Athabasca Uranium Property
Kodiak West Millennium uranium project is composed of three separate property packages: Claims 100% owned by Kodiak and property options with Geomode and CanAlaska. When combined, these three properties give Kodiak control of nearly 380 km2 in the heart of northern Saskatchewan's Athabasca Basin (property map is shown below). Kodiak's original land package, an option from Geomode Minerals Ltd., was acquired based on an old Cameco drill hole, CX-11, that intercepted a 35 metre wide radioactive structural zone characterized by anomalous uranium mineralization within a strong graphite-pyrite conductive unit. Following a successful winter 2009 drilling campaign, Kodiak entered into an option agreement with CanAlaska Uranium Ltd. (CVV – TSX.V) on their 164 km2 McTavish uranium project. The McTavish Project consists of three separate claim groups, one wholly enclosed by Kodiak’s original West Millennium claim group, the other two parcels are intimately intertwined with West Millennium. This consolidated land package provides an outstanding exploration opportunity in a sedimentary basin that contains the world’s highest grade uranium deposits and accounts for nearly one third of global uranium supply. Giant unconformity-type uranium deposits like Millennium (47M pounds U3O8 grading of 4.5% U3O8 ) three kilometres east of West Millennium, Key Lake (183 million lb U3O8 grading 1.98%) 30 kilometres southeast of Kodiak's property, and Cameco's McArthur River mine (367.0 million lb U3O8 grading 20.6%), located 40 kilometres to the north, are generally found at or below the sediment-basement contact and at the intersection of faults with conductive graphitic horizons. Deposits of this type are known to be some of the largest and richest in the world. Airborne geophysical surveys have confirmed the presence of extensive conductors at West Millennium that replicate the geometry seen at Millennium. The Millennium uranium deposit occurs in basement rocks just below the unconformity where highly altered graphitic conductors within a north-south structure are key indicators of uranium mineralization. Strongly fractured, desilicified and clay-altered sandstone above the deposit led Cameco to identify the target area. UTEM and ground EM surveys at West Millennium by Cameco outlined four large basement conductive trends extending over 14 kilometres; an additional 60 line-kilometres of clay-altered resistivity low features were also identified within the overlying sandstone. These anomalies led Cameco to drill a single hole on the property, CX-11. Kodiak's evaluation of Cameco's historic work led to the acquisition of the initial property from Geomode. Following additional airborne and ground geophysical studies, Kodiak began drilling the property in the winter of 2009. Winter Drilling 2009 Kodiak's winter 2009 exploration drilling defined a very large and significant zone of highly altered and uranium mineralized (up to 0.13 % U3O8) basin fill sediment and underlying basement rock. The company completed five drill holes testing structural and stratigraphic EM conductors ("D-1") extending from the historic Cameco drill hole. Four of the five drill holes define a central three kilometre long zone of highly altered basement graphitic pelite associated with highly anomalous uranium mineralization at the unconformity. Drill hole WM09-04 was the highlight of the program:
The winter 2009 drill results substantially enhanced the exploration potential of the West Millennium Property. The high potential D-1 conductor has an inferred width in excess of 200 metres and a drill-defined strike length of three kilometres within a 14 kilometre long conductive anomaly defined by EM. The broad width of this conductor was previously unrecognized and the drilling added substantially to the huge volume of potential uranium-bearing graphitic host rock on the property. The flanks of these graphitic host units are highly prospective for uranium. Winter Drilling 2010: During the winter of 2010, Kodiak completed a thirteen hole 10,000 metre diamond drilling program at West Millennium. Six of the drill holes intersected graphitic pelite below the unconformity; five of these holes returned anomalous uranium assays over down hole widths of 0.5 metres to 10.0 metres corresponding to elevated Gamma log readings of up to 1,000 cps. Drill section 27N (shown below) contains holes WM09-03, WM10-07, WM10-09, WM10-16 and WM10-12 which define a low angle thrust fault hosted within the footwall of a relatively flat-lying rich graphitic-pyritic altered unit that exceeds 100 metres in thickness. Anomalous uranium (17-110 ppm) occurs at the unconformity and within the shallowly dipping deformed graphitic pelitic unit. The host pelitic unit is open on strike and down plunge with the graphitic pelitic structural corridor open down dip and on strike. Average drill hole spacing in this target area is still > 100 metres leaving ample room for a significant discovery.
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