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Otish Uranium - Quebec
Lexam entered into an agreement with Golden Valley Mines to earn a 50% interest in their Otish Uranium Project located in Quebec, Canada. The Otish Basin fits with Lexam’s focus: energy related exploration projects that have the potential to deliver significant upside if a discovery is made.
A compilation of the historical holes has identified a zone of uranium mineralization on the project area that is larger and higher grade than was previously believed to exist. Holes within the zone were reported to reach up to 5100 ppm (0.51%) U3O8, and ten holes returned values better than 850 ppm (0.085%) U3O8 over a strike length of approximately 80 meters (262.5 ft.).
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The U3O8 mineralization is shallow, located about 20 meters (65.5 ft.) below surface. The approximate thickness of the mineralized zone is 5 meters (16.4 ft.) and remains open. The inferred strike extension of the zone was intersected in drilling is about 2.4 kilometres (1.5 miles) to the north along trend. Here a single hole intersected a best value of 1140 ppm (0.114%) U3O8.
| The 2008 exploration program will consist of two phases of drilling that will total 4,000 meters (13,125 ft.). The first phase is scheduled to begin in late April and will focus on extending the uranium mineralization that has been identified on the Mistassini project area and will also test priority targets that have been outlined using artificial intelligence and advanced mathematics as described below. The second phase will include follow-up
drilling and testing other targets in the Otish portion of the project area. The total cost of the program is estimated to be Cdn$2 million. |
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The Otish Basin is one of the few regions outside of Saskatchewan’s prolific Athabasca Basin that is discovering high grade uranium! Cameco, the world’s leading uranium producer, is exploring and owns one of the largest land positions within the Otish Basin and Strateco Resources, who have been encountering significant intervals of high-grade uranium, demonstrating the potential for future uranium discoveries and production.
The supply and demand for uranium as well as it’s the market price has changed considerably over the last 30 years. Prior to 1973, uranium was controlled by the military and no market existed. In the early 1970’s, the first transactions on the civilian market was approximately US$ 6/lb U3O8. The oil crisis of 1973 caused uranium prices to surge to US$ 45/lb U3O8. By 1978, the accident at the Three Mile Island reactor led to a decrease, or virtual end, of nuclear programs, which resulted in significant uranium supply. In addition, new sources of uranium such as the USSR emerged near the end of the 1980’s, undercutting the prices of western producers. Prices reached a low of US$ 7-8/lb U3O8 in 1992 and, after a temporary rise in 1995 and 1996, a new low of US$ 7/lb was established in 2000.
Today the supply/demand fundamentals have greatly improved! The demand for uranium as a clean energy source has risen dramatically, while excess sources of uranium around the world are diminishing. The price of uranium is currently US$57/lb U3O8*.
*As of June 23, 2008 |
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