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Areva Resources to begin diamond drill program at Preston uranium property in Canada

Published 22 January 2018

Skyharbour Resources has announced that its option partner Areva Resources Canada will be commencing a planned 4,500m diamond drill program at the Preston Uranium Project.

The project is located in the western Athabasca Basin near NexGen Energy Ltd.’s high-grade Arrow deposit hosted on its Rook-1 property and Fission Uranium Corp.’s Triple R deposit located within their PLS Project area.

Skyharbour and Clean Commodities entered into an Option Agreement (the “Agreement”) with AREVA Resources whereby AREVA Resources has an option to acquire up to a 70% working interest in the Preston Uranium Project. Under the Agreement, AREVA Resources will contribute cash and exploration program considerations totaling up to CAD $8,000,000 in exchange for up to 70% of the project area over six (6) years with a first option where AREVA Resources may acquire an initial 51% working interest in Preston for a period of three (3) years by funding exploration expenditures in the total amount of $2,800,000 and making cash payments totaling $200,000 to Skyharbour and Clean Commodities.

Highlights of AREVA Resources’ Exploration Programs at Preston Uranium Project:

  • AREVA Resources planning to carry out CDN $2,000,000 in exploration and diamond drilling programs over the next year
  • Recently completed geophysical programs included Moving Loop Transient Electromagnetic (ML-TEM) surveys on two grids located on the western part of the project, east of highway 955
  • A diamond drilling program consisting of 15 to 20 drill holes for a total of approximately 4,500 metres to commence shortly
  • AREVA Resources may earn up to a 70% interest in the 49,635-hectare Preston project through $8,000,000 of total project consideration over six (6) years, including up to $7,300,000 of exploration work programs and $700,000 of cash payments
  • If carried to completion, a tripartite joint venture would be formed being 70% as to AREVA Resources and 30% as equally divided between Skyharbour and Clean Commodities

Preston Uranium Project Winter 2018 Diamond Drilling Program:

AREVA Resources will be commencing a diamond drilling program shortly consisting of 15 to 20 drill holes for a total of approximately 4,500 metres which will likely take 2.5 months to complete for the Preston Uranium Project. Drilling will focus on areas of interest defined by ground EM surveys within the west part of the project, east of highway 955 and the FS areas. The estimated cost of the 2018 exploration program is CDN $2,000,000. Skyharbour will provide updates as they become available on the progress of this drill program.

Recent Preston Uranium Project Geophysical Programs:

In the spring of 2017, a Quaternary evaluation of the Preston property was performed by AREVA Resources followed by a two week summer field program which included the review of historical drill holes, outcrop visits, sampling and general prospecting and surveying. AREVA then completed ground EM surveys within the Dixon Lake target area and a more exhaustive review of the project historical information.

In the fall of 2017, Moving Loop Transient Electromagnetic (ML-TEM) surveys were completed on two grids located east of highway 955. The Johnson Lake Corridor (JLC) hosts two main north-northeast and northeast trending VTEM conductive trends. Numerous areas of interest have been identified along the VTEM conductive zones and of particular interest at this time is the area northeast of Canoe Lake which hosts radon-in-water anomalies

The Dixon Lake Corridor (DLC) comprises two VTEM conductive trends dominantly oriented northeast-southwest. The FS target area located on the northeast edge of these VTEM trends is considered an area of interest and ground geophysical surveys, including the Max-Min method, were performed to define drill targets. The Max-Min survey identified three discrete conductors within a wide, approximately 800m, VTEM conductive area. Three historical holes drilled within the FS area tested one of the conductors and two holes, PN15004 and PN15005, encountered locally sheared graphitic and pyritic semi-pelite, whereas hole PN14009 was lost at 150m within a clay gouge. The intersected graphite confirmed the east-west trending conductor.

Line-cutting work in preparation for two ML-TEM surveys is currently underway with one survey to be carried out on the JL grid and a second one on the FS grid.  The JL grid comprises seven profiles for survey coverage of 28.5 line-kilometers while the FS grid consists of three profiles for survey coverage of 3.6 km. AREVA Resources’ ML-TEM survey on the FS area will investigate the extent of the conductor located near anomalous radioactivity found on a large granitic gneiss outcrop. Moderate to strong silicification and north-south trending narrow dark shear bands were noted on the outcrop.

Overview of Preston Lake Uranium Project:

The significant potential of the Western Athabasca Basin has been highlighted by recent discoveries in the area by NexGen Energy Ltd. (Arrow), Fission Uranium Corp. (Triple R) and a joint-venture consisting of Cameco Corporation, AREVA Resources Canada Inc. and Purepoint Uranium Group Inc. (Spitfire). More than $4.7-million in expenditures on the entire Preston Uranium Project have been incurred to date. This exploration has consisted of ground gravity, airborne and ground electromagnetics, radon, soil, silt, biogeochemistry, lake sediment, and geological mapping surveys, as well as two exploratory drill programs. Several high-priority drill target areas associated with multiple prospective exploration corridors have been successfully delineated through this methodical, multiphased exploration initiative, which has culminated in an extensive, proprietary geological database for the project area.



Source: Company Press Release