Hello Joe: How are ya? This might be of interest...Good Dayyy Ronald
>From newsout@canada-stockwatch.com Thu Sep 24 09:29:26 1998
Date: Thu, 24 Sep 1998 06:29:24 -0700
From: newsout@canada-stockwatch.com
Subject: Stockwatch: Pioneer Metals Corp - News Release
To: "Darryl MacDonell" <rmdonell@baynet.net>
Riou Lake summer 1998 field program results
Pioneer Metals Corp PSM
Shares issued 49,504,057 Sep 23 close $0.115
Thu 24 Sept 98 News Release
Mr. Stephen Sorensen reports
Pioneer Metals has released the results of the 1998 summer field program at
its 100 per cent owned Riou Lake uranium project in the Athabasca Basin of
Northern Saskatchewan, Canada. The program has led to a better
understanding of the geology, geochemistry, and tectonics of the Riou Lake
area. This work coupled with geophysical data collected last winter
indicates that the southeastern portion of Riou Lake is highly prospective
for hosting an unconformity-type uranium deposit.
The target of Pioneer's exploration efforts at Riou Lake is a world class
unconformity-type uranium deposit such as those found at Cigar Lake and
McArthur River in Northern Saskatchewan. These deposits are unique in that
they occur at or just above a major unconformity at the base of the
Athabasca Basin. An unconformity is commonly a sub-horizontal surface which
represents the contact between two rock masses. In Northern Saskatchewan,
the unconformity is the contact surface between the Athabasca Group
sandstones and the older, underlying basement rocks. It is near this
contact that world class uranium deposits are formed, hence the term
unconformity-type uranium deposits.
The theory of how these deposits were formed is undergoing continuous
revision. However, most industry experts would agree that the three
following geological phenomena are absolutely essential for the development
of an unconformity-type uranium deposit in the Athabasca Basin:
Major structure - a system of cross-cutting faults originating in the
basement rocks extending up into the sandstone above the unconformity
(plumbing system);
Mineralizing hydrothermal event - mineral-laden basement fluids (hot
brines) moving up through the plumbing system mixing with sandstone fluids
at and above the unconformity; and
Graphite within the basement rock below the unconformity - although poorly
understood and often debated, there is a clear association between graphite
in the basement and the richest unconformity-type deposits in the Athabasca
Basin.
Following their thorough review of the latest data collected at Riou Lake,
it is the opinion of Pioneer's consultants that the southeastern portion of
Riou Lake clearly exhibits these three geological phenomena.
Work this summer at Riou Lake involved a program of geological mapping,
prospecting and lake sediment sampling. Integration of this data with
previous geological and geophysical data has greatly advanced the project.
The present body of results from the project is discussed in the context of
the three geological phenomena widely accepted to be the signposts of an
unconformity-type uranium deposit.
Major structure - mapping along the eastern portion of the southern shore
of Riou Lake indicated ground disturbance associated with tectonic
activity. Daniel Faure and Paul Raemakers mapped a folded and faulted
outcrop of Manitou Falls formation which stood out against the landscape.
The outcrop is believed to represent a tectonic remnant of an upthrust
block over a graben, induced by a strong east to west compressional
tectonic stress. This structural feature is bordered to the west by a major
NNE-trending fault (the Riou-Yaworski fault) which is believed to have a
strike length over 40 kilometres and is parallel to the Platt Creek fault.
Field observations also suggest the development of a strong distensive
system resulting in stress release along a WNW-trending (290 degree) fault
system. The field observations of this structure are in agreement with
analyses of aerial photographs (lineaments), aeromagnetic data, as well as
early-time responses seen in recent surface electromagnetic (UTEM) surveys.
A lake bottom geochemical survey was performed to test for metal leakage
caused by artesian water flowing along faults within the sandstone. Several
discrete anomalies were discovered coincident with one of the WNW faults in
the lake. One anomaly which is of primary interest, shows elevated values
of arsenic, cobalt, copper, molybdenum, and uranium. Moreover, it lies at
the intersection of a major NNE-trending fault system.
Mineralizing hydrothermal event - field crews discovered a radioactive
boulder field (the W zone) along the southeastern shore of Riou Lake. This
showing consists of strongly silicified, hematized, fractured, and
brecciated angular blocks exhibiting little to no glacial transport.
Chemical values across the W zone are homogeneous and anomalous in uranium
(100 ppm), lead (25 ppm), vanadium (40 ppm), phosphate (10 per cent) and
nickel. Background values of uranium in the sandstone at Riou Lake are
approximately 0.25 ppm average uranium values in the W zone are 400 times
background. Mineralization and composition of the rocks suggest that the W
zone is derived from perched mineralization of hydrothermal origin.
Pioneer believes that at Riou Lake perched mineralization is not limited to
the W zone. This summer, field crews located several radioactive boulders
which were initially discovered by previous operators. Given the large
number of historical boulders with anomalous uranium (up to 13.28 per cent
uranium) as well as their wide spatial distribution, Pioneer believes that
these boulders have their origin in other zones of perched mineralization
which underlie Riou Lake. This suggests that the late phase of hydrothermal
remobilization is pervasive at Riou Lake.
Further evidence of this hydrothermal event may be found in Numac hole
P2-H1 (1966), the only known historical drill hole on the property, which
has recently been relogged and sampled by Daniel Faure. It reached a depth
of 287 metres before being terminated within the Athabasca Group sandstone
due to inadequate drill equipment. It is important to note that his hole
was drilled before the significance of alteration haloes to the development
of unconformity-type uranium deposits was recognized. The core showed
important remobilization of nickel within fractures (up to 205 ppm) in the
upper part of the hole (100 to 130 metres) as well as remobilization of
arsenic (91 ppm) within a fracture toward the end of the hole (240 metres).
A fracture at the 130 metre mark bears strong hydrothermal imprints with
the development of illite and K-feldspar. Anomalous values of copper, lead,
zinc, cobalt, molybdenum, boron, vanadium, and uranium are also present
within this fracture. Other fractures show variable amounts of siderite and
pyrite, both of which are late key indicator minerals of a major
hydrothermal event. The rocks around all of the fractured zones are highly
bleached and silicified suggesting that the Numac hole lies in close
proximity to a major altered fracture zone within the sandstones.
Consultants have compared the alteration features observed in this hole to
other drilling proximal to known unconformity-type uranium deposits
elsewhere in the Athabasca Basin. Drilling by D.F. Exploration Uranium
immediately south of Riou Lake has encountered similar alteration features
in the sandstone.
Graphite within basement rocks below the unconformity - most major deposits
in the Athabasca Basin are directly associated with fault structures
coincident with graphitic conductors. Graphite has unique chemical,
mechanical, and electrical properties which may assist in the deposition of
uranium at the unconformity. Some current theories suggest that the
destruction of graphite provided the reducing medium required for the
deposition of uranium. Others have proposed that graphite plays a more
passive role and merely localizes fault activity by providing the
favourable mechanical properties for slippage thus allowing for the
development of a good plumbing system. Regardless of its significance in
the development of the uranium mineralization, graphite is normally highly
conductive and when found in a discrete layer, is a discernible target for
electromagnetic survey methods. It is for this reason that basement
graphitic conductors have traditionally been the primary focus for
exploration in the Athabasca Basin.
In Stockwatch March 25, 1998, Pioneer announced that several
electromagnetic anomalies of considerable strike length were discovered
during the winter 1998 geophysical program. These anomalies are similar in
character to those of known graphitic conductors associated with
unconformity-type uranium deposits found elsewhere in the Athabasca Basin.
D.F. Exploration has discovered graphitic metapelites and up to 1 per cent
uranium within basement rocks during the course of drilling approximately 3
miles south of Riou Lake. Moreover, the corridor of low magnetic amplitude
along which Pioneer has discovered its conductors is the northwestward
extension of the low magnetic corridor found on the adjoining D.F.
Exploration property and may be correlated to similar linear magnetic lows
which represent graphitic lithologies north of Fond du Lac River. For these
reasons, Pioneer is convinced that the basement conductors at Riou Lake are
graphitic in nature.
Pioneer has been advised by its consultants that the southeastern portion
of Riou Lake is highly prospective for hosting an unconformity-type uranium
deposit. In this area, basement conductors are situated in close proximity
to the following: favourable faulting with associated metal leakage,
alteration within a drill hole and traces of perched mineralization at
surface. These are all significant indicators that a major mineralizing
event conducive to the development of uranium mineralization has occurred
at Riou Lake. Drilling will commence as soon as ice conditions permit to
test the extent of possible mineralization.
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