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On April 5, 2005, the Company entered into an option agreement (the "Option Agreement") with Max Resource Corp. (TSX-V-MXR) whereby Max can earn a 50% interest in Alberta Star's MacInnis Lake Uranium Project in Canada's Northwest Territories. Max Resource Corp. can earn its interest by making total cash payments of $30,000 to Alberta Star, incurring exploration expenditures totaling 2 Million dollars over five years and issuing 200,000 common shares, conditional on TSX Venture Exchange acceptance for filing. Alberta Star will be the operator of the project.
During the year ended 30 November 2005, the Company acquired a 100% interest, subject to a 2% NSR, in twelve mineral claims (the "MacInnis Lake Uranium Claims") located in the Nonacho Basin, 275 km southeast of Yellowknife, NT, for cash proceeds of $60,000 (paid) and 300,000 common shares (issued and valued at $70,500) of the Company.
During the year ended 30 November 2005, the Company acquired a 100% interest, subject to a 2% NSR, in three additional mineral claims (the "Kult Claims") for cash payments of $40,000 (paid) and 350,000 common shares (issued and valued at $87,500) of the Company. The MacInnis Lake Property now consists of fifteen mineral claims totalling 10,596.35 ha (26,172.98 acres).
The Company entered into an option agreement dated April 1, 2005, as amended April 11, 2006 with Max Resource, whereby Max Resource can earn an interest, subject to a 2% NSR, in the MacInnis Lake Property.
The terms of the option agreement call for Max Resource to make payments as follows:
- cash payments totalling $30,000 (received);
- the issuance of 200,000 common shares of Max Resource (received);
- work commitments totalling $2,000,000 over a five year period ($750,000 on or before 1 April 2007 ($237,748 incurred); $250,000 thirty months from 1 April 2005; $250,000 on or before by 1 April 2008; $250,000 on or before 1 April 2009 and $500,000 on or before 1 April 2010.
The terms of the option agreement call for Max Resource to earn a 25% interest in the MacInnis Lake Property upon making the payments in i. and ii. above together with the first $1,000,000 in work commitments. Max Resource may earn a further 25% interest when it completes the $2,000,000 in work commitments. Upon full exercise of the option, the parties agree to enter into a joint venture agreement. The Company is the operator of the project for the term of the option agreement.
The Company has halted exploration activities on this property pending resolution of permit issues.
Expenditures related to the MacInnis Lake Property for the six month period ended 31 May 2007 consist of claim maintenance and permitting of $2,386 (31 May 2006 $Nil), geology and engineering of $82 (31 May 2006 $Nil), wages, consulting and management fees of $675 (31 May 2006 $Nil) and recovery of mineral property costs of $5,792 (31 May 2006 $15,000).
Location
The MacInnis Lake uranium claim block is comprised of 26,185 acres and is located in the Nonacho Basin 150 km northeast of Fort Smith, and 275 km southeast of the city of Yellowknife, Northwest Territories.
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Geology Map |
The MacInnis Lake area is known to have widespread surface uranium mineralization, and contains 28 known high grade uranium showings that were discovered between 1954 and 1988 (Geological Survey of Canada). Uranium exploration on the MacInnis Lake properties has been quite extensive and was commenced in 1954 with the discovery of large uranium outcrops and widespread surface uranium mineralization. Uranium exploration continued extensively until 1988 and involved companies such as Cominco, Shell, PNC, and Uranerz. The MacInnis Lake area is situated in the Nonacho Group and is recognized as an Unconformity Type Uranium deposit area. The MacInnis Lake area is situated 280km north of Saskatchewan's Athabasca Uranium Basin, and is considered one of the Northwest Territories most prospective uranium bearing regions.
It hosts three main types of Uranium occurrences, with all of the information listed below being derived from exploration data filed with the Northwest Territories Geosciences Office in the late 1970's and 80's:
- Unconformity Type of Uranium occurrence with base, precious, and rare earth potential. Some of the drill indicated deposits that have been found on the property include:
- the Dussault, which has 27,000 tons of 0.17% U308 (the occurrence appears to be open down dip and along strike) and values of 0.84% U308 were intersected over 2 feet.;
- the Ace, with a reported 30,000 to 50,000 tons of ore grade material;
- the Cole showing that has samples that assayed 6.58% U308 and 0.123 ounce per ton gold; and
- the Kult, which has assays that returned up to 7% Copper and 3.4% U308
This type of deposit is typical of an Athabasca Basin type occurrence. The Athabasca Basin is the location of the major Uranium mines in Canada. The Basin itself is an oval-shaped deposit of sandstone, elongated east-west, which sits atop older "basement" rocks. The sandstone layer is shaped like a bowl - thicker in the center (over 1,000 meters), tapering to less than 100 meters thickness at the edges. Uranium deposits are, for the most part, located at or near the contact between the sandstone and basement rocks (called the "unconformity"), and thus historical exploration has focused on the edges of the Basin where the thin sandstone makes it easy to get at this mineralized zone. Geologists involved believe this is because of linear structures present in the basement rock here, called "shear zones", similar to faults, which run northeast-southwest underneath the Basin. The shear zones do several important things; including providing a track for uranium-rich fluids to flow along and creating empty space within the ground where uranium can be deposited. Many shear zones also contain abundant graphite (carbon), which causes uranium to fall out of solution and form significant deposits. These structures seem to have played a major role in making the Athabasca Basin's eastern rim ores more heavily mineralized than deposits discovered so far in other sections.
- Vein/Shear Fractures that have returned assays up to 0.28% U308.
- Paleoplacer Polymetallic type that are found in 6 areas on the property.
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