Cosa Resources Announces Drilling Plans for Murphy Lake North Uranium Project, Athabasca Basin, Saskatchewan
Cosa Resources Announces Drilling Plans for
Murphy Lake North Uranium Project,
Athabasca Basin, Saskatchewan
Vancouver, British Columbia--(Newsfile Corp. - January 20, 2025) -
Cosa Resources Corp.
(TSXV:
COSA) (OTCQB: COSAF) (FSE: SSKU)
("
Cosa
" or the "
Company
") is pleased to announce core
drilling plans for the Murphy Lake North Project. Murphy Lake North ("
MLN
" or the "
Property
") is a joint
venture (the "
Joint Venture
") between Cosa and Denison Mines Corp.
(TSX: DML) (NYSE American:
DNN)
("
Denison
") and is located in the eastern Athabasca Basin, Saskatchewan.
Cosa is the project
operator and holds a 70% interest with Denison holding a 30% interest.
Highlights
1,600 metres planned for the first drilling campaign on Murphy Lake North since 2005, 13 years
before the discovery of the Hurricane Deposit
Targets include the interpreted strike extension of Hurricane Deposit geology within Murphy Lake
North and following up on historical intersections of uranium mineralization
Mobilization of drill and crew expected in early February
Keith Bodnarchuk, Cosa President and CEO, commented:
"After months of hard work from both the
Cosa and Denison teams, we are thrilled to share our plans for the upcoming fully funded winter
drilling campaign at Murphy Lake North. Untested, shallow targets so close to a world-class deposit
like Hurricane are exceptionally rare. With the support of Denison, the Cosa team have developed a
set of excellent targets that provide us with the best opportunity for early success. We are eager to
commence drilling and encourage our shareholders to stay tuned as we continue to provide updates
on this exciting program."
Andy Carmichael, Cosa VP Exploration, commented: "
Long known for its potential to host very high-
grade uranium mineralization, exploration of the Larocque Lake Trend has been significantly
revitalized since the 2018 discovery of the Hurricane Deposit - the world's highest-grade Indicated
Mineral Resource for uranium. Although located less than three kilometres from Hurricane along the
Larocque Lake Trend, Murphy Lake North has not been drilled since 2005. Since 2009, Denison
progressed the Property to its present drill-ready stage with airborne and ground geophysical surveys
which defined six kilometres of essentially untested conductive strike length. Having been part of the
discovery of the Hurricane Deposit, we are excited to again have a footprint on the Larocque Lake
Trend and the opportunity to continue advancing this highly prospective property with core drilling in
winter 2025."
Murphy Lake North
Murphy Lake North covers a portion of the Larocque Lake trend and is located 2.7 kilometres east of the
Hurricane Deposit (Figure 2). Hurricane is the world's highest-grade Indicated Mineral Resource for
uranium and was discovered and delineated for IsoEnergy Ltd. by current members of Cosa's
management, board of directors, and advisors from 2018 through 2022. The Larocque Lake trend also
hosts the Larocque Lake Zone, the Yelka Prospect, and the Alligator Lake Zone. Murphy Lake North
contains approximately six kilometres of conductive strike length oriented sub-parallel to conductive
features associated with the Hurricane Deposit. Limited historical drilling completed on Murphy Lake
North intersected weak uranium mineralization in the basement and zones of alteration and structure in
the sandstone and basement. Historical drilling, completed before the discovery of Hurricane, focused
on the western extremity of the Property and left most of the conductive strike length untested. Abundant
drill targets exist at Murphy Lake North.
The depth to the unconformity at Murphy Lake North varies from approximately 170 to 250 metres.
Planned Drilling
A four-hole drill program totalling 1,600 metres is planned to begin in February 2025 to complete initial
evaluations of the CH1 and CH2 conductive trends proximal to favourable historical drilling results
(Figure 3).
CH1 Trend
Cosa interprets the strongly conductive CH1 trend in the northwest portion of the Property to be the
along-strike projection of the structural corridor that controls the Hurricane Deposit 2.7 kilometres west of
MLN.
CRK-143, the single historical drill hole targeting the CH1 trend within MLN, intersected graphitic rocks
and brittle structure in the basement below structured and altered sandstones enriched in uranium and
strongly enriched in lead and was flagged for follow-up.
Drill holes KER-10 and KER-15, located outside MLN along strike to the west and east of CRK-143
respectively, also intersected brittle structures within graphitic basement trending approximately 265
degrees, suggesting continuity with the CH1 trend and beyond toward the Hurricane Deposit (Figures 2
and 3). Additionally, CRK-143 and adjacent drill holes along strike intersected favourable alteration,
structure, and enrichment of uranium and/or uranium pathfinder elements in the sandstone (Figure 3).
Notably, strong enrichment of lead is evident in the sandstone from KER-10 to KER-15. Cumulatively,
these results highlight 2.8 kilometres of highly prospective strike length centred on northwest MLN.
Drilling at CH1 in winter 2025 is planned to include drilling on section with CRK-143 to:
i
.
Follow up the graphitic basement structures and anomalous sandstone geochemistry intersected
by CRK-143.
ii
.
Locate and define the interpreted strike extension of the Hurricane Deposit structural corridor for
follow-up along strike.
CH2 Trend
The CH2 trend is a conductive corridor located south of and oriented parallel to CH1. Three of four
historical drill holes at MLN targeted the CH2 trend. CRK-144 intersected two intervals of weak
basement-hosted uranium mineralization (Figures 2 and 3) with significant nickel, cobalt, arsenic, and
lead, a signature characteristic of unconformity-hosted mineralization including at Hurricane. Sandstones
in CRK-144 contain the highest weighted-average uranium content of the four historical holes within
MLN, including 4.6 ppm U-p over 16 metres in the basal sandstone (240 to 256 metres), and a sample
of argillized basement immediately below the unconformity contained 99 ppm U-p (256.0 to 256.1
metres).
CRK-145, collared 150 metres south of CRK-144, intersected a 50-metre-long altered
structural zone in the medial sandstone and intermittent lead enrichment extending from the top of
bedrock to the base of the structural zone.
Drilling at CH2 in winter 2025 is planned to include drilling on section with CRK-144 to:
i
.
Follow up the weak uranium mineralization and strong sandstone uranium content in CRK-144.
ii
.
Follow up the altered structural zone and lead enrichment in CRK-145.
iii
.
Evaluate the basement geology of the northern portion of the CH2 trend for prospective structure
for testing along strike.
Figure 1 - Cosa's Eastern Athabasca Uranium Projects with Joint Venture Projects
To view an enhanced version of this graphic, please visit:
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Figure 2 - The Murphy Lake North Uranium Project
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Figure 3 - Nearby Historical Drilling Results and Planned Winter 2025 Target Areas
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Cosa Resources at VRIC 2025
The Cosa Resources team will be exhibiting at the Vancouver Resource Investment Conference (VRIC)
on January 19
th
and 20
th
in Vancouver, BC. VRIC is a leading event that unites investors, mining
companies, and industry professionals to explore and discuss opportunities within the resource sector.
Investors are encouraged to visit
booth 117
in the Vancouver Convention Center West building. Keith
Bodnarchuk, President and CEO, will be presenting at VRIC on
Monday January 20
th
at 10:50 AM in
Workshop 1.
Stock Option Grant
The Company has granted 1,481,000 incentive stock options to directors, officers, employees and
advisors of the Company. The incentive stock options will vest over a period of two years, have an
exercise price of $0.27 per share, and are valid for a 5-year period from the date of grant. The options
were granted pursuant to the Company's incentive stock option plan.
About Cosa Resources Corp.
Cosa Resources is a Canadian uranium exploration company operating in northern Saskatchewan. The
portfolio comprises roughly 237,000 ha across multiple 100% owned and Cosa operated Joint Venture
projects in the Athabasca Basin region, all of which are underexplored, and the majority reside within or
adjacent to established uranium corridors.
Cosa's award-winning management team has a long track record of success in Saskatchewan. In 2022,
members of the Cosa team were awarded the AME Colin Spence Award for their previous involvement
in discovering IsoEnergy's Hurricane deposit. Prior to Hurricane, Cosa personnel led teams or had
integral roles in the discovery of Denison's Gryphon deposit and 92 Energy's GMZ zone and held key
roles in the founding of both NexGen and IsoEnergy.
Cosa's primary focus through 2024 was initial drilling at the 100% owned Ursa Project, which captures
over 60-kilometres of strike length of the Cable Bay Shear Zone, a regional structural corridor with known
mineralization and limited historical drilling. It potentially represents the last remaining eastern
Athabasca corridor to not yet yield a major discovery, which the Company believes is primarily due to a
lack of modern exploration. Modern geophysics completed by Cosa in 2023 identified multiple high-
priority target areas characterized by conductive basement stratigraphy beneath or adjacent to broad
zones of inferred sandstone alteration - a setting that is typical of most eastern Athabasca uranium
deposits. Guided by a recently completed Ambient Noise Tomography (ANT) survey, Cosa's second
and most recent drilling campaign at Ursa intersected a significant zone of unconformity-style sandstone
hosted structure and alteration underlain by several intervals of anomalous radioactivity in the basement
rocks.
In January of 2025, the Company entered a transformative strategic collaboration with Denison that has
secured Cosa access into several additional highly prospective eastern Athabasca uranium exploration
projects. As Cosa's largest shareholder, Denison gains exposure to Cosa's potential for exploration
success and its pipeline of uranium projects.
About Denison Mines
Denison is a leading uranium exploration and development company with interests focused in the
Athabasca Basin region of northern Saskatchewan, Canada. Denison has an effective 95% interest in
its flagship Wheeler River Uranium Project, which is the largest undeveloped uranium project in the
infrastructure rich eastern portion of the Athabasca Basin region of northern Saskatchewan. In mid-2023,
the Phoenix feasibility study was completed for the Phoenix deposit as an ISR mining operation, and an
update to the previously prepared 2018 Pre-Feasibility Study was completed for Wheeler River's
Gryphon deposit as a conventional underground mining operation. Based on the respective studies, both
deposits have the potential to be competitive with the lowest cost uranium mining operations in the
world. Permitting efforts for the planned Phoenix ISR operation commenced in 2019 and several notable
milestones were achieved in 2024 with the submission of federal licensing documents and the
acceptance of the final form of the project's Environmental Impact Statement by the Province of
Saskatchewan and the Canadian Nuclear Safety Commission.
Denison's interests in Saskatchewan also include a 22.5% ownership interest in the McClean Lake Joint
Venture ('MLJV'), which includes unmined uranium deposits (planned for extraction via the MLJV's
SABRE mining method starting in 2025) and the McClean Lake uranium mill (currently utilizing a portion
of its licensed capacity to process the ore from the Cigar Lake mine under a toll milling agreement), plus
a 25.17% interest in the Midwest Joint Venture ('MWJV')'s Midwest Main and Midwest A deposits, and a
69.44% interest in the Tthe Heldeth Túé ('THT') and Huskie deposits on the Waterbury Lake Property.
The Midwest Main, Midwest A, THT and Huskie deposits are located within 20 kilometres of the
McClean Lake mill. Taken together, Denison has direct ownership interests in properties covering
~384,000 hectares in the Athabasca Basin region.
Additionally, through its 50% ownership of JCU (Canada) Exploration Company, Limited ('JCU'),
Denison holds interests in various uranium project joint ventures in Canada, including the Millennium
project (JCU, 30.099%), the Kiggavik project (JCU, 33.8118%) and Christie Lake (JCU, 34.4508%).
In 2024, Denison celebrated its 70th year in uranium mining, exploration, and development, which began
in 1954 with Denison's first acquisition of mining claims in the Elliot Lake region of northern Ontario.
Denison has a market capitalization of approximately ~$2.4 billion (~US$1.7 billion) and its common
shares are listed on the Toronto Stock Exchange (the 'TSX') under the symbol 'DML' and on the NYSE
American exchange under the symbol 'DNN'. As at September 30, 2024 Denison's financial position
includes over $105,000,000 in cash and cash equivalents and over $240,000,000 in uranium
investments (Denison MD&A dated 30 September 2024).
Technical Disclosure
Historical drilling and geophysical results for Murphy Lake North and adjacent projects were sourced
from the
Saskatchewan Mineral Assessment Database
(SMAD). SMAD sources for the Murphy Lake
North Project include file numbers 74I-0060, 74I09-0057, 74I09-0064, 74I09-0066, 74I09-0077, 74I09-
0098, MAW00510.
SMAD sources for drilling and geophysical results proximal to Murphy Lake North include 64L05-0161,
64L05-0180, 74I-0066, 74I-0067, 74I01-0114, 74I08-0056, 74I09-0053, 74I09-0061, 74I09-0064,
74I09-0071, 74I09-0079, 74I09-0087, 74I09-0088, 74I09-0090, 74I09-0091, 74I09-0092, MAW01939,
MAW02327, MAW02599, and MAW02395.
Drill hole collar locations for Murphy Lake North and relevant along-strike drill holes were verified from air
photos. The collar locations of Murphy Lake North drill holes CRK-144 and CRK-145 were verified on the
ground using a handheld GPS and determined to within 20 metres of the locations derived from air
photos. Segments of drill core from CRK-143 and CRK-144 were reviewed in the field; further review
was hampered by the deteriorated condition of core boxes.
Verification of historical geophysical results included confirming the locations of geophysical survey
grids from air photos, compiling results of geophysical surveys completed post year 2000, and
evaluating whether interpreted geophysical results could be reasonably explained by historical drilling
results.
Qualified Person
The Company's disclosure of technical or scientific information in this press release has been reviewed
and approved by Andy Carmichael, P.Geo., Vice President, Exploration for Cosa. Mr. Carmichael is a
Qualified Person as defined under the terms of National Instrument 43-101. This news release refers to
neighboring properties in which the Company has no interest. Mineralization on those neighboring
properties does not necessarily indicate mineralization on the Company's properties.
Contact
Keith Bodnarchuk, President and CEO
+1 888-899-2672 (COSA)
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies
of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements
This press release contains forward-looking information within the meaning of Canadian securities laws
(collectively "forward-looking statements"). Forward-looking statements are typically identified by words
such as: believe, expect, anticipate, intend, estimate, plans, postulate and similar expressions, or are
those, which, by their nature, refer to future events. All statements that are not statements of historical fact
are forward-looking statements. These forward-looking statement or information may relate to
anticipated exploration, development and/or expansion activities, including exploration of the Company's
current Projects; the collaboration with Denison, including the Joint Venture, and the anticipated benefits
thereof; and the outlook regarding Cosa's business plans and objectives.
Such forward-looking information and statements are based on numerous assumptions, including
among others, that the results of planned exploration activities are as anticipated, the cost of planned
exploration activities are as anticipated, that general business and economic conditions will not change
in a material adverse manner, that financing will be available if and when needed and on reasonable
terms, that third party contractors, equipment and supplies and governmental and other approvals
required to conduct Cosa's planned exploration activities will be available on reasonable terms and in a
timely manner. Although the assumptions made by Cosa in providing forward-looking information or
making forward-looking statements are considered reasonable by management at the time, there can
be no assurance that such assumptions will prove to be accurate.
By their nature, forward-looking statements involve known and unknown risks, uncertainties and other
factors which may cause our actual results, performance or achievements, or other future events, to be
materially different from any future results, performance or achievements expressed or implied by such
forward-looking statements. Such factors and risks include, among others: Cosa may require additional
financing from time to time in order to continue its operations which may not be available when needed
or on acceptable terms and conditions acceptable; Cosa may not be able to maintain compliance with
its contractual obligations with third parties; Cosa may not be able to maintain compliance with extensive
government regulation applicable to its operations; domestic and foreign laws and regulations could
adversely affect Cosa's business and results of operations; the stock markets have experienced volatility
that often has been unrelated to the performance of companies and these fluctuations may adversely
affect the price of Cosa's securities, regardless of its operating performance; the ongoing military
conflict in Ukraine, and other risk factors set out in Cosa's public disclosure documents.
The forward-looking information contained in this news release represents the expectations of Cosa as
of the date of this news release and, accordingly, is subject to change after such date. Readers should
not place undue importance on forward-looking information and should not rely upon this information as
of any other date. Cosa does not undertake any obligation to update these forward-looking statements in
the event that management's beliefs, estimates or opinions, or other factors, should change.
To view the source version of this press release, please visit
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