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|   | |  NW Athabasca Option The Company has entered into an option agreement with Cameco Corporation whereby the Company and Mega Uranium Ltd. may jointly earn a 60% interest in the 98 square kilometer North West Athabasca project, including the historical 1.5 million pound Maurice Bay uranium deposit in the Western Athabasca Basin. The Maurice Bay deposit contains a historical resource of 1.5 million pounds uranium grading 0.6% U3O8 to a depth of 50 metres*. (Saskatchewan Industry and Resources, Miscellaneous Report 2003-7). Limited drilling at Zone 2A, with grades of up to 5.68% over 8.5 metres, demonstrates the potential for further high grade deposits. Numerous shallow targets for basement and sandstone-hosted unconformity style mineralization are under-explored or untested and are amenable to open pit mining. The Company and Mega plan to test and expand the potential of the known mineralization and to locate new deposits using the latest in exploration techniques on a project that has seen most of its work in the late 70's and early 80's. Gravity surveys were completed during the winter of 2011 in five high priority areas totalling approximately 2,500 gravity stations. A number of high priority gravity targets have been identified for drilling. A prospecting, mapping and core re-logging program was conducted during September of 2011. In February and March of 2012, Forum Uranium Corp. completed a winter program, starting in late January and ran until early April. The planned 4,000 metres was never reached due to drill equipment problems and a warm winter. The gravity crew completed their survey from late February to mid-March, completing 4,205 stations and developing seven new gravity targets. A total of 22 holes for 3,011 metres were completed. Single holes were drilled on Barney, Barney South and Maurice Bay South while waiting for the road to firm up enough to access the Zone 2A and Opie areas. Barney and Maurice Bay South both showed promise: large sections of breccia development, protomylonites, bleaching and local hydrothermal hematite which will require follow-up holes during the next drill program. Barney South was the only drill hole of the program that did not intersect alteration. Seven holes were completed north of Zone 2A, looking for possible extension of the mineralization intersected in historical hole Z2A-12. All the holes intersected protomylonites to mylonites (evidence of an old structure) with local brecciation (evidence of a recently activated structure), local to widespread bleaching and local hydrothermal alteration. These are all positive features for potential uranium mineralization and further work is strongly recommended. The drill moved to the Opie Zone and completed holes NWA-21 to 29. NWA-21 started on the NW border of the gravity anomaly, NWA-22 was located 75m closer to the centre, and NWA-23 was located near the centre of the gravity low. Alteration increased dramatically with each hole and dravite clays were intersected in the sandstones of NWA-23, along with weak mineralization in the basement. NWA-24 was located about 35m south of NWA-23. It intersected a hydrothermal hematized section with weak to moderate mineralization from 62 to 80m down the hole. Uranium occurred in clay rich fractures and locally as pitchblende and minor gummite within the foliation. A maximum of 3811cps was noted on core with a scintillometer at 78 metres depth. Drillholes NWA-25 to 29 were drilled in a 25 x 25m grid pattern and indicated that the mineralization was striking N070 and dipping at 60 to the south. The mineralization appears to be part of a pinch and swell structure, controlled by the intersection of a major NNW trending structure (mylonites, foliation and reactivated breccias), and the N070 structure that hosts the mineralization. On-strike extensions of the mineralization and possible parallel zones will be sought after in the next drill campaign. Forum is very pleased with the rapid discovery of a new mineralized zone by using the latest in gravity techniques. Success was also brought on by searching for a sub-model of the unconformity uranium deposit (basement-hosted, such as Millennium, Roughrider, P-Patch and Sue C) in an area previously only explored for sandstone/unconformity hosted mineralization. Future drill programs will continue to investigate the numerous gravity anomalies currently identified, with fifteen of the anomalies untouched by previous drilling. The potential for further mineralization on this project remains high. Cameco owns an 87.5% participating interest and Areva a 12.5% participating interest in the NW Athabasca project. The Company and Mega may jointly earn a 60% interest in Cameco's interest in the property by committing to $750,000 in exploration within 15 months of the closing date, and incurring additional optional expenditures of $250,000 by the second anniversary of the agreement and a further $3 million on or before the fourth anniversary of the agreement for a total expenditure of $4 million. In addition, Forum and Mega must make option payments of $60,000 upon closing, $80,000 by the first anniversary, $110,000 by the second anniversary and $150,000 by the third anniversary for a total of $400,000 in cash option payments. NWA Geology | | |
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