Uracan proves it can find and follow uranium

Vancouver – With an initial resource estimate for its Quebec property and a new discovery in Saskatchewan, uranium explorer Uracan Resources (URC-V) looks set to climb out of the share-price slump that has dogged the junior for the last year.

First to Saskatchewan, where Uracan completed a first-pass, 16-hole drill program at its Pipewrench Lake property prior to spring break-up. The program tested three zones outlined in last summer’s channel sampling and mapping work: Portage, Narrows Lake, and Pipewrench North.

The Portage zone had never before seen a drill. Three of the four holes punched into the zone this spring returned well-mineralized intercepts, representing a new discovery on the property.

Hole 14 cut three intercepts: 12.7 metres grading 0.142% U₃O₈ starting 38 metres downhole, 3 metres averaging 0.019% U₃O₈ from 65 metres depth, and 19.5 metres of 0.083% U₃O₈ from 81 metres downhole. Drilled from the same collar but at a gentler angle, hole 13 returned four hits: 7.5 metres of 0.054% U₃O₈ from 25 metres depth followed closely by 1.5 metres grading 0.023% U₃O₈ from 3, then 1.5 metres of 0.062% U₃O₈ and finally 7.5 metres of 0.039% U₃O₈.

The drilling at Portage targeted mineralization encountered in surface channel sampling. The zone is thought to be a steeply-dipping, anti-formal fold structure; the topographic low in which the mineralized outcrop sits extends for at least 275 metres, then appears to continue under small lakes to the north and south of the trend. Mineralization remains open along strike and at depth.

Over at the Narrows Lake zone, one of three holes drilled in the recent program returned significant mineralization. Hole 10 cut 21.9 metres averaging 0.016% U₃O₈ from 13 metres depth followed by 18 metres of 0.02% U₃O₈ from 86 metres downhole and then 3 metres of 0.052% U₃O₈ from 168 metres depth.

Narrows Lake saw limited drilling in the late 1960s and 1970s. The best historical results include 18.3 metres of 0.073% U₃O₈ and 13.7 metres of 0.06% U₃O₈.

And at Pipewrench North results from a none-hole program include 0.046% U3O8 over 3.3 metres from 25 metres depth in hole 1.

The Portage, Narrows Lake, and Pipewrench North zones are part of Uracan’s 100-sq. km Pipewrench Lake property, which is located within the Wollaston domain of the Canadian Shield some 130 km northwest of La Ronge. Uranium dioxide mineralization at Pipewrench is generally hosted by pegmatite in sequence with pelitic gneisses.

Just a few days prior to releasing those initial results from Saskatchewan Uracan released the first resource estimate for its North Shore uranium property in eastern Quebec. The estimate, calculated from 51 drill holes totalling 13,550 metres, covers only the main zone thus far delineated at North Shore, known as the Double S zone.

Based on a 0.009% U₃O₈ cut-off grade, Double S hosts 74.2 million inferred tonnes grading 0.012% U₃O₈ for almost 20 million lb. contained uranium dioxide.

Since the estimate calculations began in late 2007 Uracan has drilled another 71 holes at North Shore, which are not included in the inferred resource. In addition to the mineralization at Double S Uracan has encountered mineralization at several other zones on the 1,000-sq. km property.

The Lac Petit mineralized zone, which sits 2 km northeast of Double S, has been traced over 800 metres strike and 200 metres width, with mineralization still open along strike and down dip. Recent drilling returned the thickest intercept from Lac Petit to date: 95.2 metres grading 0.016% U₃O₈ in hole 4.

At the TJ zone, 3 km northwest of Double S, drilling has started to outline a new area of wide mineralization. Hole 2 cut 95.6 metres grading 0.015% U₃O₈ , hole 2 returned 0.012% U₃O₈ over 32 metres, and hole 4 cored 31.4 metres averaging 0.01% U₃O₈ .

Several of the drill holes showed up to five discrete mineralized zones indicating that a stacked sequence of mineralized pegmatite and granite bodies exists at TJ, potentially as an extension of the Double S zone.

And at the Middle zone, appropriately located midway between Double S and TJ, hole 17 returned 0.025% U₃O₈ over 10.5 metres, hole 16 cut 27.1 metres grading 0.021% U₃O₈, and hole 19 intercepted 31.6 metres of 0.011% U₃O₈.

The company says that significant portions of the 6-km long Double S trend, on which lie the Middle and TJ zones, have not yet been tested.

In January Uracan made its final payment of $1 million to Sheridan Platinum Group to obtain a 100% interest in the North Shore property. The property, which sits on the north shore of the St. Lawrence Seaway, has a provincial highway and powerlines cross-cutting it and several areas have tidewater access.

From late 2006 to mid-2007 Uracan’s share price climbed from the 40-range to $1.50. Since then, however, the junior has seen its share price fall past where it started in mid-June it dipped below 30. Now, the resource estimate for North Shore and the drill results from Pipewrench Lake have sparked a turnaround: Uracan gained 10 or 28% over four days to close at 46.5. The junior has 67 million shares issued.