Nyah discovers new zones at Agnew Lake North

Having completed a 3,500-metre, 11-hole drill program on its 100%- owned Agnew Lake North uranium project, about 40 km west of Sudbury, Ont., Nyah Resources (NRU-v) has concluded that favourable geology continues to a distance of 560 metres west of the known deposit. At that point, radiometric readings are 3,700 counts per second. Drill results are consistent with historic resource estimates.

The drilling tested the mineralized zone to a depth of 212 metres and intersected mineralized quartz pebble conglomerate in eight holes. Although the last two drill holes to the west (holes 28 and 29) intersected poor mineralization, Nyah believes that the mineralized zone continues westward, but trends to the south of these two holes. The area cannot be tested at present because of poor ground conditions. Samples are being analyzed, and results, including grades for both uranium and rare earths, are expected in October.

The 16-sq.-km Agnew Lake North project encompasses the past-producing Agnew Lake uranium mine. The mine, operated by Kerr-Addison Mines between 1977 and 1983, produced about 1.9 million lbs. uranium oxide from a combination of surface and in situ leaching. The mine has a six-compartment, 980-metre shaft with development on several levels, and a decline to the 580-metre level. Kerr-Addison discovered five mineralized zones, of which two were developed.

In addition to the past-producing uranium mine, the property covers about 6 km of favourable geology, which could be prospective for uranium-mineralized horizons. At Agnew Lake, the uranium/rare earth mineralization is contained within a pyritic quartz-pebble conglomerate that unconformably overlies granitic rocks and is similar to mineralization in the Elliot Lake area to the west.

A 1979 historic proven and probable reserve estimate came to 5.4 million tons grading 1.9 lbs. uranium oxide per ton, equivalent to 10.3 million lbs. uranium oxide. Since mining continued for four years after the estimate was calculated, some of the historic reserves have been mined.

Another historic proven and probable reserve estimate, from 1983, after the end of mine operations, put reserves at 5.8 million tons grading 1.04 lbs. uranium oxide per ton, equivalent to 6 million lbs. uranium oxide.

Nyah also owns 100% of two other uranium exploration projects: Agnew Lake South, and Quirke North.

The 6.5-sq.-km Agnew Lake South project, south of the Agnew Lake mine, occurs along the south limb of the Agnew Lake syncline, where the geology is similar. The property lies along strike of several historical showings, the nearest occurring within 300 metres of the property boundary in basal Huronian conglomerates. Nyah believes this quartz pebble conglomerate unit, which hosts mineralization, extends through the property. At least one uranium showing has been identified on the property.

Nyah has identified historic showings on Agnew Lake South, with preliminary results from radiometric assays indicating up to 12,000 counts per second on surface. The company has also completed 62 line-km of ground geophysics at the Agnew Lake North and South properties, establishing geophysical targets on strike with known mineralization and historic showings.

Continuing stepout drilling to the west, more suited to winter drilling, is anticipated for Agnew Lake North, as well as initial drilling to test targets on the Agnew Lake South property. Metallurgical testing to determine the recoverability of the uranium and rare earths is being planned for Agnew North.

Nyah’s 15-sq.-km Quirke North property is located north of the past-producing Quirke Lake mine, near Elliot Lake, Ont. Quirke Lake produced around 44 million lbs. of uranium oxide grading typically 0.11% uranium oxide (equivalent to 2.12 lbs. uranium oxide per ton).

At presstime, the company’s shares traded at 3.5 apiece. Nyah has 69.8 million shares fully diluted and $1.9 million cash.