Pan East to earn 51% stake in Baker Lake uranium bet

Situated 260 km northwest of Baker Lake, the Garry Lake property covers a high grade uranium boulder train occurring over a length of 800 m. Falconbridge holds a 67% interest in the property while Kerr Addison retains 33%.

However, Pan East has agreed to earn a 51% stake in Garry Lake where detailed prospecting led to the discovery of 18 boulders, 14 of which averaged 7.2% uranium oxide per tonne.

To earn its interest, Pan East must pay out $15,000 in cash and spend $1.5 million over three years. The agreement allows Pan East to increase its stake to 60% by spending an additional $1 million in the fourth year.

“Studies have shown that the uranium mineralization found in the Garry Lake boulders is of the unconformity-type similar to the large high grade Kiggavik uranium deposits which are being prepared for production by Urangesellschaft Canada,” said Pan East President Bernard Gallant.

Situated near Baker Lake, the Kiggavik deposits host 37 million lbs (20,000 tonnes) of uranium grading 0.6% uranium oxide.

The most significant result of exploration already undertaken by Falconbridge and Kerr Addison was the discovery of an anomalous area which has yet to be drilled. According to Gallant, the anomaly is comparable in size to the one covering the Kiggavik deposits.

The property, subject to regulatory approval, will be operated by Pan East on a joint venture basis once the company has earned either a 51% or 60% interest.

While Falconbridge and Kerr Addison have agreed to give up a proportional share of their interest, they would each hold 26.8% and 13.2% respectively, if Pan East exercises all of its rights under the agreement.

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