Riou Lake Property, Athabasca Basin

The Riou Lake Property consists of seven claims covering 11,020 hectares (approximately 27,219 acres) located in the Athabasca basin in northern Saskatchewan. Four of the claims were staked in 1993 and are adjacent to the Riou Lake Uranium project operated by UEX Corp. and west of JNR Resources Black Lake property claims.

Location

History
In 1996 Pioneer Metals (now UEX) staked around the claims looking for nickel. In 2001 UEX was formed with a 40% Cameco (world’s largest uranium producer) ownership.

Geology
The claims which total 1,200 hectares encompass the western extension of the Riou Lake fault system. This part of the fault was the first staked claim in the area because of the surface expression of the fault. The escarpment is displaced 180 feet above the surface and extends for 8 kms above surface. This scarp is unique in the Athabascca basin even though it is known from work on uranium deposits that there are other faults within the sandstone likely the result of continued activity on faults within the basement. The regional gravity survey shows a gravity low coinciding with the scarp. This gravity low may indicate an alteration zone within the sandstone and possibly also the basement. The airborne magnetic and VLF-EM survey carried out over the property in 1996 indicate that the magnetic responses are deep and largerly due to responses from metamorphic rocks. The VLF survey shows a weak response coincident with the east-southeasterly trending scarp in the sandstone (Newson, N.R., 1997).

There is potential with drilling of a possible unconformity type uranium deposit or deposits on this Riou Lake property.

The Athabasca basin hosts several major uranium deposits including Cigar Lake and McArthur River, two of the highest-grade uranium deposits in the world. It is the most productive uranium producing region globally, accounting for approximately one third of the world's supply in 2003 (Cameco 2003).

Uranium

Reasons to Invest in Uranium

• Increase demand for electricity
• Concern over greenhouse gas emission
• Short supply predicted for next decade
• 400 reactors in 32 countries
• Approximately 66,000 tonnes (170millions lbs) each year to operate
• Only 55% of demands are met by world uranium mines
• Trends towards market liberalization in many countries
• Improved reactor performance from 68% in 1990 to 92% in 2002
• Long-term market operation
• Favorable Canadian exchange rate