Lakeland Resources Inc. Continues to Expand Position in Athabasca Basin; Stakes Three Additional Uranium Properties
April 25, 2013 (Source: CNW) Vancouver, BC — Lakeland Resources Inc. (TSXv: LK) (FSE: 6LL) (the “Company” or “Lakeland”) is pleased to announce that it has acquired three additional uranium properties by staking, all located within the northern and northeastern part of the Athabasca Basin of Saskatchewan, Canada.
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 Basin region. The Company will benefit from the substantial historic exploration expenditures incurred on the properties as well as improving fundamentals for the uranium sector.
The Athabasca Basin in Saskatchewan and Alberta, Canada 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.
The three properties are comprised of eleven mineral claims totaling 54,745 hectares, at the northern and northeastern edge of the basin. All of the 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 magnetic and electromagnetic surveys.
The Small Lake Property, consisting of six mineral claims totaling 25,313 hectares, was selected as a priority staking opportunity based on work by the previous operators, Magnum Uranium Corp. and Santoy Resources Corp. Depth to the unconformity in the property ranges from approximately 150 to 300 metres. The magnetic setting is that of subtle magnetic highs and lows, with moderate to strong conductive features identified by modern airborne electromagnetic techniques.
The Hawkrock Rapids Property, consisting of three mineral claims totaling 17,607 hectares, was selected as a priority staking opportunity based on work by the previous operator, Santoy Resources Corp. and Purepoint Uranium Group Inc. Depth to the unconformity for the property ranges from approximately 200 to 400 metres. The magnetic setting is that of subtle magnetic highs and lows, with moderate to strong conductive features identified by modern airborne electromagnetic techniques.
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The Company believes that the conductive features of the Small Lake Property and Hawkrock Rapids Property remain un-tested; and given the regional setting and shallow depth to basement they are to be considered highly prospective for unconformity-style uranium mineralization.
The Circle Lake Property consists of two mineral claims totaling 11,825 hectares. The Property was selected based on work by the previous operator, D.F. Exploration Uranium Ltd. Drill hole C.L.G-D1, completed in 1997, intersected the sub-Athabasca unconformity at a depth of approximately 860 metres, followed by strongly fractured, clay-altered, and silicified pegmatitic augen gneiss. This is underlain in turn by a series of strongly hematized, chloritized, and clay-altered migmatite pelitic gneisses. At 862 metres, the drill hole encountered two pitchblende stringers and associated fracture-fill type coffinite mineralization and yellow uranium staining in a wide zone of shearing (represented by crushed quartz veins) in basement pegmatitic pelitic gneiss. Analytical results returned up to 1.0% U3O8 over an unspecified width. The combination of strong alteration, geochemically anomalous values of uranium and other pathfinders, and structural complexity make this a very high priority exploration target.
Lakeland will examine and compile all available historic and related mineral exploration data associated with the projects in anticipation of exploration work programs.
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$40.25/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. 67 new reactors are now under construction – new build levels not seen since the 1970s – as well as an additional 164 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 “Megatons to Megawatts” 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. Lakeland Resources Inc. is a newly formed pure play uranium exploration company focused on the Athabasca Basin in Saskatchewan and Alberta, Canada.
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.
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.
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