PROPERTY HIGHLIGHTS
- Mineralized boulders on newly optioned Croon Lake property assay up to 0.577% U3O8 (11.54 lbs/ton)
PROPERTY OVERVIEW
The 100%-owned Croon Lake uranium property consists of 23 claims (5957 hectares) and is located in the Arrel Lake map area, 48 kilometres northeast of the town of Nipigon, in Northwestern Ontario. An initial 4 claims were acquired from local Thunder Bay prospectors under the terms of an option agreement dated June 17, 2007. Freewest subsequently staked an additional 19 claims bringing the current total to 23. The property is road accessible with a total travel time from Nipigon to the Croon Lake property in the order of 45 minutes.
In 1978 Essex Minerals Company explored the property locale in programs involving geological mapping, prospecting, VLF electromagnetic surveys, radiometric surveys and diamond drilling (4 short holes). Access to the property at that time was by float plane. Prospecting by Essex resulted in the discovery of 3 boulders returning assays of 0.21% U3O8 (4.2 lbs/ton) and 0.30% U3O8 (6.0 lbs/ton). Subsequent work completed by Essex failed to locate the source of the mineralized boulders described as intensely altered, mylonitized diorite. In addition to the mineralized boulders several highly radioactive occurrences were discovered on the property, largely within pegmatitic dikes and sills. None of the additional radioactive occurrences were reportedly sampled. Essex Mineral Company recommended additional work to trace the mineralized boulders to a bedrock source that was never completed.
Recently prospecting activities by Freewest located 2 of the 3 boulders that were subsequently sampled. Four grab samples from the 2 boulders returned assays of 0.218% U3O8 (4.36 lbs/ton), 0.271% U3O8 (5.43 lbs/ton), 0.471% U3O8 (9.42 lbs/ton) and 0.577% U3O8 (11.54 lbs/ton). The presence of numerous eU and eU/eTh airborne radiometric anomalies located up-ice from the boulders, provide immediate targets for exploration follow-up. These anomalies coincide with a major north-northeast trending magnetic high that is suggestive of a major structural break.
The Croon Lake property is underlain by Archean-age basement rocks comprising granitic gneiss intruded by pegmatitic and diabasic dikes. It lies immediately to the east of the Proterozoic-age Sibley basin, a sedimentary basin that is currently being extensively explored for unconformity-related uranium deposits.
Follow-up work and additional staking will be completed during the 2007 field season in an effort to trace the high-grade uranium boulders to a bedrock source.
Freewest can earn a 100% interest in the property from the vendors by making cash payments, issuing shares of Freewest Resources Canada Inc. and incurring exploration expenditures totaling $120,000, 225,000 and $154,000 respectively, over a 4-year period. The vendor retains a 3.0% Net Smelter Return Royalty of which Freewest has the right to purchase 2.0% of, for the sum of $500,000 per each 0.5% increment.
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