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Uranium Projects
Uranium Exploration Overview
Unconformity Uranium Properties
Mann Lake & Huard-Kirsch Lakes Uranium Projects - Athabasca Basin,Saskatchewan
Sims Lake and Gabbro Lake Properties - Sims Basin, Labrador
Pukaskwa Project, Northwestern Ontario
World Uranium Demand
Gold Projects
Black Bear II and Sidace Lake Properties - Red Lake, Ontario
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General Uranium Exploration Overview Uranium is a very dense metal, which can be used as an abundant source of concentrated energy. On a scale arranged according to the increasing mass of their nuclei, uranium is the heaviest of all the naturally occurring elements (hydrogen is the lightest). Uranium has various military and civilian uses. The largest significant commercial usage of uranium is in nuclear power reactors, but it also has usage in the construction industry, medical appliances and medicine, and even agriculture. The Uranium (U3O8) deposits of Saskatchewan, Canada are arguably the richest in the world. In 2004, Consolidated Abaddon began to acquire uranium prospects by staking what it considers to be highly prospective ground within the eastern flank of the Athabasca Basin of northern Saskatchewan and in the Sims Basin of western Labrador.
The Athabasca Basin encompasses about 100,000 square kilometres, is recognized as the most prospective uranium-mining district in the world, and accounts for 33% of the world's uranium production. Located in the Canadian Province of Saskatchewan, the unique geological terrain hosts U3O8 deposits, such as Cigar Lake and McArthur River, that are considered to be the world's highest-grade uranium deposits.
In 1975, the highest-grade open pit U3O8 deposit in the world was discovered at Key Lake in Northern Saskatchewan. Cameco Corporation operated the uranium mine until 2000, which produced 170 million lbs of U3O8. In 1981, the large uranium deposit at Cigar Lake was found. The 22% Cigar Lake U3O8 deposit is 300 metres deep and contains over 350 million lbs. of uranium. In 1988, the highest-grade U3O8 deposit in the world was found at McArthur River. The 25% McArthur River U3O8 deposit is 500 metres deep and contains 440 million lbs of uranium. The McArthur River Mine began production in 1999 and currently produces 18.7 million lbs. of U3O8 annually, which is being milled at Key Lake. The Cigar Lake Mine is expected to begin production in 2007. To put this all into perspective, the energy from one pound of uranium is equivalent to 10 tons of coal or 30 barrels of fuel oil. The high-grade ore at Cigar Lake and McArthur River, at $20 U.S. uranium per pound, is worth $5,000 per ton, which equates to a 13 oz per ton gold deposit. In total, the 2 uranium deposits have reserves worth $16.6 billion U.S. at $20 U.S. uranium.
Globally there is little to compare with the economics of the type of deposit referred to as a "unconformity uranium deposit." This is due to the grade and contained U3O8 in typical deposits. Consolidated Abaddon has targeted properties in Canada with the potential for this type of deposit. In identifying prospective properties, there are a couple of aspects to these deposits worth noting:
Consolidated Abaddon holds interest in approx. 40,000 acres (160 square km) of highly prospective ground within the eastern flank of the Athabasca Basin in northern Saskatchewan. Triex Minerals is actively exploring Abaddon's 40% owned Triex 60% owned Mann Lake property, which is located approx. 25 km to the SSW of the McArthur River Mine and 15 km to the NE of Cameco's Millennium (U3O8) discovery, and occurs at the northern extent of the B1 conductor.
The adjacent property to the Mann Lake property of significance is the Cree Extension joint venture hosting the Millennium deposit to the southwest. Cree Extension is a joint venture among Cameco Corporation, as operator, JCU (Canada) Exploration Co. Ltd., UEM Inc., and Cogema Resources Inc. In 2000, Cameco discovered the Millennium Uranium Zone on the Cree Extension using geophysical and geochemical techniques. The Millennium uranium deposit is located approximately 15 km southwest of the southern boundary of Consolidated Abaddon's Mann Lake property.  Click to Enlarge The other property of significance is the adjoining Mann Lake property to the east. In June 2006, Cameco Corporation, UEM Inc., and Int'L Enexco joint venture on the adjoining Mann Lake property, which is "beside" Consolidated Abaddon's Mann Lake project to the east, announced successful drill results. Two holes were drilled and targeted the western most conductor within a resistivity low. One hole intersected the unconformity at 517.8 metres and encountered four narrow intervals of basement-hosted uranium mineralization within 12 metres of the unconformity. The two highest-grade intervals averaged 7.12% U308 over 0.25 metre and 5.53% U308 over 0.4 metre. In November 2006, Int'L Enexco announced Cameco has tripled its budget for the 2007 exploration on their Mann Lake property. The Feb. 2005 43-101 report on Consolidated Abaddon's Mann Lake project recommended that further investigation of the conductors located near Marean Lake on the Mann Lake property should be undertaken. The GSC aeromagnetic digital data should be obtained and the current interpretation refined. The geophysical anomalies identified at Marean Lake will be followed up with detailed fixed loop EM surveys. It is anticipated that the detailed surveys will yield sufficient drill targets to warrant 2 or 3 diamond drill holes as a first pass at exploration. These holes will be planned for depths in the order of 900m. The full Feb. 2005 43-101 report regarding the Mann Lake and Huard-Kirsch Lakes uranium properties can be viewed at www.sedar.com (click here). In May 2005, Consolidated Abaddon announced it has established a new grid of 21.9 line kilometres on the Marean Lake area in the centre of the Mann Lake claim block. There was a previous grid established here and geophysical survey conducted by Uranium Power Corp. in 1999-2000. The grid Consolidated Abaddon established was cut at a different angle than Uranium Power to allow for a better interpretation and correlation of the suspected basement conductors on the Marean Lake area. The Company has now completed a gravity survey on parts of the new grid, which indicates reactive basement faults and provides Consolidated Abaddon with prospective drill targets. In September 2005, Triex Minerals Corp. (TSX.V: TXM) entered into an Option Agreement under which Triex can earn an initial 51% interest in the Mann Lake property by incurring $1,500,000 of exploration expenditures on or before March 20, 2007 and making a cash payment of $50,000. In April 2006, Triex Minerals Corp. undertook a detailed ground geophysical survey to fully delineate drill targets. A Phase One 4,000 metre diamond drill program began September 2006 following the geophysics. In January 2007, Consolidated Abaddon and Triex Minerals announced that alteration and geochemical anomalies are confirmed by the recently completed, first pass drill program on the Mann Lake uranium property, in the eastern Athabasca Basin, Saskatchewan. A $1.2-million follow-up diamond drilling program started in the second half of 2007. The five hole Phase 1 drill program tested an easterly to southeasterly trending structural corridor about one kilometre wide, which runs across the central part of the property, and truncates the regional northeasterly grain of conductors, linears, and magnetic features. A ground-based gravity survey completed last winter delineates individual faults in the corridor (see the image map below.). Mann Lake Geophysical Survey Map  Click to Enlarge
Hole MN06-005 is located on the northern side of the structural corridor, and approximately one kilometre to the north of Hole MN06-002. It intersected the unconformity at 631 metres. A four metre wide zone of anomalous Boron (up to 1758 ppm Bo) was encountered in sandstone immediately above the unconformity.
The hunt is now on!
The Huard-Kirsch Lakes Uranium Project, Athabasca Basin
The Feb. 2005 43-101 report on the Huard-Kirsch Lakes project recommended that the conductors on the Huard - Kirsch Lakes property considered to be related to basement graphitic horizons or structures from the MEGATEM Airborne survey completed in February 2005 be followed up on the ground with fixed loop or moving loop TEM surveys. The magnetic data obtained from the Airborne survey will be modeled and the interpretation used to guide the ground follow-up program. The conductors defined from the ground surveys will be drill tested. The full Feb. 2005 43-101 report regarding the Mann Lake and Huard - Kirsch Lakes uranium properties can be viewed at www.sedar.com (click here). The conductors located in the prior work by Cogema Resources show up well on the MEGATEM Airborne survey. These conductors are the first priority targets on the project. It is anticipated that the detailed surveys will yield sufficient drill targets to warrant 2 or 3 diamond drill holes as a first pass at testing targets. These holes will be planned for depths in the order of 800m. In November 2005, Denison mines Corp. (TSX: DML) signed an Option Agreement whereby IUC has the option to acquire a 51% interest in Consolidated Abaddon's Huard - Kirsch Lakes uranium property. IUC can earn a 51% interest in the property by incurring Cdn $1,500,000 of exploration expenditures on or before November 1, 2008 and has paid a cash payment of Cdn $25,000. During 2006, Denison Mines completed several exploration surveys on the Huard-Kirsch Lakes project to date. Exploration has consisted of grid establishment, boulder geochemistry, airborne and ground geophysics. Denison Mines is preparing to test a broad basement conductor at an interpreted depth of 750 metres below surface. The property is interpreted to be underlain by a conductive meta-sedimentary sequence that has never been drill tested. Interpretations of this data suggest that the anomaly represents a favorable target for exploration for unconformity uranium deposits. In February 2007, Abaddon announced that Denison Mines Corp. (TSX: DML) has informed the Company that a diamond drill program on the Huard-Kirsch Lakes property is planned for March 2007. A total of approximately 1,700 metres of drilling is planned for the Haurd-Kirsch Lakes project this winter as a 1st phase drill program. The Company looks forward to a successful 2007 winter drill season on the Huard-Kirsch Lakes uranium project.
Overview of the Pukaskwa Uranium Project, Algoma, Northwestern OntarioIn May 2007, Consolidated Abaddon Resources announced an Option Agreement with Rubicon Minerals Corp. for the acquisition of a 100% interest in the Pukaskwa uranium properties totaling 102,720 acres located in the Central Ontario Uranium Lineament approximately 250 km NW of Elliot Lake in the Algoma Mineral district, Northwestern Ontario.
The Pukaskwa uranium exploration properties consists of 4 claim blocks; Denis Lake (23,360 acres), White River (23,360 acres), Esnagi Lake (33,600 acres), and McCrea Lake (19,520 acres). The claim areas staked were chosen based on the results of an Airborne Gamma Ray and in lake sediment survey that clearly identifies 4 strong anomalies, as shown on the survey image below.
The Company's claims cover a major structural flexure indicated by the magnetic signature. The area is underlain by late Archean intrusive rocks, and felsic volcanics and sedimentary rocks of probable Proterozoic age. The target could be a large-scale, intrusive associated, uranium mineralization potentially amenable to open pit mining. The Company proposes an extensive exploration program to prove out the geology and resource potential of the area. Rubicon Minerals has granted to Consolidated Abaddon the exclusive right and option to acquire an undivided 100% interest in the Pukaskwa uranium properties for cash payments equivelant to Rubicon's cost of staking the properties (estimated to be approximately $200,000) plus 10%, and further cash payments in the amount of $165,000 and the issurance of 200,000 common shares of Consolidated Abaddon over the 4 year term of the Option Agreement. The agreement is subject to a 2% smelter return royalty (NSR) in favor of Rubicon. Consolidated Abaddon may purchase 50% of the NSR for $1,000,000. Rubicon Minerals has retained a Back-In Right Agreement for the right to earn an undivided 20% interest in and to the Pukaskwa uranium properties within a period of 30 days following the first anniversary of the TSX Venture Exchange approval by agreeing to pay an amount equivalent to 300% of the amount of property expenditures incurred by the Company to that date.
History of Elliot Lake Uranium Camp, Sault Ste Marie, NW OntarioConsolidated Abaddon's properties are located approximately 250 km northwest of the former producing Elliot Lake Uranium Camp where Pele Mountain Resources has a resource estimate of 30.05 million tonnes of uranium grading on average 0.05%, and North of Cameco's Blind River operation, licensed to process 18,000 tonnes of uranium per year.
In the beginning of the Cold War, the American government moved to ensure adequate supplies of uranium for national defence. By setting a high price for uranium, a uranium "boom" was created and production peaked in 1959. The American military requirements initiated the development of the Elliot Lake Uranium Camp. The demand declined in the 1960s, after the American government had completed its procurement program. However, a new market emerged in the 1970s: commercial nuclear power plants, and Elliot Lake received a second boom in uranium mining and exploration. By 1980, The Elliot Lake Uranium Mines were producing roughtly 43,000 tonnes of Uranium (U308). In 1979, the incident at 3-Mile Island initiated a decrease of construction of new power producing facilities, and by 1985 the price of uranium was dropping dramatically, as the world's supply increased and demand was decreasing. The Stanleigh mine, the last operating uranium mine in Elliot Lake, closed in 1996. Uranium demand has been increasing rapidly since 2005, as has the price (Click here for further information on World Uranium Demand), and Elliot Lake is once again becoming the centre of uranium exploration in Ontario. Companies active in exploration or processing of uranium in the Algoma District include; Cameco Corporation, Pele Mountain Resources Inc., International Montoro Resources Inc., Quincy Energy corp., and Shoreham Resources Ltd.
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Area Of Interest Map, Labrador
(click here to enlarge)
Consolidated Abaddon Resources has acquired the Sims Lake uranium property located in west central Labrador. The staked land position is located approximately 125 kilometres south east of the mining centre of Schefferville, Quebec. The property covers parts of the Sims Formation where uranium was discovered near the Sims-Knob Lake Group unconformity in the late 70's and early 80's. No follow-up was carried out at that time due to collapsing uranium prices.
The Trans-Labrador Highway transects this area, which services the electric power generation facilities in Churchill Falls. The Quebec North Shore and Labrador Railway extends through the western part of the area and services the iron mines of Wabush and Shefferville.
Consolidated Abaddon's
Sims Lake
Labrador Claims Map
(click here to enlarge)
The essential element of this Labrador land position is a late proterozoic sandstone sequence (Sims Formation) overlying an older, deformed, sedimentary, proterozoic sequence (Knob Lake Group). The Company believes that this geological structuring is analogous in age, lithologies and structure to the flat lying Athabaska Sandstone overlying the older and deformed Wollaston group of rocks in northern Saskatchewan that is host to the world's richest uranium deposits.
Much of the Sims Formation sandstones have been eroded and all that remains are several large 'outliers' that form large hills that dominate the area topography. The original Sims Basin covered a minimum of 1,000 square kilometres. The base of this formation is not exposed over most of the area.
Sims Basin Geology Map, Labrador
(click here to enlarge)
Exploration work in 1979 consisting of prospecting and soil sampling on Consolidated Abaddon's Sims Lake property has identified anomalous uranium (U3O8) in the "Sims Formation Sandstones" near the unconformity that overlies a significant regional structure near graphitic rocks in the underlying deformed Knob Lake Group. These features indicate a very prospective "unconformity uranium setting" at the base of the Sims Formation. Depths to the unconformity in the area are generally less than 200 metres. A previous Airborne Survey over the property in 1980 had identified radiometric anomalies that are noted to be in the up ice area of a long trend of radioactive graphitic pelitic boulders.
) Cross Section Of Abaddon's Sims Lake Property, Labrador (click here to enlarge) |
) (click here to enlarge) |
In July 2005, Consolidated Abaddon announced that it has contracted Aeroquest Ltd. to carry out an airborne geophysical survey consisting of time-domain electromagnetic, radiometric, and magnetometre surveys. The surveys were conducted on a 200 metre line spacing grid. Ground follow-up exploration and surveys will now be scheduled based on the results of the airborne surveys.
The targets on Consolidated Abaddon's Sims Lake property are unconformity related uranium mineralization at the base of the Sims Formation and extending into the basement rocks.
Processing of geophysical and geochemistry surveys were completed by Abaddon in 2006.
First phase of drilling was completed in the fall of 2006 and Abaddon is reviewing the data supplied by Denison Mines to determine the possibility of any future work programs.
About World Uranium Demand
Uranium production is concentrated in a handful of major companies including Cogema Resources, Cameco Corp., BHP Billiton, Rio Tinto, and Energy Resources. In 2003, eight companies accounted for almost 80% of total world production. Approximately 50% of global uranium production comes from Canada and Australia.
Annual uranium demand for power generation is about 160 million pounds. The majority is used in nuclear power generation. There are currently 438 nuclear power reactors in 31 countries with total output capacity of more than 364,700 megawatts providing over 16% of the world's electricity. In several Asian and European countries the percentage of electricity generated from nuclear power exceeds 35%. Many existing nuclear power plants have increased capacity and China, for example, intends to quadruple its nuclear power generation by 2020.
Cameco Corporation, the world's largest uranium producer, has been talking about a production shortfall for years. Uranium supply from mining is only 75 million pounds per year while current annual demand is approximately 160 million pounds. The most recent rise in the price of uranium might be an indication that the days of cheap uranium are over.
