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.
Initial results released in this fall from core drilling have successfully intersected encouraging near surface uranium mineralization. Results include 0.42% U3O8 over 2.4 meters (m) [7.9 feet (ft)], including 1.63% U3O8 over 0.6 m (2.0 ft) and including, 2.02% U3O8 over 0.4 m (1.3 ft). The mineralization is shallow, located about 20 m (65.6 ft) below surface. The approximate thickness of the mineralized zone is 5 m (16.4 ft). Exploration is initially focused on two separate zones
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Mistassini Uranium Prospect
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along an inferred strike length of 2.4 km (1.5 miles). Our early results, when complied with previous drilling illustrates that the grades and widths are increasing as drilling proceeds west of the known zone that was discovered in 1979.
The 2008 exploration program will consisted of 2,800 m (9,186 ft.). To date, 36 holes have been received from this program with an additional 38 pending. 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, |
South Zone
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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$46/lb U3O8*.
*As of November 10, 2008
Full list of Drill Results, Download PDF |
