Traction Uranium Corp. [TRAC-CSE, TRCTF-OTC, Z1K-FRA] UGreenco Energy Corp. have launched a phase 1 field geological program at their Key Lake South property, which is located in Saskatchewan’s Athabasca Basin.
Traction has the option to earn up to a 75% interest in the Key Lake South property. The property is situated approximately six kilometres southwest of Cameco Corp.’s [CCO-TSX, CCJ-NYSE] Key Lake uranium mill.
The objective of the program is to define drill targets for unconformity-type uranium deposits at Key Lake South. Unconformity-related deposits, the most common of the 14 major categories of uranium deposit types. Notable examples include Key Lake, Cluff Lake, Rabbit Lake, McClean Lake, McArthur River and Cigar Lake deposits – with some of the ore around 20% uranium.
“Unlocking the potential of our Key Lake South (KLS) Project and getting boots on the ground has been priority #1 since inking the option agreement with UGreenco,’’ said Traction CEO Lester Esteban. “Our team of specialized and experienced geologists and researchers have been looking forward to heading up and getting to work on KLS to complete Phase 1,’’ he said.
“Immediately after, our team will execute Phase 2 – a Ground Gravity Survey to really zero in on high priority targets of our highly anticipated KLS 2023 drill program.’’
The company said an area of approximately 4.15 square kilometres is targeted for ground exploration with the objective of investigating surface uranium anomalies from the quantitative gamma-ray spectrometric survey of 2006 and the Athabasca Sandstone mapped in 1973.
Boulder prospecting will focus on the two surface anomalies (B and C) from the quantitative gamma-ray spectrometric survey, searching for uranium-bearing boulders for comparison with those from the surface anomaly “A”, the “Hot Island” identified in the early 1970s.
“An extraordinary surface uranium anomaly was outlined in the early 1970s and believed to be transported from a sour in the northeast, which led to the discovery of the Key Lake uranium deposit,’’ the company said in a press release.
In phase one of the KLS option deal, Traction can earn 51% by paying $1 million to the vendor by December 2024 and issuing shares and completing over $8 million worth of exploration spending on the property.
The company can increase is stake to 75%, by among other things, spending another $6.5 million on exploration.
On September 13, 2022, Traction Uranium shares closed at 37.5 cents and now trade in a 52-week range of $1.08 and 20 cents.
Meanwhile, Fission 3.0 Corp. [FUU-TSXV] has said it is encouraged by exploration results at the Lazy Edward Bay project in the southeast Athabasca Basin.
Lazy Edward Bay is one of two Athabasca projects that were recently optioned out to Traction Uranium. The other is the Hearty Bay project. Traction can earn a 70% stake in the two projects.