Saskatchewan’s Environment Ministry has approved an exploration and drill programme for the Mann Lake uranium project, located about 25 km southwest of the McArthur River mine.
The drill programme will be the first significant programme on the project in more than a decade, Skyharbour Resources CEO Mike Blady reported on Monday.
Saskatchewan has provided an exploration work authorisation for up to 15 000 m of diamond drilling in 20 holes, in addition to clearing or refurbishing up to 100 km of gridlines for geophysical work, the construction of two temporary exploration camps, and clearing or opening of up to 34 km of trails for access within the property.
Basin Uranium, which has an earn-in option to acquire a 75% interest in the Mann Lake project, and its exploration consultant, TerraLogic Exploration, are preparing for mobilisation to the project to develop an exploration camp on-site to facilitate initial geophysical surveying in April.
Skyharbour stated that Basin Uranium anticipated a drill programem in June.
Under the option agreement, Basin Uranium will contribute a cash and exploration expenditure consideration totalling C$4.85-million over a three-year period. Of the consideration, C$850 000 would be in cash payments to Skyharbour and $4-million will be in exploration expenditures on the project.
Basin Uranium will also issue to Skyharbour the equivalent value of C$1.75-million in shares of Basin Uranium over the three-year earn-in period to complete the earn-in.
The Mann Lake project is also adjacent to the Mann Lake joint venture operated by Cameco (52.5%) with partners Denison Mines (30%) and Orano (17.5%). Denison Mines acquired International Enexco and its 30% interest in the project after a 2014 winter drill programme discovered high-grade, basement-hosted uranium mineralisation at this adjacent project.
Skyharbour’s Mann Lake project has seen more than C$3-million of previous exploration expenditures consisting of geophysical surveys and two diamond drill programmes totalling 5 400 m carried out by Triex in 2006 and 2008.