Uranium Exploration Potential, Athabasca Basin, Saskatchewan, Canada

Uranium Exploration Potential

Athabasca Basin

Saskatchewan, Canada

Presentation Outline

• Geological Setting• Distribution of Unconformity-Type Deposits• Genetic Model and Variants• Uranium Exploration Criteria

– Regional and District Scale– Local Scale

• Uranium Exploration Methods – Summary• Uranium Deposit Resources and Grade• Uranium Supply/Demand• Uranium Exploration Cycles

Modified after Jefferson et al., 2007

After Jefferson et al., 2007

Athabasca Basin, Major Uranium Deposits

50 Km

Genetic Model for Athabasca Unconformity-Type Uranium Deposits

Genetic Model: Diagenetic-Hydrothermal

Oxidized, mineralized basinal fluids interact with graphitic metapelites resulting in reduction of uranium

After Alexandre et al., 2005

Athabasca Unconformity-Type Uranium Deposit Model Variants

Athabasca/Unconformity Hosted

Basement/Unconformity Hosted

Athabasca/UnconformityBasement Hosted

AthabascaEnd Member

BasementEnd-Member

Athabasca/BasementCombined

After Jefferson et al., 2007

Athabasca Unconformity-Type Uranium Deposit Model Variants

AthabascaEnd Member

BasementEnd-Member

After Jefferson et al., 2007

Example of Unconformity-Type Uranium Deposit GeometryMcClean Lake North Pod 1 (Plan and 3D Views)

(After Wallis, 1985)

Significant Exploration Characteristics ofUnconformity-Type Uranium Deposits

Regional and District Scale Attributes

• Athabasca Sandstone: Fluviatile Red Beds; Uranium Depleted

• Unconformity: Athabasca Sandstone/Basement

• Paleo-Regolith: Archean and Proterozoic Basement

• Uranium-Rich Basement Complex: U-enriched Granite and Pegmatite

• Ductile Deformation: Basement Zones of Weakness

• Reactivated Regional Faults: Virgin River, Cable Bay, Black Bay

• Graphitic Metapelite Gneiss: Zones of Weakness; Provides Reductant

• Archean Granitoids: Spatial Association with some Uranium Deposits

• Domain Boundary Transition: Wollaston-Mudjatic; Mudjatic-Virgin River

• Regional Alteration Corridors: Illite-Chlorite-Dravite Corridor East Athabasca

Significant Exploration Characteristics ofUnconformity-Type Uranium Deposits

After Jefferson et al., 2007

Significant Exploration Characteristics ofUnconformity-Type Uranium Deposits

After Jefferson et al., 2007

Mudjatic Domain

Wollaston-Mudjatic Transition Zone

Wollaston Domain

50 Km

Significant Exploration Characteristics ofUnconformity-Type Uranium Deposits

Regional and District Scale

Significant Exploration Characteristics ofUnconformity-Type Uranium Deposits

Regional and District Scale

After Jefferson et al., 2007

Correlation between Uranium Deposits, EM Conductors, Magnetic Intensity, and DDH Locations

CAMECO

AREVA

UEX

DENISON

FORUM

50 Km

Significant Exploration Characteristics ofUnconformity-Type Uranium Deposits

Local Scale Attributes

• Athabasca/Unconformity Ore: Polymetallic (Complex Mineralogy)

• Unconformity Basement Ore: Monometallic (Simple Mineralogy)

• Brittle Structures: Faults, Fractures, Breccia

• Deposit Morphology: Athabasca – Flattened, elongate, linear pods/bodies

• Deposit Morphology: Basement – Shear-bounded ore lenses

• Alteration: Athabasca – Illite-Kaolinite-Chlorite envelope/chimney

• Alteration: Athabasca – High K2O / Al2O3

• Alteration: Basement – Illite-Sudoite-Fe Mg Chlorite envelope

• Alteration: Paleoregolith – Bleaching (Illite) overprint of Hematite-Chlorite

• Quartz Dissolution: Volume reduction, collapse of Athabasca Group strata

• Late Silicification: Formation of drusy quartz along fractures

• Perched Uranium Zones: Fracture/Fault controlled; above deposit

K2O / Al2O3 Ratios for Midwest Lake

(After Sopuck, 1980; Abrahim, 1985)

Example of Alteration ‘Chimney’

above ‘egress’ style deposits

(Cigar Lake, Midwest Lake, McClean Lake)

(Modified after Jefferson et al. 2007)

Example of Unconformity Uranium Deposit: Sue C

From: Purepoint Uranium 2013 Corporate Presentation

Athabasca Unconformity-Type Uranium DepositsGeophysical and Geochemical Methods

Modified after Jefferson, 2007; Fogwill, 1985

Trace and REE Elements in Athabasca Sandstone, Phoenix Deposit, Zone A and B

Uranium Deposit Depths

0

100

200

300

400

500

600

700

800

900

1000

Clu

ff La

ke 1

969

Hor

sesh

oe/R

aven

1974

Key

Lak

e 19

75

Wes

t Bea

r 19

77

McC

lean

Lak

e 19

78

Mid

wes

t Lak

e 19

78

Daw

n La

ke 1

978

Eag

le P

oint

198

0

Cig

ar L

ake

1981

McA

rthu

r R

iver

198

8

She

a C

reek

199

2

Tam

arac

k 19

99

Mille

nium

200

2

Cen

tenn

ial 2

004

Rou

ghrid

er 2

008

Pho

enix

201

0

J-Z

one

2012

Pat

ters

on L

ake

2013

De

pth

(m

)

Uranium Deposit Mineral Resource

133

123

106

105

88

70

61 60 58 56

41 41

30 29

18 17 16 14 14 13 12 12 11

6 6 5 4 2 2 2 2 1 1 0

0

20

40

60

80

100

120

140

160

180

200

McA

rthu

rRiv

er

Cig

arLa

ke

Eag

leP

oint

Dei

lman

-Key

Lake

Pat

ters

on L

ake

*

Mill

eniu

m

She

a C

reek

Pho

enix

Cen

tenn

ial *

Gae

rtne

r-K

eyLa

ke

Rou

ghri

der

W/E

Mid

wes

t

Col

linsB

ayB

Rab

bitL

ake

Daw

nLak

e

Sue

C

Tam

arac

k

Col

linsB

ayA

Hor

sesh

oe

Dom

iniq

ue-P

eter

D-J

Sou

th a

nd W

est

J Zo

ne

Clu

ffLa

keD

McC

lean

Rav

en

Col

linsB

ayD

Cla

ude

JEB

Clu

ffLa

keN

Sue

A

Sue

B

Mau

rice

Bay

Dom

iniq

ue-J

anin

e

Wes

t Bea

r

Fond

-du-

Lac

Clu

ffLa

keO

P

MM

Lb

s U

3O8

342

589

Athabasca Unconformity Uranium Deposit Mineral Resources

Source: Cameco/UxC/Historical

Uranium Spot and Long-Term Price Trend

$0.00

$20.00

$40.00

$60.00

$80.00

$100.00

$120.00

$140.00

1960 1970 1980 1990 2000 2010 2020

Year

$US

/lb U

3O8

Spot

Long-Term

Glo

ba

l Re

cess

ion

Fu

kush

ima

Dis

ast

er

U3O8 Resource

58.30

530.00

983.00

105.98

293.97

118.39

5 16 7 2 4 20.00

200.00

400.00

600.00

800.00

1000.00

1200.00

1960-1970 1970-1980 1980-1990 1990-2000 2000-2010 2010-2014

Date Range

MM

lbs

U3

O8

MM Lbs U3O8

# Deposits

Rab

bit L

ake

, C

luff

Lak

e

Key

Lak

e, M

cCle

an L

ake

Mid

wes

t Lak

e, E

agle

Po

int

Cig

ar L

ake,

McA

rthu

r R

iver

She

a C

reek

, T

amar

ack

Pho

enix

, Rou

ghri

der,

Mill

en

niu

m

Pat

ters

on

Lak

e, J

-Zon

e

Date Range MM Lbs U3O8 # Deposits Major Uranium Discoveries1960-1970 58.30 5 Rabbit Lake, Cluff Lake1970-1980 530.00 16 Key Lake, McClean Lake, Midwest Lake, Eagle Point1980-1990 983.00 7 Cigar Lake, McArthur River, Sue, JEB1990-2000 105.98 2 Shea Creek, Tamarack2000-2010 293.97 4 Phoenix, Roughrider, Millenium, Centennial2010-2014 118.39 2 Patterson Lake, J-Zone

Economic Uranium Deposit Discoveries in the Athabasca Basin referenced to the Spot Uranium Price and Exploration Expenditures

Beaverlodge Deposit Model

(Classical Vein-Type Uranium)

Elliot Lake Deposit Model

(Placer Uranium)

Unconformity Deposit Model

(Diagenetic-Hydrothermal Uranium)

New Deposit Model

(Unconformity Variants?)

1950 1960 1970 2010

Selective History of Paradigm Shifts in Uranium Exploration Process(Modified after Marlatt and Kyser, 2011)

Prospector Driven Exploration

Research/Model/Technology Driven Exploration

1980 1990 2000

Athabasca Basin Uranium Exploration ‘Learning Curve’

(after Marlatt and Kyser, 2011)

300 m 600 m >900 m

From: Fission Uranium Presentation 2014

Contact Information

Delio Tortosa, P.Eng., M.Sc.Geological Consultant

Tel: 705 946-1040Cell: 705 971-4768

Email: [email protected]