JNR sizes up Moore Lake drill core

JNR Resources (JNN-V) has finished its first phase of drilling at the Moore Lake uranium project, 40 km northeast of the Key Lake uranium mine in northern Saskatchewan. Further geochemical analysis of drill core and additional geophysical surveys will be completed prior to further drilling.

The Moore Lake project is one of nine properties in the Athabasca Basin that are held on a 50-50 basis with Kennecott Exploration, a division of London-based Rio Tinto (RTP-N). The properties comprise a total of 2,000 sq. metres.

Drill results from the final few holes of a 10-hole program are outlined below:

– Hole ML-09 tested a east-westerly trending conductor 160 metres north of the main trend, which was intersected in previously reported hole ML-03 (0.442% U3O8 over 9.2 metres). ML-09 cut a moderately to weakly bleached sandstone column with no significant structural development or radiometric anomalies.

– Hole ML-10 was drilled 30 metres south of hole ML-05 (which returned only geochemically anomalous mineralization) and intersected a strongly altered and structurally disrupted sandstone column. Beneath the sandstone unit, the drill cut hydrothermally altered graphitic pelites that locally returned elevated radiometrics.

– Hole ML-08, collared 400 metres west of ML-03, returned anomalous radioactivity from a fractured and altered pegmatite that was intersected 60 metres beneath the Athabasca unconformity. Down-hole radiometrics indicated a grade equivalent of 0.067% U3O8 over 5.6 metres, starting at a depth of 319.35 metres. Hole ML-08 intersected moderately to strongly bleached sandstone with intermittent sub-vertical fracturing. JNR plans to test the mineralization at the unconformity with follow-up drilling.

– Drill holes ML-06 and 07 were collared 20 metres north and south of hole ML-03, respectively. The holes intersected strongly altered and silicified sandstone with significant hydrothermal alteration of the basement lithologies. Neither hole hit high-grade uranium. JNR says it is not surprised by the low-grade intercepts near hole ML-03, given that uranium deposits in the Athabasca Basin are generally narrow, with some averaging less than 20 metres in width. Holes 6 and 7 did, however, confirm the presence of a major reactivated fault and extensive hydrothermal activity, which are believed to be two key ingredients in the formation of large uranium deposits.

– In early May, JNR intersected highly anomalous radiometric values while testing a 1,000-metre-long, east-striking, basement graphitic electromagnetic (EM) conductor at the Moore Lake project. The EM conductor occurs near the nose of an interpreted fold closure. The third hole of its initial program, ML-03, intersected a 10.4-metre-thick interval of strongly clay-altered and carbonaceous-mineralized basal sandstone overlying an unconformity at a depth of 269 metres. The mineralization occurs near the footwall of a 125-metre-wide fault zone that has resulted in extensive structural disruption and alteration of the overlying sandstone.

– Two immediate follow-up holes, 4 and 5, tested the EM conductor at 200-metre stepouts east and west of hole 3. The holes encountered what the company describes as “encouraging geology and elevated radiometrics.”

The Moore Lake properties are subject to a joint-venture agreement that gives Kennecott the right to elect to earn a 65% interest in each individual property by spending $10 million on exploration. Kennecott can earn a further 5% by funding all additional expenditures required to advance the property to a production decision, or by spending $100 million on exploration.

Within 30 days of receiving all data from the Moore Lake drilling program, Kennecott will have the one-time right to exercise its option to earn a 65% interest in the property. If Kennecott chooses, the Moore Lake property will no longer be included in the joint venture, leaving JNR free to develop the property on its own.