VANCOUVER, April 2, 2013 /CNW/ - Lakeland Resources Inc. (TSXv: LK) (FSE: 6LL) (the "Company" or "Lakeland") is pleased to announce that it has acquired two uranium projects by staking, both located within the northern part of the Athabasca Basin of Saskatchewan, Canada.
The Athabasca Basin hosts the world's largest and richest high-grade uranium deposits. It currently accounts for approximately 20 percent of the world's annual production of uranium and as evidenced by several recent discoveries, is considered by the Company to be significantly underexplored.
Lakeland continues to strengthen its land position within the basin. The Company believes it is building one of the most promising uranium exploration portfolios in the Athabasca.
The North Basin Projects (the "Projects") lie along the south shore of the Fond du Lac River, in northern Saskatchewan, extending approximately 80 km westward from the hamlet of Stony Rapids to approximately 10 km south of the hamlet of Fond du Lac. Stony Rapids is accessible year-round via highway 905, and access to most of the project area is by snowmobile or light plane on skis from Stony Rapids in winter and by float-equipped aircraft in summer.
The two projects are comprised of 10 minerals claims totaling 45,103 hectares, at the northern edge of the Athabasca Basin. Both properties contain favorable indications of a prospective environment for unconformity-type and basement hosted uranium deposits, including the presence of significant regional faults, complex quasi-linear magnetic features with favorable graphitic units interpreted for basement lithologies, and electromagnetic anomalies which are either untested or tested with only a limited number of drill-holes. The projects benefit from the archived database of modern regional-scale airborne gravity, magnetic and electromagnetic surveys.
Several compilation maps for the newly staked properties will be uploaded to the Company's website at: http://www.lakelandresources.com/
The Otherside Property, which consists of two mineral claims totaling 9,645 hectares, was selected as a priority staking opportunity based on work by the previous operator, UEX Corp. Depth to the unconformity ranges from 0 to approximately 320 metres. The magnetic setting is that of prominent, quasi-linear magnetic highs and lows, striking at approximately 70°, parallel to the regionally significant "Robillard Fault." Three moderately to highly conductive features have been identified on the Otherside Property by a 2005 electromagnetic survey.
The Riou Lake Property, consisting of eight mineral claims totaling 35,429 hectares, was also selected as a priority staking opportunity based on work by the previous operator, UEX Corp. Depth to the unconformity in the property ranges from 0 to approximately 700 metres, while the majority of the project is estimated at depths of less than 400 metres. The magnetic setting is that of prominent north-east striking, complex to linear magnetic highs and lows, truncated by north-west striking fault structures.
In addition to the regional-scale airborne surveys on the Riou Lake Property, UEX Corp. also drilled three holes on the property based on the results of the airborne surveys. The graphitic and sulphide content of all holes was too low to explain the electromagnetic anomalies, and ground geophysical surveys were recommended, but apparently never conducted before the property was left to lapse. Other electromagnetic anomalies were located on the property, but apparently not followed up.
Given the limited historic exploration of the property, the complex magnetic and structural setting, and the shallow depth to the unconformity; the Company believes the Riou Lake Property to be significantly underexplored for uranium mineralization.
Lakeland will examine and compile all available historic and related mineral exploration data associated with the acquired Projects in anticipation of an exploration work program.
The technical information above has been prepared in accordance with the Canadian regulatory requirements set out in National Instrument 43-101 and reviewed on behalf of the Company by Neil McCallum P.Geo., a Qualified Person.
Uranium demand is largely driven by energy demands. The spot price of uranium is currently US$42.25/lb U3O8 (Source: UxC). There are currently approximately 435 nuclear reactors in operation world-wide. Global electricity demand is expected to grow significantly through 2030 and the number of nuclear reactors is rising to meet it. 65 new reactors are now under construction - new build levels not seen since the 1970s - as well as an additional 167 planned and 317 proposed to 2030 (Source: World Nuclear Association). The bulk of the new units are in four countries - China, India, Russia and Korea. Several near term catalysts for the uranium market include (i) increased clarity on Japanese restarts; (ii) increased Chinese utility buying; and (iii) the culmination of the Russian HEU agreement by year-end (Source: Raymond James). Sentiment for the uranium market appears to be on the upswing with several significant M&A transactions over the last few years including Rio Tinto's approximately $650M acquisition of Hathor Exploration Ltd. in 2011 and Russia's ARMZ recent $1.3 billion bid to take Uranium One private.
Update on Kam Property:
Lakeland also announces the results of exploration drilling completed on the Company's 100%-owned Kam Copper Property located near Iron Bridge, Ontario.
A 500 metre (4 hole) drill program was conducted to verify historic diamond drill results from the 1930s and to confirm the presence of the host vein. Two distinct zones were identified in the exploration drilling (the North Zone and the Main Zone) with Hole KAM-01 returning 5.0 metres grading 1.23% Cu (including 3 metres of 1.75% Cu) from the Main Zone and 0.9 metres of 1.68% Cu from the North Zone. The following table summarizes the drill results from the four holes:
|Drill Hole||From (m)||To (m)||Width (m)||% Cu|
All drill intercepts are core width and true thickness is unknown.
Drill holes KAM-01 and KAM-02 were drilled from the same setup at -45° and -55°. KAM-03 (-45°) was drilled approximately 50 metres to the east of KAM-01 and KAM-02 and KAM-04 (-45°) was drilled in between, approximately 25 metres to the west of KAM-03.
Analyses in this release were performed by AGAT Laboratories Ltd. ("AGAT") of Sudbury, Ontario with ISO 17025 accreditation. Samples were transported in security sealed bags to AGAT and all samples were assayed using industry-standard assay techniques for gold, copper and silver.
The Company is currently evaluating the precious and base metal assets it holds in Ontario and the Northwest Territories and may seek to advance them further through joint-venture or sale. The Company intends to focus on and continue to evaluate and acquire uranium assets in the Athabasca Basin.
The independent Qualified Person responsible for the review and approval of the technical material presented for the Kam Property is Mr. Garry Clark (P.Geo), a Director of Lakeland. Mr. Clark is an independent Qualified Person as defined by Canada's NI 43-101.
About Lakeland Resources Inc.
Lakeland Resources Inc. is a newly formed pure play uranium exploration company focused on the Athabasca Basin in Saskatchewan and Alberta, Canada.
On Behalf of the Board of Directors
LAKELAND RESOURCES INC.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements. Statements in this document which are not purely historical are forward-looking statements, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Forward looking statements in this news release include that the Company believes it is building one of the most promising uranium exploration portfolios in the Athabasca, that the Company will examine and compile all available historic and related mineral exploration data associated with the acquired Projects in anticipation of an exploration work program, that the Company is currently evaluating the precious and base metal assets it holds in Ontario and the Northwest Territories and may seek to advance them further through joint-venture or sale, and that the Company intends to focus on and continue to evaluate and acquire uranium assets in the Athabasca Basin.
It is important to note that actual outcomes and the Company's actual results could differ materially from those in such forward-looking statements. Risks and uncertainties include economic, competitive, governmental, environmental and technological factors that may affect the Company's operations, markets, products and prices. Factors that could cause actual results to differ materially may include inability to come to terms with sellers of the project; that the technical report does not show sufficient promise for the projects; misinterpretation of data; that we may not be able to get equipment or labour as we need it; that we may not be able to raise sufficient funds to complete our intended exploration and development; that our applications to drill may be denied; that weather, logistical problems or hazards may prevent us from exploration; that analysis of data may not be possible accurately and at depth; that results which we or others have found in any particular location are not necessarily indicative of larger areas of our properties; that we may not complete environmental programs in a timely manner or at all; that market prices may not justify commercial production costs; and that despite encouraging data there may be no commercially exploitable mineralization on our properties. Readers should refer to the risk disclosures outlined in the Company's Management Discussion & Analysis of its audited financial statements filed with the British Columbia Securities Commission.
SOURCE: Lakeland Resources Inc.
For further information:
For more information, please visit the corporate website at http://www.lakelandresources.com or contact Roger Leschuk, Corporate Communications at Ph: 604.681.1568 or TF: 1.877.377.6222 or Email: [email protected]