Uranium juniors flock to the Athabasca Basin

Vancouver — CanAlaska Ventures (CVV-V) has acquired 480 sq. km of uranium prospects on the eastern side of the Athabasca Basin in northern Saskatchewan.

The acquisition was based, in part, on digital data provided by the provincial government. Initial plans involve airborne geophysics, as well as limited ground exploration.

Exploration in the region had slowed since the late 1990s, when the price of U3O8 began its descent to US$7 per lb. However, since mid-2003, the price has been rising, and currently exceeds US$20.

“Most of our ground had been held, until recently, by Uranerz and Cameco,” says CanAlaska President Peter Dasler. “We’re especially pleased with one large package close to the McArthur River, downdip in the Basin.” (MacArthur River is the sight of the world’s largest deposit of high-grade uranium, held by Cameco [CCO-T]. Proven and probable reserves are pegged at 437 million lbs. grading 25% U3O8.)

CanAlaska has 27.3 million shares outstanding and recently jumped to 35 from 15 on strong volume.

The soaring price of the reactor fuel has not gone unnoticed by Consolidated Abaddon Resources (ABN-V), which staked 60 sq. km, also on the eastern rim of the Basin. The newly acquired Huard Lake project is 12 km north of the McArthur River deposit.

Consolidated Abaddon gained 40% to finish at 19 at presstime, following news of the acquisition. The junior has 7.6 million shares outstanding.

Meanwhile, UEX (UEX-T) and French uranium miner Cogema, a wholly owned subsidiary of Areva (ARVCF-Q), have discovered new mineralization at their jointly held Black Lake property, on the northern rim of the Basin.

Drilling intersected unconformity-type uranium mineralization in sandstones, immediately above the basement rocks of the Athabasca Basin. Hole 18 cut 4.4 metres (from 310.5 metres) grading 0.694% U3O8, including 3.3 metres of 0.848% U3O8 and 1.96% U3O8 over half a metre. Uranium mineralization occurs primarily as pitchblende stringers in the basal sandstone unit.

UEX was formed by Pioneer Metals (PSM-T) and Cameco in 2002 to explore for uranium in the Basin. Pioneer transferred its uranium projects to UEX for 46.5 million shares, which were subsequently redistributed to shareholders. Cameco transferred its advanced-stage Hidden Bay project in exchange for 31 million shares, making it the largest shareholder in the company.

Recently, UEX closed two significant financings: in September, a planned $5-million financing swelled to $7 million following Cameco’s decision to maintain its 26% interest as the largest shareholder; and in October, the company raised $10 million by placing 4 million flow-through shares priced at $2.50 apiece.

UEX has well over $25 million in cash, all of which is earmarked for the Athabasca Basin. The number of shares outstanding is 133.7 million, and the stock has been trading in the range of $1.80-2.50.