Strateco Resources | Mistassini Property
Location and Access
The Mistassini property is located in the Otish Mountains, approximately 40 km south-west of the Company’s wholly-owned Matoush property and is accessible by air (map of our properties).
Ownership
The Mistassini property consists of 171 claims shown on the NTS32P map for a total area of 9,114.47 hectares (91.15 km2).
On February 14, 2008, pursuant to the letter of intent dated November 26, 2007, and following receipt of analyses for three holes drilled by Majescor Resources Inc. (“Majescor”) in December 2007 on the Lac Mantouchiche uranium prospect, the Company decided to exercise its right to acquire an option to earn an undivided 60% interest in Majescor’s uranium rights on the Mistassini property.
The Option Agreement provided for the Company to acquire a 60% interest in the uranium rights on the property by incurring a total of $1.3 million in exploration expenditures over three years. The Company reimbursed Majescor for the cost of the drilling program completed in December 2007 and spent additional sums on exploration on the property for a total firm commitment of $500,000 in Year 1 of the option. The remaining $800,000 was to be spent equally between Years 2 and 3. The Company earned its 60% interest with the completion of the drilling program that ended on February 9, 2011.
On May 16, 2011, Strateco and Majescor executed the formal Joint Venture Agreement having an effective date as of February 14, 2011 (the “JV agreement”). The JV agreement provides for the Company to remain the project operator for uranium for as long as it holds a 50% interest in the uranium rights on the Mistassini property.
A 2% yellowcake royalty is payable to Northern Superior Resources Inc. by the parties to the JV agreement in the event of uranium production on the property.
Exploration Activities
2002
The discovery hole drilled in 2002 by Majescor (MIST 02-08) on the Mistassini property intersected 0.20% U3O8 over 4.50 metres.
2007
In December 2007, Majescor drilled three holes to test the down-dip extension of the Lac Mantouchiche uranium prospect (the “Mantouchiche showing”). The best intersection was obtained in Hole MIST-07-03, with 18.5-metre grading 0.215% U3O8 near surface.
2008
In late February 2008, the Company began a comprehensive exploration program that included drilling aimed at confirming the strike and dip extensions of the Mantouchiche showing, as well as detailed ground mapping and prospecting.
The potential of the property as a whole was assessed primarily on the basis of geophysical data. In this regard, magnetic susceptibility data combined with systematic core radiometric data show a clear inverse correlation between uranium grade and magnetism. These observations suggested that low magnetic zones could be used to target regional exploration on the property.
2009
As a precursor to a 2009 drilling program, the Company carried out a 1,869 line-kilometre helicopter-borne geophysical survey over the Mistassini property between December 2008 and January 2009. The high resolution magnetic and electromagnetic survey was interpreted by Jeremy S. Brett of MPH Consulting Ltd., and identified an ESE-WNW trending km-scale structural lineament coincident with the Mantouchiche showing.
In June 2009, the Company and Majescor started drilling a seven-hole program on the Mistassini property for a total of 786 metres. The goal of the program was to test the lateral and depth extensions of the Mantouchiche showing based on Jeremy S. Brett’s interpretation. The drill holes tested three areas in the immediate vicinity of the Mantouchiche showing, over a total strike length of 125 metres. Two holes were drilled on sections 50 metres to the west and 75 metres to the east of the Mantouchiche showing to test the extensions along strike. Holes MIST-09-03 and -04 were drilled along the same section as the discovery hole MIST-07-03.
The drill results were very encouraging, leading to the discovery of a new zone intercepted in the immediate vicinity of the Mantouchiche showing. Hole MIST-09-03, drilled at an angle of -45°, intersected 11.6 metres grading 0.21% U3O8, including 0.8 metres grading 2.20% U3O8. This new uranium zone lies in the hangingwall of the Mantouchiche showing, at a vertical depth of 32 metres. The Mantouchiche showing discovery hole, MIST-07-03, which intersected 18.5 metres grading 0.215% U3O8 at a vertical depth of 47 metres, was drilled at an angle of -70° on the same section as Hole MIST-09-03.
A second hole, MIST-09-04, drilled on the same section at an angle of -70°, confirmed the vertical extension of the uranium zone, with a grade of 0.06% U3O8 over 13.5 metres, including 0.12% U3O8 over 5.3 metres at a vertical depth of 40 metres. The extension of the Mantouchiche showing was also intersected by Hole MIST-09-03 at a vertical depth of 64 metres, with a grade of 0.21% U3O8 over 11.6 metres, including 0.81% U3O8 over 2.5 metres.
Holes MIST-09-01, 02, 05 and 06, drilled to test the lateral extensions of the Mantouchiche showing, also intersected anomalous values of U3O8. The strike extension of the new zone could not be confirmed by the last hole in the campaign, namely MIST-09-07, drilled along the same section as MIST-09-05 and 06.
2010
No drilling was done on the property in 2010.
2011
In mid-January 2011, a helicopter-borne drill was mobilized on the property to carry out a planned drilling program of about 1,000 metres. However, due to both poor weather conditions that limited helicopter travel and budget constraints, the program was reduced to under 500 metres, and was carried out on February 9, 2011.
In all, five holes were drilled. Two of these were aimed at testing geophysical anomalies located at the western and eastern edges of the property, and the three others were drilled on the presumed northern and southern extensions of the mineralized corridor hosting the Lac Mantouchiche prospect discovered in 2007 by Majescor Resources Inc. and confirmed by the Company in the summer of 2009.
The first two holes were drilled to test the two resistivity anomalies interpreted based on the airborne geophysical survey flown by Fugro Airborne Surveys Corp. in December 2008 and January 2009. No structure was intersected, indicating limited potential. One of the anomalies was explained by a few weak, unmineralized fracture zones, while the second appears to have been caused by moraine material, as no lithological or structural changes were seen.
Two other holes were drilled about 100 metres north of the Mantouchiche showing. While the holes intercepted deformation zones with alteration, they only returned anomalous values with trace uranium.
The hole drilled about 100 metres south of the showing revealed a significant increase in the background values, but no significant mineralization.
In light of the drill results obtained to date on the property, and despite the significant intersections obtained in 2007 and 2009 near the Mantouchiche showing, interpretation suggests that mineralization could occur in the form of vertical lenses whose location has yet to be determined.
During the second quarter of the year 2011, the Company started a radon survey on the Mistassini property in partnership with Majescor Resources Inc. (“Majescor”). The goal of the survey was to determine the attitude and orientation of the structure to shed light on the controls of the mineralization in the Lac Mantouchiche discovery area. The survey was completed by RadonEx during the third quarter.
Interpretation of the analysis results identified the mineralized footprint of the area drilled on the property on surface. These positive results should lead to the identification of drill targets for an upcoming drilling program to be carried out in joint venture with Majescor, the Company having acquired its 60% interest in uranium rights in the Mistassini property on February 14, 2011.
Cautionary Notes
Note to U.S. investors concerning estimates of Measured and Indicated Resources. This section uses the terms “measured resources” and “indicated resources”. The Company cautions U.S. investors that while those terms are recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize them. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories will ever be converted into reserves.
Note to U.S. investors concerning estimates of Inferred Resources. This section uses the term “inferred resources”. The Company cautions U.S. investors that while this term is recognized and required by Canadian regulations, the U.S. Securities and Exchange Commission does not recognize it. “Inferred resources” have a great amount of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre‑feasibility studies except for some exceptions. U.S. investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally minable.