Anthem not financing Hatchet, Murphy 2015 JV programs
2015-06-04 16:16 ET - News Release
Mr. Walter Coles reports
ANTHEM REPORTS HATCHET LAKE JV URANIUM DRILL RESULTS, CANCELS CERTAIN STOCK OPTIONS
Anthem Resources Inc. has released results from drilling on the Hatchet Lake uranium project, a joint venture operated by Denison Mines Corp.
Denison reports that a total of 2,547 metres of drilling were completed in nine drill holes at the Tuning Fork grid area in winter 2015. A zone of intense basement clay alteration with elevated uranium values was extended by drill hole TF-15-01. The alteration is coincident with a strong fault zone within graphitic pelitic gneiss. The highest uranium value obtained in TF-15-01 was 491 parts per million uranium and was accompanied by impressive trace element results that include elevated copper (up to 2.4 per cent), nickel (up to 0.1 per cent) and cobalt (up to 0.29 per cent). The intensity of the alteration and geochemical results, combined with the presence of structurally prepared graphitic basement, suggests that the area is highly prospective for high-grade basement-hosted mineralization and further drilling is required.
The best targets on the Hatchet Lake property are on the Richardson/Crooked Lakes trend, which was not tested in the 2015 drill program. Previous drilling along this trend has returned significant uranium mineralization at shallow depth; for example, hole RL-13-16, which intersected 0.45 per cent U3O8 (triuranium octoxide) over 2.3 metres, beginning at 124 metres down the drill hole (approximately 112 metres vertical depth below surface). This mineralization is hosted by Athabasca sandstone directly above the unconformity. In addition, several promising base-metal intersections have been drilled in this area. For example, hole RL-14-27 intersected silver-lead-zinc mineralization in faulted graphitic pelite in the basement, including 9.6 metres grading 19.6 grams per tonne silver, 3.3 per cent lead and 0.27 per cent zinc (true width unknown). The silver-lead-zinc mineralization is located about 93 metres along strike to the northwest of historic hole SMDC-61, which is reported to have cut 2.5 metres of 7.34 per cent cobalt, 1.66 per cent nickel and 16.07 per cent arsenic (true width unknown). Further work is warranted on these targets.
On the Murphy Lake joint venture project (Anthem: 41.06-per-cent interest), Denison plans to spend $608,000 to complete ground geophysics and drilling of four holes totalling about 1,400 metres in early summer.
Due to continued weakness in the uranium market, Anthem elected to not contribute to either of the 2015 programs at Hatchet Lake and Murphy Lake. As such, the company's interest is expected to be reduced to approximately 36 per cent and 31 per cent in the respective joint ventures.
The technical information in this news release has been reviewed by Michael S. Cathro, PGeo, Anthem's vice-president of exploration and a qualified person as defined by National Instrument 43-101.
The company also wishes to announce that a total of 1,133,334 stock options of the company held by various officers, directors, consultants and employees of the company have been voluntarily surrendered by the holders of such options. The surrender of the options is effective immediately and was completed for nominal consideration. The cancelled options had a weighted average exercise price of 66 cents, being significantly in excess of the current trading price of the company's common shares. Given that all of the cancelled options were completely vested, the results of this cancellation will have no effect on stock-based compensation expense previously recorded in the company's financial statements. The option cancellations were entirely voluntary, and no agreements or commitments have been made to holders with respect to the receipt of new options.