Under the terms of the option, Troymet will (i) pay the optionor $5,000 on signing (paid) and on each anniversary date while the option is valid and in good standing; (ii) pay 2% of all exploration expenditures to the optionor until a production decision is reached; and (iii) maintain the leases in good standing (~$27,700/year). The optionor will receive a 2% gross royalty on any production from the project properties. One half (1/2) of 1% of the royalty can be purchased for $1 million at any time; one-third of the remaining royalty (1/2 of 1%) can be purchased for an additional $2 million at any time.
The project area includes five properties prospective for high-grade uranium and rare earth mineralization as identified by uraniferous boulder trains, anomalous rock geochemistry and anomalous lake sediment geochemistry. The uranium mineralization is similar to the high-grade "unconformity-type" mineralization currently being mined in the Athabasca area of Saskatchewan and the Kombolgie area of Australia. The project area straddles the Thelon Basin sandstone and underlying Amer Group metasediments which has a similar geological environment and is analogous to the prolific Athabasca Uranium District in Saskatchewan.
Extensive regional and detailed exploration work was carried out by Westmin Resources Ltd. (Westmin) during the period 1977-1983 and subsequently by Cameco Corporation (Cameco; 1993-1998) and Titan Uranium Inc. (Titan; 2006-present). This work included regional geological mapping, prospecting, airborne radiometric, magnetic and electromagnetic surveying, lake sediment geochemical sampling and boulder prospecting and sampling. Detailed surveys undertaken included ground geophysics, geochemistry, track-etch and scintillometer prospecting. Preliminary diamond drilling was also conducted in some areas. Exploration expenditures by Westmin and Cameco are estimated to have exceeded $8 million. The regional and detailed work completed by these two companies has defined multiple anomalous zones delineated by structure, alteration and geochemistry.
Exploration in the Thelon Basin is at a much less developed stage than either the Athabasca or Kombolgie Basins despite their geological similarities. To date the most significant prospect in the Thelon Basin is the Kiggavik property, where AREVA has defined 134,000,000 lb. of U308. The Kiggavik project is at the pre-development feasibility stage. A second unconformity-type uranium-gold deposit was discovered in 1983 at Boomerang Lake in the southwest portion of the basin, but to date no resource has been defined.
The Thelon project contains a number of highly attractive uranium drill targets; however,
Troymet is primarily interested in the project for its rare earth metals potential, which has not been evaluated by previous operators. The REE at Thelon are associated with fluorapatite and phosphatic sandstone + uranium. Troymet analyzed six float samples from two of the five target areas at the ALS Minerals' Vancouver laboratory, confirming the presence of a full range of light and heavy REE in the samples tested.
The Thelon project is a strategic acquisition given the current REE market and supply situation. Troymet is seeking a partner to fund its exploration and development.
The technical information contained within this website has been reviewed and approved by Vice-President Exploration, Tracy Hurley, PGeo, a qualified person as defined by NI 43-101.
Maps & Photos
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