The eastern margin of the Athabasca Basin is home to the most productive uranium mines in the world, with roughly 25% of the world's uranium production coming from this area. Kirrin's target at Key Lake SW is basement-hosted unconformity-type uranium. The area encompassed by the Key Lake SW property was subject to several phases of exploration between 1969 and 2009, including drilling which intersected extreme kaolinization and regolith in one hole and in two other holes there is possible regolith that indicates the proximity of the Athabasca Group basal unconformity. The unconformity uranium deposit model or a derivative should apply to all of the claims in the property. Basement hosted uranium mineralization discovered at Millennium, southwest of the McArthur mine and new zones in the Collins Bay Eagle mine emphasize the potential to discover a similar style of uranium mineralization on the property.
Key Lake SW is sometimes referred to as the Majesta property in the documentation available on this web site. Readers are encouraged to review the Technical Report prepared on Key Lake SW by Andrew J. Gracie, Consulting Geoscientist.
Location
The Key Lake SW property is located immediately east of Crown Reserve 819, some 230 km NNW of La Ronge and 445 km north of Prince Albert in the Province of Saskatchewan, Canada. The centre of the property is very approximately at west latitude 570 05' and north longitude 1060 15'. The northern perimeter is adjacent to the Orchid Lake property held by Forum Uranium and the Riverlake property held by Triex Minerals. The southeastern perimeter is adjacent to the Key Lake Road property held by Forum Uranium. The northeast tip of the property is about 24 km southwest of the former Key Lake Gaertner and Deilmann uranium-nickel ore bodies. Highway 914, which extends from Lac La Ronge to Key Lake, passes less than 2 km from the eastern edge of the property. Primary access is via fixed-wing aircraft or helicopter available from Missinipe (approx. 195 km south) or La Ronge (approx. 230 km southeast).
History
The area encompassed by Key Lake SW was subject to several phases of exploration between 1969 and 2009, including airborne magnetic-radiometric-VLF and INPUT EM surveys, as well as limited follow-up geology, sampling and drilling. Follow-up prospecting during 1969 to 1984 resulted in anomalous uranium in outcrop ranging up to 0.26% U3O8. Prior drilling includes 6 diamond drill holes by Pan Ocean Oil in 1978 near the central part of the property; 7 diamond drill holes by Mark V Petroleum and Mines Ltd. in 1978 in the easternmost part of the property near the northwest shore of Seager Lake; and 48 overburden holes by E & B Exploration in 1979 in the Seager to Jaschinsky lakes area. The Pan Ocean drilling intersected extreme kaolinization and regolith in one hole and in two other holes there is possible regolith that indicates the proximity of the Athabasca Group basal unconformity.
During March 2008, Majesta Resources Inc. conducted a helicopter-assisted lake water and sediment sampling program at some 180 lakes. The samples were tested for radon and the lake sediments were analyzed by multi-element ICP for uranium and a suite of other elements. The lake sediment and water data was evaluated by Dr. Robert Morse, a Toronto based consultant. Dr. Morse identified several anomalous lakes, including, (a) radon up to 14.3 picocuries/L in lake water and (b) radium up to 27.6 picocuries/L and uranium up to 54 parts per million in lake sediment. As well, there are locally elevated to anomalous concentrations of one or more suites of other elements that are commonly pathfinders for basement-hosted unconformity-type uranium deposits in the Athabasca Basin.
Land
The Key Lake SW property comprises eight contiguous mineral claims that encompass 36,287 ha. (89,665 acres).
Purchase Agreement
Kirrin may earn a 70% interest in the Key Lake SW property by spending $3,000,000 on exploration by December 31, 2015, making payments to Majesta Resources Inc. of $268,000 by December 31, 2013, and issuing 350,000 shares to Majesta by June 30, 2010. Upon Kirrin fulfilling its earn-in obligations, the parties will form a 70:30 joint venture, with each partner contributing its pro-rata share of future expenditures, or Majesta may elect to convert to a 2.25% Net Smelter Royalty ("NSR"). Kirrin shall have the right to acquire up to 1.25% of the 2.25% NSR for consideration of $1.0 million per 1.0% NSR. If either party dilutes its interest to less than 10% in the joint venture, its interest shall be converted to a NSR of 0.75%.
Geology
The Key Lake SW property is underlain by Aphebian amphibole, pelitic-psammitic gneisses, iron formation and leucogranite. The Aphebian rocks lie on Archean felsic gneisses. The boundary between the Mudjatik and Wollaston Domains passes through the eastern part of the property. Most of the property lies west of this line. Although the sandstone does not cover any of the eight claims now, the assumption that it once did is reasonable. The unconformity uranium deposit model or a derivative should apply to all of the claims in the property. Basement hosted uranium mineralization discovered at Millennium, southwest of the McArthur mine and new zones in the Collins Bay Eagle mine emphasize the potential to discover a similar style of uranium mineralization on the property.
Exploration Program
Exploration on this March 2010 acquisition commenced in April 2010 with a 1,076 line-kilometre magnetic-electromagnetic (EM) airborne survey. The airborne survey utilised Fugro's fixed-wing Tempest(r) Digital Time Domain Electromagnetic (DTDEM) system which provides maximum quantitative discrimination of relatively near surface (upper 200 to 300 m) conductivity variations. Airborne magnetic surveys map the variation in magnetic susceptibility, which predominantly results from changes in the percentage of magnetite and some other magnetic minerals in the bedrock. The magnetic variations thus allow the mapping of differing lithologies, faults, potential alteration zones, etc. DTDEM surveys map the three-dimensional variation in conductivity that is caused by one or more of mineralogy (e.g., conductive minerals such as graphite or sulphides), intensity of alteration, water content or changes in salinity. The correlation of the magnetic responses with the EM conductive trends enables the indirect geological mapping of bedrock under overburden and possible Athabasca Basin sandstone outliers. As well, the airborne geophysical data can identify anomalies and potential geological targets that may be spatially associated with uranium deposits or alteration zones near such deposits.
Data from the survey is expected by June 2010 and a full analysis and interpretation should be available in July. The results of the interpretation will determine the next phase of exploration at Key Lake SW.
Expenditures
| 2010 budget: | $200,000 |
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