Aurora Energy Resources Inc. announce its 2008 exploration program at its recently acquired Baker Lake Basin property in Nunavut, Canada.
“We believe the Baker Lake Basin property hosts prospects that have potential for rapid growth and resource definition,” said Mr. Bruce Dumville, Aurora’s President and CEO. “We are impressed with the 2007 drill results and this year we will focus on delineating mineralization at the Lucky 7 zone.”
The 2008 program is planned to include:
- An initial 1,000 metre drill program designed to test the Lucky 7 zone and to have the drill equipment on site for an early start in 2009.
- An airborne magnetic, radiometric and broadband electromagnetic survey designed to cover the property and aid in the design of the 2009 exploration program.
- Geological mapping and a ground magnetic survey about known prospects.
- Introduction to the host community of Baker Lake and consultations with local community groups.
The geological mapping, ground and airborne geophysical survey, and drilling are expected to take place in October 2008 and will provide additional information on known mineralization and valuable data in identifying other potential drill targets.
The Baker Lake Basin is geologically similar in age and character to the Athabasca Basin and the proximal Thelon Basin, which hosts Areva’s Kiggavik-Sissons project (148 million pounds U3O8 at 0.24%(i)). Like the Athabasca and the Thelon basins, the Baker Lake Basin has unconformity associated mineralization and a 60-kilometre length of the southern boundary of the Baker Lake sedimentary basin, a favorable setting for high-grade uranium occurrences. The Baker Lake Basin also contains sediment-hosted and intrusion-associated, near-surface mineralization. There has been little work done on most of the showings, but most recently Pacific Ridge Exploration Ltd. drilled the Lucky 7 Zone and KZ Zone returning 17.3 metres of 0.30% U3O8 and 11.5 metres of 0.31% U3O8, respectively. A complete listing of Pacific Ridge’s drill results for 2006 and 2007 can be viewed at: http://www.aurora-energy.ca/files/PR_06-07_DrillResults.JPG.
The Baker Lake Basin property covers 96,000 hectares (370 sq. miles) and boasts attractive near-surface uranium mineralization. Maps of the Baker Lake Basin property and Aurora’s exploration targets can be viewed at: http://www.aurora-energy.ca/files/AXU_BakerBasinProperty_Oct08.JPG and http://www.aurora-energy.ca/files/AXU_BakerBasinExplorationTargets_Oct08.JPG.
“As in Labrador, we are committed to community consultation,” added Mr. Dumville. “Building good relations with local stakeholders has always been one of Aurora’s core values. As our exploration activities in Nunavut continue, we look forward to working with the people of the Baker Lake area to develop a strong, mutually respectful and beneficial relationship with the community.”
Aurora can earn an initial 51% interest in the Baker Lake Basin property by spending C$15 million over three years. Another 14% interest can be earned by completing a pre-feasibility study by the end of 2013. The terms of the agreement are such that Aurora has the flexibility to cease exploration activity at any time prior to spending the minimum threshold amount of C$15 million, without penalty or further legal or financial obligation. The terms of the agreement can be found in the Company’s September 23, 2008 News Release, “Aurora Expands Uranium Pipeline to Baker Basin, Nunavut”.
Potential quantity and grade at the Baker Lake Basin property are conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Aurora is a uranium exploration and development company active in the Central Mineral Belt of coastal Labrador – one of the world’s most promising uranium districts – and in Nunavut, Canada, where it has acquired an interest in the Baker Lake Basin property through a deal with Pacific Ridge Exploration Ltd.
Aurora recently completed its 2008 summer drill program in Labrador, which included an infill drill campaign of 13,233 metres at the Jacques Lake and Michelin deposits. Aurora also completed a 3,171 metre geotechnical, environmental and metallurgical drill program in August. Engineering studies, environmental baseline studies and a tailings management options study are continuing.
Aurora has no debt and approximately C$105 million in cash that is fully liquid and held with a large Canadian commercial bank.