Altius, Aflease team up

South African gold and uranium junior Aflease has entered into an agreement with Altius Minerals (ALS-V) to acquire and develop uranium properties in Canada.

Under the non-binding and non-exclusive plan, the two companies will share information for at least one year. Aflease will provide technical, operational and financial assistance in developing Altius’s properties. In return, Altius will contribute its exploration expertise and “uranium exploration environments.”

Aflease CEO Neal Froneman says the deal will enable his company to venture outside South Africa. “In particular, we’ll be focusing on Altius’s uranium properties in Canada,” he remarks.

Altius’s uranium assets include an equity interest and royalty in the district-scale Central Mineral Belt of Labrador, where $5 million will be spent on exploration this summer. The company’s partner in Labrador is Fronteer Development Group (frg-t). Previous rock sampling on the targets returned an average of 0.2% U3O8.

About 9,000 metres of diamond drilling are planned for the untested Otter Lake, Jacques Lake, and Michelin East radiometric anomalies, and 3,000 metres will test beneath the historic Michelin deposit, which is open at depth. Drilling will begin in mid-August and may also include the Melody Lake target, time and budget allowing.

The Michelin deposit is home to a historic (pre NI-43-101) resource of 6.4 million tonnes averaging 0.13% U3O8.

The work will be carried out under the banner of a newly formed private company, initially 52%-owned by Fronteer, with Altius holding the remaining 48%. Altius also has a 2% gross uranium sales royalty and a 2% net smelter return royalty on base and precious metals.

The summer program will be partially funded by a $2.5-million private placement in the new company by Fronteer. Altius can also subscribe for $2.5 million worth of shares until Aug. 15; otherwise, Fronteer will fund the entire program, boosting its position in the new company to 57% (and dropping Altius’s to 43%). Altius retains a one-time right to earn back a half-interest if the new company is not taken public by June 17, 2006.

Meanwhile, Altius and JNR Resources (JNN-V) are preparing to drill several uranium targets in the Deer Lake Basin of western Newfoundland in August. The targets comprise three areas of altered and mineralized sandstone boulders grading up to 11.5% U3O8.

After 18 months of development, Aflease is resuming mining this month at its Bonanza gold mine, near Klerksdorp, South Africa.