ENRG Elements Limited (ASX:EEL, OTCQB: EELFF) ('ENRG' or the 'Company') is pleased to advise it has entered into an agreement to acquire 100% of the Lamont Lake Uranium Project ('Project') situated in North Saskatchewan, Canada.
The Project is located approximately 85km northwest of Uranium City. The tenement holding is situated immediately north of the Athabasca Basin, where some of the world's highest-grade uranium deposits are situated. The Project encompasses 4 mineral claims covering an area of 22km2 . It is situated in an area that, based on historical drilling data, contains shallow uranium mineralisation, occurring from near-surface down to 57m, with approximate grades of between 0.02% and 0.5%. The Project encompasses a landholding of 11 historic uranium occurrences, which include promising historical assays and geological data.
Initial analysis of the Project indicates it has geological similarities to the Beaverlodge deposits area, located approximately 90km to the southeast. During its production life, the Beaverlodge deposits produced approximately 56Mlb U3O8 at an average grade of 0.24% U3O8. The acquisition of the Project presents ENRG with a compelling near-term exploration prospect and enhances diversification within the Company's project portfolio
ENRG Elements Managing Director, Caroline Keats, commented : 'We are very pleased to have entered into this favourable agreement to acquire 100% of the Lamont Lake Uranium Project, which is located in a world-class uranium province. The Project represents a valuable opportunity for ENRG, offering significant optionality and near-term exploration potential, while also contributing to the Company's strategy of diversifying jurisdictional risk. 'The acquisition follows an internal review by the Company's management and technical team, affirming the Project and its potential as a highly prospective area that contains historic, shallow uranium occurrences. 'The Company continues to review historical data from the Project and expects to complete exploration planning over the coming weeks. The Company is also assessing a number of other strategic opportunities to bolster its presence in key markets and will provide updates to shareholders on any significant developments.'
HISTORICAL OVERVIEW OF THE PROJECT ENRG
has benefited from a technical review of historical exploration activities over the Project area, which was previously part of Permit N-degree4 ('Permit 4'). Permit 4 was acquired in 1966 by Numac Oil and Gas Limited ('Numac'), initially covering an area from Lake Athabasca through to British Columbia, Saskatchewan and the Northwest Territories border. 1 An airborne radiometric survey was undertaken in 1967 over Permit 4. The airborne scintillometer survey, totalling 1,615 line-miles, was carried out by helicopter using a Mount Sopris Airborne Scintillation Detector and 5' x 4' Harshaw Sodium Iodide Scintillation Crystal Detector. The flight lines were oriented normal to the regional faulting, at a spacing of one-quarter mile and flown at 100 feet high. 2 In 1968, King Resources Company ('King Resources') acquired claim blocks CBS 5535, CBS 5536 and CBS 5537, which included the Project area. King Resources completed an additional 'fill-in' airborne radiometric survey over the area, which was subsequently prospected and airborne anomalies examined at ground level. 3 Additionally, 347m of diamond drilling were carried out ove
MINERALISATION & ALTERATION ON THE TENEMENT BLOCK
The Project encompasses 4 mineral claims, where historical exploration work and drilling has been undertaken, resulting in promising historical assays and geological data. Based on the airborne radiometric survey undertaken by Numac in 1967, significant radioactive areas and isolated occurrences were identified over the area, with a total of 48 anomalies located within Permit 4 and 11 specifically identified within the Project area.6
In the South Kornash and SBW 71-13 Anomaly areas, the concordant nature of pegmatites with the associated radioactivity suggests the sedimentary origin for uranium mineralisation. The mineralisation is sporadic, varying from a few metres long to a few metres wide in the South Kornash area to several hundred metres long and 50 metres wide in the SBW 71-13 anomaly area. Mineralisation is almost always associated with supergene or hydrothermal alteration. The alteration consists of a propylitic zone (chloritisation and epidotisation) and an argilitic zone. The argillic zone is superimposed on the propylitic zone.
NEXT STEPS
While the Lamont Lake Uranium Project acquired by ENRG is relatively unexplored from a modern perspective, there are objective indications of its uranium potential based on the Company's review of historical exploration data. The Project's geology and structural setting suggest similarities with nearby significant mineralisation and uranium production, which provides a considerable opportunity for ENRG. Previously identified mineralisation is relatively shallow with minimal ground cover, indicating that future exploration efforts could be conducted at relatively lower costs when compared to the deeper mineralisation situated in the Athabasca Basin. The Company will continue to review historical data associated with the Project, which will be used to plan near-term exploration initiatives. As plans are finalised and exploration activities commence, additional updates will be provided to the market
Contact:
Caroline Keats
Managing Director
Tel: +61 8 6263 4400
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