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Lakeland Resources (TSX: LK) Focuses on Gibbon’s Creek Uranium Project in Saskatchewan, and Other Projects in the Athabasca Basin in 2015

on 3/16/2015
Lakeland Resources Inc. (TSX: LK), with a focus on uranium exploration in the Athabasca Basin, is currently completing a drilling program at the Gibbon’s Creek project in Saskatchewan. Lakeland has built a strong asset base of uranium properties, upwards of twenty five properties comprising 300,000+ hectares in the Athabasca Basin of northern Saskatchewan

Jon Armes, President and CEO of Lakeland Resources (TSX: LK), updated Metals News on the progress the company is making at the Gibbon’s Creek Uranium project located in mining-friendly Saskatchewan.

Mr. Armes said, “Over the last couple of years, we have been putting together a portfolio of projects that number upwards of twenty five in the Athabasca Basin of northern Saskatchewan. Several of our projects are now at a drill ready stage. What we have been looking for ideally is a turnaround in the uranium spot price that will generate additional interest in the basin from other companies looking for opportunities. We should be on the ready to dole out our projects on a joint venture basis while at the same time looking for a project or two of which we could keep one hundred percent.”



Challenges in the market have slowed the joint venture process a bit. Said Armes, “From a uranium exploration company perspective, we need the investor to be interested and have a positive sentiment. With a depressed spot price, that is what the investors are focused on. They aren’t focused on the long term spot price or the investment producing and selling forward. The market perception doesn’t really understand the two different prices and how the prices on a weekly basis are different commodities. It is a little bit of a grey area for people that don’t follow it closely. From that perspective, we are looking for the market sentiment to change and generate the opportunity for people to want to participate in the market on the exploration side.”



Said Armes, “We are just wrapping up a drill program on our first drill ready project called the Gibbons Creek Property and Neil can highlight why we like that project and how we are delineating our drill targets.” Neil McCallum, a project manager and Director of the company helps to generate the ideas and the projects for the company. Said McCallum, “At Gibbons Creek we have a combination of several layers of exploration data. Frist of all, we completed a resistivity survey in 2013 that suggests alteration in both the sandstone and the basement. A soil radon survey, also in 2013, indicated some very intriguing radon anomalies that indicate that we might be close to a uranium deposit. We have historic drill holes that show small intercepts of uranium at the unconformity. We have boulders that run up to four percent at surface. The combination of recent and historic data is the basis of our drill program.” The company has a lot to be enthusiastic about at Gibbon’s Creek. Mr. McCallum said, “The biggest excitement for us is the boulders on surface. If those are real and come from our property then that is fantastic. We are just chasing them down. The resistivity shows us that with the alteration we are in the right area.”

Another benefit to the Gibbon’s Creek property is that the project is relatively shallow to the basement rock. Mr. McCallum said, “It is shallow. It is only eighty to one hundred meters to the basement which is really good for the Athabasca Basin. It would mean that if we were to make a significant discovery there, we wouldn’t have to go underground for a mining scenario. Drilling is also relatively less expensive with that scenario as well.” Currently the Lakeland team is working their way through a drilling program. McCallum said, “We are midway through a drill program that will probably end up being close to 2500 meters. That will equate to about ten to fifteen holes in total.” Mr.Armes said there is a rush to the lab for several companies in the area. He said, “There is a line at the labs right now, so processing can take four to six weeks.”


Radioactive sst boulder

The communities nearby are also providing support to the project. Said Armes, “The other nice thing about the Gibbons Creek property is the proximity to Stoney Rapids, a small community within 5 kilometres of the drilling. We have access to power, roads, labor and equipment in the immediate vicinity. That saves a lot of money.” The company, despite the challenges in the market, was able to secure additional financing last year that has extended their ability to explore. Mr. Armes said, “For Lakeland last year, we were very fortunate to be able to bring in about $5 million in financing. We came into the new year with a strong financial state and we are able to drill at Gibbons Creek. We are going to do a more formal budget when this drill project is complete and work toward finding new partners to bring in to fund these new projects in our portfolio. This project will be $700,000 to $800,000. That will leave us with about $2.5 million for the rest of the year. We will be busy through the fall.”

What are the biggest challenges that Lakeland is facing in today’s market? Said Armes, “The market itself is really challenging. We don’t have any control over that at all. We have to figure out which projects we want to keep 100% to develop to the production stage. Raising money can be a problem. We have had the ability to fund ourselves during difficult times and investors see that as a strength. The projects that we have are geologically shallow which decreases drilling costs. We can use our dollars in an efficient way. With the two financings we have about 75 million shares in the market. We have 6 million warrants at $0.15 cents that will be self-financing for us provided the Lakeland market improves to over and above that trading level. Our insiders have approximately 25% of the holdings of the company. We have the funds available to execute on several different projects and will decide that over the next few weeks. Through the summer and into the fall we will have several exploration projects running. Any catalysts, like the restart of reactors in Japan, will lend positivity to the market. We think that 2015 will be the turn in spot uranium prices.”


http://www.lakelandresources.com/

Suite 1450 - 789 West Pender Street

Vancouver, BC

Canada, V6C 1H2

 

http://www.lakelandresources.com

info@lakelandresources.com

Telephone: 604.681.1568

Toll Free: 1.877.377.6222

Fax: 604.681.8240




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