Strateco leads the uranium pack in Quebec (part I)

CHIBOUGAMAU, QUE. — The Matoush uranium deposit is like nothing anyone’s ever seen before.

 

It’s not an unconformity deposit such as those in the Athabasca basin. Nor is it related to a Colorado plateau-type uranium deposit. And it’s definitely not a pebble conglomerate uranium deposit like you’d see in Elliott Lake.

 

No, the Matoush deposit is quite unique; it’s like no other. It’s located on a 300-sq.-km property in the Otish basin of Quebec about 260 km northeast of Chibougamau and Strateco Resources (RSC-T, SRSIF-O) hopes to make it Quebec’s first uranium mine.

 

“It’s very special and I like to use the term Matoush-type,” says Jonathan Lafontaine, the chief geologist for Strateco. “We had a field trip here with representatives from all kinds of backgrounds – Queens University, University of New Brunswick, the Geologic Survey of Canada, Cameco – and I think there was a consensus that this doesn’t look like anything else.”

 

Although the geological knowledge about Matoush mineralization is limited, it hasn’t stopped Strateco from discovering and developing three mineralized zones on the property which could be in production by 2012.

 

As of August, indicated resources were 3.73 million lbs. U3O8, evenly split between the AM15 and the MT34 lenses, within 250,000 tonnes of ore grading 0.68% U3O8.

 

Inferred mineral resources total 13.07 million lbs. U3O8 contained in 1.3 million tonnes of ore grading 0.44% U3O8. The majority of inferred resources are evenly split between the MT22 and the MT34 lenses with 50,000 lbs. from the AM15 lens

 

“We’re blazing new trails as we’re going,” Lafontaine says.

 

Strateco has been exploring the Matoush property non-stop, drilling more than 250 holes, since 2006.

 

“We have about 104 kilometres of drill core sitting at the core shack right now,” Lafontaine says.

 

That work lead to the completion of a scoping study in November suggesting the project could support a 2-million-lb.-per-year operation over about seven years.

 

Uranium mineralization was first discovered on the Matoush property in the 1980s when Uranerz Exploration and Mining followed up on some anomalous boulders found by the prospector, Alfred Matoush.

 

Uranerz did a very narrow transect throughout the entire Otish Basin and their theory was that if there are anomalies at the northern margin, they would be able to track those anomalies back up ice.

 

It wasn’t long before they found a boulder train that supported Mr. Matoush’s discovery, which they traced back up ice as planned. The company opened up a few trenches, started putting down drill holes, and decided to stay put.

 

Uranerz explored the property until 1984, defining the Matoush structure geophysically for 3,900 metres and testing more than 900 metres of strike with 17 drill holes.

 

One of those holes was AM15, which cut 16 metres grading 0.95% U3O8. But uranium was becoming out of fashion, prices had fallen, and the project was soon abandoned for two decades.

 

The Otish basin was pretty quiet until 2002 when the Renard kimberlites were found 70 km to the north of the Matoush project, sparking a staking rush on the western portion of the basin. Ditem Explorations (DIT-V, DTEMF-O) explored the Matoush grounds for kimberlites but came up with nothing. In 2005, Ditem optioned the project to Strateco, and now holds a 2% net smelter return royalty.

 

Strateco got down to business in 2006 and a year later had a 3.48-million-lb. indicated resource on the AM15 lens, some of which turned out to be part of the MT34 lens.

 

Lafontaine says it wasn’t long before they found out that the AM15 lens wasn’t alone; below it was the MT22 lens, which added a significantly to the resource.

 

“And then with a lot of geological thinking we discovered the MT34 lens, another high grade mineralized pocket, and then we found one other Matoush-type fault on the project,” Lafontaine explains. “So we’ve gone a long way in a short period.”

 

Strateco has also found the near-surface AM8 deposit but it wasn’t included in the resource estimate because the company plans to build an underground mine. Drilling AM8 has returned significant results but president and CEO, Guy Hebert, says it’s not big enough to warrant permitting both open pit and an underground mine.

 

“We don’t want to touch open pit for the time being unless we have a big, big deposit,” Hebert says. “I think it’s 100,000 lbs.; it’s not worth the effort.”

 

So what is this mysterious Matoush-type deposit Strateco’s been working on?

 

Lafontaine describes it as “a very clean hydrothermal deposit with stratigraphic and structural control as well as a nice chemical trap.

 

“We know that it’s a generally rich sandstone basin and we know we are in the lower portion of the basin.”

 

The Otish basin is comparable to the Athabasca basin, one of the largest uranium-producing areas of the world. Both are relatively the same age, and at one point they were relatively the same size, but the difference is where they are located on the continent. The Otish basin is on the continental margin; it used to be the continental edge, whereas the Athabasca is considered the continental sag basin.

 

The Otish is one of a chain of intracratonic Proterozoic basins situated along the southern and southeastern margin of the Archean Superior Province. It’s a northeasterly trending trough at least 160 km long and about 30 km wide.

 

Lafontaine describes it as, “Essentially a big piece of sandstone lying on top of the superior province which is late Archean gneisses and granites, (and) carbonate rich layers with mafic sills and mafic layers above us, which have now eroded off.”

 

Otish stratigraphy consists of the Lower Indicator Formation, which underlies the whole basin and is made up of conglomerates and sandstones, varying in thickness from 330 metres to 760 metres. Overlying the Indicator Formation is the Peribonca Formation. It’s found in the centre and northeastern parts of the Otish basin, and composed of red sandstones, minor conglomerates and bedded dolomite. Visible thickness of the Peribonca Formation is a maximum of 380 metres but the total thickness is unknown because the top of the formation is an erosion surface.

 

According to a technical report by Scott Wilson RPA, the Matoush stratigraphy consists as two inter-layered sedimentary facies that have subtle but important differences. They were recognized in the drill core and termed Active Channel Facies (ACF) and Channel-Bar Facies (CBF).

 

The ACF consists of massive to slightly cross-bedded, gritty, coarse-grained sandstone to conglomerate. The sediments are poorly sorted with angular to subrounded grains and clasts. The clasts are pebble to cobble size fragments of quartz, feldspar, granite and mudstone and there is a cyclic nature to the sedimentary deposition that is noticeable. The ACF, which is well-cemented with silica, reaches a thickness of about 50 metres.

 

The finer CBF consists of medium-to-coarse-grained, well cross-bedded, sorted, subarkosic sandstone, with quartz and feldspar grains that are subangular to subrounded and well-cemented with silica.  The cyclic nature of the CBF isn’t as clearly defined as the ACF due to gradational contacts and numerous mini-cycles. CBF reaches a thickness of about 150 metres.

 

At the Matoush property there are about 800 metres of the Indicator Formation present, resting uncomfortably on a relatively unweathered, granite basement. So far, four ACF cycles have been identified, separated by CBF cycles. The stacking order and thickness is relatively constant throughout all drill holes. Most of the Matoush mineralization is hosted in ACF lithologies.

 

“That coarse grain layer is one of the key things about the deposit,” Lafontaine says. “Where we see this rotted, poorly consolidated very brittle clayish rock, typically next to it is where we have mineralization.”

 

More of the Matoush mystery surrounds the structure. All that is known is that the stratigraphy is flat lying and that it’s cut by a number of north and northeast trending faults.

 

Resources so far are all associated with a north trending fault structure occupied by a mafic dyke. The technical report says there is a lack of apparent vertical offset of sedimentary marker units across the Matoush fault strands, which suggests that either displacement is minimal or it was a strike slip fault, resulting in little vertical apparent offset.

 

AM15 mineralization occurs along the trace of the Matoush fault where the structure steps to the east.  At this point, the northeasterly trend of the outline of mineralization/alteration differs from the more northerly trend of the fault and mafic dyke. The technical report says this pattern suggests the occurrence of mineralization in a dilational bend with the fault system, which would imply a component of right lateral displacement on the fault during mineralization. The report notes, though, that the MT22 and MT34 zones are respectfully north and south of the dilational bend.

 

Matoush uranium mineralization is somewhat like the unconformity deposits in the Athabasca basin by way of its Proterozoic sedimentary environment, likely Proterozoic age, similar mineralization and alteration, and prominent structural control, but there are also significant differences.

 

AM15, MT22 and MT34 occur 150-600 metres above the basement without any significant uranium mineralization at the unconformity. Sometimes in the Athabasca, perch mineralization occurs, or may have remobilized, in the controlling fault structures in the sandstone, well above the unconformity. But Matoush mineralization cannot be considered a perch deposit because there’s been absolutely no mineralization found at the unconformity. Matoush mineralization is hosted in a basement penetrating fault occupied by a mafic dyke at the intersections with apparent paleoaquifers. The stratigraphy may also be older than the Athabasca basin.

 

The Matoush project is relatively isolated; which is probably a good thing for a uranium project. The company says it has good relations to the local Cree group in Mistissini, 220 km south of Matoush.

 

The project site can only be accessed by air in the summer, fall and spring, but once the weather is cold, the company uses the Eastmain winter road, which runs 7 km west of the property, to bring in equipment.

 

The company has recently had surveyors out to find an ideal spot for an airstrip, which would make it easier for transporting staff. Once the lake freezes, the company can’t use a float plane to transport people. Everyone must go by helicopter, which can be limiting during bad weather.

 

“This week there were three days they didn’t have access to the site,” Hebert explains. “People at the camp had to work extra days.”

 

About 30-40 people are always present at the exploration camp, but should a mine be built, Hebert estimates having workforce of 300 people, who would split a two-week rotation.

 

Visit www.northernminer.com tomorrow for Part II to learn about Strateco’s scoping study on the Matoush project.