Aero Energy Reports on Recent Exploration Insights at the Sun Dog Project Project is host to globally significant former uranium producer
Aero Energy Reports on Recent Exploration Insights at the Sun Dog Project
Project is host to globally significant former uranium producer
Vancouver, British Columbia – April 16, 2024 – Aero Energy Ltd (TSXV: AERO) (OTC Pink:
AUUGF) (FSE: UU3) (“Aero” or the “Company”) is pleased to provide a comprehensive
summary of exploration insights gathered at the Sun Dog Uranium Project (the “Sun Dog Project”
or the “Project”), by operating partner Standard Uranium Ltd (TSXV: STND) (“Standard Uranium”),
as well as more historical data from previous project operators.
Key Highlights:
● History of Production: The Project hosts the historical Gunnar Mine which produced 18M
pounds of U3O8 between 1953 and 1981 and was formerly the world’s largest uranium
producer1,2.
● Uranium Above and Below the Unconformity : Numerous historical high- grade uranium
showings ranging between 0.10% and 12.39 % U3O8 have been documented at surface3,4.
These showings occur in both basement rocks below the Unconformity and perched within
Athabasca sandstones above the Unconformity thus confirming the presence of
unconformity-related high-grade uranium on the Sun Dog Project.
● Radioactivity at the Unconformity: Prospecting conducted by Standard Uranium has
identified anomalous to strong radioactivity ranging between 500 cps and >65,535 cps
immediately associated with sandstone and basement faults , and along the surface
expression of the Unconformity at multiple target areas providing further compelling
support for the high prospectivity of the Sun Dog Project.
● Favorable Host Rocks: An airborne VTEMTM Plus survey is currently underway designed to
pinpoint graphitic rocks favourable for hosting significant concentrations of uranium. Th is
modern electromagnetic (“EM”) survey will infill and expand upon historical surveys which
have identified at least 40 km of combined conductor strike length.
● Target Development & Drilling: The results of the VTEM TM Plus survey will be subject to
geophysical interpretation and modelling, and integrated with the Project’s existing datasets,
to select and prioritize targets for the upcoming summer drill program scheduled to begin
in early June.
Galen McNamara, CEO of Aero Energy, commented: “The Sun Dog Project is highly
prospective for shallow high-grade uranium mineralization and is largely underexplored. The
VTEMTM Plus survey covering both the Sun Dog and Murmac projects is nearing completion, and
we expect the results to identify a significant number of high -priority drill targets for follow -up
during our planned drill program scheduled to begin in early June. We look forward to sharing
target information more specifically in the coming weeks as we advance towards our first drill
program.”
Figure 1. Uranium mineralization in Athabasca Group sandstone above the Unconformity on
Stewart Island with radioactivity exceeding 65,535 counts-per-second.
Sun Dog Project Overview and Historical Exploration:
Pursuant to an option agreement , Aero can earn up to a 100% interest in the Sun Dog Project,
from Standard Uranium, by funding C$6.5 million in exploration expenditures over a three- year
period, making cash payments totalling C$650,000, and issuing C$650,000 in common shares,
over a 2- year period. Following exercise of the option, Standard will retain a 2% net smelter
returns royalty, which may be reduced to 1% for a $1,000,000 cash payment.
The Project covers an area of 48,443 acres in nine mining claims, located 15 km from Uranium
City on the northern margin of the Athabasca Basin. It hosts the historical Gunnar Uranium Mine,
discovered in 1952, which doubled Canada’s uranium production and became the largest uranium
producer globally in 1956. The Gunnar Mine produced approximately 18M lbs of U 3O8 between
1953 and 19811,2.
During this time exploration efforts in the area primarily focused on “Beaverlodge-style” deposits,
typically lower-grade, fault-hosted mineralization visible at the surface. This approach did not
target, and would not have been effective for, the high- grade "Unconformity-related" basement-
hosted deposits associated with graphitic rocks more recently discovered near the Athabasca
Basin's edge (e.g. Arrow, Triple R).
These deposits are associated with graphite- rich rocks, evident as electromagnetic (EM)
conductors in geophysical surveys. These graphite- rich rocks, softer than surrounding quartzite
and granitoid lithologies, are not exposed at the surface. Instead, they are found in deeply
weathered valleys, concealed by glacial till, soil and small lakes. The historical exploration
methods applied included airborne radiometric and surface prospecting, identifying radioactive
anomalies and drill testing their extents. This approach is not effective for this type of basement-
hosted mineralization.
With only limited previous drilling, the extensive (>40 km strike length) conductors targeted at the
Sun Dog Project remain largely unexplored, offering significant potential for future discovery.
Figure 2. Schematic cross-section of basement-hosted uranium deposits
Figure 3: Selected uranium occurrences and known EM-conductors present on the Sun Dog
Project
Preliminary Modern Exploration
Recent exploration efforts by Standard Uranium have focused on the most promising historic al
target areas, namely Skye, Java, and Stewart Island, testing down-dip extensions of structures
hosting uranium at surface with the aim of discovering high- grade unconformity mineralization
and basement “roots” of the mineralizing systems underlying the Athabasca sandstones.
Prospecting & Surface Exploration
In the fall of 2020, crews collected 56 outcrop grab samples, 6 boulder samples, and 14 historical
core samples from the Project. These were primarily collected from mineralized target areas and
from historical drill holes completed by former operators of the Project.
Prospecting led to the discovery of a new high- grade uranium showing named the Haven
discovery and several zones of visible uranium mineralization at surface that returned uranium
assay results of 3.58% U3O8, 1.7% U3O8, and 0.7% U3O8.
Additionally, the analytical results revealed a correlation between uranium and gold, while boron
and other pathfinder elements highlighted the potential for a robust alteration footprint associated
with uranium mineralization. Surficial grab samples from faults and veins cutting sandstone
outcrop returned high concentrations of dravite (up to 75%) , a uranium pathfinder mineral
commonly associated with uranium-fertile systems.
In the summer of 2022, Standard Uranium executed a field mapping and prospecting program to
expand upon the results of the 2020 prospecting program. Scintillometers were used to track
radioactivity with more than 80 new mineralized boulder and bedrock locations discovered on
Johnston and Steward islands.
The expanded surface expression of mineralization on south Johnston Island displayed
scintillometer readings >10,000 cps and locally off -scale (>65,535 cps) and the historical
mineralized surface occurrences on Stewart Island were confirmed with scintillom eter
measurements ranging from >500 cps to > 65,535 cps. Radioactivity measurements were
collected with hand- held RS -121 or RS -125 scintillometers. These occurrences provide
compelling support for the presence of high- grade unconformity-associated uranium
mineralization on the Project.
Gravity and Magnetic Surveys
In the winter of 2022, MWH Geo-Surveys Ltd. carried out a ground gravity survey and UAV-borne
magnetic surveys in the areas of Johnston and Stewart islands on behalf of Standard Uranium.
The gravity survey consisted of 3,388 unique gravity measurement stations and 155 repeat
stations with a station spacing of 50 to 100 m. The survey identified several variations in residual
gravity and outlined multiple gravity low target areas on and around Stewart and Johnston islands.
The magnetic survey consisted of 572 line kilometres of UAV magnetics at a line spacing of 50
m. Flightlines were flown either southeast or northwest at an elevation of approximately 48 m
above ground level. The survey effectively mapped magnetic variations corresponding to changes
in lithology and alteration which assisted in drill targeting.
First Pass Drilling
Standard Uranium carried out two drill programs on the Project during the winters of 2022 and
2023. In total 2,469 m of diamond drilling was completed across fourteen drill holes.
Drilling focused on testing for zones of high- grade unconformity-related uranium mineralization
with targets identified based on the ground gravity and UAV magnetic data, lakebed radiometric
anomalies, and resistivity lows, all coincident with cross -cutting faults and historical surface
mineralization. Several gravity low anomalies have been identified and coincide with breaks or
flexures in electromagnetic conductors under Athabasca sandstone cover , interpreted to
potentially represent zones of strong alteration in bedrock, specifically clay alteration, commonly
associated with the footprint of high-grade uranium deposits.
The 2022 and 2023 diamond drill programs were successful in identifying key geological
characteristics prospective for significant uranium mineralizing systems on the Project, which in
turn will aid in planning and prioritization of additional exploration targets for follow -up drill
programs.
Drilling highlights include5:
● Widespread hydrothermal alteration zones containing illite-rich and dravitic clays and
abundant iron-oxide minerals intersected in multiple drill holes, indicating a robust fluid system
with prospective chemistry for uranium.
● Significant structural influence evidenced to control high-grade uranium mineralization and
anomalous radioactivity in drill holes.
● Reactivated graphitic shear zones & quartz -hematite breccias intersected over tens of
metres in several drill holes indicate ideal structural regime providing the plumbing system for
uranium mobilization.
● Favorable geochemistry returned in multiple drill holes, including prospective clay
spectroscopy results (dravite), elevated pathfinder elements, and anomalous uranium
correlated to lead isotope ratios which may be used as an additional exploration vector.
● Elevated radioactivity over a total of 1.5 metres up to 1,300 cps intersected in drill hole SD-
23-013 at the Haven discovery. Assay highlights include 0.042 wt.% U308 from 79.0 to 79.5 m
and 0.021 wt.% U308 from 79.5 to 80.0 m.
Figure 4. Historical and Standard Uranium Drill Holes with Target Areas on the Sun Dog Project
Qualified Person
The technical content of this news release has been reviewed and approved by Galen McNamara,
P. Geo., CEO of the Company and a qualified person as defined by National Instrument 43-101.
Historical data disclosed in this news release relating to sampling results on the Sun Dog Project
is historical in nature. Neither the Company nor a qualified person has yet verified this data and
therefore investors should not place undue reliance on such data. The Company’s future
exploration work will include verification of the data. The Company considers historical results to
be relevant as an exploration guide and to assess the mineralization as well as economic potential
of the Project.
About Aero Energy Limited
Aero Energy is a mineral exploration and development company advancing a district -scale
250,000-acre land package in the historic Uranium City district within Saskatchewan's Athabasca
Basin. Aero Energy is focused on uncovering high- grade uranium deposits across its flagship
optioned properties - Sun Dog, Strike, and Murmac - in addition to its fully owned properties. With
the application of modern exploration techniques, the Company has identified over 50 shallow
drill-ready targets and 125 kilometres of target horizon on the frontier north rim of the Athabasca
Basin. Aero Energy is tapping into the Athabasca Basin's emerging potential for high- grade,
unconformity-style mineralization.
On Behalf of the Board of Directors
“Galen McNamara”
Galen McNamara, Interim Chief Executive Officer
Further information on the Company can be found on the Company's website
at aeroenergy.ca and at www.sedarplus.ca, or by contacting the Company by email
References
1. Gunnar Uranium Mine: From Cold War Darling to Ghost Town, L. Schramm, Saskatchewan
Research Council, 2018.
2. Geology and Genesis of Major World Hardrock Uranium Deposits, United States Geological
Survey, Open-File Report 81-166, 1981.
3. 2022 Winter Mineral Assessment Report, Sun Dog Property, Northern Saskatchewan, Canada,
Standard Uranium, 2022
4. Information obtained from Saskatchewan Mineral Deposit Index, occurrence number 1254
5. Standard Uranium News Release, November 2, 2023
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