently serves as the executive chair of enCore Energy Corp., a leader in ISR uranium production. He was a pioneer in the uranium renaissance as co-founder and chairman of Energy Metals, which was acquired by Uranium One for $1.8 billion and owns the largest domestic uranium resource base in US history.
Michael Collins – Director and Chief Executive Officer
Michael Collins is a certified professional geoscientist with more than 20 years of public market experience. He founded Bluerock Resources, which was the only new uranium producer in the 2000-2008 uranium cycle in the US southwest. He also has a depth of experience in permitting and feasibility studies, managing development projects and mine optimization programs.
Eugene Spiering - Director
Eugene Spiering is a registered geologist with more than 30 years of experience and recently served as VP of exploration for Quaterra Resources, where he led the discovery of the only two uranium deposits in Arizona. He has also worked on the Kaycee Uranium District in the early 1980s.
David Miller - Director
David Miller is a businessman, professional economic geologist, and a past member of the Wyoming State Legislature. He previously served as the chief executive officer of Strathmore Minerals before its merger with Energy Fuels in 2013. His career has spanned more than 40 years and started with Utah International in the US, which evolved into Orano Group, the French nuclear power conglomerate.
Larry Lahusen - Director
Larry Lahusen holds a BSc in geology from the University of New Mexico (1969) and has been active as an exploration geologist for more than 30 years. He began his career exploring for uranium deposits in the Colorado Plateau region in the US. He has directed and designed exploration programs that resulted in the discovery and subsequent development of the two uranium deposits located in the Lisbon Valley District, Utah.
Monty Sutton – Chief Financial Officer
As a senior management accountant, Monty Sutton has gained in-depth experience in cost analysis as well as system design and implementation. He has also spent 15 years as an investment advisor, trader and insurance specialist with PI Financial in Vancouver, raising over $100 million for junior companies.
Mark Travis – Project Manager
Mark Travis has over 17 years of mineral industry experience in a variety of different settings including both energy and precious metals. He was instrumental in the Strathmore Minerals development of the Gas Hills Wyoming properties during the 2006-2013 uranium cycle. He is the director of both the Geological Society of Nevada as well as the Nevada Mineral Exploration Coalition and is a certified professional geologist through AIPG.
The Athabasca Basin in Saskatchewan presents exceptional discovery and exploration opportunities for companies looking to enter the thriving uranium market. Uranium is poised for significant growth and the expected deficit in the supply side will create opportunities in the market. With new reactors continually coming online to meet demand and a limited number of suppliers to fill it, looking to high-value mining jurisdictions for uranium is one of the best strategies for companies trying to get ahead of the crowd.
Purepoint Uranium Group (TSXV:PTU,OTCQB:PTUUF) has been a major player in the Athabasca Basin for some time now, actively acquiring and operating an exploration pipeline of nine advanced projects, including its flagship Hook Lake project.
The Hook Lake project is a joint venture with two of the largest uranium mining majors in the world, Cameco Corporation and Orano Canada. With 21 percent ownership of Hook Lake, Purepoint acts as the operator of the joint venture.
The company has another high-value joint venture with its partner Cameco Corporation in its Smart Lake project, where Purepoint, as the operator, holds 27 percent ownership.
Outside its joint venture projects with the world’s largest uranium suppliers, Purepoint holds seven projects in the eastern Athabasca Basin, all 100-percent-owned with clearly defined uranium-bearing targets that have been safely maintained to maximize their value in anticipation of continued uranium price revival.
As the market begins an exciting bull rally in uranium, Purepoint is emerging as the pre-eminent uranium explorer in the world’s richest uranium district. The company has an aggressive exploration program underway, including:
Drilling Hook Lake Joint Venture Project: Q1 – 2024
Geophysics at Smart Lake Joint Venture Project: Q1 – 2024
Geophysics and mapping at Tabbernor Project
Field work and drilling at Red Willow Project
Drilling at Carson Project
Purepoint’s leadership team includes independent, highly qualified experts with deep provincial and regulatory ties, as well as decades of experience in the Athabasca Basin. Together, their expertise in mining, finance and exploration prime the company for exceptional growth and uranium discovery potential.
Company Highlights
Purepoint is advancing several projects toward discovery in the Athabasca Basin, the world’s richest uranium region.
Two high-value partnerships with Cameco Corporation and Orano Canada, with joint ventures on the Hook Lake and Smart Lake projects.
Apart from Hook Lake and Smart Lake, the company operates an additional seven, 100-percent-owned, highly prospective uranium projects in the Eastern Athabasca Basin, including the Red Willow, Turnor Lake, Henday Lake, Tabbernor Project, Tower Project, Carson Project and Russell South Project.
The company has a world-class leadership team with unparalleled experience and exploration expertise in the Athabasca Basin.
Key Projects
Hook Lake Project
The Hook Lake property is located within the Patterson Uranium district and has nine claims totalling 28,598 hectares. The project is jointly owned by Cameco, Orano Canada and Purepoint Uranium. Operated by Purepoint since 2007, the project has seen significant discoveries and exploration campaigns.
Highlights of discovery on the property include the Spitfire high-grade discovery which revealed 53.3 percent uranium oxide over 1.3 meters, including a 10-meter interval of 10.3 percent uranium mineralization measurements. Three prospective structural “corridors” have been defined on the property, each consisting of multiple electromagnetic (EM) conductors confirmed by drilling.
In 2023, Purepoint completed 2,710 meters of drilling in six holes to test the main conductive trend at the Carter Corridor. As this was its first pass drilling, the main conductive trend was tested using 800-meter step-outs towards the north to identify the most prospective geology.
The 2023 drilling program ended on a very high note with a uranium intercept associated with boron that is reminiscent of our early discoveries at the Spitfire discovery.
Follow-up drilling is expected to begin in January 2024 to follow up on hole CRT23-05 which returned an assay of 0.08 percent U3O8 (671 ppm uranium) over 0.4 meters (319.1 to 319.5 meters) from a 15-meter graphitic shear zone (318 to 333 meters downhole depth) below the unconformity (283 meters).
Red Willow Project
The 100-percent-owned Red Willow Project is situated on the eastern edge of the Athabasca Basin close to several uranium deposits including Orano’s mined-out JEB deposit, located approximately 10 km to the southwest, and Cameco’s Eagle Point deposit that is approximately 10 kilometers due south. The project covers approximately 40,116 hectares and consists of 17 mineral claims.
Three of the 23 conductive areas, Osprey, Geneva and Radon, have returned anomalous uranium intercepts and were the focus of exploration programs conducted by Purepoint between 2021 and 2023.
About 3,854 meters of diamond drilling were completed in 15 holes at the Red Willow Project across the Osprey, Geneva and Radon Lake zones in 2023. The 2023 winter drill program continued to follow up on radioactivity along EM conductors that are shared with the neighboring Orano/Denison Wolly project to the west for both basement and unconformity-hosted economic uranium mineralization. As they continue to identify favorable geology, wide-spread alteration and elevated radioactivity across the project, the company will extend its efforts to the additional nine target zones defined on the property.
Smart Lake Project
Purepoint, as operator, holds a 27-percent ownership of the Smart Lake project in joint venture with Cameco Corp.
The Smart Lake property includes two claims with a total area of 9,860 hectares situated in the southwestern portion of the Athabasca Basin, approximately 60 km south of the former Cluff Lake mine and 18 kilometers west-northwest of Purepoint’s Hook Lake JV Project.
Depth to the unconformity, where it occurs, is relatively shallow at less than 350 meters.
Aeromagnetic and electromagnetic patterns at Smart Lake reflect an extension of the patterns underlying the Shea Creek deposits (indicated resource of 68 million lbs at 1.50 percent U3O8; UEC PR Jan 2023) 55 kilometers north of the property. Exploration by Purepoint has firmly established the presence of anomalous uranium and hydrothermal alteration. Numerous priority target areas, where EM conductors are cross-cut by east-west structures, are yet to be drill-tested.
Like the Kianna fault at Shea Creek, known uranium mineralization at the Smart Lake project is associated with the intersection of the east-west Arthur Fault and north-south-striking fluid/chemical traps including the Shearwater conductor and chloritized mafic orthogneiss. The occurrence of low-grade uranium mineralization along the Arthur Fault away from Shearwater conductor underscore the need to target east-west structures both at the intersection with conductive anomalies and at magnetically interpreted lithological contacts.
Additional east-west striking faults (Groomes Lake and Cristobal) have been interpreted from examination of airborne magnetic and electromagnetic surveys. These faults are spatially related to strong EM conductors identified in both airborne and ground-based geophysical surveys.
The 2024 exploration program is scheduled for Q1-2024 and will include transient electromagnetic (EM) surveys targeting the Groomes Lake conductor.
Turnor Lake Project
The 100-percent-owned Turnor Lake project is situated on the Eastern side of the Basin along the mine trend that lies in the transition between the Wollaston and Mudjatik geological domains. The project is geologically tied to Cameco’s La Rocque high-grade showings and IsoEnergy’s Hurricane deposit. The property covers approximately 9,705 hectares and consists of five mineral claims.
In the fall of 2022, Purepoint completed a drill campaign to initiate first-pass testing of the 2.3-kilometer-long Serin EM conductor which lies adjacent to and on-trend with IsoEnergy’s Hurricane deposit along the LaRocque corridor. The Hurricane deposit is located approximately 10 kilometers west-southwest of the Turnor Lake project boundary and has an indicated mineral resource of 48.61 million lbs of U3O8 based on 63,800 tonnes grading 34.5 percent U3O8 (IsoEnergy PR; Jul 18, 2022). Two drill holes were completed along the Serin EM conductor, approximately 750 meters apart, and one hole was lost for a total of 1,138 meters.
The initial hole, SL22-02, encountered unconformity at 290 meters and intersected graphitic-pyritic pelitic gneiss between 336 to 365 meters that returned 745 cps over 0.4 meters from the downhole gamma probe. The hole also intersected radioactive pegmatite dykes, one returning an average of 825 cps over 14.6 meters. Drill hole SL22-03 failed to explain the targeted EM conductor or intersect notable radioactivity.
Management Team
Chris Frostad - President and CEO
Chris Frostad is a founding partner bringing over 40 years of expertise to his position as president and CEO. He led public companies in both the technology and mining and metals industries.
Throughout his career, Frostad has been instrumental in the development and building of a variety of high-growth, early-stage, public and private companies.
Before Purepoint, he held numerous senior positions in the technology industry including CEO-in-residence of a Toronto-based venture capital firm. Frostad is a chartered accountant and a chartered professional accountant who began his career in international taxation with Deloitte.
Scott Frostad - VP of Exploration
Scott Frostad’s experience in the mining industry throughout Canada spans over three decades. He brings to his position as VP of exploration a background in mineral exploration with renowned mining companies such as Lac Minerals, Teck and Placer Dome. Most recently, he was the environmental specialist for Cogema Resources and managed environmental issues at both the Cluff Lake and McClean Lake Uranium Mines in Northern Saskatchewan.
Frostad is a graduate of Western University with a B.Sc. in geology and holds an M.A.Sc. in mining and mineral process engineering from the University of British Columbia. He is a member of the Association of Professional Engineers and Geoscientists of British Columbia and the Association of Professional Engineers and Geoscientists of Saskatchewan.
Ram Ramachandran - CFO
Before his position as CFO with Purepoint, Ram Ramachandran brings an 11-year tenure as deputy director and associate chief accountant with the Ontario Securities Commission. Most recently, Ramachandran provided advisory services in the area of litigation/compliance to numerous companies. To his credit, Ramachandran conceived, developed and launched the Canadian Securities Reporting Advisor – an online compliance tool for public companies.
Linda Tong - GIS Specialist
Linda Tong has been Purepoint Uranium’s GIS specialist since January 2006. She has over 20 years of experience in GIS application, GIS development and computer programming.
Tong is a graduate of Wuhan University with a B.Sc. in computer science & application.
Jeanny So - Corporate Communications
Jeanny So has over 20 years of experience in operations, investor relations, sales and marketing in the financial industry and has executed corporate communication programs for several private and publicly-listed companies.
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Figure 1 - Exploration Tenement Applications
