Current Stock Quote: Last: 0.23 Volume: 196750
Day High: 0.24 Day Low: 0.23 Date: 7/2/2009 - 3:58pm
George River
PROPERTY HIGHLIGHTS
New strategic uranium property acquisition comprising 220,813 hectares in north-eastern Quebec and north-western Labrador
Stewart Lake Trend traced over 3.0 km strike length with assays up to 0.804% U3O8 (16.1 lbs/ton) obtained in preliminary work
Murphy Stewart 2 Trend traced over 5.0 kilometre strike length yielding assays of up to 1.18% U3O8 (23.6 lbs/ton)
New Markus nickel-copper occurrence yields assays of up to 0.23% nickel and 0.63% copper traced over 700 metre strike length
Numerous radiometric anomalies defined by the airborne geophysical survey coincide with new uranium showings and delineate several prospective areas for ground follow-up
PROPERTY DESCRIPTION AND LOCATION
The 100%-owned George River project consists of 23 non-contiguous claim blocks comprising 5,066 mineral claims covering 220,813 hectares. The project area is located approximately 175 km north-northeast of Schefferville, Quebec and 125 kilometres due west of the Voiseys Bay copper-nickel-cobalt deposit currently being mined by CRVD-Inco in Labrador. The claim blocks straddle the Quebec-Labrador border and are centred upon UTM coordinates 6250000N and 400000E (NAD 83, Zone 20). There is no existing infrastructure in the area of the claims.
PROJECT BACKGROUND
An initial 7 claim blocks (70,020 hectares) were staked for their uranium potential by the Company in June and July of 2006 following a comprehensive review and compilation of all available geological, geophysical, geochemical and assessment report data in the public domain. In particular, the presence of numerous extensive uranium in-lake sediment anomalies underlain by prospective Proterozoic-age rocks of the South-eastern Churchill Province constituted the prime exploration selection criteria for initial land acquisition. The compilation indicated that minimal uranium-oriented exploration work had previously been conducted in this area historically.
In August and September of 2006, Freewest completed an integrated helicopter-borne magnetic, electromagnetic and spectrometer survey as well as a prospecting and mapping program over the 7 properties that it held at that time. Uranium mineralization was uncovered in 3 areas and nickel-copper mineralization was discovered in another area during this initial phase of exploration. Subsequent to this exploration program, Freewest has acquired an additional 16 claim groups or 150,793 hectares to its land position in response to the results of the initial exploration program and the findings of additional compilation and research. A second phase of exploration involving prospecting, geological mapping and additional airborne geophysical survey is planned for the period July to September of 2007.
Other competitors that have staked claims in the George River area include Azimut Exploration Inc., Virginia Mines, Altius Minerals Corporation, CRVD Inco and Anglogold Ashanti Ltd.
GEOLOGICAL SETTING AND EXPLORATION MODEL
The George River project area lies within the Paleoproterozoic-age South-eastern Churchill Province (SECP) or Zone Noyau located in the Canadian Shield of Quebec and Labrador. The SECP is thought to have formed as a result of oblique collisions involving the Superior and Nain cratons with a third interleaving Archean-age block. The resulting terrain evolved from these collisions consists of a number of distinctive north-south trending lithotectonic domains that comprise the SECP.
A dominant lithotype in the SECP is a large Archean to Paleoproterozoic-age metasedimentary basin largely consisting of paragneiss. A number of smaller, nested basins are also present and comprise mudstone, greywacke, quartzite and marble. Numerous Archean and Proterozoic intrusions of variable composition predate and postdate the metasedimentary basins and are the dominant lithotypes in the George River area.
The youngest intrusions in the project area are Mesoproterozoic peralkaline or A-type granites, that host rare-earth element mineralization at the neighbouring Strange Lake deposit in Labrador. Such intrusions and mineralization are indicative of high heat flow and are closely linked to intrusion-hosted uranium deposits and iron oxide-copper-gold-uranium deposits (IOCGU).
Based on the results of the initial exploration program, the property is felt to offer potential to host late Archean to mid Proterozoic uranium deposits of various styles. These include intra-granitic hosted uranium deposits (such as the Rossing deposit in Namibia that contains 150,000 tonnes of U3O8), IOCGU deposits (Olympic Dam deposit in Australia contains 2 billions tons of 1.6% copper, 0.60 g/t gold, 3.5 g/t silver and 0.06% uranium) as well as unconformity-related uranium deposits (Cigar Lake deposit in Saskatchewan where the average grade is greater than 10.0% uranium).
EXPLORATION RESULTS
Uranium:
Uranium mineralization was discovered at 3 different locales during the initial exploration program. To date, the most significant of the uranium discoveries is the Stewart Lake trend comprising numerous boulders, subcrops and outcrops traced by prospecting over a 3 kilometre strike length. The mineralized rock types are coarse-grained pegmatites of alkaline affinity that are fractured brecciated and hematitically altered. Sampling returned anomalous to highly anomalous uranium mineralization over the 3 kilometre strike length yielding assays of up to 0.453% U3O8 (9.1 lbs/ton) and 0.804% U3O8 (16.7 lbs/ton). The Stewart Lake trend is closely associated with a 4 kilometre-long radiometric anomaly and several other neighbouring radiometric anomalies in the general area.
The Murphy Stewart 2 trend is located 65 kilometres southwest of the Stewart Lake trend. Here, uranium mineralization occurring as carnotite has been traced in sheeted and sheared leucogranite dikes outcropping over a minimum 5 kilometre strike length. Such mineralization yields assays of up to 1.18% U3O8 (23.6 lbs/ton). Strong, continuous radiometric anomalies are similarly related to uranium mineralization at these occurrences.
The Abigail uranium occurrence consists of an east-west trending pegmatite dike cutting paragneiss. Preliminary grab sampling of the occurrence returned assays yielding up to 0.369% U3O8 (8.7 lbs/ton).
Copper-Nickel
The Markus showing consists of disseminations and patchy blebs of pyrrhotite, chalcopyrite and pentlandite within a pyroxenitic sill located in the south-central portion of claim block 3. Assays of up to 0.23% nickel, 0.63% copper, 170 ppb platinum and 101 ppb palladium have been obtained from grab samples. Length, width and thickness of the mineralized zone have yet to be determined but it is associated with a short strike length electromagnetic conductor. The pyroxenitic sill that hosts mineralization has been traced by prospecting over a 700 metre strike length. Notably, the airborne geophysical survey defined a strong electromagnetic conductor about 7 kilometres long and situated several kilometres west of the Markus showing.
Airborne Geophysical Survey
Numerous radiometric anomalies (equivalent uranium and equivalent uranium/equivalent thorium) were defined during the initial airborne geophysical survey flown in August 2006. Some of the anomalies are closely associated with known uranium mineralization where numerous others have yet to be explained. Such anomalies provide immediate prospecting and ground follow-up work targets during the 2007 field season.
Additionally, the multi-parameter airborne geophysical survey delineated several strong electromagnetic conductors, particularly in claim block 2. With so little known of the geology, these areas are considered to have potential to host nickel-copper sulphides or copper-zinc volcanogenic massive sulphide deposits. All of these airborne electromagnetic anomalies required detailed ground follow-up including grid establishment, geological mapping, soil sampling and ground electromagnetic and magnetic surveys.
