Commodity:
Uranium
Size:
16 claims encompassing 55,000 hectaresLocation:
40 km west-northwest of Cameco’s Key Lake uranium mill
Target Types:
Sandstone or basement-hosted unconformity-type uranium deposits
PROJECT Highlights
- Option to acquire a 75% interest in the project from CanAlaska Uranium
- Located proximal to the McArthur River and Key Lake mines, and the Millenium and Phoenix deposits
- Extensive infrastructure with access via Highway 914 and located proximal to the town of Key Lake which hosts a regional airport
- Extensive historical exploration of 108 holes drilled with over $20 million in exploration since 2007
- Currently permitting for 40,000 metres of drilling plus 300 line-kilometres of geophysics
- Condor Consulting, Inc. engaged for comprehensive review & compilation of all prior exploration
Transaction Terms
The Option Agreement provides that Nexus may acquire up to a 75% interest in the Project through staged cash, share and work commitments, as follows: (a) to earn an initial 40% interest in the Project (the “40% Interest”), the Company will (i) pay to CanAlaska $750,000 in cash, (ii) issue to CanAlaska that number of Common shares of Nexus (“Common Shares”) as will be equal in value to an aggregate of $3,000,000, and (iii) incur $5,500,000 in exploration expenditures within the first 18 months from the effective date of the Option Agreement; (b) to earn an additional 20% (for a total of 60%) interest in the Project (the “60% Interest”), the Company will additionally (i) pay to CanAlaska $1,000,000 in cash, (ii) issue to CanAlaska that number of Common Shares as will be equal in value to an aggregate of $3,000,000, and (iii) incur $6,500,000 in exploration expenditures within the following 24 months; and (c) to earn an additional 15% (for a total of 75%) interest in the Project (the “75% Interest”), the Company will additionally (i) pay to CanAlaska $1,250,000 in cash, (ii) issue to CanAlaska that number of Common Shares as will be equal in value to an aggregate of $4,000,000, and (iii) incur $7,000,000 in exploration expenditures within the following 24 months.
ANALOGY FOR DISCOVERY
- Unconformity-type deposits represent the largest and highest grade deposits globally and are located within the Athabasca Basin: McArthur River (sandstone-hosted), Key Lake (sandstone-hosted), Millenium (basement-hosted) and Phoenix (sandstone-hosted).
- These deposits occur at the unconformity between flay-lying sedimentary rocks and older host rocks and are commonly associated with faults coupled with mineralizing events in a reductive environment.
- MacArthur River and Millenium Deposits occur along major NNE trending Reverse Faults with 60-80m of displacement
- Deposits display large clay alteration halos extending up through the overlying sandsone units
MULTIPLE HIGH-PRIORITY TARGETS IDENTIFIED
- Systematic airborne geophysical campaigns lead to Zone definition which upon more detailed ground geophysics identified two predominant targets: an elongated N-NE trending basement conductor within a DCIP resistive conductor corridor and a horseshoe-shaped basement conductor within a DCIP resistive corridor.
- Targets occur between coincident electromagnetic, gravity and resistivity anomalies.
- Ten target areas (Areas A through J) were delineated through geophysics and follow-up exploration drilling which remain a focus for upcoming exploration.
PREVIOUS EXPLORATION
Over 35,000 metres of drilling in 108 holes targeting basement electromagnetic (EM) conductors and overlying sandstone resistivity features:
- Drilling to date of the geophysical anomalies has identified favorable geochemistry in the correct geological sequence: the presence of graphitic rocks, basement fault zones and zones of alteration in the sandstone.
- Intersections of 0.02% U3O8 over 0.1 m in a pelite breccia in CRE012, 0.02% U3O8 over 2 m in pelite in CRE018, 0.08% over 0.5 m in brecciated semipelite in CRE035, 0.05% U3O8 over 0.4 m in graphitic pelite in CRE063, 0.08% U3O8 over 0.75 m in marble in CRE067. Most have Cu, Zn, Ni, Co and As enrichment.
