The Company holds a 45% direct interest in the Paul Bay, Ken Pen and Ōrora Uranium Deposits, located on the Christie Lake Project. UEX can increase our ownership interest to a maximum 70% in the Christie Lake Project through our option agreement with JCU. The ultimate size of the Paul Bay, Ken Pen and Ōrora Deposits has not been fully defined.
The Christie Lake project is located 9 km northeast of and along strike of the McArthur River Uranium Mine, the world’s largest producer. The Project is the only junior-controlled uranium land package situated between the two giant uranium operations, McArthur River and Cigar Lake, and also straddles the Eastern Athabasca High Grade Uranium Corridor.
UEX’s current focus has been testing targets along the Yalowega Trend, a 1.5 km corridor containing anomalous uranium and indicative hydrothermal alteration that hosts three known high-grade uranium deposits, the Paul Bay Deposit, the Key Pen Deposit, and the newly discovered Ōrora Zone. Several high-priority targets that include historic mineralized holes have yet to be tested along the Yalowega Trend that have great potential to yield additional uranium discoveries.
The Christie Lake project area is underlain by Athabasca Group sandstone which unconformably sits on older folded and faulted metamorphosed sedimentary basement rocks of the Wollaston Domain. The Athabasca Group sandstone is covered by 30 to 90 m of glacial boulders, sand, and gravel forming extensive drumlins and esker features.
The prolific northeast trending P2 Fault structure, which hosts all the uranium at the nearby McArthur River deposits, the world’s largest and highest grade uranium mine, extends onto the northwest corner of the Christie Lake property (Shown as Conductor “A” in the Christie Lake Property Map). This structure continues to the northeast and is offset to the east in two steps (B and C). Step C, the easternmost step is referred to as the Yalowega Trend.
Along the Yalowega Trend, the unconformity between the sandstone and basement rocks occurs at a depth of approximately 420 m below surface. The primary structural zone is a left-lateral strike slip fault associated with zones of graphite within the basement metasediment package.
The Yalowega Trend hosts three known unconformity-related uranium deposits; Paul Bay, Ken Pen, and Ōrora. Paul Bay and Ken Pen were discovered by the previous operator in 1989 and 1993 respectively. Ōrora was discovered by UEX in 2017.
The Paul Bay Zone is a basement hosted uranium deposit occurring wholly within faulted basement rocks. The mineralized zone is 80 m wide and occurs as shoots extending up to 200 m down-dip into the basement along the intersection of small cross-faults with the main Yalowega Trend structure. The structure at the unconformity has yet to be tested at Paul Bay.
The Ōrora and Ken Pen Zones are unconformity uranium deposits which occur within faulted rocks straddling the unconformity. These zones extend lengthwise up to 160 m along the trend with shoots of mineralization and alteration extending into the basement along similar cross-fault intersections as seen at Paul Bay. The Ken Pen Deposit is known to extend up to 80 m into the basement, however the full extent of these zones into the basement has not been tested.
Several conductive packages trend northeast through the central and southern portion of the Christie Lake property and have never been examined and tested with drilling.
The Paul Bay and Ken Pen Deposits are estimated to host a combined 20.87 million pounds of U3O8 at an average grade of 3.22% U3O8. (This is a historic resource estimation which does not use resource classifications consistent with N.I. 43-101. The historical resource estimate was presented in an internal report titled “Christie Lake Project, Geological Resource Estimate” completed by PNC Tono Geoscience Center, Resource Analysis Group, dated September 12, 1997. The historical resource was calculated using a 3-D block model using block sizes of 2 m by 2 m by 2 m, and block grades interpolated using the inverse distance squared method over a circular search radius of 25 m and 1 m height. Specific gravities for each deposit were averaged from specific gravity measures of individual samples collected for assay. UEX has completed additional infill drilling on the deposits during the option period to upgrade these historic resources to indicated and inferred. A qualified person has not yet done sufficient work to classify the historic estimate as current mineral resources or mineral reserves. UEX is not treating the historic estimate as current mineral reserves or mineral resources.)
Further information on these deposits and the geology of the Christie Lake Project is available under the Christie Lake Project section of this MD&A and is documented in the Technical Report on the Christie Lake Project, Saskatchewan with an effective date of December 31, 2016, which was filed on SEDAR at www.sedar.com on March 28, 2017.