Alpha Exploration (AEX-V) Jan 16, '14 has entered into an option agreement with Noka Resources Inc. to acquire a 60-per-cent interest in Noka's Carpenter Lake property situated along the Cable Bay shear zone straddling the south-central rim of the Athabasca basin in Northern Saskatchewan. The property comprises a total of 20,637 hectares within five contiguous mineral dispositions. The property was reviewed by the Alpha technical team and was found prospective based on the following attributes:
- A major regional shear zone with known uranium enrichment -- the Cable Bay shear zone;
- Presence of conductive graphitic pelites as defined by airborne and ground electromagnetic surveys, confirmed by diamond drilling;
- Anomalous airborne uraniferous radiometric signatures associated with the CBSZ conductor system and strongly anomalous uranium values in historical lake sediment results;
- Underexplored and including several high-priority geophysical targets associated with geochemical indicators for uranium mineralization on the property;
- The historical electromagnetic surveys show favourable crosscutting structures disrupting the conductors of the CBSZ.
The property covers the CBSZ starting from approximately one kilometre south from the south edge of the Athabasca basin. The property has one of the strongest uranium-in-lake-sediment values in the area at 89.5 parts per million uranium (among other strongly anomalous samples on the property) and an associated relatively large uranium equivalent (eU) radiometric airborne anomaly, situated favourably down ice from the CBSZ. There are only two closely spaced historical diamond drill holes on the property, which intersected graphitic and pyritic pelitic gneiss units. There are numerous overburden drill holes that outline partially coincident nickel, copper, molybdenum and arsenic soil anomalies, with the depth to bedrock basement at 35 metres to 40 metres. The CBSZ on the property is defined by three parallel electromagnetic conductor axes, suggesting the hangingwall, footwall and middle of a conductive panel of graphitic or sulphide-rich rocks. This is similar to the EM geophysical signature associated with high-grade uranium mineralization discovered by the Alpha Minerals/Fission Uranium JV at Patterson Lake South that was managed by Alpha's vice-president, exploration, Garrett Ainsworth, from inception in 2007 until June, 2013.
In 1981, SMDC drilled hole CAB-18, located about 11 kilometres northeast from the property along the CBSZ. Drill hole CAB-18 returned a core sample with 3,358 parts per million nickel, 1,440 parts per million zinc, 215 parts per million lead and 28 parts per million uranium in the basement regolith. Also, on Fleming Island within Cree Lake, located about 19 kilometres northeast from the property, historical assessment reports describe an outcrop of uraniferous diabase discovered in earlier work. Grab samples assayed as high as 3.0 per cent U3O8 (triuranium octoxide), suggesting that this mafic intrusive became mineralized when it was emplaced, cutting through high-grade uranium mineralization associated with the CBSZ structure.
Under the agreement, Alpha has the option to earn a 60-per-cent interest in the property by making cash payments totalling $50,000, issuing 400,000 shares and completing work commitments of $1.25-million, all over a period of three years. Upon completion of the option, a joint venture will be formed between Alpha (60 per cent) and Noka (40 per cent) for the further development of the property, with Alpha serving as the operator. Presently, the property is subject to a royalty equal to 5 per cent of gross revenues, which is owed to the original vendors. The underlying royalty rate can be reduced from 5 per cent to 2 per cent by Noka through the issuance of shares. In the event that Noka does not exercise its right to reduce the underlying royalty by certain future dates specified in the agreement, then Noka will be subject to penalties, the effect of which will be that Noka's interest in the property will be reduced or possibly forfeited. The agreement is subject to the acceptance of the TSX Venture Exchange.
Property work planned this winter will include airborne VTEM and magnetic surveys and sampling for radon in lake water and sediments. Radon sampling was very successful in locating high-grade uranium mineralized zones at PLS in 2013. The methodology for sampling from lake ice in the winter was designed together by RadonEx of St Lazare, Que., and Alpha's vice-president, exploration, Garrett Ainsworth. The results from the PLS radon survey are a compelling reason to engage RadonEx to employ this method at Carpenter Lake.
The technical information in this news release has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of Alpha Exploration by Garrett Ainsworth, PGeo, vice-president, exploration, a qualified person. |
