Posted in | News | Uranium | Mining Business

Zadar Enters into Option Agreement with Canterra and Triex for Uranium Projects in Athabasca Basin

Zadar Ventures Ltd. (the "Company") is pleased to announce it has entered into an option agreement with Canterra Minerals Corporation ("Canterra") and Triex Minerals Corp. ("Triex"), a wholly owned subsidiary of Canterra, whereby Zadar has the option to purchase all of the Canterra/Triex interests in 5 significant and strategically located uranium projects, including over $15 million in exploration data, covering 67,561 hectares (166,946 acres), in the Athabasca Basin (Figure 1).

The Company will pay $50,000 in cash payments and issue 2 million common shares. Canterra will also retain a 2% NSR on each project with a buyback of 1% for $1 million per project.

Four of the projects (Pasfield Lake, Stony Road, Riverlake, Highrock) lie in the eastern Athabasca Basin, which has proven to be the most prolific and productive area, to date, for uranium mines and discoveries (Figure 1). This area contains the Key Lake, McArthur River, Cigar Lake and Millenium uranium mines as well as the Roughrider uranium deposit discovered by Hathor Exploration Ltd. and sold to Rio Tinto for $654 million in 2012. The five Canterra/Triex projects augment Zadar's Upper Poulton project (see News Release of April 9, 2013) and will give Zadar exposure to a variety of geological settings with high discovery potential. The fifth project (West Carswell) is situated 13 km west of the past producing Cluff Lake uranium mine (62.5 million lbs. U3O8 during its successful 22 years of operation). The West Carswell project is also located 11 kms NW of the Shea Creek project described on the UEX Corp. website as "... the largest undeveloped uranium resource in the Athabasca Basin. It also ranks as the third largest uranium resource in the Basin, exceeded in size only by McArthur River and Cigar Lake." This project significantly enhances Zadar's strategic land holdings in this area of the Athabasca Basin. Its PNE/BullRun project is situated 10 km north of the Patterson Lake South uranium discovery of Alpha Minerals and Fission Energy, and directly adjoins the Patterson Lake North project (Fission Energy/Azincourt Resources).

The Pasfield project (37,445 hectares) is situated on the Pasfield Structure (possibly an astrobleme and similar to the Cluff Lake Structure) and astride the Cable Bay shear zone ("CBSZ"). Exploration has identified important indications of the presence of uranium-bearing hydrothermal fluids along the fault that forms the eastern arm of the CBSZ. Further drilling is required to adequately test for uranium mineralization in this structurally complex area, especially where shallow basement (300-500 metres) is indicated by geophysical surveys. The property is a large and compelling exploration target encompassing a major basement uplift feature, with at least 600 metres of vertical displacement relative to regional basement depths. It is located on a major regional shear zone, with strong surface geochemical anomalies and strongly altered and radioactive rocks discovered in drill core, and coincident with the eastern and western "arms" of the "CBSZ". Exploration by Triex comprised lake sediment sampling, soil and biogeochemical sampling, airborne electromagnetic and gravity surveys, and diamond drilling. Soil and bio-geochemical surveys identified a robust multi-element anomaly with significantly elevated uranium values accompanied by elevated levels of boron, lead, molybdenum, vanadium and arsenic, the five key pathfinder elements associated with alteration halos above unconformity-type uranium deposits in the Athabasca Basin. Reconnaissance drilling identified the presence of significant alteration features indicative of proximity to uranium ore-bodies. Pervasive bleaching was present in basement rocks at the unconformity in all holes. Other features intersected in individual holes included intensely clay-altered granitic gneiss, hematite-filled breccia in basement granite gneiss, + 300 metres of graphitic garnet-mica metapelitic gneiss, strongly graphitic fracture zones, and weak but extensive clay alteration of the sandstone. Two zones with increased radioactivity and elevated uranium, boron and other key pathfinder elements were identified; one at the unconformity and another 800 metres above the unconformity.

The Stony Road project (10,545 hectares) is situated on the eastern arm of the CBSZ, the structure identified as highly prospective by exploration on the Pasfield project. Exploration by Triex comprised regional geochemical sampling, airborne and ground electromagnetic/ gravity surveys, and diamond drilling. Reconnaissance drilling targeted a strong conductor on the eastern splay of the regional CBSZ. One hole intersected anomalous radioactivity over several tens of metres above the unconformity, up to 687 cps, in association with the most intensely altered rocks. Uranium geochemical values were also elevated in this interval, from 10 to 20 times background.

The Riverlake (5,583 hectares) and Highrock projects (5,831 hectares) have a similar geological setting as the Key Lake mine (Gaertner and Deilmann orebodies). The northwest corner of the Highrock property is 8 km from the Gaertner and Deilmann orebodies. Exploration by Triex comprised airborne and ground electromagnetic surveys, soil sampling and diamond drilling. At Riverlake, a 1,200 metre long NE-SW by 600 metre wide NW-SE soil anomaly with peak uranium values of 3.74 ppm and coincident elevated to anomalous arsenic, molybdenum, vanadium and lead values was identified (A1 grid). The A1 grid covers a set of three sub-parallel conductors having a combined strike length of 5 km and interpreted to be a single metasedimentary unit that is disrupted by folds and faults. Reconnaissance drilling intersected continuous and significantly anomalous radioactivity within sheared and fault-brecciated basement rocks of graphitic metapelite and pegmatite. One hole intersected a 63 metre interval exhibiting 5 to 10 times background radioactivity including a measured 2,625 cps in schistose graphitic fault breccias. Geochemically, the radioactive graphite schist breccias have anomalous uranium contents up to 3.34 ppm, with interleaved pegmatite bands containing up to 116 ppm uranium. Of the key pathfinder elements, boron correlates most strongly with the uranium anomalies, and is important evidence for the presence of hydrothermal fluids. The pronounced orientation of the soil anomaly and the presence of anomalous uranium and alteration in the basement rocks are strongly reminiscent of the Gaertner, Deilmann and P-Patch uranium deposits.

The West Carswell (8,157 hectares) is situated on the west margin of the Carswell Structure, a multi-ring, roughly circular feature approximately 35 km in diameter that represents a "plug" of uplifted basement material (up to 2 km) within the Athabasca Basin boundary. The Carswell Structure is considered to be of meteorite-impact site or astrobleme. The Harrison Shear Zone is a regional fault/shear zone that forms part of the southwestern margin of the Carswell structure. The shear zone transects the northeastern part of the property and is a significant target for potential uranium deposits. Exploration by Triex comprised airborne and ground electromagnetic surveys and diamond drilling. The electromagnetic surveys outlined a strongly conductive feature named the MP Anomaly (~ 4.3 km long E/W by 1.2 km wide N/S). Reconnaissance drilling of the MP anomaly intersected evidence of uranium mineralization in the form of fault and hydrothermal breccia zones, elevated to anomalous boron (9-316 ppm) in the sandstone, weakly radioactive zones up to 60 metres wide in sandstones at the unconformity, and haematitic and radioactive basement granitoid rocks. The geophysical surveys also identified conductors associated with the Harrison Shear Zone which have not been drilled.

The 2 million Zadar common shares issuable upon exercise of the option will be subject to a hold period of four months and one day from the date of issue.

Zadar's right to exercise the option is conditional upon several conditions precedent being met, including, but not limited to:

  1. Zadar receiving acceptance from the TSX Venture Exchange (the "Exchange") for filing of notice in respect of the option agreement;
  2. Canterra and Triex receiving all consents, approvals and other authorizations of the Exchange, any applicable regulatory authorities, shareholders and third parties (including, without limitation, the consents of its joint venture partners in the Pasfield Lake, Stony Road, Highrock and Riverlake projects), as may be required in connection with the proposed transaction, and
  3. Thelon Ventures Ltd. waiving its right of first refusal on Triex' interest in the Pasfield Lake Project and consenting to Triex encumbering the properties comprising the Pasfield Lake Project with a 2% NSR Royalty in favour of Canterra.

Tell Us What You Think

Do you have a review, update or anything you would like to add to this news story?

Leave your feedback
Your comment type

While we only use edited and approved content for Azthena answers, it may on occasions provide incorrect responses. Please confirm any data provided with the related suppliers or authors. We do not provide medical advice, if you search for medical information you must always consult a medical professional before acting on any information provided.

Your questions, but not your email details will be shared with OpenAI and retained for 30 days in accordance with their privacy principles.

Please do not ask questions that use sensitive or confidential information.

Read the full Terms & Conditions.