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Newfoundland gold exploration heats-up

By Ellsworth Dickson A claim staking rush has been taking place by numerous junior exploration…

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This article was originally published by Resource World

By Ellsworth Dickson

A claim staking rush has been taking place by numerous junior exploration companies in the large southwest to northeast-trending region known as the Central Newfoundland Gold Belt (CNGB) that stretches almost across the entire island of Newfoundland – almost 250 km in length.

New Found Gold Corp. [NFG-TSXV; NFGFF-OTC] is advancing its large 100%-owned high-grade Queensway Gold Project on the Trans-Canada Highway 15km west of Gander where a 200,000-metre drill campaign is underway. Drilling at the Keats discovery has returned 19.0 metres of 92.9 g/t gold and 18.9 metres of 31.2 g/t gold. Drilling at the Lotto Discovery returned 4.8 metres of 41.2 g/t gold and 5.2 metres of 25.4 g/t gold.

The most advanced project is Marathon Gold Corp.’s [MOZ-TSX] 100%-owned Valentine Gold Project 55 km southwest of Buchans that comprises a series of mineralized deposits along a 20-kilometre trend. A March 2021 positive Feasibility Study outlined an open pit mining and conventional milling operation over a 13-year mine life. This will be the largest gold mine in Atlantic Canada.

Sky Gold Corp. [SKYG-TSXV] is exploring its Mustang Project in east-central Newfoundland that hosts the Outlaw prospect comprised of the Mustang and Piper mineralized zones adjacent to New Found Gold’s intercept of 92.9 g/t gold over 19 metres.

Labrador Gold Corp.’s [LAB-TSXV] early-stage Kingsway Gold Project hosts two different styles of gold mineralization on the 77 km2 property along strike from the Keats and Lotto Zones of New Found Gold to the south.

Golden Ridge Resources Ltd.’s [GLDN-TSXV] field crews have arrived on site and have begun the 2021 field program on the Williams gold property located within New Found Gold Corp.’s Queensway South gold project. The first phase of the 2021 program will focus on prospecting, mapping and delineating precise trenching/channeling locations. The company also holds the Heritage and Greenfields Portfolio gold-silver properties in Newfoundland.

Sassy Resources Corp. [SASY-CSE], through its subsidiary, Gander Gold Corp., has expanded its Newfoundland property holdings from 1,381 km2 to 2,257 km2.

The 876 km2 newly acquired claims cover a large portion of the Mount Peyton Intrusive and Gabbroic Complex between New Found Gold’s Keats Zone and Sokoman Minerals’ Moosehead discovery. The claims were staked by and optioned from prospector Shawn Ryan and Wildwood Exploration Inc. whose extensive area research has recently led to a new understanding of the potential of the under-explored Mount Peyton Intrusive.

Sokoman Minerals Corp. [SIC-TSXV; SICNF-OTCQB] has intersected additional high-grade gold mineralization at both the Eastern trend and South Pond zones during its Phase 6 drilling at the 100%-owned Moosehead property in central Newfoundland. Sokoman recently executed two property option agreements on behalf of the strategic alliance between the company and Benton Resources Inc. [BEX-TSXV; BNTRF-OTC] to add additional mineral claims to the Grey River gold property. Both Sokoman and Benton have other properties in Newfoundland.

Sokoman’s Crippleback property is optioned to Trans Canada Gold Corp. [TTG-TSXV] and its East Alder property is optioned to Canterra Minerals Corp. [CTM-TSXV; CTMCF-OTC].

Anaconda Mining Inc. [ANX-TSX] has an exploration program for summer and fall 2021 near the company’s 100%-owned Point Rousse operation in the Baie Verte mining district.

Canstar Resources Inc. [ROX-TSXV] has an option to acquire a 100% interest in the Golden Baie Project, a 62,175-hectare claim package with recently discovered, multiple outcropping gold occurrences on a major structural trend in south Newfoundland.

Spruce Ridge Resources Ltd. [SHL-TSXV] has received the results of an updated mineral resource estimate for the Great Burnt copper and gold property in central Newfoundland, which incorporates the results of the 2020 diamond drilling program on the Great Burnt main zone.

Great Atlantic Resources Corp. [GR-TSXV; PH0-FSE] is drilling its Golden Promise gold property in the central Newfoundland gold belt. The first hole at the Jaclyn Main Zone intersected multiple quartz veins with visible gold evident in one vein.

Maritime Resources Corp. [MAE-TSXV] has released drill results from its continuing 40,000-metre exploration program at the Hammerdown gold project and its Whisker Valley property, in the Baie Verte mining district of Newfoundland. At the Orion North Zone, a new near-surface zone traced over 550 metres, drill hole BB-21-170 intersected 12.43 g/t gold and 2.15 g/t silver over 1.20 metres, including 50.60 g/t gold and 7.90 g/t silver over 0.20 metres.

Tru Precious Metals Corp. [TRU-TSXV] has signed an option agreement to acquire five mineral licences covering 12.75 km2 in west-central Newfoundland, on which the company has found visible gold. The optioned claims are contiguous with the company’s flagship Golden Rose project. In addition, the company indirectly staked a larger land package surrounding the optioned claims.

Cartier Iron Corp. [CFE-CSE] reported diamond drilling intersected 0.62 g/t gold and 16.12 g/t silver over 13.0 metres in a low sulphidation epithermal Au-Ag system at its Big Easy Gold Project in eastern Newfoundland.

The above companies are not the only explorers targeting the Central Newfoundland Gold Belt.  Considering the fact that the belt trends across most of the island, suffice to say that the Newfoundland Gold Camp is shaping up to be a major mining camp in this most favorable of mining jurisdictions.

New Found Gold Corp. [NFG-TSXV, NFGFF-OTC] is working to advance Canada’s newest high-grade gold discovery on its 100%-owned Queensway project in central Newfoundland.

On July 19, 2021, the shares were trading at $9.27 in a 52-week range of $13.50 and $1.24, leaving New Found Gold with a market cap of $1.4 billion, based on 151.7 million shares outstanding.

Palisades Goldcorp Ltd., a resource-focused merchant bank founded by New Found Gold’s Founder and Executive Chairman, Collin Kettell, owns 31% of the shares.

Backed by investor groups that include Canadian financiers Eric Sprott and Robert McEwen, the junior company raised $31.4 million last year from an initial public offering priced at $1.30 per share.

New Found Gold is now fully focused on the flagship Queensway project and is engaged in a 200,000-metre drill program that is currently utilizing eight drills, a number that will increase to 10 by the end of 2021.

It is well funded for this program with a working capital balance of approximately $82 million.

Queensway is host to an extensive epizonal orogenic gold system, one that is capable of generating very high-grade gold mineralization. Comparisons have been made to mineralization found in the high-grade Swan Zone at Kirkland Lake Gold Ltd.’s [KL-TSX, NYSE, KLA-ASX] Fosterville mine in Victoria, Australia.

This similarity was recognized by Dr. Qunton Hennigh during his initial review and site visit in January, 2020. Dr. Hennigh is a director of New Found Gold and Founder, Chairman and Director of Novo Resources.

The Queensway property consists of 86 mineral licenses, including 6,041 claims, comprising 151,030 hectares of land located near Gander. It is intersected by the Trans-Canada Highway and has logging roads crosscutting the property, high voltage electric power lines running through the project area, and easy access to a skilled workforce.

The project is divided by Gander Lake into Queensway North and Queensway South.

The company acquired the property rights by map staking mineral licenses and making a series of staged payments in cash and common shares from 2016 to 2019 under nine separate option agreements.

So far, New Found Gold has discovered three robust structurally controlled high-grade deposits: Keats, Lotto, Golden Joint. These discoveries occur along approximately 2.0-kilometre corridor of the Appleton Fault Zone on Queensway North.

The high-grade discoveries at Keats, Lotto and Golden Joint have each been made by following up on lower grade intervals of gold mineralization from initial drilling in the target area. There are now more than 15 additional areas along the Appleton fault that have returned significant gold mineralization that management believe are prospective for high-grade epizonal discovery. “We are continuing with interpretation work and additional drilling in the pursuit of finding additional zones of high-grade epizonal style gold along 7.8 kilometres of strike along the Appleton Fault Zone,’’ Founder and President Denis Laviolette recently stated.

In a June 30, 2021 press release, the company announced assay results from four holes drilled on the Golden Joint zone, a brand new discovery located approximately 1.0 kilometre north of the Keats Zone and approximately 850 metes south of the Lotto Zone.

These holes were drilled as part of the ongoing 200,000 metre program. Highlights included 5.25 metres of 430.17 g/t gold from 207.85 to 213.10 in hole NFGC-21-241.

Results confirmed that Lotto and Keats are just two of several high priority targets identified over 7.8 kilometres of strike along the Appleton Fault. This takes the company one step further in confirming the presence of repeated zones of high- grade epizonal style mineralization along the Appleton Fault Zone.

In a July 6, 2021, update on drilling at the Appleton Fault Zone, the company said total of 267 holes covering approximately 61,700 metres of drilling has been completed to date, representing 31% of the planned 200,000 metre program. Results for 150 holes totaling approximately 34,200 metres have been received and reported to date.

New Found Gold has a second project, the Lucky Strike, which covers 10,000 hectares in the heart of the Abitibi Greenstone belt near Kirkland Lake, Ontario.

The project is adjacent to the Upper Beaver and Upper Canada past producing mines held by Agnico-Eagle Mines Ltd. [AEM-TSX, AEM-NYSE] and containing a current resource of over 3.0 million ounces of gold, having produced over 1.5 million ounces.

The project contains the past producing Walsh Mine and two exploration shafts at the Copper King and Norwood Kirkland.

Several splay fault structures of the Victoria Creek Deformation Zone cross the property with very limited exploration and open for significant new discoveries.

New Found Gold has been cleared to apply to list its common shares on the NYSE American. The company expects to commence trading on the NYSE American in early Q3, 2021, upon receipt of final approval from the SEC and NYSE American.

Canstar Resources Inc. [ROX-TSXV, CSRNF-OTCPK] is focused on gold exploration in Newfoundland, one of the hottest areas for high-grade gold exploration in Canada.

Canstar President and CEO Robert Bruggeman is backed by a highly experienced technical team that consists of director Dr. David Palmer, exploration advisors Dr. Lawrence Winter and Dr Laurie Curtis. All three have decades of experience and track records of success in mineral exploration.

Canstar’s key asset is an option to acquire a 100% interest in the Golden Baie Project, a district-scale gold property with numerous gold occurrences located over a 40-kilometre strike length in south Newfoundland. It is a huge land package that has seen very little exploration the last 30 years.

Covering 62,175 hectares, Golden Baie is typical of productive Paleozoic orogenic gold deposits worldwide with a style of mineralization that is similar to that of Kirkland Lake Gold Ltd.’s [KL-TSX, NYSE, KLA-ASX] Fosterville deposit in Australia, where visible gold is found as disseminated fine specks of gold within quartz veins, as well as New Found Gold Corp.’s [NFG-TSXV] Queensway project in central Newfoundland.

“There is a lot of [surface] gold there over a large area and we just need to identify the structures controlling that mineralization in the ground,’’ said Bruggeman during a recent interview.

Canstar secured the option in August, 2020, under an agreement with Altius Resources Inc. [ALS-TSX] (and other arms-length parties), which currently has a 9% interest in Canstar. Lawrence Winter has been vice-president, exploration at Altius since 2006.

Canstar also holds the Buchans-Mary March polymetallic project and other mineral exploration properties in Newfoundland. Buchans-Mary is located in central Newfoundland, 20 kilometres northeast and within the same geological group of rocks that host the former Buchans Mine.

Buchans deposits rank as the world’s highest grade polymetallic deposits with a zinc equivalent grade of 48%. The Buchans Mine produced 16.2 million tones at 14.5% zinc, 7.6% lead, 1.33% copper, 126 g/t silver and 1.37 g/t gold.

After completing initial surface exploration on Golden Baie last year, the company has said it sees considerable exploration upside over the entire property with excellent potential for new discoveries.

Recently, Canstar said it planned to double the size of a diamond drill program that commenced on Golden Baie in June 8, 2021, to at least 5,000 metres. The decision is based on positive visual observations of drill core in the initial holes.

Assay results for the first drill hole samples are expected in late July, 2021.

Drilling to date has focused on the Kendell Target on the central portion of the Golden Baie project where exploration crews are targeting the continuation of gold mineralization previously identified at surface through trenching.

Kendell is the site of the best grab samples (up to 4,485 g/t gold) and the best trench intercepts encountered on the project so far.

Trench TGB-20-21 was excavated in the fall of 2020 and intercepted northeast-southwest trending quartz veins of varying thicknesses along a strike length of approximately 70 metres, approximately 16 metres of which contained visible gold.

Seven channels were saw cut and sampled with the best results being 10.17 g/t gold over 3.0 metres and 6.20 g/t gold over 5.0 metres.

Grab samples from the quartz veins in the trench at Kendell assayed up to 211 g/t gold and the initial drilling in the 2021 program targeted the extension of these quartz veins.

To date, 22 drill holes have been completed on the Kendell target for a total of approximately 1,200 metres. Visible gold has been observed in quartz veins in eight of the 12 holes logged to date.

The drill rig was recently moved to another target area (the Hillside Target), located approximately 950 metres north-northeast of Kendell.

Drilling is now expected to continue until early September 2021 on the area containing the Kendell and Blow Out targets. The company holds permits for approximately 4,000 metres of drilling at the Kendell Target, the Blow Out Target, 22 West, and Wolf Pond.

“I’m very pleased that the initial drill holes contain visible gold in quartz veins within broader intercepts of arsenopyrite, which tends to be associated with disseminated gold mineralization on the Golden Baie Project,’’ said Bruggeman.

“This is a great start to the program and gives us the confidence to double the planned meterage,’’ he said. “We look forward to getting assay results from the drill hole samples and reporting those to our investors and the market.’’

On July 19, 2021, Canstar shares were trading at 42 cents in a 52-week range of 53 cents and $0.065, leaving the company with a market cap of $40 million based on 87.1 million shares outstanding.













Author: Resource World

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Energy & Critical Metals

Critical Resources nabs Mavis Lake project and foothold in established Canadian lithium province

Special Report: Critical minerals explorer Critical Resources has notched another arrow to its bow, signing a binding terms sheet with … Read More
The…

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Critical minerals explorer Critical Resources has notched another arrow to its bow, signing a binding terms sheet with Essential Metals (ASX:ESS) and International Lithium Corporation (TSVX:ILC) for a 100% interest in the Mavis Lake lithium project in Canada.

The proposed acquisition is a big opportunity for Critical Resources (ASX:CRR) to add a high-quality critical minerals project with excellent further exploration potential to its portfolio.

Especially considering the strong outlook for the lithium market.

The price for lithium carbonate, 99.5% Li2CO3 min, battery grade, spot price CIF China, Japan, and Korea is sitting around US$26/kg.

Not to mention, Canada is a first-class low-risk mining jurisdiction which is strategically located for lithium offtake into the North American manufacturing markets – with the project close to the Trans-Canada highway and railway arteries.

Pic: Location of the Mavis Lake lithium project.

Excellent opportunity to enter the lithium market

Previous drill programs in 2018 returned high-grade lithium oxide intercepts including 55.25m at 1.04% from 82.75m, and 26.30m at 1.70% from 111.9m including 7.70m at 2.97% from 130.5m – which the company says presents significant exploration potential.

“The Mavis Lake terms sheet presents an excellent opportunity for the company to add a high-quality project to our portfolio that further increases our exposure to critical minerals,” Critical Resources (ASX:CRR) CEO Alex Biggs said.

“The company is on a trajectory to become a high growth business focused on building a project pipeline based on asset quality and exposure to in-demand minerals.

“Our focus for this year remains on the upcoming exploration of our Halls Peak base metals asset in New South Wales, Australia which we are very excited about.

“The Mavis Lake project fits all these requirements and provides an excellent entry to the lithium market with an asset that offers excellent prospectivity in a tier 1 jurisdiction.

“Due diligence is ongoing, and we will update the market in due course.”

Exclusivity fee allows due diligence 

As part of the terms of the agreement, the company will pay a total non-refundable exclusivity fee of $200,000, which provides exclusivity until 4 January 2022 – during which Critical Resources will undertake due diligence on the project.

Subject to the satisfaction of the conditions precedent, at completion the company will be required to:

  • Pay $1.5 million cash payment to the sellers;
  • Issue 68,000,000 shares in Critical Resources to the sellers (or their nominees) at an issue price of $0.022 per share (a deemed value of $1.496 million); and
  • Issue 8,000,000 fully paid ordinary shares to the deal facilitator who is a non-related party.

Milestone 1 payment and deferred consideration includes:

  • Payment of $1.50 million cash to the sellers; and
  • $100,000 of fully paid ordinary shares in Critical Resources (up to a maximum of 4,000,000 shares) to the facilitator upon definition of JORC compliant resource of not less than 5.00 million tonnes containing not less than 50,000t of Li2

Milestone 2 payment and deferred consideration includes:

  • Payment of $1.50 million cash to the sellers; and
  • $100,000 of fully paid ordinary shares (up to a maximum of 4,000,000 shares) in Critical Resources to the facilitator upon definition of JORC compliant resource of not less than 10.0 million tonnes containing not less than 100,000t of Li2

$4 million placement planned

As a condition to completion of the acquisition, Critical Resources will conduct a capital raising via a placement to professional and sophisticated investors at $0.029 per share to raise around $4 million. The company confirmed all directors will be participating in the raise.

Participants will receive one free attaching option for every three shares with an exercise price of $0.04 and expiring 3 December 2024.

The proceeds will fund

  • Halls Peak drilling: $1.5 million;
  • Mavis Lake Lithium acquisition, preliminary drilling, and associated costs: $2.15 million; and
  • Corporate and working capital: $0.350 million.

Sixty Two Capital Pty Ltd is the lead manager and on completion will be entitled to a capital raising fee of 6% of the total amount – and subject to shareholder approval, will be entitled to be granted 15,000,000 unlisted lead manager options with an exercise price of $0.04 and expiring 3 December 2024.

 


 

 

This article was developed in collaboration with Critical Resources Limited, a Stockhead advertiser at the time of publishing.

 

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

The post Critical Resources nabs Mavis Lake project and foothold in established Canadian lithium province appeared first on Stockhead.



Author: Special Report

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Precious Metals

Current Bitcoin Fear & Greed Index

Each day, we analyze emotions and sentiments from different sources and crunch them into one simple number: The Fear & Greed Index for Bitcoin and…

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Each day, we analyze emotions and sentiments from different sources and crunch them into one simple number: The Fear & Greed Index for Bitcoin and other large cryptocurrencies.
This post by Lorimer Wilson, Managing Editor of munKNEE.com is an edited ([ ]) and abridged (…) version of an article by Alternative.me for the sake of clarity and length to ensure a fast and easy read.
<img src=”https://alternative.me/crypto/fear-and-greed-index.png” alt=”Latest Crypto Fear & Greed Index” />

Why Measure Fear and Greed?

The crypto market behaviour is very emotional. People tend to get greedy when the market is rising which results in FOMO (Fear Of Missing Out). Also, people often sell their coins in irrational reaction of seeing red numbers. With our Fear and Greed Index, we try to save you from your own emotional overreactions. There are two simple assumptions:

  • Extreme fear can be a sign that investors are too worried. That could be a buying opportunity.
  • When Investors are getting too greedy, that means the market is due for a correction.

Therefore, we analyze the current sentiment of the Bitcoin market and crunch the numbers into a simple meter from 0 to 100. Zero means “Extreme Fear”, while 100 means “Extreme Greed”. See below for further information on our data sources.

Data Sources

We are gathering data from the five following sources. Each data point is valued the same as the day before in order to visualize a meaningful progress in sentiment change of the crypto market…

1. Volatility (25 %)

We’re measuring the current volatility and max. drawdowns of bitcoin and compare it with the corresponding average values of the last 30 days and 90 days. We argue that an unusual rise in volatility is a sign of a fearful market.

2. Market Momentum/Volume (25%)

Also, we’re measuring the current volume and market momentum (again in comparison with the last 30/90 day average values) and put those two values together. Generally, when we see high buying volumes in a positive market on a daily basis, we conclude that the market acts overly greedy / too bullish.

3. Social Media (15%)

While our reddit sentiment analysis is still not in the live index (we’re still experimenting some market-related key words in the text processing algorithm), our twitter analysis is running. There, we gather and count posts on various hashtags for each coin (publicly, we show only those for Bitcoin) and check how fast and how many interactions they receive in certain time frames). A unusual high interaction rate results in a grown public interest in the coin and in our eyes, corresponds to a greedy market behaviour.

4. Dominance (10%)

The dominance of a coin resembles the market cap share of the whole crypto market. Especially for Bitcoin, we think that a rise in Bitcoin dominance is caused by a fear of (and thus a reduction of) too speculative alt-coin investments, since Bitcoin is becoming more and more the safe haven of crypto. On the other side, when Bitcoin dominance shrinks, people are getting more greedy by investing in more risky alt-coins, dreaming of their chance in the next big bull run. By analyzing the dominance for a coin other than Bitcoin, you could argue the other way round, since more interest in an alt-coin may conclude a bullish/greedy behaviour for that specific coin.

5. Trends (10%)

We pull Google Trends data for various Bitcoin related search queries and crunch those numbers, especially the change of search volumes as well as recommended other currently popular searches. For example, if you check Google Trends for “Bitcoin”, you can’t get much information from the search volume. Currently, you can see that there is a +1,550% rise of the query “bitcoin price manipulation“ in the box of related search queries (as of 05/29/2018). This is clearly a sign of fear in the market, and we use that for our index.

 

Surveys (15%) currently paused

Together with strawpoll.com (disclaimer: we own this site, too), quite a large public polling platform, we’re conducting weekly crypto polls and ask people how they see the market. Usually, we’re seeing 2,000 – 3,000 votes on each poll, so we do get a picture of the sentiment of a group of crypto investors. We don’t give those results too much attention, but it was quite useful in the beginning of our studies. You can see some recent results here.

Editor’s Note:  The author’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original article.  Furthermore, the views, conclusions and any recommendations offered in this article are not to be construed as an endorsement of such by the editor.

Related Articles from the munKNEE Vault:

1. Bitcoin Surges; Dollar Dives; U.S. Economic Outlook Plummets

Tuesday was all about two things – what went up and what went down – and below is a look at what happened in chart form.

2. New ETF Will Make It Easier, Safer & More Convenient To Invest In Bitcoin

A futures-based exchange-traded funds based on Bitcoin called the ProShares Bitcoin Strategy ETF (BITO) started yesterday and I believe it will be a major factor in making the process to invest in Bitcoins considerably easier, safer, and more convenient. Here are 5 reasons why:

3. Average of 50 Bitcoin Price Predictions: End of 2021 ($71,445); By 2025 ($249,578) and $5,237,082 By 2030

Find out why 50 industry experts think Bitcoin will be worth US$71,415 by the end of 2021, before rising to US$249,578 by 2025 and why holding till 2030 will be the real payoff.

4. Bitcoin Is Going To $500,000 and the Rationale Is Simple

While there are risks, cryptocurrencies can reap huge rewards for those who make the right investment decisions. In this blog post, we discuss how to invest in cryptocurrency and what you need to know if you want to get involved!

8. Bitcoin vs. Gold: Which Is the Better Asset To Own?

Gold and Crypto are both expected to embark on their next bull run and, a disadvantage to owning one asset is often an advantage of owning the other. Therefore, we believe both deserve a place in your portfolio for at least insurance purposes.

9. Bitcoin vs Gold: A Surprising Price Correlation

It would be wise for bitcoin traders to use any kind of hedge that they can find and over the past few months, one such hedge has been, ironically, gold.

A Few Last Words: 

  • Click the “Like” buttonat the top of the page if you found this article a worthwhile read as this will help us build a bigger audience.
  • Comment belowif you want to share your opinion or perspective with other readers and possibly exchange views with them.
  • Register to receive our free Market Intelligence Report newsletter (samplehere) in the top right hand corner of this page.
  • Join us onFacebookto be automatically advised of the latest articles posted and to comment on any of them.


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Author: Lorimer Wilson

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Energy & Critical Metals

Pegasus Resources Expands Its Uranium Assets In Saskatchewan

Pegasus Resources Inc. (TSXV:PEGA) continues to make its presence in the prolific Athabasca Basin uranium camp with the recently announced
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Pegasus Resources Inc. (TSXV:PEGA) continues to make its presence in the prolific Athabasca Basin uranium camp with the recently announced acquisition of three uranium properties at the northwest edge of the Basin. The 54,026 hectare properties comprising 13 mineral claims contain a cumulative total of 535,718 lbs of uranium, and significantly, includes a historic resource estimate of 202,200 tons at 0.119% U308 at an average width of 4.8 metres.

These new properties add to the previously announced Pine Channel uranium property which consists of six mineral claims covering 6,028 hectares and is located at the northern edge of the Athabasca basin, roughly 40 km west of the town of Stony Rapids. The Athabasca Basin in Northern Saskatchewan is host to several of the world’s largest and highest-grade uranium mines, including Cameco’s (TSX: CCO) McArthur River Mine and Cigar Lake Mine.

The Wollaston Northeast property is located in the 20A zone within the prolific Wollaston Domain, 45 kilometres northeast of the Eagle Point Uranium Mine. The property has at least eight known base metals showings and five previously documented uranium occurrences, and is considered highly prospective for basement hosted uranium mineralization.

Much of the recent renewed interest in uranium in the region is due to recent discoveries within the Wollaston Domain where the Eagle Point deposits are hosted within its basement rocks. In addition to the Eagle Point Mine, the area also hosts the historic Rabbit Lake Mine and Cameco/Orano Key Lake Mine, the world’s largest high-grade uranium mine.

The 12,397 hectare Bentley Lake Uranium Property consisting of three mineral claims, and is located 35 kilometres northeast of the edge of the Athabasca Basin, within a transition zone between the Wollaston and Mudjatic Domains. This trend is host to several major uranium deposits, including Cigar Lake, Roughrider, McArthur River and Midwest. It is located at the transition zone between the Wollaston and Mudjatik geological domains.

The third property is located approximately 40 kilometres northeast of the edge of the Athabasca Basin and within the Charlebois-Higginson Lake Uranium District. The 6,908 hectare Mozzie Lake Uranium Property consists of three mineral claims and has a historical resource estimate of 204,200 tons at 0.119% U308, with an average width of 4.8 metres, and containing 535,718 lbs of uranium. What makes the Mozzie Lake Property particularly compelling, aside from the historical resource estimate that Pegasus’s exploration efforts may be able to increase significantly, are the pegmatite deposits of the Charlebois-Higginson Lake Uranium District.

Since being initially explored from the 1940’s through to the 1960’s, there has been virtually no exploration on the property. Previous work in the region, as well as on the Pinkham Lake property at Mozzie Lake, indicated that the pegmatite deposits may also host mineralization which contains rare-earth-element bearing minerals. Rare earth minerals are in high demand today due to the needs of the various technology, consumer electronics, and electric vehicle manufacturing industries. PEGA plans to examine the property’s rare earth potential as part of its uranium exploration program at Mozzie Lake.

Pegasus will next review the historical data on the properties to determine an exploration strategy and work programs, and will provide shareholders with updates in the near future. The company’s recent announcements of the uranium assets have certainly rekindled interest in PEGA shares, and its market capitalization has increased by almost 50% to $7.98 million in recent weeks, signifying that investors are enthused about the direction management has taken.

PEGA last traded at $0.095 on the TSX Venture exchange.


FULL DISCLOSURE: Pegasus Resources is a client of Canacom Group, the parent company of The Deep Dive. The author has been compensated to cover Pegasus Resources on The Deep Dive, with The Deep Dive having full editorial control. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security.

The post Pegasus Resources Expands Its Uranium Assets In Saskatchewan appeared first on the deep dive.

Author: Phil Gracin

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