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We are going to follow the process a junior resource
company takes in making a discovery; in this case we are going looking for uranium, but are also reminded of the Voisey�s Bay story when two diamond
prospectors almost inadvertently found a large nickel, copper and cobalt
deposit. This junior has potential for not only uranium, but also gold
and platinum group elements.
In this case, our junior is looking in the most
prospective and geologically fertile place in the world for discovering
uranium. There�s no contest here, if you are looking for uranium the
Athabasca Basin in Northern Saskatchewan and Northeastern Alberta is where
you need to be.
Athabasca Basin
 The Athabasca Basin is an ancient,
roughly bathtub shaped, sedimentary basin located along the Northern
Alberta-Saskatchewan border south of Lake Athabasca. The Basin covers
approximately 100,000 square kilometers in Saskatchewan and a small portion
of Alberta.
An airborne survey (a consortium flew an airborne
radiometric survey over the Basin in 1967) and follow-up ground radiometric
prospecting with systematic drilling led to the early discoveries of Rabbit
Lake in 1968 and Cluff Lake in 1970 (the discovery of these two deposits led
to the recognition of the unconformity deposit model).
When the Cluff Lake D Zone was found in 1969 the
Athabasca Basin become host of the highest grade uranium deposit ever
discovered. The D Zone discovery news resulted in a huge staking rush by not
only junior companies, but also large multinational oil companies. The
Athabasca Basin legend had been born and heralded the beginning of a prolific
period of ongoing high-grade uranium discoveries incomparable to any other
district in the world.
The initial discoveries were made by airborne then
surface indicators - radioactive boulders, geochemical anomalies in the
surrounding lakes and swamps and geophysical signatures. Hydrothermal fluids
associated with high-grade uranium deposits will cause extensive alteration
of the host rock, resulting in displacement and removal of minerals/elements,
creating porosity and subsequent density contrast. This density contrast will
be expressed as a gravity low anomaly and is a prime drill target when
qualified by other coincident indicators of uranium mineralization such as
geochemistry and radon.
The discoveries at Key Lake (richest open-pit deposit in
the world) in 1975-76 and Cigar Lake in 1981 prompted a growing emphasis on
Electromagnetic (EM) conductors as a key factor in exploration for these
unconformity deposits.
Electromagnetic surveys outline areas where conductive
material exists in the basement rocks. The commonly recognized conductive
feature is graphite within meta sedimentary rocks. Although graphite does not
always have uranium mineralization, the known uranium deposits in the
Athabasca Basin almost always have graphite associated with them. Since 2006
virtually the whole basin has been covered by EM surveys.
It�s important to note that the same methods which led to
the early basin discoveries are the same methods currently employed to make
new discoveries.
Unconformity-related deposits
Most economic uranium deposits form when uranium is
remobilized from one area and re-precipitated in a host rock where chemical
conditions are conducive to concentrating the uranium at higher
concentrations.
An �unconformity� is a time gap in the rock record
between two rock units. In the Athabasca Basin, the lower unit may be
deformed brecciated or altered while the overlying units are less deformed.
Uranium deposits can occur in both the underlying and overlying units.
In the underlying units, there may be a weathering zone,
fault zone or some other feature that increases the rocks porosity and
permeability. In the overlying units, it may be the sandstones or some other
features that allows the concentration of uranium. Most commonly these
deposits form at or
near a major fault zone, where waters enriched in uranium
mixed with a reducing agent that facilitated the deposition of the uranium in
the host rock.
The deposits in the Athabasca Basin can occur below,
across and immediately above the unconformity, with the highest grade
deposits situated at or just above the unconformity (eg Cigar Lake and
McArthur River). The earliest known discoveries within the Athabasca
Basin were lower grade basement hosted deposits (eg. Cluff Lake, Key Lake and
Rabbit Lake). Recent discoveries such as Roughrider and Patterson Lake
South, are also basement hosted deposits.
Discovery
Geologists - our juniors equivalent of a police forces
crime detective - need to follow various clues in order to discover the
presence of uranium. That means our geologists need to be experienced in the
search for our chosen mineral, knowledgeable in regards to our chosen area,
armed with all the latest and greatest tools of the trade, and be up to date
on the latest geophysical and geochemical techniques.
Upon interpretation of historical and modern data - and
often times our management and geo�s proprietary knowledge of the area -
claims are staked.
Initial work often includes airborne surveys that could
include VTEM, ZTEM and a full tensor gravity gradiometry survey. Company�s
geologists are then sent to the property to collect soil and rock samples,
complete radon surveys, and/or complete geophysical surveys such as
resistivity or HLEM. Samples are sent to the lab, surveys results are
compiled, analyzed and tied together with results from the lab.
If results are favorable and provide good indications for
the discovery of a mineralized body, a drill program is formulated and
announced in a news release.
Lakeland Resources TSX.V - LK Announces Drill Program at Gibbons
Creek and Star Properties
With only 54 million shares issued and outstanding,
Lakeland is held strongly by insiders (25%). The company is well cashed-up
with an estimated $2 million, and three projects are at the drill ready
stage.Your author believes Lakeland represents the best early-stage drill
speculation in the entire basin.
Here�s a summary of the first Lakeland project to be
drilled.
Star/Gibbons Creek
The company wholly owns Gibbon�s Creek and holds a 100%
option on Star, these two adjacent properties have been combined into one
project.
Lakeland generated several drill ready targets at
Star/Gibbons Creek based on their fall 2013 exploration program. Prospecting
methods employed included:
- A land-based RadonEX� survey. Some of
the Athabasca Basin�s highest RadonEx readings (9.93 pCi/m2/sec) were
generated by LK�s Gibbons Creek survey. These readings are 10 times
higher then what Fission Uranium Corp. measured at their Patterson Lake
discovery. A very interesting fact associated with this survey is that
radon gas associated with uranium mineralization has a half-life of 3.8
days, 80% decays within 12 days and within 30 days it has 100%
disappeared.
- Ground work confirmed the existence of
the historic radioactive boulder field with eight samples surpassing 1%
U3O8, one of them hitting 4.28%. Another 11 samples assayed above 0.2%,
with nine more below 0.2%. Anomalous values for nickel, arsenic, lead
and cobalt also appeared. Samples taken from glacial till down ice show
results as high as 5% uranium
- A DC-Resistivity survey confirmed the
definition of an east-west resistivity low, this low has been
interpreted as an alteration corridor.
- Surface sampling at the Star Uplift, a
basement outcrop about 350 meters by 700 meters, found a gold trend that
also revealed platinum group elements, rare earths and anomalous
low-grade uranium. Of 124 soil samples, 29 exceeded 0.1 g/t gold. Six of
them passed 1 g/t and one reached 2.21 g/t gold. Of 73 rock samples,
nine assayed over 0.1 gram per tonne gold, including two that surpassed
2 g/t and one that hit 3.7 g/t gold. There�s also up to .75 of a gram
per tonne platinum and palladium in the samples.
 
Consider
- One kilometer south of the Star uplift
there�s a massive alteration zone showing up in the resistivity data
set. The periphery of the zone was drilled in the 1970s. Assays returned
up to 1,500 parts per million uranium - that�s 1,500 ppm proximal to a
massive alteration zone.
- In the Athabasca Basin pathfinder
elements - gold and Platinum Group Element (PGE) would be included in
this group - are usually counted in parts per million. To be counting
gold and PGE in grams per tonne is highly unusual, although Shea Creek
and Patterson Lake South did have high grade gold values.
- The property was covered by airborne EM
surveys and airborne gravity surveys in 2006. There�s also a very good
set of historic data - during the 1976-1981 exploration boom Eldorado
Nuclear Ltd. completed soil sampling, prospecting, ground EM surveys,
gravity surveys and resistivity surveys.
- There�s a major regional structural
lineament running 30 to 40 kilometers north to south. Every
significant uranium deposit is structurally related - there has to be a
fault zone or a structure of magnitude. Having it reactivated time and
time again allows multiple generations of fluid to flow along that
structure and deposition of perhaps multiple high grade ore bodies.
- The deposits in the Athabasca Basin are
considered �blind� deposits � there�s no surface expression so one of
the major keys to success is maximizing the number of holes drilled.
Shallow depth - it�s just 50 to 250 meters to the sub-Athabasca
unconformity on Lakelands Star/Gibbons project - leads to cheaper
drilling per hole. More holes equals more exploration bang, more chances
of success for the buck.
- Roads and power lines cross the
property which lies only a few kilometers from the town of Stony Rapids.
When everything is taken into consideration it�s easy to see why
Lakeland anticipates an economical program of shallow drilling.
- The company is in receipt of the
necessary permits to carry out the work program, a drilling contract has
been negotiated and the company is fully funded to complete the work.
The drill program will commence as soon as winter ground conditions
permit.
Something to take note of here - Lazy Edward Bay, the second of
Lakeland�s three drill ready projects, is an outstanding project and as I
said is ready to be drilled. LK is definitely not a one shot Co. and this is
extremely important when doing due diligence on a prospective junior � always
have a second, even third, project ready to go. If
the first program isn�t the success you�d hoped for there�s no sitting around
waiting for junior to raise money, acquire another project and get it ready
to drill. I think it�s obvious why I like LK, three drill ready projects and
$2m in the bank.
Conclusion
An investment into junior resource company�s should be
based on who is involved. Lakeland has put together a management team, and
advisory board with considerable expertise and experience in the uranium
sector.
The driving force, on the geological side of Lakeland
Resources is the same team of geologists (Dahrouge Geological) that
originally conceived the Waterbury Lake Property (J-Zone sold to Denison) and
the Patterson Lake Project that eventually turned into the Patterson Lake
South (PLS) Uranium Deposit, being developed by Fission Uranium Corp.
Add Zimtu Capital�s funding network to the mix and you
have a junior with the ability to raise money and a team that is noted for
generating multiple early stage discoveries!
Can lightning strike three times for Mr. J. Dahrouge
& Co., our detective geologists?
Mother Nature never gives guarantees, and neither do I,
regarding the location of her treasures, but your author believes all the
geological necessities are present for a discovery, potentially a very large
and rich discovery. Add in the fact three drill ready projects considerably
de-risk the investment and you can see why Lakeland Resources TSV.V � LK is
on my radar screen as one of the best prospective for discovery juniors on
the TSX.V today.
Is the geological fertility of the Athabasca Basin, the
process of discovery, Lakeland Resources and a third lightning strike on your
radar screen?
If not, they should be.
Richard lives with his family on a 160 acre ranch in
northern British Columbia. He invests in the resource and biotechnology/pharmaceutical
sectors and is the owner of Aheadoftheherd.com. His articles have been
published on over 400 websites, including:
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MSN.com and the Association of Mining Analysts.
Please visit www.aheadoftheherd.com
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please contact him for more information, rick@aheadoftheherd.com
***
Legal Notice / Disclaimer
This document is not and should not be construed as an
offer to sell or the solicitation of an offer to purchase or subscribe for
any investment.
Richard Mills has based this document on information
obtained from sources he believes to be reliable but which has not been
independently verified.
Richard Mills makes no guarantee, representation or
warranty and accepts no responsibility or liability as to its accuracy or
completeness. Expressions of opinion are those of Richard Mills only and are
subject to change without notice. Richard Mills assumes no warranty,
liability or guarantee for the current relevance, correctness or completeness
of any information provided within this Report and will not be held liable for
the consequence of reliance upon any opinion or statement contained herein or
any omission.
Furthermore, I, Richard Mills, assume no liability for
any direct or indirect loss or damage or, in particular, for lost profit,
which you may incur as a result of the use and existence of the information
provided within this Report
Richard does not own shares of Lakeland Resources
TSX.V - LK
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