Overview of Clearwater Project
In July 2014 Uracan signed a definitive Option Agreement with Forum Uranium Corp. (TSX.V:FDC) ("Forum"), whereby Uracan can earn up to a 70% interest in Forum's Clearwater Project ("the Project") in northern Saskatchewan. Forum is the 100% owner of the Clearwater Project. Forum staked three claims in December 2012 totaling 9,910 hectares on trend to the southwest of the Fission Uranium ("Fission") Patterson Lake South discovery in the Western Athabasca Basin.
Forum and Uracan believe that the Clearwater Project has the potential to host high grade basement hosted uranium mineralization similar to that seen at Fission Uranium's Patterson Lake South property. Ample exploration potential remains to be tested throughout the property, with numerous geophysical targets remaining to be drill tested.
In order for Uracan to earn a 51% interest in the property it must incur a total of $3.0 million in exploration expenditures over 3 years as follows:
1. Issue a total of 300,000 shares and 150,000 warrants of Uracan to Forum.on signing a definitive agreement, subject to regulatory approval. The warrants will be exercisable at a price of $0.15 per share for a term of 18 months. This has been completed by Uracan.
2. Commit exploration expenditures of $ 0.5 million in year one (completed)
3. Complete exploration expenditures of $1.0 million in year two, at which point Uracan will have earned a 25% interest,
4. Complete exploration expenditures of $1.5 million in year three to earn a 51% interest.
Uracan can elect to earn an additional 19% interest in the Clearwater Project (total 70% interest) by making an additional $3 million in exploration expenditures within a two year period following the date it earns its 51% interest. Uracan will also grant Forum a 2% NSR Royalty on the property, with Uracan having the option to purchase 1% of the NSR for $1.0 million.
Uracan will fund all exploration work until the earn-in option has been completed, after which further work will be funded by the Joint Venture partners. Forum will be the Project operator until Uracan earns its 51% interest, after which Uracan may elect to become the operator.
The Clearwater Project is underlain by a mix of pelitic to psammitic metasediments that overlie older Archean gneisses. Graphitic horizons are typically present at the contact between the two and are a target for drilling, especially in areas where there are cross-cutting structures. Several SSW trending electromagnetic (EM) conductors cross from Fission's claim group onto the Clearwater Project.
Fall 2016 Exploration Drill Program and Ground Geophysics
A total of 9 drill holes totaling 2,602 meters were completed on the Clearwater Property between late September and early November, 2016. In addition a ground VTEM was also completed to better define prospective conductors for drill testing.
Mongo Lake Area
The Mongo area is interpreted to be on strike with the structure hosting the Triple R deposit. Drilling on the Mongo Lake area (drill holes CW-17 to CW-20) of the property have encountered predominantly mafic gneisses, locally weakly graphitic, that have been cut numerous times by felsic granitic dykes and moderately radioactive (thorium bearing) mafic dykes with probing peaks of up to 2345 counts per second. These mafic dykes have been reactivated by sub-parallel brittle shear zones. The upper section of the drill holes also contain intervals of secondary hematite alteration, both along fracture surfaces and locally within the matrix and lithological boundaries.
Several intervals of moderate bleaching of the drill core have also been noted. Clays in the bleached zone have been analyzed by Forum's TerraSpec (TSP 350-2500) instrument, and have come back as mostly illite, a clay associated with hydrothermal alteration and common around all of the eastern Athabasca basin uranium deposits and at NexGen Energy's Arrow deposit. Samples of the bleached and clay altered core will be geochemically analysed in the near term to confirm the nature and type of other clay minerals present.
The combination of elevated radioactivity, bleaching with illite clay and secondary hematite associated with brittle shear zones and local graphitic zones are encouraging as these indicate that altering and radioactive fluids were active in the area. Further drilling is planned to follow up these initial encouraging results, both along strike on the southern conductor and on a parallel conductor 400m to the north. A further target (the Lili area) on a strong, steeply dipping VTEM conductor that has a strike length of several kilometres, parallel to the Clearwater intrusive complex may also be tested.
Radioactivity within the mafic dykes in CW-17 has a probing peak of 1081 cps over 0.1 meters between 197.6 and 197.7 meters downhole, within an overall radioactive interval of 779 cps over 0.8 meters between 197.4 and 198.2 meters. CW-18 contains mafic dykes with a probing peak of 2345 cps over 0.2 meters between 136.5 and 136.7 meters within an overall radioactive interval of 1206 cps over 0.6 meters between 136.3 and 136.9 meters. Preliminary spectrometer results indicate that the radioactivity in the mafic dykes is predominantly related to thorium with lesser uranium present.
All drill holes were probed for radiometrics along their entire drilled length using a Mt Sopris HLP-2375 total count natural gamma scintillometer probe. The radioactive zones have been measured using a hand-held Radiation Solutions Inc RS-135 spectrometer to determine the ratios of Thorium and Uranium in a preliminary fashion.
In addition, Uracan and Forum intersected a potentially significant zone of zinc mineralization in diamond drill hole CW-16. CW-16 intersected an interval between 259.5 meters and 266.0 meters downhole assaying 3000ppm (0.3%) Lead and 43400ppm (4.34%) Zinc over a 6.5 meter core length that was chip sampled. This high grade interval occurs within a zone of anomalous Zinc mineralization, with assays ranging between 114ppm to 43400ppm Zinc and 14ppm to 3000ppm Lead between 241.8 meters and 272.0 meters downhole. The host rock is a well banded granodiorite/granitic gneiss with variable silicification and sulphide content.
These samples have not been composited as they are chip samples and not continuous samples. True widths of this interval are not known at this time. Further work is required to better define the nature of this base metal mineralization.
Chip samples consist of systematically collecting similar sized small fragments of the core at a regular spacing across zones of similar lithology and alteration. These individual chips from discrete lithological intervals are combined into a single sample that is submitted to the lab (SRC Geoanalytical Laboratories or SRC) for geochemical analysis. A systematic chip sampling program of all drill core was conducted as a regular part of the sampling program on the project and is a common sampling method in uranium exploration. The initial geochemical result was of enough interest that the lab was requested to reanalyze the sample, which returned 2750ppm (0.275%) Lead and 45400 (4.54%) Zinc in the reanalysis.
Fall 2014 Exploration Drill Program
Two drill holes totaling 526 metres were completed on the property in December 2014. These holes were focused on two target areas that hosted the combination of an EM conductor and a coincident gravity low, and were located near previously drilled holes that encountered encouraging geology and alteration. Please refer to the location map for specific hole locations.
Hole CW-10 was drilled 270 metres south of hole CW-01 (refer to Forum Uranium's April 17 2014 news release; www.forumuranium.com for further details) and intersected several fault zones with chloritization and variable hydrothermal hematization, along with a graphitic fault gouge zone from 177 to 186 metres down the hole.
Elevated uranium values were returned below 186 metres to the bottom of the hole at 242m, ranging between 14 ppm U3O8 and 84.9 ppm U3O8. The high of 84.9ppm U3O8 (partial digestion) was noted over a 6 metre wide interval.
Partial digestion of the rock extracts easily leached uranium, suggesting the uranium mineralization was remobilized from a nearby source. These uranium values are a significant increase relative to those obtained from the nearby hole CW-01. Further drilling along this conductor trend is recommended.
CW-11 was located approximately 100 metres north of CW-03 and intersected a large deformation zone with strong mylonite development. Uranium values of 36.5 ppm U3O8 between 242 and 254 metres down hole and 29.5 ppm U3O8 from 272 to 284 metres down hole were noted within a quartz-rich granitic unit. This area also appears to have had uranium-bearing fluid flow, similar to that seen in CW-10. In addition boron is also present in two samples with 509ppm boron between 252 and 262 metres, and 158 ppm boron between 272 and 278 metres depth. Boron is a positive geochemical pathfinder for uranium mineralization, and both the uranium and boron values are substantially higher than the values intersected in CW-03 to the south. These results indicate that exploration drilling should continue to the north along this major structure.
After staking the property, Forum carried out exploration work consisting of prospecting, soil and lake radon surveys, lake sediment sampling, airborne EM, magnetic and radiometric surveys, as well as ground gravity and EM surveys. An initial nine hole, 2,310 metre drill program was completed by Forum in April 2014. This drilling has shown that a number of targets are altered and reactivated graphite bearing structures with elevated boron and nickel geochemistry.
Regional exploratory drilling of gravity and electromagnetic targets intersected brecciated graphite/pyrite in reactivated faults on all electromagnetic conductor targets. Two drill holes (CW-07 and CW-08) returned a mix of strong chloritization, variable bleaching and localized secondary hematite, indicating oxidized fluids.
Two holes, CW-05 (Mongo target) on the interpreted south-west extension of the Patterson Lake structure and CW-09 on the eastern "arm" returned elevated radioactivity. The Mongo hole returned minor graphite, brittle/ductile breccia zones and a local radioactive peak of 300cps. Numerous targets along the 3km long Mongo trend remain. Hole CW-09 intersected strongly altered and corroded, weakly graphitic pelitic gneiss with locally elevated radioactivity of up to 300cps. Analytical results also indicate that there is elevated boron and nickel geochemistry in some holes.
For further information on the Clearwater Project please refer to the Corporate Presentation available in the Presentations area of the website.