Homeland Uranium executive on Niger’s uranium potential

William Cronk, Homeland Uranium’s exploration manager for West Africa, likes what he sees in Niger. There are many attractive aspects to uranium exploration there, and, following the end of the Touareg rebellion, the political climate has stabilized

“They received us with open arms,” Cronk says about the government. Homeland signed an agreement regulating exploration on its permits, which cover 3,750 sq. km, and it’s obvious to him that the government has put a lot of thought into the agreement.

According to the agreement, Homeland has to relinquish half the area of its concessions after three years of exploration, but the government has extended the period because of delays owing to the rebellion.

Cronk says that the company’s properties are accessible by truck and are “very prospective.” Most of the uranium finds by Areva (ARVCF-O) occur near the Arlit fault in the Tim Mersoi basin, but as exploration moves away from the fault, the mineralization model changes.

Cronk says that the source of the uranium is the Air massif to the east. The metal is carried by groundwater in oxidizing conditions. The water hits river channels in the Tim Mersoi basin, and if the channels have carbonaceous material, uranium compounds are reduced, and uranium precipitates on sandstone.

The resulting mineralization style is mineralized channels in sandstone. The Arlit (or Somair) and Akouta (or Cominak) deposits are 20-50 metre wide channels, 1-4 metres thick, and 6-7 km long.

Sandstone formations include Tarat and Guezouman, which are Upper Carboniferous, and Madouela (not to be confused with GoviEx’s Madouela uranium project), which is Upper Permian.

Homeland has two projects in Niger: Agelal and Asekra. Agelal borders Arlit mine, and is located on the other side of the Arlit fault. Asekra is made up of four concessions, 50-100 km south of Arlit. It is 40 km from Areva’s huge Imouraren mine, on the other side of the Arlit fault.

The setting at Asekra is Cretaceous rather than Permian, and Homeland is looking for mineralized river channels in the Tchirezerine 2 formation.

Mineralization in the Tim Mersoi basin is 70-400 metres below surface, and Homeland’s exploration campaign is using geophysics, geochemistry and geology to identify drill targets. The company is also using radon gas sampling, airborne radiometrics, ground radiometrics, ground scintillometer and mobile metal ion (MMI) geochemistry. What Cronk is looking for are coincident indicators pointing to a possible deposit.

Ultimately, the explorer must drill in order to discover blind deposits. “In Niger, you must grid-drill,” Cronk says, pointing out that all the uranium deposits discovered to date were grid-drilled. Homeland has drilled 6,000 metres so far, and would like to drill another 20,000 metres.

Cronk says that exploring in Niger is challenging. Costs are high, with drilling costing as much as US$200 per metre all in (including geophysics, geochemistry and all ancillary charges.) Cronk believes that Homeland is the busiest grassroots explorer in the country. The current economic crisis could present an opportunity for the company to consolidate projects from other explorers.

One advantage that Homeland enjoys is well-trained staff, 30-strong, from the Touareg tribe. The company has a social responsibility program, which includes rehabilitating water wells for the benefit of residents.

A new source of political instability was introduced by president Mamadou Tandja, who is planning a referendum to change the constitution to allow him to serve for a third term. Tandja has dissolved parliament, which is opposed to the change. There are reports of protests against the president’s move.

But Cronk still thinks that Niger is an attractive target for uranium exploration. He points out that all the known deposits have been discovered before 1967. “What has been discovered to date is just the tip of the iceberg,” he says.

The company is committed to the Tim Mersoi basin, which is under-explored. Niger could become the number one country in known resources, Cronk says. It’s untapped, and less than 10% of the area has been explored. There could be more resources away from the Arlit fault.

“This is truly a uranium frontier,” Cronk says. And the country is prospective for other resources too, including oil, gas, coal, iron, silver, tin, gold copper and nickel. He points out that China has signed an exclusive contract to explore for oil and gas.

At present, Homeland Uranium is a private company. It has filed a prospectus to list on the TSX. The company’s biggest shareholder is Homeland Energy (HEG-T).