Projects Niger Quebec Mexico Industry Info
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North Rae and Daniel Lake
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The North Rae Uranium Project and the Daniel Lake Uranium Project are located in the Ungava Bay region of northern Quebec. North Rae contains three blocks representing 1,853 claims over an area of 206,085 acres (83,400 hectares). Daniel Lake contains an additional two blocks representing 886 claims over an area of 99,089 acres (40,100 hectares). As such, NWT Uranium's Quebec uranium project covers a total land position of approximately 305,000 acres (123,500 hectares).
North Rae and Daniel Lake were originally staked by Azimut Exploration, NWT Uranium's partner on this project. Azimut specializes in exploration targeting by using a proprietary methodology to generate high quality targets and has numerous ongoing partnership agreements, including deals with Kennecott Exploration (a division of Rio Tinto plc), Barrick Gold Corp. and Cambior Inc.
For the past five years, Quebec has been rated one of the most favorable jurisdictions in the world for mineral exploration investment according to the Annual Survey of Mining Companies. The survey is conducted annually by The Fraser Institute, a renowned Canadian economic research institution. In the 2007-2008 survey, Quebec ranked first out of 68 jurisdictions with the highest overall policy attractiveness.
Quebec represents a promising territory for uranium exploration. According to Quebec's Ministry of Natural Resources, previous mineral exploration work conducted from the 1950s through to the 1980s covered large expanses of the province but has limited significance for current uranium exploration due to the lack of radiometric, geochemical and geological data relevant to the commodity at that time. Modern exploration methods, incorporating recent advances in technology, are expected to be rigorously applied in the area.
Location, Accessibility and Infrastructure
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North Rae is six to 12 miles (10 to 20 kilometers) from tidewater, which places it in a favorable context with respect to mine development. Daniel Lake is also favorably located, approximately nine miles (15 kilometers) east of George River, which is navigable and flows into Ungava Bay 25 miles (40 kilometers) to the north.
The Ungava peninsula is rich in mineral wealth, mainly nickel, copper, uranium and iron ores. Access to the property is by fixed-wing aircraft or helicopter from Kuujjuaq, which has daily scheduled air service from Montreal. With its two airstrips, Kuujjuaq is the transportation hub of the entire region. The village boasts a number of hotels, restaurants, stores, arts and crafts shops and a bank.
Project Geology
The two properties cover a 25 x 25 mile (40 x 40 kilometer) region and show strong and extensive outcropping or near-surface uranium targets according to the regional-scale geochemical, geophysical and geological context.
According to an independent third-party report, the North Rae Project blocks contain geochemical lake sediment anomalies as high as 1,800 parts per million (ppm) uranium. Many values in the range of 100 ppm to 508 ppm were also recorded. According to the report, "anomalies at 200 ppm uranium exceed the anomalies associated with known uranium deposits at Lac Turgeon (Quebec), Strange Lake (Quebec) and Michelin (Labrador) and several other newly discovered deposits." In a provincial context, most of the area has a high uranium background falling above the 85th percentile. Three main target anomalies, which were defined by Azimut using its proprietary methodology, exhibit 25 to 60 times enrichment in uranium above the local background, while the magnitude and percentage increase in the anomalies suggests a local source for the lake sediment uranium.
The remainder of the geochemical package shows significant cerium enrichment, elevated molybdenum and spotty enrichment in copper, all generating true statistical uranium anomalies on a provincial and local basis.
Daniel Lake covers a strong uranium footprint in lake bottom sediments in an area marked by deep-seated regional faults, felsic intrusives and pegmatites within a metamorphic gneissic context. The exploration model focuses on large surface targets potentially mineable by open pit methods.
The climate is arctic with an average annual temperature between 23°F and 18.5°F (-5°C and -7.5°C). The Ungava Bay area receives about 15 inches to 19 inches (400 millimeters to 500 millimeters) of precipitation annually, with about 45% of this total falling as snow. Each year, there are between 20 and 40 frost-free days.
Option Agreement
North Rae: To obtain an initial 50% interest from Azimut Exploration, NWT Uranium Corp. will make installment payments totaling C$210,000 and issue 150,000 NWT Uranium shares in stages. Azimut retains a 2% yellow cake royalty. Under the agreement, NWT Uranium will incur C$2.9 million in exploration expenditures over five years. To earn a further 15% interest and increase its ownership to 65%, NWT Uranium must incur an additional C$1.0 million in exploration expenditures over five years and produce a bankable feasibility study. The company must also pay an additional $100,000 and issue an additional 200,000 shares over five years.
Daniel Lake: To obtain an initial 50% interest from Azimut Exploration, NWT Uranium Corp. will make installment payments totaling C$230,000 and issue 200,000 NWT Uranium shares in stages. Azimut retains a 2% yellow cake royalty. Under the agreement, NWT Uranium Corp. will incur C$2.6 million in exploration expenditures over five years. To earn a further 15% interest and increase its interest to 65%, NWT Uranium must incur an additional C$1.0 million in exploration expenditures over five years and produce a bankable feasibility study. The company must also pay an additional $150,000 and issue an additional 100,000 shares over five years.
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