Making Headway

Struggling to survive is nothing new for junior mining companies but to come through the past 12 months during one of the toughest times in mining history is a milestone in its own right.

As headlines across Canada have spelled out, mining companies both large and small have been devastated by the recent recession and in many cases, the tough economic times of recent months have resulted in the end of the tunnel for many operations.

As usual, however, there are always exceptions and Waseco Resources Inc of Toronto is one of them as it continues to beat the odds by pushing ahead to explore its 330 square kilometers of uranium properties in the Quebec Labrador Trough.

Since staking claim in 2005 to four properties located about 150 km from Schefferville and Kuujjuak, Waseco has spent $2 million in exploration and according to company President Richard Williams, another $1 million will be spent this year primarily on detailed mapping and on drilling at its Du Portage site, also known as Blocks I and II.

To help finance this work, Waseco has received exploration funding from AREVA, the largest fully integrated nuclear company in the world, and through this technical and financial support, it has been able to continue working its claims where many juniors have not. In fa ct, Williams says it has enough cash in the bank right now to continue work for the next three to four years.

The favourable tax treatment accorded by the province of Quebec has also resulted in cash refunds to help offset some exploration costs for many companies.

Williams said the Du Portage project consists of zones indentified by radiometric survey extending up to 4 km, with widths of 500 m to 1 km, with the smallest being 800 m by 400 m in size. Several of the areas also have potential for iron formation hosted gold and copper as well as uranium.

“There are 94 claims in Block I alone with uraniferous mineralization dissemi- nated throughout the interior of calcareous strata. One historical sample reported 2.16% Uranium with 4.5 g/t silver while another reported copper disseminated and in veins 955 m long by 1.3 m wide by 45 m.”

Further discoveries are expected as Williams explained that field work is still being conducted by 10 teams of geologists accompanied by technicians or students over the entire property. There are currently 45 people in the field.

This past summer, Williams said that diamond drilling focussed on one section of the property where one of three extensive airborne radiometric zones had been identified. The target areas, based on the airborne geophysical data, included a detailed electromagnetic (VTEM) survey and grab samples assayed, which included five samples that assayed at the maximum reading of the equipment for uranium, at better than 1000ppm.

With indicators like these, it’s no wonder that Waseco is encouraged by the prospects for the future. Further endorsement of the company’s uranium exploration programs came from Loic Garnier, AREVA Quebec’s Exploration Director when he said: “The assay results confirm the classic association of chemical elements showing both a hydrothermal process that facilitated the mobilization of uranium and the geochemical environment that is favour-able for the uranium concentration.”

In other words, Waseco’s uranium properties in Quebec’s Labrador Trough serves as one more example of the rewards that are to be found by companies with foresight, determination, and skilled people financially backed by supporters who believe in the exploration and development of Canada’s vast resources.

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Sample Results

Block I: Copper disseminated and in veins. Mineralization955mlong x1.3m wide x 45 m. Drilled intersections 3.71% Cu over 1.8 m; 0.07% U over 1.2 m.

Block II: Vein of chalcopyrite containing grabs of 51.4% Cu, 1.25g/t Au, 10.62g/t Ag and drill core of 0.96% Cu over 3.37m. Vein of chalcopyrite containing sample results: Grabs: 7.05% Cu, 5.62g/t Ag, Trench: 3.5% Cu over 0.7 m.

Block III: Total of 24 claims, located 130 kmN. E. ofBlockI Grabs:1.26%U308, 0.42% U308, 0.42% U308, 0.13% U308 and Caribous showing area: Minerialization showing 50 m long and 25 m wide.

Block IV: Total of 24 claims, situated 110 west of Block I. Chemical analyses Green Wacke 0.277% U308, 0.124% U308, Fractured Granite 0.445% U308, 0.2010% U308, Altered Granite 0.308% U308.