Douglas River

The Company owns 100% interests in three mineral dispositions,covering HREE-enriched mineralization, in the Douglas River area of Saskatchewan, 420 kilometers northwest of La Ronge, SK.

In September 2009, the company carried out a helicopter assisted prospecting and MMI (mobile metal ion) geochemical sampling program. During this program, the Beatty River Trench (sampled by SMDC in 1985) was re-located, cleaned out and re-sampled. The program was successful in confirming the historic assays of mineralization in the trench, with values as high as 8.75% TREO including Dysprosium assayed at 1.15%.

During the second quarter of 2010 the Company carried out an exploration program that included, geological mapping, quaternary geology, till sampling, soil and bio-geochemical sampling. This program identified several target anomalies as well as a new surface showing.

In the third quarter of 2010, a drilling and trenching program was completed on the property to test these anomalies. This work included:

• Blasting, excavating and sampling five new trenches. A total of 109 chip samples were taken and submitted to the Saskatchewan Research Council, in Saskatoon, for assay.
• 14 drill holes totaling 1,002.6 m tested the surface showings and geochemical anomalies. Samples from these drill holes (323 samples) were submitted to the Saskatchewan Research Council for analysis. 
• 35 mini-drill holes, using a packsack drill, were completed to test near surface mineralization on the property.

Details of the results of the 2010 work can be seen in the news release dated June 16, 2011. In summary, a new showing called the Helipad showing was discovered. Two trenches tested this showing and sampling gave grades of up to 2.31 per cent TREO over 1.0 m in width and 3.0 m in depth, of which 99 per cent are HREO. Three trenches tested the extensions of the Marline showing mineralization to the north and south. No mineralization was identified to the north but REE mineralization was encountered in the trench five m south of the original trench. This trench had values of up to 1.14 per cent TREO over 1.2 m in width and 3.0 m in depth, of which 96 per cent are HREE. The rare earth values, and the high heavy-rare-earth component, are related to the mineral xenotime.

The geochemical surveys were focused on the southern third of the Beatty claim. The till sampling identified a dispersion train with a source to the east and up from the Marline showing. The biogeochemical surveys identified eight areas anomalous in REE and other elements while the soil survey identified seven areas anomalously enriched in REE, of which five were coincident with the biogeochemical anomalies.

The core drilling tested the Marline showings, the Helipad showings and four of the geochemical anomalies. The drill holes failed to encounter any significant REE mineralization. The mini-drill holes, while failing to demonstrate continuity of mineralization, did produce some significant intersections, including 2.00% REO over 0.65 metres with 1.46% yttrium oxide and 0.22% dysprosium oxide.

The 2011 exploration program was carried out in May and June. During this time several sampling and prospecting programs were run concurrently. The bulk of the exploration activities focused on the Beatty River property, due to the success of last year’s prospecting program, but 3 days were also spent at Douglas River following up on some anomalous results of last year’s orientation surveys.

At Beatty River, biogeochemical sampling was extended to cover the entire claim block, with a sample spacing of 50m on lines spaced 100m apart. In total 1226 soil samples and 1630 biogeochemical samples were collected as part of this large scale survey. A smaller, more detailed biogeochemical survey was completed over the area of known mineralization to try and refine the anomalous area detected in 2010. As part of this small survey 93 Jack Pine samples were collected.

Also completed on the Beatty River claims was additional till and MMI sampling. The additional till sampling consisted of 63 tills which now cover the northern and western parts of the project area. The additional MMI sampling was completed to allow for a more complete comparison between the MMI and biogeochemical results of 2010.

A mini-drill program, totaling 18 holes was completed at Beatty River. The majority of the mini-drilling tested for continuation of the mineralization along strike from the trenches. A minor number of these holes test other targets, such as testing for the presence of shallow mineralization in the vicinity of the 2010 diamond drill holes which may have been lost while placing the casing. Results of the 2011 program are pending.