Kirkpatrick Lake Property

The Kirkpatrick Lake Property, which covers an area of ~1270 hectares, is located in the north eastern Athabasca Basin and lies on a line between two major uranium mines: ~13km southwest of the Cigar Lake Mine and ~27km northeast of the MacArthur River Mine.

The project has been the subject of significant exploration activity, including a combined airborne gravity, aeromagnetic and radiometric survey in 2004 by BHP Billiton World Exploration Inc., a fixed loop TEM survey in 2005 by Quantec Geoscience Inc., also in 2005 a combined gravity and RTK GPS survey performed by MWH Geo-Surveys Ltd. and finally in October 2006, a localized VTEM airborne electromagnetic and magnetic survey by Geotech to explore for unconformity style uranium mineralization of both the Simple (Low REE, basement hosted) and the Complex (High REE, Sandstone hosted) types, commissioned by Dejour Enterprises.

A synthesis of the data revealed at least four target zones at Kirkpatrick Lake, the most prospective of which is the “western shear zone.”  Targets at Kirkpatrick Lake are predicted to be at depths less than 500m and to be of the unconformity controlled or basement hosted high grade deposit type. Unity intends to immediately survey Kirkpatrick Lake with an upgraded VTEM survey, which is currently in progress and more than half completed, with the intention of identifying targets that could be investigated with ground resistivity and then, if appropriate, diamond drilling.

The Company can earn a 100% interest in the property by paying $50,000 and issuing 1,600,000 common shares to the vendor. [PAID] The company must make additional payments totalling $550,000 over the next 42 months and completing $2,000,000 in exploration expenditures on the property within 4 years. A 1% NSR has also been granted to the vendor, which may be purchased by the Company for $1,500,000.

In October, 2004, BHP Billiton World Exploration Inc. conducted a combined airborne gravity, aeromagnetic and radiometric survey over the Darby-Candle property located in the eastern Athabasca Basin area of northern Saskatchewan on behalf of Pitchstone Exploration Ltd.  The airborne gravity survey was successful in responding to large scale features in basement, i.e. broad metasedimentary packages flanked by sizeable granite bodies.

In general, although horizontally stratified, sandstone densities can be affected by underlying rock types, eg, higher density, silica-rich sandstone over granites and quartzites. Faults and hydrothermal alteration zones extending from basement into the overlying Athabasca Group rocks are a prime target for uranium exploration and should be expressed as gravity lows. These features might be 100m to 200m wide, and in ground gravity surveys produce anomalies of, typically, -0.2 to -0.6mGals. Linear gravity lows coincident with basement conductors are particularly favourable. Uranium mineralization can be very high in density (e.g. 4.5 gm/cc at Key Lake, about 10 gm/cc at McArthur River and Cigar Lake), but the size of the high density zone is dwarfed by the surrounding low density hydrothermal alteration zone, so the mineralization itself does not present a viable target. This notwithstanding, the survey detected a significant gravity high, coincident with a north-south trending fault system, crosscut by a large regional northeast fault. The eastern dimension of the alteration zone target (below) may be controlled by a magnetic (granitic) feature, the western shear zone, located on the KLP, making this contact prospective for perched mineralization.

Darby-Candle property airborne gravity (gd fourier, 2.35) with basement conductors and interpreted fault from aeromagnetics. Low pass filtering with 600 m wavelength cut-off.

The model displays density contrasts at the -300 m elevation level (ie. 300 m below sea level, or roughly 700 m below surface). It shows the southern fault to be arcuate in nature (white line).

The model displays density contrasts at the -300 m elevation level (ie. 300 m below sea level, or roughly 700 m below surface). It shows the southern fault to be arcuate in nature (white line).

Lineaments in Figure 13 have been interpreted from AGG and magnetic data and are displayed on the gD Fourier gD with a
10km High Pass Filter (HPF). Structures interpreted from the TMI 1VD data are fold axial traces while all other structures
are interpreted to be faults.

In 2005, Quantec Geoscience Inc. performed a fixed loop TEM survey. MWH Geo-Surveys Ltd. conducted a combined gravity and RTK GPS survey for Pitchstone Exploration, covering portions of the KLP were incidentally covered.

P. Robertshaw P.Geo. interpreted a north-south fault with coincident conductors 750m to the west of the KLP. (at left) The 4B and 4C fault appears to be interrupted and offset, presumably by a northeast fault that correlates with the strong northeast magnetic  feature that trends across the northernmost part of the KLP.

The exploration strategy for this portion of the KLP is to conduct work that would identify a possible alteration
zone at or near the area of this possible cross faulting. The mineralization of cross faults is a well established mechanism of uranium enrichment at several noteworthy deposits, including Hathor’s roughrider zone and Shea Creek (~60Mlbs U308).

The presence of conductors (above) which can be correlated to structural controls—such as faulting—is an important exploration indicator as several significant uranium discoveries in the Athabasca Basin (including the Cameco’s Millennium Deposit, Dennison’s Wheeler River Project and Fission’s Waterbury Lake discovery) have been made “off-conductor,” i.e. 100-300m away from the pelitic conductive zones, but within the limits of the alteration zone. In other words, structure i.e. faulting and cross faulting is just as important a consideration as the presence of conductors. Further, the absence of conductors in of itself is not conclusive evidence that uranium mineralization is not present.

In October 2006, Dejour Enterprises Ltd. conducted a localized VTEM airborne electromagnetic and magnetic survey (Geotech) over the KLP to explore for unconformity style uranium mineralization of both the Simple (Low REE, basement hosted) and the Complex (High REE, Sandstone hosted) types. Interpretation of the data was based on the hypothesis that basement hosted deposits are commonly associated with graphite and are expected to be strongly conductive. Condor Consulting Inc. was commissioned to carry out comprehensive processing, analysis and interpretation of the EM and magnetic data from the VTEM surveys. This assessment identified a number of areas termed Target Zones that are deemed worthy of follow-up work, particularly TZ4 &TZ5.

Target Zone H-4
This TZ consists of a trend of weak basement conductors which extends over seven lines on the northern edge of the Hoppy South block and probably extends to the north. The conductors correlate with an AdTau high. The conductors are very weak, with the best conductor occurring on line 13110, where the minimum resistivity is approximately 2,500 ohm-m. The TZ correlates with a weak magnetic low. It lies outside Dejour ground. While Condor interpreted this TZ to lie outside the boundaries of the HLS, the structural controls of the alteration zone appear to lie at the northernmost edge of the property.

Target Zone H-5
This large TZ consists of weak basement conductors interpreted on 18 lines (13110-13280) extending for almost 6 km along the southwest edge of the Kirkpatrick block and correlates with an AdTau high. The conductivity varies considerably from line to line, with the most defined conductor occurring on line 13190, where the minimum resistivity is approximately 400 ohm-m. The TZ correlates with a strong magnetic low, indicative of probable metasediments in the basement. Again, while Condor interpreted this TZ to lie outside the boundaries of the HLS boundary, the structural controls of the alteration zone may lie at the southernmost edge of the property.

Conclusion

At least four target zones have been identified on the Kirkpatrick Lake Project.

At present, interpretation of historical programs pertaining to the “western shear zone” justifies further ground work, culminating with a diamond drill program.  Both air and ground surveys confirm regional and local faulting which is coincident with a north-south basement conductor lying just east of the Kirkpatrick Lake Project.  The north-south fault is interrupted and dislocated to the west by the larger regional fault. A significant gravity high—presumably an area of alteration—extends from the cross fault and extends ~5km to the north and may also extend to the granitic domain at the westernmost boundary of the KLP.

The three target zones suggested by Condor Consulting offer reasonable secondary sites of exploration.