.According to Uranerz Exploration & Mining Ltd. geologists (Genrisch et al., 1982), the Dieter
Lake deposit’s location and the grades of the mineralized zones are controlled by NE-SW faults.
This control model has not yet been adequately tested on Waseco’s Blocks IV and V by the prior
exploration work or by the sampling carried out during the reconnaissance program.
It should be noted that these faults were active before, during, and after the deposit of the Sakami
Formation mineralization at Dieter Lake. As a result, these structures are of major importance in
the deposition of uranium mineralization.
Dr Ivanov, the author of the Report recommends testing by detailed ground work, focused on, in
order of importance:
- at Lac Fenster: one zone on the south border at the base of the fractured granite,
which is in the centre of the Sakami Formation; and
- at Lac Pons: a zone of discordance which borders on the south of the Sakami
Formation.
The recommended program is a combination of the following:
- geophysical vertical profiles (electromagnetic, electric resistivity and conductivity)
to a depth of at least 400m, spaced at 100-200m intervals;
- drilling at 60°, to depths of 150m-250m;
- geophysical probing of the hole (radiometric, magnetic, electric resistance and
conductivity);
- geochemical analysis of the core.
The Technical Report was prepared by Dr. Gennady Ivanov, Chief Project Geologist for AREVA
Quebec, Inc. and a Qualified Person under NI 43-101. Both Mr. Ivanov and Mr. A.C.A. Howe, on
behalf of the Company, have reviewed the contents of this release for scientific accuracy. A copy
of the full Technical Report has been posted on the company’s web site at