Pro-Spect-Or to acquire two James Bay uranium properties

Pro-Spect-Or Resources (PSR-V) has signed an agreement to acquire two uranium exploration properties in the James Bay region of Northern Quebec.

The Kauschiskach Lake and the Uskawanis Lake properties have 151 and 248 claims, respectively.

In order to acquire a 100% interest in both properties, Pro-Spect-Or must pay the property holders $400,000 in cash, close a private placement for $1 million at 10 per unit and receive regulatory approval.

The main sellers and a group of investors who financed the claim staking will be issued 9 million shares that will be subject to a four-month hold period, including a 24-month hold period for the main sellers.

The sellers will also receive a 2% net smelter return royalty on all metals except for uranium and a scaling NSR on the sale of uranium should it reach US$40 per lb. U₃O₈, increased by 1/10 of a percent for each dollar above that.

Pro-Spect-Or also must issue 1.2 million shares to Services Conseils Sugarhill Capital for services related to the acquisition.

The 132-sq. km Usakawanis Lake property is 180 km southeast of the town of Radisson and north of the Ruppert-Eastmain volcanic belt in La Grande sub geological area. In 1974 and 1976 the James Bay Development Society conducted large-scale geochemical lake-bottom surveys that showed evidence of uranium.

The average uranium concentration found in the lake sediment samples was 24.2 parts per million while the general background area had a concentration of 3.2 ppm. The highest value discovered on the property was 1,842.2 ppm.

Rocks in the area are mostly granodiorites and pegmatites and may host uranium-bearing minerals not of economic interest, the company reported.

The Kauschiskach Lake property is 100 km northeast of Radisson near the eastern shore of the LG-2 reservoir.

The property is 76 sq. km and just north of La Grande volcanic belt in Bienville sub province. Five lake samples taken in the 1970s showed uranium concentrations that exceeded 150 ppm.

The lithology of the area consists of felsic intrusions including granite, granodiorite, quartzite, monzodiorite, quartzitic diorites and gneissic granites.

Exploration on both properties ended because of low uranium prices.

Pro-Spect-Or plans to do follow-up work that includes a radiometric survey and geological mapping.