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Uranium Projects
Uranium Exploration Overview
Unconformity Uranium Properties
Mann Lake & Huard-Kirsch Lakes Uranium Projects - Athabasca Basin,Saskatchewan
World Uranium Demand
Lithium and Rare Earth Elements
Information About Lithium and Rare Earth Elements
Gama Lake Lithium and Rare Earth Elements Property, Ontario
Raleigh Lake Lithium and Rare Earth Elements Property, Ontario
Selwyn Lake Rare Earth Elements Property, 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.
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.
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. Denison mines is actively exploring the Company's Huard - Kirsch Lakes property, which is situated approx. 20 km to the NW of Cameco Corporation's high-grade McArthur River Uranium Mine. Triex Minerals is actively exploring Abaddon's 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 basement rocks under the Athabasca limestone formation on the Company's Huard - Kirsch Lakes and Mann Lake properties are believed to consist of politic gneiss of the Wollaston Group. Uranium deposits are typically at the unconformity between the flat lying Athabasca sandstone and steeply dipping politic gneisses of the underlying Wollaston Group. It is anticipated that the depth to the unconformity on these projects will be 500+ metres. The Huard - Kirsch Lakes and the Mann Lake claim groups are all contained entirely within the Athabasca Basin. Bedrock compilation geology shows the area of the claims to be underlain by Paleohelikian Athabasca Group rocks of the Manitou Falls Formation and consist of an intraclast-rich member with from 1% to 10% intraclast layers locally interbedded with siltstone and shale. The subcropping Precambrian basement rocks consist of Mudjatik domain (probably early to middle Aphebian) undifferentiated paragneiss including pelites, psammopelites, metaquartzite, meta-arkose and calc-silicate rocks intermixed with felsic gneiss.
In February 2005, Consolidated Abaddon announced that the airborne geophysical survey being conducted on the Huard - Kirsch Lakes property has been completed. Fugro Airborne Surveys flew approx. 535 line kilometres of Fugro's new Megatem aerial survey. This airborne survey was capable of penetrating and examining rock types to depths of as much as 1000 metres below the surface of the Athabasca Basin versus 200-300 metres of penetration of geophysics in the 1980's. The traverse lines were flown at 400 metre intervals and at a nominal height of 120 metres above terrain clearance. The direction of the survey was conducted in a northwest-southeast flight pattern. The Megatem system (electromagnetic survey) and the high sensitivity magnetometre survey undertaken by Abaddon are considered to be a significant upgrading of previously known geophysical information in the general area. The airborne geophysical information will be used in conjunction with prospecting and geochemistry programs to define the best targets for diamond drill testing. Also in February 2005, Consolidated Abaddon Resources Inc. filed on SEDAR a commissioned 43-101 report on the Company's 100% owned Athabasca Saskatchewan properties titled 'Evaluation of the Huard - Kirsch and Mann Uranium Properties' prepared by David J. Busch B.A., B.Sc. (hons), PGeo and Paul S. Ogryzlo B.Sc., PGeo (qualified persons) in compliance with standards set out in National Instrument 43-101F1. The Feb. 2005 43-101 report concluded that the Company's Mann Lake and Huard - Kirsch Lakes properties may host geological settings favorable for unconformity uranium deposits that have not been previously identified or tested. As recommended, Consolidated Abaddon will proceed with a ground follow-up exploration program using the airborne magnetic and electromagnetic survey now concluded on the Huard - Kirsch Lakes block identifying possible basement conductors. The indicated (and untested) ground conductors on the Mann Lake block should be confirmed. Diamond drilling will test all basement conductive zones that have been identified by the ground surveys. 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). Consolidated Abaddon has retained key technical support from Mr. David Busch, B.A., B.Sc. (hons), PGeo., who has several years of experience involved in exploration for uranium in the Athabasca Basin. His knowledge of the eastern Athabasca Basin will allow Consolidated Abaddon to capitalize on the potential of this area in Northern Saskatchewan. Consolidated Abaddon continues to look at several other potential uranium properties and projects that may contain drill ready targets, in an attempt to expand its land holdings in the Athabasca Basin, and elsewhere. under Option to Triex Minerals (*Click Here*)
For further information on Consolidated Abaddon's Huard-Kirsch Lakes uranium project under Option to Denison Mines
Consolidated Abaddon's Mann Lake Uranium Project, Athabasca Basin
The adjacent property, of significance, to the Mann Lake property 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 International 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 metres and 5.53% U308 over 0.4 metres. In November 2006, International Enexco announced Cameco had tripled its budget for the 2007 exploration on their Mann Lake property. The February 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 full February 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 had 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's grid to allow for a better interpretation and correlation of the suspected basement conductors on the Marean Lake area. The Company has completed a gravity survey on parts of the new grid, which indicates reactive basement faults and provides Consolidated Abaddon with prospective drill targets. In April 2006, Triex Minerals (now Canterra 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. The five hole Phase One 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. The image map below is a ground-based gravity survey that delineates individual faults in the corridor: Mann Lake Geophysical Survey Map  Click to Enlarge
Hole MN06-005 was 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.
In January 2007, Consolidated Abaddon and Triex Minerals (now Canterra Minerals) announced that alteration and geochemical anomalies were confirmed by the first pass drill program on the Mann Lake uranium property. A $1.2-million follow-up diamond drilling program started in the second half of 2007. 2,534 metres of drilling in three holes on the property was finished in April 2008. The Huard-Kirsch Lakes Uranium Project, Athabasca Basin Consolidated Abaddon holds interest in approximately 40,000 acres (160 square kilometres) of highly prospective ground within the eastern flank of the Athabasca Basin in northern Saskatchewan. Denison Mines (TSX: DML) is actively exploring the Company's Huard - Kirsch Lakes property, which is situated approximately 20 kilometres to the NW of Cameco Corporation's high-grade McArthur River Uranium Mine. Consolidated Abaddon owns 49% of the Huard-Kirsch Lakes Uranium Project with Denison Mines Corp. (TSX: DML) owning the other 51%.
The February 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 was modeled and the interpretation used to guide the ground follow-up program. 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. The full February 2005 43-101 report regarding the Mann Lake and Huard - Kirsch Lakes uranium properties can be viewed at www.sedar.com (click here). During 2006, Denison Mines completed several exploration surveys on the Huard-Kirsch Lakes project. Exploration has consisted of grid establishment, boulder geochemistry, as well as airborne and ground geophysics. 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 2007, a single hole was drilled by Denison Mines to a depth of 811 metres on an untested geophysical anomaly. The hole intersected favourable graphitic pelites at a depth shallower than expected. The occurrence of the unconformity and prospective uranium host rocks at shallower depths is a very positive development on the property. 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. | |||||||||||||||||
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