Triex Minerals Corporation - Athabasca Basin

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Athabasca Basin

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The Athabasca Basin produces 100% of Canada 's uranium, and is the prominent global supplier, accounting for about one third of western world's primary production. Rabbit Lake was discovered in 1968 and went into production in 1975, ushering in a new era high grade uranium deposits. Since that time, more than 600,000 tonnes of uranium have been produced from seven different operations.

The 24% U308 grade at McArthur River mine is more than 100 times the global average grade of 0.15% U308 for uranium deposits. At current metal prices, McArthur River has a contained metal value in excess of seventeen billion dollars, and is equivalent to a 36 ounze gold deposit (Cameco Corporation, CIM 2006 Field Conference, Saskatoon ). Athabasca Basin grades generated production in 2001 and 2002 that surpassed all 29 years of production from 16 different mines at the historic Beaverlodge District ( Uranium City ), which opened in 1955.

Current production is from three operations, McArthur River Mine / Key Lake mill complex, Eagle Point Mine / Rabbit Lake Mill complex, and from stockpiled ore at McClean Lake . McArhur River is the worlds largest high grade mine. It accounts for some 20% of primary western world production at 18Mlbs U308 per year, and has a mine-life in excess of 20 years. Future planned mine openings in the Athabasca Basin include Midwest Lake, Cigar Lake, and the Sue E deposit at McClean Lake. Advanced stage exploration projects at possible future mines include Millennium and Shea Creek.

Uranium deposits are hosted within the 1.7 Ga, late Paleoproterozoic Athabasca Group, a sandstone-dominated post-tectonic assemblage. The preserved total thickness is about 1500 m, with an additional 2500 m of siltstones and carbonates evident in the southwestern part of the basin. In the eastern part of the basin where all but one of the major uranium deposits occur, the Athabasca Group unconformably overlies 1.9 Ga, mostly high grade paragneiss assemblages of the Paleoproterozoic Wollaston Group.

All deposits are structurally controlled, and the unconformity is a regional focus for uranium ore. Regional, northeasterly trending structures are key, with ore commonly along re-activated, high-angle reverse faults. There is general consensus that mixing of oxidized supergene fluids and reduced basement fluids plays an important role in metal deposition. The extremely high grades of the deposits are the products of prolonged fluid activity along long-lived structures; numerous hydrothermal events have introduced, remobilized and re-concentrated uranium. Extensive alteration envelopes penetrate both the Athabasca Group and crystalline basement. Regional-scale clay alteration zones of illite are common along the major structures that control ore deposition. Hydrothermal alteration assemblages include chlorite, tourmaline, hematite, silica and dolomite.

The Athabasca Basin will continue to be the premier target in the world for high-grade, low-cost unconformity-type uranium deposits (Thomas, D.J., Matthews, R.B., and Sopuck, V.J., 2000). By the end of 2006, virtually the entire basin is staked or permitted. Close to 100 companies hold nearly 2,000 dispositions which cover approximately 7.5 million hectares. Exploration expenditures were around $75M in 2005 and are projected to be around $100M in 2006; they were just $13M in 2003.