JNR and Altius stake claims in Newfoundland

In one of the largest staking campaigns for uranium ever undertaken in eastern Canada, JNR Resources (jnn-v, jnrrf-o) has teamed with Altius Minerals (ALS-T, ATUSF-O) to stake more than 10,500 claims across nearly 2,650 sq. km of central Newfoundland.

The new claims cover felsic volcanic and related intrusive rocks of Silurian to Devonian age.

Field investigations have confirmed the prospective geological setting for volcanic-hosted uranium deposits. A review of limited reconnaissance work conducted in 1981 also reveals radiometric anomalies over volcanic rocks that represent exploration targets, the companies say.

“We’ve done our homework and we see ring-like structures from the geophysical data that look like your typical volcanic caldera complexes,” says Irvine Annesley, director of exploration at JNR. “As far as caldera systems are concerned, this area has a large potential.”

Caldera complexes typically range from a couple of kilometres up to 15 km in diameter, Annesley says.

“Calderas can be quite large and extensive, so that’s one of the reasons why you need to stake substantial ground,” he explains. “We’ve identified from the preliminary work that Altius did, at least two and possibly more calderas.”

JNR and Altius will each hold 50% of the venture. In return for generating the project, Altius will retain a 2% gross sales royalty on uranium products and a 2% net smelter return on all other commodities.

JNR has agreed to make an initial 50,000-share payment to Altius and an optional 50,000-share payment in October 2008.

JNR and Altius will conduct geological mapping next summer following a large-scale combined airborne radiometric and magnetic survey to evaluate the claims and to identify new exploration targets.

“We think there’s potential there that has not been addressed or looked at since the early 1980s when the price of uranium dropped and a lot of the activity ceased,” Annesley says. “We thought now is the time to look at alternative areas with new and improved exploration techniques.”

Volcanic-hosted uranium deposits are a significant source of high-tonnage, low-grade uranium, examples of which include the 280,000-tonne uranium Streltsovka caldera, Russia’s largest uranium resource.

In Toronto, shares of Altius were trading close to $24 per share at presstime. Shares of JNR hovered around $2.60.