Under the new terms of the amended agreement, the Company can earn a 100% interest in the Gulch Mine Uranium Project by issuing 1,000,000 common shares and making cash payments totaling $500,000 over the next 5 years.
A 2.5% Gross Overriding Royalty has been granted to the vendor, of which 1.0% can be repurchased for an additional $1,000,000, less any royalty payments. The Company first entered into this transaction on May 21, 2014 and to date has made cash payments totaling $100,000 to the vendor. This amended transaction is subject to TSX Venture Exchange approval.
The Gulch Mine Project covers an area of ~2993ha at the eastern shores of Athabasca Lake. The Project includes ~10km of the Black Bay Fault on the northern extent of Crackingstone Peninsula. Historical estimate reserves at the Gulch Mine between 1.650,000 to 928,000 lbs. uranium.* The GMP is proximal to the Gunnar Mine, which produced ~21.1M lbs. uranium between 1961 and 1964.
The project adjoins ground registered to Fission 3.0 Corp to the northeast, with Canalaska Uranium and Red Rock Energy to the south. VTEM data acquired by JNR Resources in 2006 suggests several targets that could expand the mineralized structure along the Black Bay Fault, primary control of mineralization, to delineate an economic deposit. Access is via trails and exploration roads originating from Uranium City.
The Gulch Mine lies ~16km southwest of Uranium City. The property was first worked in the early 1950’s and subsequently drill holes oriented so as to cut the adjacent Black Bay Fault encountered a uranium deposit on the footwall side of that structure that was ultimately explored with ~35,000 feet of drilling and 5,456 feet of lateral underground development on three levels.
Beck reports a "total potential" reserve for this occurrence of 683,200 tons grading 0.121% or approximately 749,500 kilograms of U3O8, while Energy Mines and Resources Canada reports "drill indicated" and "possible" reserves totaling 516,000 tons at a grade of 0.09% U3O8 for a total of 421,295 kilograms of U3O8.
