Ownership: 31.2% Eros Resources - 68.8% Denison Mines Joint Venture
Operator: Denison Mines Corp.
Location: 30 km north of Points North Landing, Saskatchewan
The Denison JV properties are located in the northern part of the Athabasca basin and cover the strike continuation of faults and conductors which host nearby unconformity-related uranium deposits and prospects such as La Rocque Lake (Cameco) and Wolly (Areva - Denison). Sandstone cover on the properties is relatively thin, ranging from nil to approximately 250 m. Deep penetrating airborne electromagnetic and magnetic surveys have been completed over all the claims and detailed ground surveys have been completed on specific targets.
On the Hatchet Lake property, historic drill holes encountered a number of uranium, cobalt, copper, nickel, arsenic, and gold-enriched sulphide intercepts, including one intersection of 2.5 metres of 7.34% Co, 1.66% Ni and 16.07% As (true width unknown). Positive drill results have been received for several targets in recent years. As reported in the Company’s news release of March 1, 2013, uranium mineralization was intersected in two drill holes on the northern portion of the Crooked-Richardson Lakes trend. The best assay result was in drill hole RL-13-16, which intersected 0.45% U3O8 over 2.3 metres beginning at 124.0 metres down the drill hole. This interval includes a higher-grade interval of 0.5 metres grading 1.46% U3O8. Intervals of gold and silver-lead-zinc mineralization have also been encountered.
On the Murphy Lake property, several conductors have been identified by airborne and ground electromagnetic surveys, and have been tested by wide-spaced drilling. The Joint Venture’s Hole MP-08-01 tested one of the conductors and intersected a very promising zone of alteration and anomalous radioactivity (600-1700 counts per second) for 1.9 metres below the faulted unconformity contact, at a depth of about 194 m. Analyses from two 20-centimetre samples of split core from this zone yielded uranium values of 537 and 724 ppm U.
The mineralization at Murphy Lake is located at the sub-Athabasca unconformity and is associated with a zone of strong sandstone alteration including desilicification and clay over a hematite cap. Basement rocks immediately below the mineralization consist of graphitic pelitic gneisses cut by faults. As the mineralization is interpreted to be horizontal and the drill holes are steeply inclined, the true thickness is expected to be at least 75% of the intersection length. The property is located approximately 30 kilometres from the McClean Lake mill in the northern area of the Athabasca Basin. The Athabasca Basin is generally regarded as a premiere uranium district, well known for hosting the highest grade uranium deposits in the world.