Vancouver – A Memorandum of Understanding (MOU) between Kaminak Gold (KAM-V, KMKGF-O) and Inuit corporation Nunavut Tunngavik will open up almost 7,300 hectares of territory to the junior for uranium exploration and includes a historic deposit.
Located in Nunavut’s Kivalliq District, the Inuit-owned land will effectively consolidate more than 1,000-sq. km of exploration ground already held by Kaminak.
Included under the MOU is the Lac Cinquante uranium deposit with a historic (non-NI43-101 compliant) resource of about 11.6 million contained lbs. U3O8 in material averaging 1% U3O8. An additional 8.8 million contained lbs. U3O8 of lower categorized historic resource is also discussed in old reports.
Discovered by Pan Ocean Oil in the late 1970s and subsequently acquired by Aberford Resources, Lac Cinquante (also called Yathkyed and RI-30) hosts uranium in a vein-type hydrothermal system. Mineralization consists of pitchblende and sulphides (along with hematite, carbonate, albite and silica alteration) in a series of steeply-dipping fractures and veins from 1-3 metres in width. The hosting structure has been traced over 1,100 metres of strike with the mineralized section identified over roughly 400 metres. Past drilling has cut mineralization from surface to at least 265 metres depth and is reported to be open to depth.
In close proximity to Lac Cinquante (to be renamed Angilak), Kaminak has its BOG and YAT uranium occurrences that show characteristics of IOCG (iron oxide-copper-gold) mineralization.
Under its MOU terms with Nunavut Tunngavik, Kaminak plans to spin-out all its Nunavut uranium assets into a new company through a yet to be finalized plan.
Kaminak has also agreed to issue one million shares of the new company to Nunavut Tunngavik, staged over a three-year period once regulatory approval of the spin-off is received. The Inuit corporation also holds an underlying 12% net profits royalty on all minerals from its land.
Once a feasibility study is completed on the new consolidated land package, Nunavut Tunngavik has the option of taking either a 25% participating interest or a 7.5% net profits interest in the project.
On news of the deal, shares of Kaminak closed up almost 50% on the deal in January 31st trading posting a 20 gain to 59 per share.
In the Fall of 2007 Nunavut Tunngavik approved a uranium exploration and development policy for its territory, reversing its previous opposition.
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