In the year ended February 28, 1999, the Company entered into a joint exploration agreement with UEM Inc. UEM Inc. was a corporation owned 50% by Cameco Corporation ("Cameco") and 50% by AREVA on the Virgin River project located in the Athabasca Basin of northern Saskatchewan. Subsequently, UEM was dissolved and both Cameco and AREVA are equal partners (49% each) in the joint exploration agreement. Cameco is the operator of the project.
The Company's wholly owned subsidiary, Coronation Mines Ltd. owns the remaining 2% of the project with the first right of offer to acquire up to 10% of the project and has been carried through to $10.0 million worth of exploration and development, with over $20.7 million having been spent on the project to date.
The approved budget for the winter and summer 2009 drill programs is $4.0 million. Results from the winter 2009 drill program, announced in September of 2009, returned the highest grade-thicknesses (GT = metres multiplied by % U308) uranium mineralization values attained to date. The highlight of the 2009 winter diamond drilling program was the broad zone of mineralization intersected in DDH VR-031W3 which returned a 0.1% grade-cutoff result of 8.73% U3O8 over 33.9 m = 295.9 Grade Thickness. The 2009 winter diamond-drilling program was designed to further outline the across strike width of mineralization along the currently defined 650 m strike length of the Centennial deposit. The program consisted of 4 wedge holes totaling 1,268 m and was carried out on two drill fences on lines L11+00N (DDH's VR-027W3 and -027W4) and L10+50N (DDH's VR-031W2 and -031W3). Significant results from this program are tabulated below.
The program was successful in extending mineralization an additional 16 m along L11+00N, to a minimum width of 27 m, and along L10+50N where mineralization was extended an additional 11 m to a minimum width of 24 m. In addition, winter 2009 drilling has further clarified the lithological and structural scenario of the Virgin River Domain basement within the north-central portion of the deposit. Drilling appears to have identified the structure controlling mineralization on the deposit which may prove to be an additional tool in vectoring to mineralization on the deposit.
The Centennial Deposit has now been traced over a known 650 m of strike length and appears to remain open to both the north and the south. Follow-up wedge off-cuts suggest the deposit has a minimum across strike width ranging from 5 m to 27 m and is currently open to the east and west on most sections.
Significant summary results from previous drilling (2004-2008) on the Virgin River Drill Programs are tabulated below.
Drilling results indicate excellent uranium exploration potential is demonstrated in the Centennial Zone. Cameco, the project operator, has indicated they are exploring for a McArthur River style uranium deposit, and are very encouraged with results to date.
Planned exploration activities for the remainder of 2009 will consist of the continuation of the diamond drilling program on the Centennial Deposit at Wide Lake, Saskatchewan. A two drill program will continue to outline the width and extent of mineralization along the deposit concentrating on the highest grade portion of each fence. At least one 'pilot' hole will be dedicated to a target immediately adjacent to the deposit.
In addition to drilling the deposit, a conceptual study is underway to assist in determining the potential economic viability of a uranium deposit in this region of the Athabasca Basin.
Cameco advised that the conceptual study will be undertaken in-house and within the current budget. The study will attempt to determine the minimum deposit size required for a stand-alone milling operation versus hauling ore to the existing Key Lake mill and is not expected to result in a resource calculation at this time.
General Location Map:
Drill Hole Location Plan Map:
