Date: Sep 6, 2018
Uracan Resources Ltd. (TSX.V:URC) (“Uracan” or “the Company”) is pleased to announce that the Company has entered into a definitive agreement (the “Agreement”) whereby the Company has the right to earn up to a 100% interest in the Huzyk Creek Vanadium Property (the “Property”), in north-central Manitoba.
The Property
The Huzyk Creek Vanadium Property is located approximately 75 kilometres southeast of the town of Snow Lake, Manitoba and consists of a Mineral Exploration License (“MEL”) covering approximately 216 square kilometres. This area has seen significant exploration for base metal mineralization as it lies within the projected extension of both the Flin Flon/Snow Lake belt as well as the Thompson Nickel Belt. Historically the region has seen no exploration for Vanadium.
A historic drill core resampling program by the property vendors (the “Vendors”) has discovered a broad zone of vanadium mineralization. Resampling of a 1997 drill hole (NIM-19) returned a total of 68 meters @ 0.14% V2O5 hosted within a sequence of meta-sediments associated with sulphides. Individual V2O5 values up to 0.6% over 0.6 meters were noted within this mineralized interval. Significantly, mineralization is open down hole, with the drill hole ending in a sequence of meta-sediments with elevated V2O5 values. No other known historic drill holes have been completed on this mineralized zone. At this time the strike, dip and lateral extent of mineralization is not known.
The mineralized interval is associated with a 1.5 kilometer long ground electromagnetic induction (EM) geophysical anomaly. This ground EM anomaly is associated with a longer, multi-kilometre airborne geophysical anomaly. This geophysical work was completed by previous exploration companies in the region, and the geophysical data was submitted for assessment work at the Manitoba Mining Recorders office.
A review of assessment file data by Uracan geologists has outlined additional widespread vanadium anomalies in historic drilling throughout the property. Individual values up to 0.20% V2O5 have been reported as part of limited geochemical sampling in drill core. Widespread meta-sedimentary intervals with elevated sulphide content are also commonly noted in historic drill logs. Uracan is planning to locate any extant historic drill core for further sampling and review.
Vanadium has historically been used in the steel industry, however demand for specialty battery metals has become an increasingly important driver for vanadium. Efficient battery and grid energy storage plays a key role in moving to more renewable energy sources, which will drive the demand for vanadium. The majority of the supply for vanadium comes from Africa, China, Brazil and Australia, with no current North American production.
