Uravan Minerals has wrapped up work on the second drill-hole (SL15-004) on its Stewardson project, as part of a two drill-hole program.

The project is located on the Virgin River structural trend within the Athabasca Basin in Canada.

During the program, the company intersected anomalous uranium mineralization in the first hole, SL15-003, grading 0.025% eU3O8 over 6.3m, suggesting the presence of a major hydrothermal system nearby.

The location of SL15-004, west of SL15-003, facilitated tests on the western edge of the conductive metasedimentary unit, the company said.

Based on preliminary evaluations, the SL15-004 is shown to intersect various broad alteration sections throughout the Athabasca Group sandstone, and exhibited bleaching, silicification, smoky-quartz alteration and illite / chlorite / kaolinite clay alterations.

These hydrothermal alteration features and well-developed faulting and fracturing indicate potential for significant uranium mineralization nearby, Uravan stated.

Uravan CEO Larry Lahusen said: "The preliminary results of drill-holes SL15-003 and SL15-004 are technically very positive, confirming that the right hydrothermal and structural components are present in Area B to host a major unconformity-type uranium deposit.

"All of the key requirements in Uravan’s exploration strategy for vectoring to uranium deposits under cover are intact. More drilling is certainly required in Area B as we move closer to discovery."

Stewardson is a joint exploration effort between Uravan and Cameco. Uravan operates the project, while Cameco is earning a stake and funds work programs.