Waterbury Lake Property
The Waterbury Lake Property was acquired in March 2010 and is located in the north eastern Athabasca Basin, SK.
VTEM Survey 2010
Interpretation of Unity's 2010 VTEM survey delineated 3 significant target zones: the Huskie, Charger, and Bishop Zones. All targets at Waterbury are perceived to be shallow as basement depths range from 150-275m, dipping to the south.
- Huskie Zone: This northeasterly trending Huskie Zone has a strike length of 6300m and consists of weak to very weak basement conductors, appearing like "pearls on a string." It appears to be a relatively thin, steep-dipping conductor that correlates closely with a linear magnetic high for almost its entire length.
- Charger Zone: At the northernmost extent of the Waterbury Project, the Chrager Zone lies just south of a northeast conductive zone with a strike length of 3100m, open to the north and northeast. The conductive zone corresponds to the Q-10 South and Q-27 Zone, explored extensively by Cameco further to the north. The southernmost portion of the conductor, which loosely follows the trend of a magnetic high, but in the north it cuts across the magnetic fabric, This is interpreted as an ~500m wide anomaly, likely within the sandstone, which displays moderate conductivity that probably extends to the unconformity. This circular feature is bounded on three sides by magnetic highs.
- Bishop Zone: The northern extent of the strongest conductive zone observed in the survey extends for 150-200m onto the Waterbury Project. The conductive zone (which varies from 500-900m in width and is 2 km (looks northeast on map) southeast of Cameco's Natona Bay Zone) correlates with magnetic lows or lower gradients. The Bishop Zone has been identified as a priority target since the current magnetic interpretation could indicate that structures and alteration may extend beyond the conductor and into the Bishop Lake area.
At Waterbury, the magnetic basement rocks appear as linear belts (magnetic low signatures), flanked by domes of magnetite bearing Archean rocks (magnetic high signatures), These structural pathways probably facilitated fluid migration during deformation that may have resulted in zones of alteration. In addition, as uranium mineralization is usually resistive (non-conductive), the Company intends to focus on an "off-conductor" model for exploration; conductors are not necessarily targets but rather an indication of a possible alteration zone in which uranium mineralization may be present. This model has been developed by a study of the discoveries of Key Lake, Rabbit Lake and Millennium, as well as other fledgling deposit discoveries in the basin, in which drilling conductors within zones of alteration led to off-conductor discoveries. The Company is very pleased with the results of the survey and is in the process of designing ground programs that, if successful, will culminate in drilling in the near future.
The Waterbury Lake Property (which is surrounded on all sides by claims controlled by Cameco) is proximal to the Midwest Mine and several significant uranium deposits in the Waterbury Lake region, including Hathor's Midwest NE Project and Fission's Waterbury Lake Project (all briefly summarized below. This mainly illustrates the proximity of favourable geology, structure and uranium mineralization systems.
The nearby Midwest mine has proven and probable reserves of18,900 tonnes of U3O8 with an average ore grade of 5.47%. The original plans were for an underground mine, utilizing ground freezing and water jet boring, but new plans call for a large open pit mine that will go to a depth of 215 m. The ore will beshipped 15 km to produce 2600 t/y UU3O8 for seven years. A comprehensive environmental assessment for the project began in 2006.
Scott Wilson Roscoe Postle Associates Inc. prepared a Mineral Resource estimate for the Hathor's Roughrider Zone (RRZ) based on drill results available as of September 1, 2009. At a cut-off grade of 0.06% U3O8, the Indicated Mineral Resources are estimated at 116,000 tonnes grading 2.57% U3O8 containing 6.58 million pounds U3O8, and the Inferred Mineral Resources are estimated at 83,000 tonnes grading 3.00% U3O8 containing 5.47 million pounds U3O8.
Fission's 40,256 ha Waterbury Lake Property virtually surrounds the AREVA/Denison Midwest Uranium Deposit. A group led by Korea Electric Power Corporation (NYSE-KEP), entered into an agreement for the joint development of the Waterbury Lake Property. The Consortium can earn up to a 50% interest in the project by incurring exploration expenditures totaling C$14,000,000 over 3 years. Approximately $10 million has been spent to the end of 2009. A C$4 million budget has been approved for 2010. Recent drill programs have been very successful. On March 15, 2010, Ross McElroy, P.Geol. and qualified person for Fission reported that drill hole WAT10-071, a 10m vertical step-out south of the high grade mineralization encountered in hole WAT10-070B (17m grading 3.99% U308 including 7m grading 7.48%; see press release dated March 4, 2010), intersected 6m of 14.70% U308 at the unconformity (199m-205m).
The close proximity of these deposits and the Midwest Mine to the largely unexploredWaterbury Lake Property suggests a probability for similar geology and potentially a similar style of uranium mineralization.
* Dr. Peter Born P.Geo., the Company's Qualified Person and Director, has neither reviewed the original Midwest Mine, Roughrider or Waterbury/Fission data. These calculations were prepared by what is assumed to be a reputable professional and are believed to be a accurate reserve and resource estimates. These estimates are only relevant in assessing the potential type and dimension of a deposit that could exist in a similar and nearby, local geological settings. Geological and exploration information contained in this release is derived from sources believed to be credible. Fission's Waterbury Lake Project is neither related to or part of the claims in this acquisition.
The Company can earn a 100% interest in the property by issuing 900,000 common shares [paid] to the vendor. The company must make additional payments totalling $700,000 over the next 42 months and completing $2,500,000 in exploration expenditures on the property within four years. A 1% NSR has also been granted to the vendor, which may be purchased by the Company for $1,500,000 The Company is in the process of designing a multiphase program to rapidly and effectively explore the Property.