Mistassini

Otish Mountains region, Quebec

100% owned uranium rights

Operator : Strateco Resources Inc.
Development Stage : target-specific exploration (Year-2)
Target : Kiggavik-type uranium deposit associated with shear zones in off-basin basement rocks.
Property : 721 CDCs with a total surface area of 384 km²
Significant Results : In November 2007, Majescor intersected 17m of 0.20% U₃O₈ while drill testing the extension of the Lac Mantouchiche uranium showing. The Lac Mantouchiche drill core showing is one the most significant new uranium discoveries in Canada and it confirms the Otish Mountains' potential for fault controlled, basement-hosted uranium mineralisation.
Status : Based on supplemental drill core assays received in April 2008, the Lac Mantouchiche uranium intersection now stands at 18.5m of 0.215% U₃O₈. Strateco’s 2008 exploration program calls for additional core drilling of the Lac Mantouchiche uranium prospect along with detailed ground mapping and prospecting. The potential of the Mistassini property as a whole will be assessed on the basis of geophysical data.

In March of 2007, Majescor announced the signing of a new agreement with Joint Venture partner Northern Superior Resources inc. (“Northern Superior”) on the Mistassini property, located in the Otish Mountains area of northern Quebec. The agreement granted Majescor a 100% interest in the uranium rights on the Mistassini property along with a 2% royalty for diamonds. Northern Superior retained 100% interest in the diamond rights on the property, as well as a 2% Yellow Cake royalty for uranium. Subsequent to the agreement, the Joint Venture partners increased their land holdings considerably by staking an additional 33,000 hectares around the Lac Mantouchiche uranium showing. The Mistassini property now consists of 721 CDCs with a surface area of 384 km². This does not include 35 CDCs that were recently designated and for which confirmation is pending from the Quebec MRNF.

The Mistassini property hosts the Lac Mantouchiche drill core uranium showing discovered by the partners in 2002 (0.20% U₃O₈ over 4.5 m), and one of rare uranium occurrences uncovered in the Otish Mountains since the end of the uranium boom days of the late-1970s and early-1980s. It is strategically located in an off-basin position known to host fault zone-related uranium deposits of the Kiggavik type in Nunavut. The property rests on Archean basement rocks, immediately north of the late Proterozoic Papaskwasati sedimentary basin, which is a stratigraphic equivalent of the Otish sedimentary basin located 100 km to the northeast. The existence of Otish sediments outliers in the area suggests that the property may have been once covered by a continuous Late Proterozoic Basin, favouring unconformity-related and fault-hosted uranium deposits. Strateco Resources’ Matoush uranium deposit, located in the west central part of the Otish basin, 40 km to the northeast of the Mistassini property, is closely linked to a major north-trending fault (Matoush fault) that appears to have acted as a conduit for uranium bearing fluids. The uranium mineralization generally occurs "perched" above the basement rocks in highly altered and brecciated arkosic to sub-arkosic sandstones along the margins of the fault and adjacent to vertical gabbro dykes emplaced within the fault. The latest drilling by Strateco on the Matoush fault has intersected 0.37% U₃O₈ over 18.4 m (north MT-22 zone) and 0.69% U₃O₈ over 54.4 m (T-34 zone). The Matoush property currently holds NI 43-101 indicated and inferred resources of 4.1 million pounds of U₃O₈ within the AM-15 core zone.

Subsequent to securing 100% of the uranium rights on the Mistassini property from Northern Superior, Majescor designed and then executed a targeted exploration program focussing on the Lac Mantouchiche uranium showing. The exploration program consisted of a detailed airborne magnetic and radiometric survey followed by ground prospecting, biogeochemical sampling and core drilling. The program was designed to search for, and then test the surface extensions of the Lac Mantouchiche showing as well as to detect new surface uranium occurrences.

The airborne radiometric survey (1,170 line-km) delineated numerous uranium anomalies for follow-up investigation. A total of 60 radiometric targets, particularly those coinciding with north-trending magnetic lineaments, were selected for ground follow-up. The prospecting work failed to uncover the extensions of the Lac Mantouchiche showing and only traces of uranium mineralization were detected in outcrop and in glacial erratics. The presence throughout the survey area of linear radiometric anomalies parallel to the glacial direction confirmed field observations that the Lac Mantouchiche area is extensively covered with glacial overburden.

In an effort to complete the exploration program by year-end, the Company reached an agreement with Strateco in November of 2007 which allowed Majescor to contract a heliportable-drill rig, currently on lease to Strateco, to drill the Lac Mantouchiche uranium showing. In return, Strateco secured a 30-day right-of-first-refusal to enter into an option agreement with Majescor on the Mistassini Property. The limited winter drill program (4 holes; 369 m) aimed to test the lateral and downward extension of the showing. An examination of the core from the original 2002 drill hole (MISF-02-08) indicated that the uranium-bearing section has a fabric which is sub-parallel to the vertical drill hole. As such, the first three holes were drilled in a fan pattern, targeting increasingly deeper sections of the mineralised structure. Uranium mineralisation was detected in all four holes. Drill hole MIST-07-03, the deepest of the three, intersected 17m of 0.20% U₃O₈ – one of the most significant new uranium discoveries in Canada. This intersection has been improved to 18.5 m of 0.215% U₃O₈, based on supplemental core assays received in April 2008.

The occurrence of a significant uranium intersection at the Mistassini property confirms the Otish Mountains' potential for unconformity-related, basement-hosted uranium mineralisation. The uranium mineralisation at Lac Mantouchiche occurs within a highly altered intrusive breccia flanked by locally magnetic and weakly chloritized fine-grained migmatites. It is continuous over 40 m in the downward direction. The alteration includes strong hematization and moderate to strong argillic and carbonate alteration. Secondary uranium minerals (possibly carnotite) are visible in the core. Further drilling is required to establish the exact orientation of the uranium bearing structure.

In April of 2008, the Company announced that Strateco was exercising its right-of-first-refusal to enter into an option agreement on the Mistassini Property. Under the terms of the agreement, Strateco can acquire an undivided 60% interest in the uranium rights on the property by carrying out a total of $1.3 million in exploration expenditures over three years. During the option period, Strateco will be the sole operator for all uranium exploration and will have full access to the property. Strateco’s exploration plans for 2008 call for detailed ground mapping and prospecting at Lac Mantouchiche along with additional core drilling of the main uranium showing. The potential of the Mistassini property as a whole will be assessed on the basis of geophysical data.