Using the current industry standard cut-off grade of 0.01% U3O8, a resource of 19.3 million pounds at an average grade of 0.04% U3O8 has been defined.
This new resource calculation is significantly higher than the historic estimate and represents what the Company believes is a portion of a much larger deposit on the property.
The resource calculation outlines 12.9 million pounds U3O8 grading 0.07% U3O8 using a 0.04% cut-off or 9.7 million pounds grading 0.09% U3O8 using a 0.05% U3O8 cut-off. This is a significant increase from the historic estimate of 6.7 million pounds grading 0.07% U3O8 at a cut off of 0.05% U3O8.
“Establishing Amer Lake as Canada’s newest uranium resource is a major milestone for the Company. We have met our initial goal of defining a compliant resource that is double the historic deposit. Our clear and low cost plan to significantly expand Amer Lake to a shallow large tonnage uranium deposit is well underway.” says Mark Kolebaba, president of Uranium North.
This resource is confined to drilling within an area which measures 1,400 metres in an east-west direction and 500 metres in a northwest-southeast direction. Geology and geophysics indicate the Main Zone deposit may extend an additional 1,200 metres to the southeast which will be a focus for future drilling. In addition to the expansion potential of the Main Zone, the company has identified numerous other similar uranium bearing zones within a 10 kilometre radius of the Main Zone deposit.
Geological modeling using computer software shows that the Main Zone deposit outcrops to the north and extends shallowly to the south where the mineralized body becomes flat lying. This type of geometry may be amenable to low-cost mining methods.
The mineralized zone is hosted within a magnetic sandstone unit that is traceable with geophysics. The traceability using an airborne magnetic survey greatly assists in further expanding this shallow resource making Amer Lake a low-cost exploration project.
Alan Armitage, vice president of exploration for Uranium North states, “Based on a solid geological model and firm understanding of our geophysical data, we are confident Amer Lake has the potential to host a large uranium deposit. Going forward, drill programs will focus on expanding the Main Zone resource. In addition, our work to date indicates that the targets identified elsewhere on the property may also add to the uranium potential of the property.”
