Properties

Mineral Properties
Western Nunavut
Coppermine Model
Eastern Nunavut
Others

Exploration Programs
2008 Key Uranium Drill Targets

Properties: Exploration Programs

All of the Company's uranium properties and exploration activities are located in Nunavut, Canada. Nunavut was created April 1, 1999 as a result of the Nunavut Land Claim Agreement and is the only jurisdiction in Canada that has settled its native land claim issues. Today, this is a major benefit for investors since native land claims can be an exploration and development issue.

The Company's primary focus is uranium exploration and as such, its primary mineral properties are located approximately, 50% in western Nunavut and 50% in eastern Nunavut.

Also, the Company holds several other mineral properties located in the following areas of Canada:

• The Timmins and Dryden areas, northern Ontario - Gold Properties
  
• The Princeton/Similkameen area, British Columbia - Copper Royalties & Properties

Since September 2006, the Company has broadened its uranium target types and increased its Nunavut exploration area by 414% to 2.7 million areas (1.1 million hectares) via the UNAD joint venture with Adriana Resources and the two joint ventures with Cameco Corporation.

The 2008 $4.0 million exploration season on the Nunavut properties commenced in April with the fuel haul and is scheduled to conclude late September with the demobilization of the diamond drill.

2007 Exploration Season Summary:

The Company’s 2007 exploration program focused on the discovery of economic uranium deposits on its large land holdings south of Kugluktuk in western Nunavut. The high grade unconformity model of uranium deposition (Cameco’s McArthur River deposit) remained the primary target. However, increasing emphasis is being placed on structurally controlled, basement hosted mineralization (Cameco’s Eagle Point deposit) and also on the disseminated, sandstone hosted model (Triex’s Mountain Lake deposit) where the target is in the upper sequences of the basin sediments. The acquisition of additional lands in 2006 under the UNAD Joint Venture with Adriana Resources and the option of Cameco’s large holdings west of the Coppermine River (Lac Rouviere project) substantially expanded the Company’s land holdings within the Hornby Bay Basin and have enhanced the potential for a significant discovery.

A new joint venture project with Cameco on Baffin Island in eastern Nunavut was initiated in 2007 to explore 27 exploration permits covering large portions of the Brodeur and Fury-Hecla Proterozoic sandstone basins. The area is remote and historical exploration for uranium has been far less intensive than in the other major Canadian basins to the south.

The 2007 field work on the western Nunavut properties commenced on April 1st with the mobilization of the geophysical crew to Kugluktuk to conduct detailed magnetometer surveying of selected kimberlite targets on the company’s Asiak project and concluded on September 25th with the demobilization of the drill from the last hole at the Bog zone on the company’s Coppermine project. The ground geophysical program and drill campaign commenced on April 20th and continued for the remainder of the season except for a two week suspension in June to allow for break up of the ice in the area. After break up, a team of geologists was added to the project to conduct mapping and prospecting programs on the Lac Rouviere project and a second helicopter was brought in to assist in crew mobilization and drill moves.

The allocated budget for 2007 for western Nunavut was $7.0 million. The initial plan to drill targets on the Asiak project before moving to the Coppermine project had to be changed due to very difficult weather conditions from mid-April until mid-May. Delays caused by weather also forced the postponement until July 2008 of the planned fixed-wing airborne gamma ray/ magnetometer survey of the Lac Rouviere project by Fugro Airborne Surveys.

The Company is continuing the policy of hiring local Inuit to complement the field crews and preferentially purchases local supplies and services from Kugluktuk. The contribution to the ecological surveys being conducted by the Nunavut Wildlife Department continued in 2007 and was expanded to include assistance for a new initiative by the Wildlife Officer to study the local vegetation. The Company’s participation in these surveys will be of great significance when the necessity for baseline environmental data becomes a requirement.

Statistics for field work completed during the season include the following:

• 18 drill holes (uranium) for a total of 5,585.7 meters on the Coppermine project
• 4 drill holes (diamonds) for a total of 776 meters on the Coppermine project
  
• 19 drill core samples submitted for assay from the Coppermine project
  
• 44 surface rock samples collected for assay
  
• 62 surface rock samples collected for mineralogical studies
  
• 25.5 kilometers of ground geophysics on the Coppermine project
  
• 3.3 kilometers of ground geophysics on the Lac Rouviere project
  
• 2.6 kilometers of ground geophysics on the UNAD project
  
• 5.7 kilometers of ground geophysics on the Asiak project
  
• Two new claims covering 2,350 hectares staked under the UNAD project

Please note that the above ground geophysics statistics include 274.4 kilometers of deep penetrating electromagnetic surveys and 16 kilometers of IP/ Resistivity surveying.

Major highlights of the field program on the Coppermine project include:

• Intersection (HB-07-42) of uranium within the Leroux sandstone on the Hot Creek structure. First known intersection of mineralization in the lower Dismal Lakes stratigraphy outside of the immediate area of the Mountain Lake deposit
• Discovery of a new uranium showing (Beep) in the Leroux sandstone on claim CM 78
• Confirmation of a basement conductor (CM 90, LB 73 and LB 74 grids) coincident with the surface alteration zone northeast of Bluto lake and continuing to the southeast of the Bog mineralized zone
• Significant vertical off set of the unconformity in the fault zone associated with the Contact East conductor
• Multiple, narrow, high grade pitchblende veins intersected during the continued drilling of the Bog zone

Major highlights of the field program on the Lac Rouviere project include:

• Fourteen new radioactive occurrences discovered on the Lac Rouviere property including a one kilometer long series of hot spots in conglomeratic sandstones to the southwest of the Mountain Lake deposit
• Two sub-rounded radioactive (10,000 cps) Leroux sandstone boulders discovered on the Lac Rouviere property near the eastern border of Triex Mineral’s Dismal Lakes property

The major highlight of the field program on the Baffin Island project includes:

• Discovery of a zone of greater than 5000 cps radioactivity in a hot granite located in the central part of the Robertson River block of exploration permits (Baffin Island)

UNOR Coppermine Project:

A total of 6361.7 meters of drilling were completed in 22 drill holes. Four of the holes were abandoned due to technical problems.

Initial drilling concentrated on the Hot Creek structure located south of the Mouse Lake camp. The structure is considered to be the western boundary fault of the Mouse River graben and is marked by a distinct off-set in the Dismal Lakes/ Hornby Bay contact. A significant number of large sandstone blocks were discovered on the western side of the fault that carried anomalous uranium and copper values similar to the mineralization at the Mountain Lake deposit.

Seven holes to test the Hot Creek structure were completed and an eighth hole was abandoned after the rods broke and froze in the hole. The drilling indicates a vertical displacement of approximately 30 meters across the fault. Uranium mineralization occurs in syndepositional debris flows within the lower portion of the Leroux sandstone. A 6.8 meter intersection in hole HB-07-42 gave readings of up to 2000 cps on the down-hole gamma ray probe (best assay 115 ppm U) over the interval 59.2 – 66.0 meters. In the surface showing the uranium is associated with hematite indicating deposition under oxidizing conditions, whereas in the case of the drill intersection the uranium is associated with pyrite indicating deposition under reducing conditions. An east – west line of Induced Polarization/Resistivity was completed over the zone in late August to define drill targets for the 2008 season.

Two holes were drilled to test the most westerly of three basement conductors that
define the northern extension of the Contact East zone. Both holes encountered technical problems and did not reach final target depth. They were, however, successful in proving that the vertical fault off set of the unconformity in the target zone exceeds 100 meters and that there is extensive leaching within the sandstone overlying the conductor. A larger drill will be required to adequately test the target.

Three short holes (one abandoned) were drilled to test the best magnetic bulls-eye kimberlite targets. Anomalies BN-1 and BN-2 south of the Kendall River and BN- 4 to the north of Contact Lake proved to be caused by magnetite bearing syenite, trachyte and biotite-garnet gneiss respectfully.

Four holes were drilled to test the Bog zone for an extension to the southwest and for continuity down dip to the southeast encountered uranium mineralization in the basement granitoid. The intersections were generally narrow pitchblende veins associated with quartz/carbonate/jasperoid. All assays are pending but highlights included the following:

Hole No.                       Interval (m)                  Width (m)         Peak Reading (BBS 2)
HB-07-50A                     55.60  -   56.30             0.70                          2700 cps
HB-07-51A                   172.50 – 175.20             2.70                          5000 cps
                                    198.90 – 199.10             0.20                          500 cps
                                    234.30 – 236.60             2.30                          350 cps
HB-07-55A                   171.20 – 171.60             0.40                          6000 cps
HB-07-56B                     69.55  –  72.30             2.75                          6500 cps
                                    177.90 – 178.50             0.60                          1250 cps

A new moving loop time domain electromagnetic array termed StepWise (SWMLTDEM) was deployed this season as a first pass method to detect deep conductors. The conductors are then better defined by Fixed Loop time domain electromagnetic (FLTDEM) surveys prior to drill testing. The crew worked extensively on the major MEGATEM conductor to the north of Sickle Lake that extends for about 20 kilometers under the central part of the basin. At least two of the stronger portions of the conductor (CM 52A and CM 53A) will be drill tested in 2008. The CM 53A basement conductor was confirmed by a line of transient audio magnetotelluric surveying that also indicated an alteration zone in the sandstone immediately above and to the east of the target.

The approximately five kilometer long MEGATEM anomaly located on claims CM 90, LB 73 and LB 74 to the south of the Bog zone was confirmed by fixed loop time domain electromagnetic surveys. Hole HB-07-53 was drilled to test the conductor on claim CM 90 beneath the area of surface silica-clay alteration to the northeast of Bluto Lake. The hole had to be stopped in altered sandstone short of the unconformity at a depth of 624 meters because the drill was incapable of advancing further with NQ rods. A second hole that had been planned for an additional test of the conductor about four kilometers to the northeast of HB-07-53, on claim LB 73, was postponed because it was considered likely that the target would be too deep for the drill. Both holes will be completed by a larger drill in 2008.

A crew from EMpulse Geophysics Ltd. completed lines of transient audio magnetotelluric (TAMT) surveys across the C2-32 alteration zone and the CM 53A conductor (see above). The system is designed to detect alteration as well as conductivity. The C2-32 survey showed a 300 – 500 meter wide zone of alteration in the sandstone coincident with the mapped silica-clay outcrop and related to the southeast bounding fault of the graben.

A three kilometer long horizontal loop electromagnetic (HLEM) conductor was detected on the DM 69 grid that is coincident with a magnetic anomaly defining a fault contact in the basement rocks west of Wolverine Lake. The anomaly was prospected but the conductor was not exposed.

An Induced Polarization/ Resistivity line with two flanking follow up lines were surveyed across the Beep radioactive occurrence that was recently discovered on the CM 78 claim to the north of Mouse River. Uranium mineralization is associated with pyrite in Leroux sandstone similar to that at Hot Creek. The sandstone dips at 4 degrees to the west under glacial cover. The survey detected a 500-700 meter wide zone of high resistivity coincident with the showing that is probably caused by silica alteration in the Leroux and underlying Lady Nye sandstone. There is also a broad zone of low resistivity/ high chargeability located from about 1200 meters west of the showing that appears to relate to the overlying Fort Confidence shales. It is hypothesized that the Leroux mineralization may be associated with anomalously high graphite content in the hanging wall shales. Both targets will be drill tested in 2008.

A Queen’s University graduate student under the supervision of Dr. Kurt Kyser has systematically sampled the lower Hornby Bay sandstone drill core and will study fluid flow, porosity and alteration as a means to vector towards the more favorable sites for uranium deposition at the unconformity.

The 3M3 and 3M4 claims within the East block were surveyed and will be converted to mining leases.  This concludes the surveying of the core Coppermine Block and East Block claims and both properties have been converted to mining leases.

UNOR Asiak Project:

Fourteen of the magnetic anomalies were further defined by detailed magnetometer surveying. Two of the anomalies could be classified as moderate and three as weak kimberlite targets.

The planned drilling of the Little Grey Owl Lake and Tara West uranium showings along with potential kimberlite targets has been deferred due to the higher priority of testing targets on the Coppermine property.

Sixteen mineral claims covering the known uranium showings on the property were surveyed and will be converted to mining leases.

Cameco Lac Rouviere Joint Venture Project:

The interpretations of the GEOTEM survey has been completed by both Fugro Airborne Surveys and Condor Consulting Ltd. and are being reviewed for potential ground follow up targets. Ground work was completed on a large HLEM/ magnetometer grid covering the Hanbury GEOTEM anomaly in the western portion of the property. There were no significant anomalies on the grid.

A single large loop was surveyed by FLTDEM over the Kendall South grid on claim K01614 as follow up to an isolated conductor identified by the GEOTEM survey. The survey did not locate the conductor. The same area will be covered in 2008 with a different line orientation in the hope that the coupling with the conductor will be better.

Fourteen new radioactive occurrences were discovered on the property during the mapping and prospecting program. Many of the fifty-two historical occurrences discovered by previous operators were relocated and sampled. Probably the most significant of the new occurrences is a one kilometer long zone of radioactivity in a conglomeratic unit above the unconformity about 12 kilometers southwest of the Mountain Lake deposit. In addition, two sub-rounded boulders of mineralized Leroux sandstone were discovered near the eastern boundary of Triex Mineral’s Dismal Lake property. The larger boulder (70 cm diameter) ran 10,000 cps on the RS-125 spectrometer with an indicated grade of 940 ppm U.

The geological mapping has identified several areas of intense silicification in the sandstone units that will be followed up by prospecting and geophysics in 2008. The largest zone is in the northwest corner of the property in an area of extensive glacial cover.

The contract for completing a fixed-wing airborne gamma ray/ magnetometer survey at 150 meter line spacing over the entire property was awarded to Fugro Airborne Surveys but their systems were delayed by bad weather in the Yukon and the survey will be flown in 2008.

UNAD Joint Venture Project:

Two additional claims were staked north of the Mountain Lake deposit to cover sheeted quartz/ copper veins that outcrop along the Herb Dixon fault and may be indicators of deep seated uranium mineralization. Prospecting of the claims proceeded in conjunction with the work on the Lac Rouviere project.

A magnetometer/HLEM grid was surveyed over a GEOTEM anomaly north of the Kendall River. A strong east-west magnetic anomaly was detected but the corresponding HLEM response was weak which indicates that the source is a geological contact in the basement.

One short drill hole was completed to the north of CD 25, near Drill Lake (BP nomenclature), by Adriana. The hole was sited to test beneath a radioactive occurrence in the sandstone between two diabase dykes. Although the detailed log has not been received, it appears that the hole did not encounter significant mineralization.

The fixed-wing airborne gamma ray/ magnetometer survey mentioned above will be extended to cover the UNAD claims when it is flown in 2008.

Cameco Baffin Island Joint Venture Project:

A three week evaluation of the exploration permits was completed by two Cameco and two UNOR geologists using two Long Ranger helicopters. The study concentrated on evaluating the alteration and porosity within the basinal sandstones and the nature of the unconformable contact with the basement rocks. During the trip, a zone of radioactivity running about 5000 cps was discovered in porphyritic granite in the central part of the Robertson River block. Several of the historical showings associated with the hot granites within the Fury-Hecla block were sampled.

Other UNOR Properties:

The Company has ensured that its Ontario gold and British Columbia copper properties remained in good standing.

Ontario Gold Properties:

In April 2005, the Company granted Laurion Mineral Exploration Inc. (“Laurion”) the option to acquire a 50% interest in UNOR’s East Clavos 20 gold claims near Timmins, Ontario in consideration for Laurion making certain payments, deliveries and expenditures.  Laurion will be able to earn the interest by incurring work expenditures of $1.0 million on the East Clavos property over a four year period and by issuing 480,000 Laurion common shares and making cash payments totalling $100,000 to UNOR over a three year period.

Also, the Company owns a gold claim in the Dryden area of northern Ontario.

British Columbia Copper Royalty & Property:

The Company has two assets in southern British Columbia that are of renewed interest due to the increase in the price of copper.

A 5% net smelter royalty interest on 4,000 acres at the Similkameen copper porphyry mine located at Copper Mountain about 30 kilometers south of Princeton. The mine was a 22,000 ton/day operation that was closed by Princeton Mining in 1996 due to low copper prices. Currently, the Company is monitoring Copper Mountain Mining Corporation development in the area.

Also, the Company owns four mineral Crown Grants located in the Princeton area that was once part of the Camsell property.

 

 

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