IsoEnergy to Acquire Dawn Lake North Block to Expand Geiger Property in the Athabasca Basin
VANCOUVER, March 26, 2018 /CNW/ - IsoEnergy Ltd. ("IsoEnergy" or the "Company") (TSXV: ISO; OTCQX: ISENF) is pleased to announce that it has entered into an agreement with Cameco Corp., Orano Canada Inc. and JCU (Canada) Exploration Company Ltd. to acquire a 100% interest in 33 mineral claims from their Dawn Lake property constituting the 6,800 hectare Dawn Lake North Block (the "Property") in the Eastern Athabasca Basin of Saskatchewan.
Craig Parry, Chief Executive Officer commented: "I'm very pleased with the addition of the Dawn Lake North claims to our Geiger property as it furthers our objective of acquiring highly prospective assets in the Eastern Athabasca Basin near uranium mining and milling infrastructure. IsoEnergy is uniquely positioned to apply the basement-hosted uranium experience of its Officers and Directors gained from recent discoveries such as the Arrow and Gryphon deposits to properties on which there has been limited testing of basement potential. We continue to believe in the strong fundamentals of the uranium sector and will continue to execute on our strategy of acquiring undervalued assets during this time of unsustainably low uranium prices and ahead of the inevitable return to normalized pricing levels."
Steve Blower, Vice President of Exploration commented: "The acquisition of Dawn Lake North further strengthens our exploration property portfolio due to the presence of uranium and uranium pathfinder mineralization along with many kilometres of underexplored graphitic metasediments with basement-hosted drill targets beneath thin sandstone cover. Strategically, its location linking the current Geiger claims ensures exploration efficiency on the entire block."
The Property
Dawn Lake North is contiguous with IsoEnergy's recently acquired Geiger property and is located 10 kilometres northwest of IsoEnergy's Radio property and 15 kilometres northwest of Orano Canada's McClean Lake uranium mine and mill (Figure 1). It will be treated as an expansion of the Geiger property and the combined set of claims will be referred to as Geiger henceforth. The total area of the expanded Geiger property will be 12,594 hectares.
A total of 63 historic drill holes have been completed at the Property along 115 kilometres of graphitic conductors (Figure 2). Sandstone cover is thin, ranging between 100 metres and 300 metres in previous drilling. The Property is located adjacent to the Wollaston-Mudjatik transition zone - a major crustal suture related to most of the major uranium deposits in the eastern Athabasca Basin.
Two zones of basement hosted mineralization have been intersected in historic drilling. Drill hole Q23-5 intersected 1.5 metres of 0.08% U3O8, 0.98% Co and 0.75% Ni 12 metres below the unconformity in the northern part of the property. Sandstone in the drill hole contains intervals of strong bleaching with clay and secondary hematite. The upper basement in Q23-5 is strongly clay and chlorite altered over the top eight metres. Additionally, drill hole Q48-1 intersected uranium pathfinder mineralization consisting of 0.79% Cu and 0.11% As over 0.3 metres in a graphitic fault gouge 40 metres below the unconformity in the southern part of the Property. Follow up drilling was highly recommended at the time due to the presence of the mineralization and impressive sandstone alteration consisting of long intervals of strong bleaching, fracturing and clay alteration. However, no follow-up was completed in the immediate area.
Exploration work including drilling of targets around these mineralized zones will become a major focus of IsoEnergy's future exploration plans. Additionally, further exploration on high-priority targets along the large strike length of graphitic conductors on the Property will be completed.
The Terms
In exchange for a 100% interest in the Property, IsoEnergy will pay C$200,000 in cash and will issue 3,330,000 common shares to the Joint Venture. The shares will be subject to a 4-month hold period and the transaction is subject to TSXV approval.
Initial exploration efforts consisting of data compilation and interpretation will begin immediately. This may be followed by a core drilling program in the second half of 2018 that would evaluate high priority targets at both the Dawn Lake North property and the original Geiger property.
Qualified Person Statement
The scientific and technical information contained in this news release was prepared by Steve Blower, P.Geo., IsoEnergy's Vice President, Exploration, who is a "qualified person" (as defined in National Instrument 43-101 – Standards of Disclosure for Mineral Projects). Mr. Blower has verified the data disclosed.
This news release refers to properties other than those in which the Company has an interest. Mineralization on those other properties is not necessarily indicative of mineralization on the Company's properties.
About IsoEnergy
IsoEnergy is a well-funded uranium exploration and development company with a portfolio of prospective projects in the eastern Athabasca Basin in Saskatchewan, Canada and a historic inferred mineral resource estimate at the Mountain Lake uranium deposit in Nunavut. IsoEnergy is led by a Board and Management team with a track record of success in uranium exploration, development and operations. The Company was founded and is supported by the team at its major shareholder, NexGen Energy Ltd.
Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release shall not constitute an offer to sell or a solicitation of any offer to buy any securities, nor shall there be any sale of any securities in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities referenced herein have not been, nor will they be, registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), and such securities may not be offered or sold within the United States absent registration under the U.S. Securities Act or an applicable exemption from the registration requirements thereunder.
Forward-Looking Information
The information contained herein contains "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of applicable Canadian securities legislation. "Forward-looking information" includes, but is not limited to, statements with respect to the activities, events or developments that the Company expects or anticipates will or may occur in the future, including, without limitation, planned exploration activities and completion of the acquisition of the Property. Generally, but not always, forward-looking information and statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or the negative connotation thereof or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative connotation thereof.
Such forward-looking information and statements are based on numerous assumptions, including among others, that the results of planned exploration activities are as anticipated, the price of uranium, the anticipated cost of planned exploration activities, that general business and economic conditions will not change in a material adverse manner, that financing will be available if and when needed and on reasonable terms, that third party contractors, equipment and supplies and governmental and other approvals required to conduct the Company's planned exploration activities will be available on reasonable terms and in a timely manner and that the acquisition of the Property will be completed on the terms currently agreed to. Although the assumptions made by the Company in providing forward-looking information or making forward-looking statements are considered reasonable by management at the time, there can be no assurance that such assumptions will prove to be accurate.
Forward-looking information and statements also involve known and unknown risks and uncertainties and other factors, which may cause actual events or results in future periods to differ materially from any projections of future events or results expressed or implied by such forward-looking information or statements, including, among others: negative operating cash flow and dependence on third party financing, uncertainty of additional financing, no known mineral reserves or resources, the limited operating history of the Company, the influence of a large shareholder, alternative sources of energy and uranium prices, aboriginal title and consultation issues, reliance on key management and other personnel, actual results of exploration activities being different than anticipated, changes in exploration programs based upon results, availability of third party contractors, availability of equipment and supplies, failure of equipment to operate as anticipated; accidents, effects of weather and other natural phenomena and other risks associated with the mineral exploration industry, environmental risks, changes in laws and regulations, community relations and delays in obtaining governmental or other approvals.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information or implied by forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking information and statements will prove to be accurate, as actual results and future events could differ materially from those anticipated, estimated or intended. Accordingly, readers should not place undue reliance on forward-looking statements or information. The Company undertakes no obligation to update or reissue forward-looking information as a result of new information or events except as required by applicable securities laws.
SOURCE IsoEnergy Ltd.
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