Hinterland Metals (HMI-V) shares jumped more than 45% today to 30.5 on a volume of more than 4 million after the company reported plans to combine its Euro uranium property in Quebec’s Otish basin with Kakanda Resources (KRC-V) nearby Tonka uranium property.
Kakanda shares were up 10% to 25.5 on more than 430,000 shares.
Hinterland acquired the 112-claim Euro property in January and Kakanda signed an option agreement for the 38-claim Tonka property earlier this month.
The exploration team will begin with high-definition magnetic and radiometric airborne surveys over the properties to generate prospecting targets.
The companies hope to find classic unconformity-type uranium mineralization, as well as the fault-type uranium found at Strateco Resources (RSC-V)Matoush project, which is also in the Otish basin. Stratecos latest drill hole had intersections up to 2.13% U3O8 over 15.2 metres. The Matoush fault-type uranium mineralization is closely linked to a regional fault that appears to have acted as a conduit for uranium-bearing fluids.
Unconformity-type uranium deposits have been found in the Proterozoic Athabasca basin in Saskatchewan, which accounts for 15% of global reserves.
The Euro property is located along the southwest margins of the Paskwati Proterozoic sedimentary basin, which is 45 km southwest of the main Otish basin. The Tonka property is underlain by sedimentary rocks of the Indicator Lake formation. It straddles the unconformity contact with the underlying granitic complex along the southern margin of the basin. It is also cut by a major northeast trending fault.
Hinterland has acquired three other uranium exploration properties in Manitoba since the beginning of February and also has several other precious and base metals properties. Kakanda has a volcanogenic massive sulphide property in Timmins, Ont.
Uranium prices have doubled over the last year to US$85 per lb. U3O8.
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