Highway

Highlights:

• The Highway Project spans 9,339 hectares across four claims, located 41 km south of Rabbit Lake Mine and 11 km southwest of UEC’s West Bear U and Co-Ni deposits, with Highway 905 providing excellent access
• The property is underlain by Wollaston Supergroup metasedimentary gneisses folded around an Archean felsic gneiss dome and lies near the present-day Athabasca Basin margin, suggesting past sandstone coverage
• Historical exploration (1968-1978) included EM, magnetic, and radiometric surveys, radon sampling, and ground EM surveys, while more recent surveys in 2009, 2011, and 2017 provided limited EM results
• The 2017 survey identified poorly defined EM conductors at “T-Lake” southwest of the property, with historic sampling indicating anomalous U, Th, and REEs along graphitic faults and fracture zones
• A 2011 prospecting sample from a pegmatite-pelitic gneiss boulder on the property returned 3,475 ppm TREE+Y+Sc, highlighting potential for rare earth elements along with uranium mineralization
• Hatchet Uranium Corp. recently optioned an 80% interest in the Highway Project, committing to $1.05M in shares, $245K in cash, and $2.05M in exploration expenditures over three years

Project Summary:

The Highway Project consists of four claims covering 9,339 hectares, approximately 41 km south of the Rabbit Lake Mine and 11 km SW of Uranium Energy Corp.’s (UEC, formerly UEX) West Bear U and Co-Ni Deposits. Highway 905 runs through the property, providing excellent access for exploration and the project is in close proximity to regional infrastructure. Despite its proximity to infrastructure and excellent access, the project is relatively underexplored. The project is underlain by Wollaston Supergroup metasedimentary gneisses (pelitic to psammopelitic and psammitic to meta-arkosic) folded around and overlying an Archean felsic gneiss dome which outcrops in the southwestern portion of the property and cores a northeast trending antiformal fold nose. The Highway Project is located approximately 7 km east of the present-day margin of the Athabasca Basin but is believed to have been covered by Athabasca sandstone in the past. 

The earliest work on the property was completed between 1968-1978 and included airborne EM, magnetic, and radiometric surveys, along with bedrock mapping, prospecting, radon sampling, and ground EM surveying on portions of the property. One single augured drill hole by the SRC and the Saskatchewan Geological Survey was drilled in 1976 as part of a regional sampling survey. The project has also been covered by portions of airborne EM and magnetics surveys in 2009, 2011, and 2017. The 2017 survey failed to identify any EM conductors on the property and only poorly defined historic EM conductors southwest of the property along strike at “T-Lake”, where surface sampling and historic diamond drilling encountered anomalous U, Th, and REEs graphitic faulting, and variably altered fracture zones. The EM conductors at T-Lake are coincident with a northeast-trending magnetic low following the Archean-Wollaston Supergroup contact, which continues onto the Highway property and is folded around the Archean gneiss dome, before continuing off property to the southwest along the northern limb of this fold.  The northern fold limb off property is also associated with EM conductors north of Robertson Lake and by Dorward Bay and with off-conductor uranium and thorium mineralization (≤44,297 ppm UO₂ and ≤195,200 ppm ThO₂) at the “Manhattan Showing” (SMDI 2052). Ground prospecting on the Highway Property in 2011 encountered a pegmatite-pelitic gneiss boulder (SMDI 5531) containing 3475 ppm TREE+Y+Sc, suggesting the Highway Project is prospective for rare earth elements (REE’s) in addition to basement-hosted unconformity-related and/or intrusive-type uranium mineralization.

The Project has recently been optioned by Hatchet Uranium Corp. to an acquire an 80% interest in the Project. Hatchet will issue common shares having aggregate value of CAD $1,050,000, make total cash payments of $245,000, and incur $2,050,000 in exploration expenditures on the Property over a 3 year period.

Highway Project Map:

Terms of the Optioned Property:

The Optioned Property, Highway, consists of four (4) mineral claims comprising approximately 9,339 hectares. Hatchet may acquire an 80% interest in the Optioned Property by (i) issuing common shares in the capital of Hatchet (“Shares”) having an aggregate value of CAD $1,050,000; (ii) making aggregate cash payments of CAD $245,000; and (iii) incurring an aggregate of CAD $2,050,000 in exploration expenditures on the Optioned Property over a three-year period, as follows:

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(1) Deemed pricing of Shares is based on the twenty (20) day volume weighted average price on the stock exchange in which Hatchet shall list its Shares for trading, being either the TSX Venture Exchange or the Canadian Securities Exchange (“Deemed Price”) or the last sale price, if not listed on a stock exchange at the time of issuance

The obligations of Hatchet under the option agreement are subject to the following conditions (i) Hatchet completing a financing for minimum gross proceeds of $1,500,000, (ii) the sale of the of the Genie, Usam and CBX/Shoe Uranium Projects to Hatchet, and (iii) Hatchet having listed the Hatchet Shares on the TSX Venture Exchange or the Canadian Securities Exchange or having sold its interest to or combined with a similarly listed issuer.