Arimex down on poor uranium drill results

Results from International Arimex Resources (IEA-V) small drill program in the Athabasca Basin failed to inspire momentum on the market.

News from the three hole, 549 metre program at its Key Lake project sent the Vancouver-based company tumbling 28% or 6 to 15 on 2.7 million shares traded.

One hole encountered 0.15 metres of 0.058% U₃O₈ from 184.7 to 184.85 metres, but, the company says, the other two holes encountered only anomalous uranium, with maximum values of just 42 parts per million (ppm) and 18 ppm U₃O₈.

The report from Canalaska Uranium was made based on drilling done between late January and early February of this year and focused on testing the source of a 700 metre electromagnetic conductor identified in a prior survey.

Arimex says the conductor parallels the Key Lake fault zone, which hosted most of mineralization at the past producing Key Lake Mine which is situated roughly 15 km to northeast of the drill target.

While the company admits the results are disappointing, it is trying to take some solace in the fact that a graphitic horizon with chlorite and hematite alteration, running parallel and north of the Key Lake fault was discovered.

Also boding in its favour, the company says, is the discovery of a transition zone from kaolinite to illite which is considered an indicator of uranium mineralization.

The company says further structural analysis of the conductive trend and cross cutting magnetic trend should lead to the emergence of more targets.

Towards that end it has magnetic and electromagnetic surveys planned which will be followed by a second drill program.

The Key Lake project is made up of five mineral claims totaling 60 sq. km located from within 5 to 23 km of the Key Lake Uranium Mine on the southeast rim of the Athabasca Basin. Three of the claims lie within the basin while two are situated just south of its boundary.