Lac Laparre

Otish Mountains region, Quebec

100% owned; Santoy Resources-Otish Energy JV can earn-in up to 66.6% of the uranium rights; Majescor retains 100% of the diamond rights.

Operator : Santoy-Otish Energy JV
Development Stage : Reconnaissance and targeted exploration (Year-2)
Target : Matoush-type, basin-hosted uranium deposit associated with post-emplacement faults that cross-cut Proterozoic terrestrial sediments.
Property : 317 CDCs with a total surface area of 147 km². Majescor retains 100% of the diamond rights.
Significant Results : An airborne magnetic and radiometric survey of the property in 2007 (1,175 line-km) outlined a total of 17 radiometric targets for follow-up investigation.
Status : Santoy-Otish Energy JV plans for 2008 call for systematic prospecting and mapping; ground geophysical surveying; and soil, radon gas, lake bottom sediment and water sampling.

In February of 2007, Majescor announced the signing of a Letter of Intent to option up to a 66 2/3% interest in the uranium rights on the Lac Laparre property to a 50/50 Joint Venture (“JV”) formed by Santoy Resources Ltd. (“Santoy”) and Melkior Resources Inc. (“Melkior”). Majescor retains exclusive rights for diamonds. The option agreement with the Joint Venture calls for a work commitment of $2.5 million in exploration over five years (including a minimum of $300,000 in year 1), an upfront cash payment of $50,000, the issuance of shares and a 1.5% Net Smelter Return (NSR) royalty, half of which can be bought back at any time prior to commercial production for $1 million. The Lac Laparre property is located in the northern portion of the Otish Mountains, northern Quebec.

In December 2007, Melkior announced the sale of its Otish Basin uranium interests, including its 50% stake in the Lac Laparre property option, to Otish Energy Inc. (formerly Kakanda Resources Corp.). Santoy became the operator of the Santoy-Otish Energy JV. In February of 2008, the Santoy-Otish Energy JV renewed their option on the property (Year-2).

The Lac Laparre property is strategically located within the Otish sedimentary basin. The Paleo-Proterozoic basin hosts several uranium showings, including Strateco’s Matoush deposit and the Marc-André uranium showing held by the Santoy-Otish Energy JV. The uranium showings are found in both structurally-related and unconformity-related geological environments. The geological setting of the Lac Laparre property is analogous to Strateco’s Matoush property, located 25 km to the southwest. The property hosts the Matoush uranium deposit which currently holds NI 43-101 indicated and inferred resources of 4.1 million pounds of U₃O₈. The Lac Laparre property is also located 16 km to the northeast and on trend with the Marc-André uranium showing, discovered by Uranerz Exploration and Mining during the uranium exploration boom of the 1980s. At the Marc-André showing, grab sample assays of up to 0.26% U₃O₈ were obtained from highly altered and brecciated sediments and from an adjacent gabbroic dike.

Exploration work at the Lac Lappare property in 2007 included a detailed airborne magnetic and radiometric survey (1,740 line-km) and a two-week reconnaissance prospecting program. In addition, Majescor contracted a consultant to produce a detailed structural and geological interpretation of the Lac Laparre property area, based on satellite imagery. A total of 17 radiometric targets have been identified for follow-up investigation. Santoy-Otish Energy are planning a thorough investigation of the Lac Laparre property for 2008. The proposed exploration program will comprise systematic prospecting and mapping; ground geophysical surveying; and soil, radon gas, lake bottom sediment and water sampling.