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APRIL 2006 • No 65 SEG NEWSLETTER 31uranium mineralization were reported,the most significant <strong>of</strong> which was theMaverick Northeast yielding an intersection<strong>of</strong> 0.47% U308 over 3.5 m.Canalaska Ventures Limitedreported encouraging results from itsNortheast Athabasca project near theSaskatchewan-Manitoba border.Highlights reported included uraniumboulder trains with boulders grading 0.2% to 11.1 % U 3 O 8 and mineralized outcropswith grab samples containing upto 9.5 % U308.Approximately $9.7 M was spentexploring for gold in 2005 (8% <strong>of</strong> thetotal). The only current producer is theSeabee mine, which has produced700,000 ounces since Dec. 1991. ClaudeResources Inc. bulk sampled the PorkyWest zone, located three km north <strong>of</strong>the Seabee mine, and completeddril!ing at Santoy 8 and 8 East. AtSantoy, about 14 km east <strong>of</strong> Seabee,inferred mineral resources <strong>of</strong> 910,000 thave been delineated in the area averaging8.7 glt Au, uncut. Claude is planninga ramp and bulk sampling programin the first quarter <strong>of</strong> 2006.Wescan Goldfields Inc. is takinganother look at the Jasper area north <strong>of</strong>La Ronge. Cameco’s Jasper mine operatedin 1990 and 1991, mining nearsurfaceore and producing 155,000 tgrading 0.54 glt Au. The ore was processedat the nearby Star Lake mill, producing83,700 oz gold.Golden Band Resources holds aland package <strong>of</strong> more than 73,000 hawithin the La Ronge gold belt. Thisincludes seven known gold deposits,four former producing mines and alicensed mill. Recently, the companyhas concentrated on the Waddy Lakearea (particularly Tower East andMemorial) and the Bingo deposit,where an exploration decline helpeddefine the deposit.Diamond exploration accounted for$37.36 M, about 32% <strong>of</strong> total explorationexpenditures. Claims have doubledfrom 2,012, totaling 710,000 ha inDecember 2003, to 3,416 dispositions,totaling 1.4 M ha in November 2005. Inthe Fort a la Corne area, De BeersCanada and Shore Gold are the mainplayers. Shore in particular has recoveredover 35,000 t kimberlite from itsStar underground test mine, containing5,188 carats worth an estimated $135per carat. Shore Gold has merged withKensington Resources, a 42.25% partnerwith De Beers in the Fort a la Corne(FALC) kimberlites adjacent to Shore’sStar property. Shore also negotiated anagreement with minority partnerCameco, giving it an effective 58% votingmajority on all properties in the area.Great Western Diamonds Corp. hasdefined two large kimberlite pipes containingdiamonds in the Candle Lakearea. The Candle Lake project is 110 kmnortheast <strong>of</strong> Prince Albert, and north <strong>of</strong>Smeaton.CONTIGUOUSUNITED STATESRegional Correspondent:Roger C. Steininger (SEG 1978)Consulting Geologist3401 San Mateo Ave.Reno, NV 89509Tel. 1.775.323.7775 Fax 1.775.323.1134E-mail: audoctor@aol.comARIZONAAmerican Bonanza released resourceestimates for the Copperstone depositin La Paz County. The measured andindicated resource is 1.07 Mt (Mt) at0.313 opt Au with an additionalinferred resource <strong>of</strong> about 200,000 t at0.317 opt Au. This higher grade core iswithin a broader resource <strong>of</strong> about 3 Mtwith an average grade <strong>of</strong> 0.16 opt Au.Phelps Dodge is moving ahead withdevelopment <strong>of</strong> the Stafford coppermine in Graham County. This is thefirst totally new major copper mine tobe opened in the United States in morethan three decades.Quincy Resources completed adrilling program at their uraniumbearingRose breccia pipe in CoconinoCounty. Two mineralized zones wereencountered; one 49.5-ft interval averages0.14% eU 3 O 8 and a second 10-ftinterval averages 0.065% eU 3 O 8 . Thesezones are 1400–1450 and 1756–1766 ftdown the drill hole.Augusta Resources completed alarge drilling program at the Rosemontcopper-molybdenum deposit (PimaCounty) to improve the resource estimate.As a result, the deposit containsa measured and indicated resource <strong>of</strong>442 Mt <strong>of</strong> 0.51% Cu and 0.015% Mo,with an additional inferred resource <strong>of</strong>145 Mt <strong>of</strong> 0.45% Cu and 0.015% Mo, allat a 0.20% Cu cut<strong>of</strong>f.Quadra Mining acquired theCarlota oxide copper deposit (GilaCounty) and plans to develop a SX-EWoperation that will produce about 66Mlb <strong>of</strong> copper per year for 11 years.CALIFORNIACanyon Resources drilled 18 reservecirculation and one core hole at Briggs(Inyo County) with the intent <strong>of</strong> definingsufficient mineralization to restartthe mine. This drilling was around themargins <strong>of</strong> the Briggs mine and betweenBriggs and the Goldtooth mine. Several10- to 15-ft intervals <strong>of</strong> 0.2X opt Au andwider intervals <strong>of</strong> 0.0X opt Au were encounteredand supplied sufficient encouragementto plan additional drilling.MONTANAMining operations were suspended inOctober 2005 at Montana Tunnels(Jefferson County) and a notice <strong>of</strong> lay<strong>of</strong>fwas recently given to all employees.This sounds like the end <strong>of</strong> the line forMontana Tunnels.United Balero started development<strong>of</strong> two molybdenum properties. Miningis moving forward at Bald Butte (Lewisand Clark County) and ore will beshipped to a 1,000 tpd mill in Phillipsburgh.The historic resource is about131 Mt with an average grade <strong>of</strong>0.077% Mo. Permitting is also underwayat the Cannivan Gulch (BeaverheadCounty) molybdenum depositwhich has a resource <strong>of</strong> about 300 Mtwith an average grade <strong>of</strong> 0.100% MoS 2 .Of particular interest is a higher gradezone within the deposit that might be <strong>of</strong>more economic interest.NEVADANevada claim filings increased 14.4% in2005 over 2004, and 2004 was up24.9% over 2003. Unfortunately, thereis no way to track the number <strong>of</strong> claimsthat are re-papered every 90 days toavoid the filing fees. At least that part<strong>of</strong> the industry uses a lot <strong>of</strong> paper whichhelps keep the loggers busy.Is Rob McEwen, ex-Goldcorp, intenton buying Nevada? Initially heinvested several million dollars to buycontrolling interest, or at least significantstakes, in U.S. Gold, White KnightResources, Coral Gold Resources,Nevada Pacific Gold, and ToneResources. The next move was to <strong>of</strong>ferslightly north <strong>of</strong> $250 M to buy each <strong>of</strong>these companies. McEwen stated goal isto form the “premier exploration company”in Nevada, or maybe he just likesliving along the Battle Mountain-Eureka Trend?White Knightto pagecontinues to report32 ...EXPLORATION REVIEWS