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Uranium Exploration 101
Understanding Uranium Exploration - "Size doesn't matter"
High-grade uranium targets are rare and particularly hard to locate as mineralization can vary dramatically over just a few feet or metres. Unlike large copper porphyry deposits, the overall size of a high-grade uranium deposit does not have to be vast in order to produce an economic orebody. As long as the grades are high and carry throughout the deposit, then the concentration of U3O8 can create a financially viable orebody contained within a relatively small volume.
High-grade deposits are only found in Canada's Athabasca Basin.
Canada's Athabasca Basin is responsible for approximately 23% of the world's uranium production. In an industry where grade is king, the Athabasca Basin has the most prospective geology in the world to explore for high-grade, unconformity-style uranium deposits. As a comparison, the grades at McArthur River and Cigar Lake exceed 20% U3O8 whereas Australia's leading Uranium mines (Olympic Dam and Ranger) do not surpass 0.2% U3O8. With ore grades of over 100 times greater than anywhere else on the planet, the Athabasca Basin remains the ultimate location to search for super-rich uranium deposits.
Geology 101 of unconformity-style deposits
The Athabasca Basin in northern Saskatchewan is host to the world's largest, high-grade uranium deposits. These deposits constitute approximately 33% of the western world's uranium resources and they include some of the largest and richest deposits. Today, all of Canada's uranium production is from unconformity-related deposits - Key Lake, Cluff Lake, Rabbit Lake (all now depleted), and the McClean Lake and McArthur River deposits. Cigar Lake with grades of over 20% continues to be developed towards production.
The Athabasca Basin comprises younger (Middle Proterozoic), undeformed sandstones that were deposited on top of pre-existing older (Archean to Lower Proterozoic), strongly metamorphosed and deformed granites and meta-sedimentary packages (now pelitic and semi-pelitic gneisses). The granites and gneisses are referred to as basement rocks, and the break or gap in time that separates the basement rocks from the younger sandstones is called an "unconformity". This ranges in depth up to 1,000 m within the Athabasca Basin.
Uranium deposits of the Basin are structurally-controlled hydrothermal fluid systems that either straddle the unconformity (classic unconformity mineralization), occur above the unconformity (perched mineralization), and/or below the unconformity within the basement rocks (basement mineralization).
The unconformity is a favorable site to allow for the formation of uranium deposits; it is a natural geochemical trap and natural permeable barrier that allows fluids to easily migrate and pool. However, in addition to the unconformity, a structural trap (e.g. a fault) is needed to focus the fluid flow. Fault systems, commonly, originate in the basement rocks and can continue into the overlying sandstones. Deep- seated and intersecting fault systems have the strongest fracture expressions as these types of systems have been reactivated time-and-time-again, creating more space and allowing more fluid interactions to allow for uranium mineralization and deposition. Historically, graphite-rich basement rocks (geophysical electro-magnetic conductors) were sought as the key sites to find uranium deposits because graphite facilitates fracturing in the basement, therefore creating the necessary space for uranium mineralization, and graphite enhances the reducing fluids in the basement, creating a strong geochemical trap.
At Hathor's Roughrider Zone, the unconformity is substantially displaced and ranges from 200 to 215 metres in depth due to strong basement fault zones that breech through the unconformity and extend up to 100 metres into the sandstone. While graphite is present below the Roughrider Zone, there is not enough inter-connected graphite to create a geophysical conductor. The lack of an associated geophysical conductor within the Roughrider Zone makes, 'to the best of our knowledge', the mineralization unique within the Athabasca.
Unlike many metal deposits, the uranium deposits in the Athabasca Basin do not occur as large planar features that can be easily drilled. They rarely outcrop and surface expressions such as glacially-eroded boulder trains are also uncommon. Typically they occur as narrow, linear lenses and can be at considerable depth. For example, over half of the reserves at the McArthur River mine occur in a zone just 70 metres long by 70 metres deep by 30 metres wide, situated half a kilometre below surface.
Uranium - the energy source of the future
Growing awareness of uranium fundamentals has led to an increased interest within the mining community in uranium exploration throughout the world. Included in those fundamentals is government and electric power utility interest in the expansion of nuclear power capacity to offset carbon dioxide emissions. Global demand for uranium as a fuel source is expected to remain strong. As of January 2010, there were 53 new reactors being constructed with over 460 planned or proposed. Uranium will be the energy resource of the future.
The Uranium Supply Deficit
Currently there are 436 operating nuclear reactors providing approximately 16% of the world's electricity. Total world demand to supply these reactors is approximately 180 million lbs U3O8 per year; however, current global mining production is only around 110 million lbs per year. This deficit is currently being covered by the use of highly enriched uranium from dismantled weapons. The dynamics of the supply deficit would indicate the potential for higher uranium prices in the future. Additionally, with approximately half of the world's mining production being generated in countries with significant political risk, the high potential for supply interruptions could also lead to higher uranium prices in the future.
All nuclear power plants run exclusively on uranium; no uranium = no power.
High-grade uranium targets are rare and particularly hard to locate as mineralization can vary dramatically over just a few feet or metres. Unlike large copper porphyry deposits, the overall size of a high-grade uranium deposit does not have to be vast in order to produce an economic orebody. As long as the grades are high and carry throughout the deposit, then the concentration of U3O8 can create a financially viable orebody contained within a relatively small volume.
High-grade deposits are only found in Canada's Athabasca Basin.Canada's Athabasca Basin is responsible for approximately 23% of the world's uranium production. In an industry where grade is king, the Athabasca Basin has the most prospective geology in the world to explore for high-grade, unconformity-style uranium deposits. As a comparison, the grades at McArthur River and Cigar Lake exceed 20% U3O8 whereas Australia's leading Uranium mines (Olympic Dam and Ranger) do not surpass 0.2% U3O8. With ore grades of over 100 times greater than anywhere else on the planet, the Athabasca Basin remains the ultimate location to search for super-rich uranium deposits.
| High-grade vs Low-grade Deposits - Grade is King | |||
|---|---|---|---|
| % U3O8 | Parts Per Million Uranium U | Example | |
| High-grade | 2% or higher | 20,000 | McArthur River, Athabasca Basin |
| Low-grade | 0.1% | 1,000 | Beverly, Australia |
| Earth's crust | 0.0002% | 2 | |
| Seawater | 0.003 | ||
| (Source: World Nuclear Association) | |||
Geology 101 of unconformity-style deposits
The Athabasca Basin in northern Saskatchewan is host to the world's largest, high-grade uranium deposits. These deposits constitute approximately 33% of the western world's uranium resources and they include some of the largest and richest deposits. Today, all of Canada's uranium production is from unconformity-related deposits - Key Lake, Cluff Lake, Rabbit Lake (all now depleted), and the McClean Lake and McArthur River deposits. Cigar Lake with grades of over 20% continues to be developed towards production.
The Athabasca Basin comprises younger (Middle Proterozoic), undeformed sandstones that were deposited on top of pre-existing older (Archean to Lower Proterozoic), strongly metamorphosed and deformed granites and meta-sedimentary packages (now pelitic and semi-pelitic gneisses). The granites and gneisses are referred to as basement rocks, and the break or gap in time that separates the basement rocks from the younger sandstones is called an "unconformity". This ranges in depth up to 1,000 m within the Athabasca Basin.
Uranium deposits of the Basin are structurally-controlled hydrothermal fluid systems that either straddle the unconformity (classic unconformity mineralization), occur above the unconformity (perched mineralization), and/or below the unconformity within the basement rocks (basement mineralization).
The unconformity is a favorable site to allow for the formation of uranium deposits; it is a natural geochemical trap and natural permeable barrier that allows fluids to easily migrate and pool. However, in addition to the unconformity, a structural trap (e.g. a fault) is needed to focus the fluid flow. Fault systems, commonly, originate in the basement rocks and can continue into the overlying sandstones. Deep- seated and intersecting fault systems have the strongest fracture expressions as these types of systems have been reactivated time-and-time-again, creating more space and allowing more fluid interactions to allow for uranium mineralization and deposition. Historically, graphite-rich basement rocks (geophysical electro-magnetic conductors) were sought as the key sites to find uranium deposits because graphite facilitates fracturing in the basement, therefore creating the necessary space for uranium mineralization, and graphite enhances the reducing fluids in the basement, creating a strong geochemical trap.
At Hathor's Roughrider Zone, the unconformity is substantially displaced and ranges from 200 to 215 metres in depth due to strong basement fault zones that breech through the unconformity and extend up to 100 metres into the sandstone. While graphite is present below the Roughrider Zone, there is not enough inter-connected graphite to create a geophysical conductor. The lack of an associated geophysical conductor within the Roughrider Zone makes, 'to the best of our knowledge', the mineralization unique within the Athabasca.
Unlike many metal deposits, the uranium deposits in the Athabasca Basin do not occur as large planar features that can be easily drilled. They rarely outcrop and surface expressions such as glacially-eroded boulder trains are also uncommon. Typically they occur as narrow, linear lenses and can be at considerable depth. For example, over half of the reserves at the McArthur River mine occur in a zone just 70 metres long by 70 metres deep by 30 metres wide, situated half a kilometre below surface.
 Drill Hole 40 offers a demonstration on how dramatically uranium mineralization can change over a small distance. The highlighted core shows uranium mineralization jumping from 0.41% to 61.8% over a space of just a few centimetres. |
Uranium - the energy source of the future
Growing awareness of uranium fundamentals has led to an increased interest within the mining community in uranium exploration throughout the world. Included in those fundamentals is government and electric power utility interest in the expansion of nuclear power capacity to offset carbon dioxide emissions. Global demand for uranium as a fuel source is expected to remain strong. As of January 2010, there were 53 new reactors being constructed with over 460 planned or proposed. Uranium will be the energy resource of the future.
The Uranium Supply Deficit
Currently there are 436 operating nuclear reactors providing approximately 16% of the world's electricity. Total world demand to supply these reactors is approximately 180 million lbs U3O8 per year; however, current global mining production is only around 110 million lbs per year. This deficit is currently being covered by the use of highly enriched uranium from dismantled weapons. The dynamics of the supply deficit would indicate the potential for higher uranium prices in the future. Additionally, with approximately half of the world's mining production being generated in countries with significant political risk, the high potential for supply interruptions could also lead to higher uranium prices in the future.
All nuclear power plants run exclusively on uranium; no uranium = no power.