Sydney Selvon
Northern News Services

Yellowknife (Jan 30/06) - A uranium rush in the Thelon Basin, which straddles the frontier between NWT and Nunavut, continues to heat up.

Companies are staking claims in both territories and reaping big profits as their shares are traded at escalating prices.

Victor Tanaka, president of Pathfinder Resources Ltd. is seen here with a scintillometre, which measures radiation. He is recording uranium levels from a boulder at the Thelon Basin in the NWT. - photo courtesy of Pathfinder Resources Ltd.

Driving this action is the fact uranium prices have nearly tripled in two years, from $12 to $35 a pound, because yearly demand exceeds production by 80 million pounds.

"Yes, you can say there's a uranium rush. Numerous companies have been into our office looking after the information we have on uranium," said Scott Cairns, district geologist at the NWT Geoscience Office.

One company active in the hunt for uranium in the North is Pathfinder Resources.

The company plans a $1.2 million project in the area this summer.

"At the Geoscience Forum in Yellowknife last November, the government revealed very compelling data that showed a number of structures that run on our Thelon Basin property," said John Gomez, in charge of investor relations at Pathfinder.

Gomez said the company plans an extensive electro-magnetic survey, technically known as Megatem II.

"We'll start the program in May and expect the results in June or July," Gomez said. Pathfinder and Diamonds North have contracted Fugro Airborne Surveys for the job.

Pathfinder has an 80 per cent interest in uranium rights in Diamonds North's exploration permits in the Thelon Basin.

Pathfinder also recently announced it has staked, in a 50/50 partnership with Strongbow Exploration Inc., about 200,000 acres more in three claim blocks in the NWT part of the Thelon Basin.

Other companies involved in the uranium rush in the Thelon Basin include: Uravan Minerals Inc., Cogema Corporation, Ur-Energy Corporation, Hornby Corporation, Titan Uranium Inc., and Cameco Corporation (considered the world's largest uranium producer) in partnership with De Beers Canada, Kaminak Gold Corporation and Pacific Ridge Exploration.

A recent stock market offer indicative of the uranium rush came a week ago when Titan issued a $2.6 million private placement.

Investors are being lured by the offer of a total of 1,625,000 units at $1.60 each.

The funds raised will be used in part for exploration programs in the Nunavut side of the Thelon Basin.

"The Thelon Basin in Nunavut is the next frontier of uranium exploration in Canada. It is similar to the world famous Athabasca basin," states Titan in a presentation of its Thelon Basin project on its corporate website.

Last week, Kaminak Gold Corporation and Pacific Ridge Exploration announced an agreement with Pacific Ridge whereby Pacific can acquire up to 60 per cent interest in Kaminak's uranium project at Baker Lake in Nunavut.

Pacific Ridge will spend at least $250,000 this year on such works as airborne surveys and ground follow-up, with total expenditure expected to reach $2 million by Dec. 31, 2008.