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.

Athabasca, Saskatchewan Property Claims Map
(click here to enlarge)

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.

Uranium (U3O8) Ore
Cameco Corp.'s Cigar Lake Uranium Deposit Location, Athabasca, Saskatchewan (click here to enlarge)	Cameco Corp.'s McArthur River Uranium Mine, Athabasca, Saskatchewan (click here to enlarge)