To earn a 60% interest in the property, Slater will complete $3,000,000 in exploration expenditures, make $500,000 in cash payments and issue 1,000,000 common shares to Eagle Plains over four years.
The project area is being explored for its uranium and rare-earth element (REE) potential based upon both historical occurrences and on new targets that indicate the potential for identifying structurally-hosted uranium mineralization and/or intrusive (pegmatite) hosted uranium and REE mineralization.
Historical assays from the area returned values up to 8.0% U3O8 (AR 74A14-0023). Uranium mineralization occurs both as low-grade material in granitic pegmatites and associated granites, as well as higher-grade fracture controlled mineralization in pegmatites and meta-sediments.
Additional areas were targeted to cover known uranium and molybdenum showings, including a showing which comprises several trenches in a pegmatite stock containing disseminated and fracture-hosted uranium mineralization.
The property was acquired by Eagle Plains in 2006 following an airborne geophysical survey and ground geological program. The most recent systematic exploration of the property occurred in 2008, when Blue Sky Mining optioned the property from EPL and completed a 757mt drilling program.
Slater Mining intends to carry out a $200,000 exploration program during 2010, which will include trenching and detailed geological work to further develop existing targets on the Property.
