Saskatchewan - Wheeler River Properties

The C3 property is located midway between the Key Lake mine and the Denison/Cameco/JCU Wheeler River block. A VTEM airborne EM survey was flown over the property. Inversion of the EM data by Condor Consulting Inc. has revealed a wide zone of conductivity at the unconformity, interpreted to be caused by clay alteration of the type associated with all the major uranium deposits of the Athabasca basin. There is also evidence of three discrete conductors below the unconformity, most likely caused by graphite zones; again, graphite accompanies almost all the Athabasca uranium deposits.

The C4 , C5 and C6 properties adjoin the Wheeler River property of Denison Mines Corp. (60%), Cameco Corp. (30%) and JCU (10%). Recent drilling by Denison/Cameco/JCU has returned an intersection of 55% eU₃O₈ over 6.00 metres, making this area the "hot spot" of the Athabsca basin. The C6 claim lies only 4 kilometres from Denison's discovery drill hole.

The C4, C5 and C6 properties all have evidence of strong uranium potential from geophysical data. Magnetic surveys show possible structures that can act as channelways for mineralizing solutions. The VTEM survey has revealed discrete conductors - probably graphite zones - as well as areas of enhanced conductivity that may be caused by clay alteration.

Exploration in the Athabasca basin can be very challenging. The targets are small and are buried below hundreds of metres of sandstone. Effective exploration requires persistence and the use of multiple technologies. For example, there is usually a subtle geochemical expression in the Athabasca sandstones, caused by alteration haloes around and above uranium deposits. These alteration haloes extend well above the unconformity and can usually be detected by analysis of rocks collected on surface. Alteration haloes can also be detected by changes in clay mineralogy, using reflectance spectroscopy.

Geophysical techniques that have proven effective in the Athabasca basin include airborne time-domain EM surveys (VTEM, Megatem, Geotem, Aerotem), ground time-domain EM, ground DC resistivity and/or IP/resistivity surveys, gravity surveys, seismic surveys and TAMT (Transient Audio-frequency Magneto-Telluric) surveys.

Delta plans a systematic, multidisciplinary exploration program of its Athabasca projects using most of the techniques listed above. The ground work is expected to commence in September 2009 and continue during the winter, leading to target definition for a first-phase diamond drilling campaign in the late winter or spring of 2010. Because of the small size of the targets, it often takes several drilling campaigns to zero in on a deposit. Core from each drill program needs to be studied carefully to look for subtle signs of structure and alteration before planning the next stage of drilling.