Todays news.
Standard Uranium drills at Sun Dog, finds radioactivity
2024-10-16 19:12 ET - News Release
Mr. Jon Bey reports
STANDARD URANIUM CONFIRMS YEAR 2 EARN-IN COMMITMENT FROM AERO ENERGY; HIGHLIGHTS DISCOVERY POTENTIAL ON THE SUN DOG URANIUM PROJECT
Standard Uranium Ltd. has provided a review and follow-up analysis on the recent exploration at the company's Sun Dog uranium project located near Uranium City in northwestern Saskatchewan. Drilling intersected elevated radioactivity in graphitic basement rocks at the newly identified Wishbone target area, validating the company's exploration model targeting basement-hosted vein deposits akin to those found at the renowned Arrow and Triple R deposits. Successful intercepts at Sun Dog and the neighbouring Murmac project highlight the significant potential of this underexplored area to host similar, high-value deposits.
Additionally, the company is pleased to announce earn-in partner Aero Energy Ltd. has committed to year 2 of the three-year earn-in option agreement that was executed on Oct. 20, 2023. Aero will commit a minimum of $2.0-million in year 2 exploration expenditures on the project starting on Oct. 20, 2024. Exploration programs are financed by Aero and operated by Standard Uranium.
Highlights:
- Completion of Aero's first drill programs at Murmac and Sun Dog projects: A total of 16 drill holes were completed testing 12 targets in Aero's maiden drill program. Intervals of anomalous radioactivity were intersected in nine of the 16 holes.
- Anomalous radioactivity at Wishbone: A total of 1,593 metres were completed across eight drill holes targeting shallow high-grade* basement-hosted uranium mineralization at the Wishbone target area. Intervals of anomalous radioactivity** greater than 300 counts per second were intersected in seven of eight drill holes.
- Prospectivity model confirmed: Elevated radioactivity and increased hydrothermal alteration at Wishbone are largely associated with stacked graphitic structural zones, indicating favourable corridors for fluid movement and uranium deposition across the project akin to other basement-hosted Athabasca deposits.
- Overlooked and underexplored: The presence of multiple graphitic horizons with over 70 kilometres of strike largely unexplored for high-grade basement-hosted uranium deposits represents a significant opportunity.
- Unrealized potential: The targets tested during the summer 2024 program represent only a small fraction of the dozens on the ground, and the company is working with its option partners to prioritize follow-ups for additional geophysics and drill programs to further test these promising areas.
"We are thrilled to announce the commitment of our partners at Aero to continued exploration at Sun Dog," said Sean Hillacre, president and vice-president, exploration, of Standard Uranium. "The team and I are very encouraged by the results of the first-pass drilling at the Wishbone target. The results provide proof of concept for our exploration model, and we look forward to following up in this area with additional geophysical surveys and drilling to vector into a new high-grade discovery."
Earn-in option agreement with Aero
The option agreement comprises the right to acquire an up-to-100-per-cent interest in Sun Dog from the company for $650,000 in cash and $650,000 in share payments payable in annual instalments over a two-year period, and a $6.5-million work commitment over a three-year period, subject to an operator fee of 10 per cent of expenditures.
Aero has completed the issuance of cash and shares ($200,000 each) to the company on signing, and has completed the first year of exploration expenditures totalling $1.5-million plus operator fees. Aero will issue another $200,000 in shares in addition to a cash payment of $200,000 to the company on Oct. 20, 2024, to enter year 2 of the option. Aero will incur a minimum of $2-million in exploration expenditures over the following 12-month period. Sun Dog is also subject to a 2-per-cent net smelter royalty to Standard Uranium, which may be reduced to 1 per cent for a $1-million cash payment to the company.
Sun Dog project summary
The Sun Dog project covers an area of 48,443 acres in nine mining claims, located 15 kilometres from Uranium City on the northern margin of the Athabasca basin. It hosts the historical Gunnar uranium mine, discovered in 1952, which doubled Canada's uranium production and became the largest uranium producer globally in 1956. The Gunnar mine produced approximately 18 million pounds of triuranium octoxide between 1953 and 1981.
Historical exploration efforts primarily focused on the Beaverlodge-style deposit model, targeting lower-grade, fault-hosted mineralization visible at the surface. This approach did not target, and would not have been effective for, the high-grade unconformity-related basement-hosted deposits associated with graphitic rocks more recently discovered near the Athabasca basin's edge (for example, Arrow and Triple R).
Recent exploration activities
Previous Investments: Between 2020 and 2023, exploration partners Standard Uranium and Fortune Bay invested $7.6-million in early exploration across the Sun Dog and Murmac projects, respectively, revealing dozens of targets, multiple uranium-fertile electromagnetic-conductor corridors, and 10 new shallow uranium occurrences between 20 and 150 metres below the surface.
Aero's exploration:
- VTEM+ survey: A helicopter-borne VTEM+ system was employed to identify electrically conductive graphite-rich rocks, favoured targets for large basement-hosted uranium deposits. The survey covered the Sun Dog and Murmac properties, consisting of 3,350 kilometres of flight lines arranged in a grid pattern with 100-metre spacing between each line.
- Target generation: Targets were selected based on the high-resolution VTEM survey and 3-D modelling of ground gravity and resistivity data. Geophysical signatures, geological features, proximity to historical uranium occurrences, and positive past drilling results by Standard Uranium and Fortune Bay further informed these selections.
- Discovery of radioactivity: Occurrences of strong to intense radioactivity in outcropping graphitic basement rocks were identified at surface while prospecting at the Wishbone target area:
- Approximately five kilometres of strike length along a regional-scale anticline, defined by strong VTEM conductors with associated radioactivity along each fold limb;
- Graphitic pelites have been mapped along both fold limbs, hosting strong radioactivity up to 22,300 cps (RS-125 scintillometer);
- Mineralized cross-cutting faults have been mapped in the overlying rocks which intersect the uranium-bearing graphitic pelite unit;
- Historical outcrop sampling at the northwestern graphitic pelite exposure returned assay results of 0.32 per cent U3O8 and 0.30 per cent copper (SMDI No. 2095).
Summer 2024 drilling activities:
- Sun Dog: approximately 1,600 metres of drilling across eight drill holes, targeting shallow high-grade basement-hosted uranium mineralization at the Wishbone target area;
- Murmac: approximately 1,550 metres of drilling completed through eight drill holes at the Murmac project.
Next steps
Drill core samples have been collected systematically throughout all drill holes and half-core of the zones of radioactivity higher than 300 cps, and will be submitted to SRC Geoanalytical Laboratories in Saskatoon for U3O8 assay and multielement characterization. These analytical results will be integrated with the detailed logging information to prioritize follow-up target areas for future drill testing in addition to testing of numerous other priority regional targets, including McNie, Haven, Java, Skye and Spring Dome.
* The company considers uranium mineralization with concentrations greater than 1.0 weight per cent U3O8 to be high grade.
** The company considers radioactivity readings greater than 300 counts per second to be anomalous.
The scientific and technical information contained in this news release has been reviewed, verified and approved by Sean Hillacre, PGeo, president and VP, exploration, of the company, a qualified person as defined in National Instrument 43-101.
Historical data disclosed in this news release relating to sampling results on the Sun Dog project are historical in nature. Neither the company nor a qualified person has yet verified these data, and therefore, investors should not place undue reliance on such data. The company's future exploration work may include verification of the data. The company considers historical results to be relevant as an exploration guide and to assess the mineralization as well as economic potential of the project.
About Standard Uranium Ltd.
Standard Uranium is a uranium exploration company and emerging project generator poised for discovery in the world's richest uranium district. The company holds interest in over 233,455 acres (94,476 hectares) in the world-class Athabasca basin in Saskatchewan, Canada. Since its establishment, Standard Uranium has focused on the identification, acquisition and exploration of Athabasca-style uranium targets with a view to discovery and future development.
Standard Uranium has completed three joint venture earn-in partnerships on its Sun Dog, Canary and Atlantic projects totalling over $23.8-million in work commitments over the next three years from 2024 to 2027.
Standard Uranium's Sun Dog project, in the northwestern part of the Athabasca basin, Saskatchewan, is composed of nine mineral claims over 19,603 hectares. The Sun Dog project is highly prospective for basement and unconformity-hosted uranium deposits yet remains largely untested by sufficient drilling despite its location proximal to uranium discoveries in the area.
Standard Uranium's Davidson River project, in the southwestern part of the Athabasca basin, Saskatchewan, comprises 10 mineral claims over 30,737 hectares. Davidson River is highly prospective for basement-hosted uranium deposits due to its location along trend from recent high-grade uranium discoveries. However, owing to the large project size with multiple targets, it remains broadly undertested by drilling. Recent intersections of wide, structurally deformed and strongly altered shear zones provide significant confidence in the exploration model, and future success is expected.
Standard Uranium's eastern Athabasca projects comprise over 42,384 hectares of prospective landholdings. The eastern basin projects are highly prospective for unconformity-related and/or basement-hosted uranium deposits based on historical uranium occurrences, recently identified geophysical anomalies and location along trend from several high-grade uranium discoveries.