Basin drilling returns up to 0.27% uranium at Geikie, highlights ‘scale potential to produce a major discovery’

Drilling returns up to 0.27% U3O8 at the Geikie project in Athabasca Basin
Elevated lead isotope anomalies and extensive hydrothermal alteration indicates potential for ‘major uranium mineralising system’
Results from airborne gradient gravity survey to help targeting for Phase 2 drilling
Uranium is now up past the US$70/lb price point

Maiden drilling at Basin’s Geikie project in Saskatchewan, Canada, has intersected anomalous uranium in four of the eight holes with other data indicating that a major mineralising system might be present.

The company couldn’t have timed the discovery any better as prices surge, with Numerco noting the U3O8 – or yellowcake – is currently commanding US$71.00/lb.

Sprott Asset Management added that the uptrend in uranium price underscores the sector’s strengthening fundamentals and signals that future supply will hinge on the revival of dormant mines and the inception of new mining projects.

And providing new supply is exactly what Basin Energy (ASX:BSN) is aiming to achieve at its three uranium projects in Canada.

The 350.87km2 Geikie project is located 7km southeast of the present edge of the Athabasca Basin – one of the richest sources of uranium on the planet.

Basin has completed a series of geophysical and ground prospecting surveys that led to a 15km-long strike length deemed prospective for uranium mineralisation.

This led to the company undertaking an eight-hole drill program totalling 2,217m to test the Preston Creek, Hourglass Lake and Aero Lake prospects, which are all located on the potential mineralised strike.

Early signs of success were noted in August with downhole gamma probes identifying multiple elevated radioactive zones.

The project is adjacent to 92 Energy’s Gemini discovery where drilling returned an intercept of 43m grading 0.6% U3O8, including 6m at 2.2% U3O8 and Baseload Energy’s ACKIO discovery with its 31m intercept at 0.9% U3O8.

Uranium intercepts indicate potential for major find

Assays have now returned notable intersections such as 0.5m grading 0.27% (2,680 parts per million) U3O8 from a down-hole depth of 185m (GKI-002) and 9m at 263ppm U3O8 from 84m within a broader 27m uranium anomalous intersection in hole GKI-004.

This mineralisation is located proximal to two regionally significant structures at Aero Lake and Preston Creek.

Additionally, elevated lead isotope anomalies and extensive hydrothermal alteration observed in five holes indicate potential for a major uranium mineralising system.

Recent studies from basement-hosted uranium deposits have demonstrated that lead isotope data is a great tool to indicate areas with elevated potential for uranium mineralisation.

“Basin’s maiden drill program has identified significant uranium mineralisation within a system that is demonstrating the scale potential to produce a major discovery,” Basin managing director Pete Moorhouse said.

“The presence of uranium, along with a coherent pattern of pathfinder elements associated with extensive and pervasive hydrothermal alteration, which is typical of basement mineralisation of the Athabasca Basin, is an excellent result for our maiden drill program.”

Basin ASX BSN Athabasca — Geikie map showing uranium anomalism from maiden drilling. Pic: Supplied (BSN).

The road ahead

Basin is currently waiting on the results of its recently completed high resolution airborne gradient gravity survey that was carried out to map the extent of alteration along the now proven fertile fault corridors.

Results from this survey will be combined with data from the maiden drill program to form the basis for follow-up targeting for the company’s upcoming Phase 2 drilling program.

Moorhouse told Stockhead “We eagerly await the results of the now completed gravity survey, which has been specifically designed to map the extent of alteration discovered to date. This will drive the planning for the next phase of drill testing as we explore this emerging, historically overlooked portion of the prolific Athabasca Basin.

“As the demand for uranium tightens, Basin is strongly positioned with exposure to multiple high quality uranium targets in the world’s leading jurisdiction for uranium discoveries.”

Basin continues to advance its Athabasca Uranium Portfolio

Elsewhere in the Athabasca, Basin recently announced the identification of unconformity targets at its North Millennium project located just 7km from Cameco’s Millennium deposit.

This article was developed in collaboration with Basin Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.