South African gold and uranium junior Aflease has formed a strategic alliance with Altius Minerals (ALS-V) to acquire and develop uranium properties in Canada.
The non-binding and non-exclusive plan calls for the two to share information for a period of one year, with the possibility of an extension.
Under the agreement, Aflease will provide technical, operational and financial assistance in developing Altius’ properties. In return, Altius will contribute its exploration expertise and "uranium exploration environments.”
Aflease CEO Neal Froneman says the deal represent the beginning of an important new era for his company, one that will see it venture outside of South Africa.
“In particular we will be focusing on Altius’ uranium properties in Canada and new opportunities that are identified through its reconnaissance investigations,” he adds.
Altius’ uranium exploration portfolio includes an equity interest and a royalty in the district-scale Central Mineral Belt of Labrador, which will be the subject of a comprehensive $5-million summer exploration campaign with Fronteer Development Group (FRG-T).
The pair plan detailed geophysical and geochemical surveying, geological mapping and environmental baseline studies over the Otter Lake, Jacques Lake, Michelin, Michelin East and Melody Hill radiometric anomalies. Previous rock sampling on the targets returned an average of 0.2% U3O8.
Some 9,000 metres worth of diamond drilling is planned for the untested Otter Lake, Jacques Lake, and Michelin East targets. Another 3,000 metres of drilling will test beneath the historic Michelin deposit, which remains open at depth. Drilling will begin in mid-August, and may also include the Melody Lake target, time and budget allowing.
The Michelin deposit is home to a historic (pre NI-43-101) resource of 6.4 million tonnes averaging 0.13% U3O8.
The work will be carried out under the banner of a newly formed private company, initially 52% owned by Fronteer, with Altius holding the remaining 48%. Altius also has a 2% gross uranium sales royalty and a 2% net smelter royalty on base and precious metals.
The summer exploration program will be partially funded via a $2.5 million private placement in the new company by Fronteer. Altius can also subscribe for $2.5 million worth of shares until August 15; otherwise, Fronteer will fund the entire program, boosting its position in the new company to 57% (and dropping Altius’ to 43%). Altius retains a one-time right to earn back a half-interest if the new company is not taken public by June 17, 2006.
Meanwhile Altius and joint venture partner JNR Resources (JNN-V) plan to drill several uranium targets in the Deer Lake Basin of western Nfld., in August. The targets comprise three areas of altered and mineralized sandstone boulders grading up to 11.5% U3O8.
After 18 months of development, Aflease is resuming mining this month at its Bonanza gold mine, near Klerksdorp, South Africa.
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