East Key Lake Project

The East Key Lake Project is a 759-hectare claim (S-111568) located approximately 15.6 km SE of the Key Lake Mine. The claim lies between Hathor’s Russell South Project and Triex Minerals’ Highrock Project. The northwest corner of the claim exhibits a magnetic low feature which corresponds to a larger northeast trending fault. Uranium discoveries in this region, and particularly those in the Key Lake area, have been made in chasing conductors found within magnetic lows. To date, there has been no ground geophysics conducted on the claims.

Cameco’s Key Lake Mine produced over 200M pounds of uranium from 1983-1987.  Key Lake is currently processing ore from the McArthur River mine and from stockpiles on site. The mill has an annual production capacity of 18.7 million pounds U3O8, the largest capacity in the world.

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Preliminary results from the Company’s Z-TEM survey have shown excellent correlation with the Saskatchewan government’s EXTECH IV regional Mag/EM survey conducted in 2004.  An examination of total magnetic intensity (TMI) revealed a roughly northeast-trending magnetic feature, interpreted as an archean granitic fold or body.  In addition, electromagnetic (EM) data revealed a significant conductive anomaly coincident with a magnetic low, just west of the magnetic high.  This conductive region has been preliminarily evaluated as a high priority target zone at East Key Lake.  Uranium-rich mineralization at the Key Lake, Collins Bay and McClean mines were all discovered at or near conductive sandstone layers at the transition between sandstone and granitic zones, presumably because these are regions of faulting through which mineralizing fluids have entered the Basin.