Exploration update

Preston Lake Project Geophysical Survey

In late May 2013 a 2000 line-kilometer airborne geophysics survey began on the Preston Lake Project.  This survey employs two types of detectors:

Utilizing the two different types of airborne geophysics will assist in locating areas that have anomalous electromagnetic conductive qualities associated with anomalous radioactivity.

Ground-based follow-up with more intense geophysical surveys over areas having these qualities will help to accurately delineate conductive structures hosted in the basement rocks that may contain uranium mineralization.

At the nearby Patterson Lake South discovery controlled by Alpha Minerals and Fission Energy, the VTEM plus system has been used successfully to the locate basement conductors while a tight-spaced radiometric survey located uranium boulder trains and in-situ uranium mineralization.

The Preston Lake geophysical survey will target two areas of the Athabasca Nuclear Preston Lake property (click here for a map outlining the Preston Lake claims):

The Preston Lake South block is contiguous with Fission Energy Corp. and NexGen Energy Ltd. and the survey will cover a large area of partially exposed pre-Cambrian shield rocks.  An initial review of historic exploration data on this block has identified a number of potential areas for follow up. One high-priority area has clusters of anomalous uranium in lake-sediment samples, anomalous uranium values in rock samples (up to 5.6 ppm), and the presence of kilometer-scale Northeast – Southwest trending graphitic faults associated with sulphides and anomalous radioactivity as identified with scintillometers.

The Preston Lake West block will provide coverage of claims that are contiguous with claims controlled by Lakeland Resources, SkyHarbour Resources, Aldrin Resources, Forum Uranium and Canadian International Minerals Inc. The claims are underlain by Phanerozoic rocks (limestone and sandstone), similar to the Patterson Lake area. At the Fission/Alpha Discovery, it is interpreted that the uranium has been mobilized along the fault zones and has been concentrated in the sandstone under the limestone.  A review of historic data collected has identified a significant uranium-in-lake sediment anomaly in the western part of the claim block. A sample collected by the Geological Survey of Canada returned a value of 5.4 ppm U, considered to be significant in an area with a background uranium value of 1 ppm. This high U value may indicate either the down-ice glacial transport of uranium boulders from source or an in-situ source of uranium. For comparison, the highest value down-ice from the Patterson Lake South Discovery is 3.2 ppm.

Athabasca Nuclear will be receiving daily updates from the contractor as the survey progresses including preliminary digital data. It is anticipated that the final data sets, including interpretation, will be received near the end of July and will form the basis for ground-based follow up.

Plan of Arrangement

In December 2011, Athabasca Nuclear Corp. (formerly Yellowjacket Resources) was created by way of plan of arrangement and spun-off from Eagle Plains Resources on a one for three share basis to the shareholders.  The spin-off was conducted with several objectives in mind:

As a result of the Plan of Arrangement, Eagle Plains Resources transferred to Athabasca Nuclear:

- $600,000 for working capital

- $1,286,684 of investment assets

- $773,100 of property and equipment relating to the Yellowjacket property

- a reclamation bond valued at $150,000

Eagle Plains retained 15% of the outstanding shares of Athabasca Nuclear Corp. at the time of the Plan of Arrangement.

Click to view the Athabasca Nuclear (formerly Yellowjacket Resources) Plan of Arrangement Information Circular - 17mb

Updated June 4, 2013