Alligator Energy Ltd (ASX:AGE) has started mobilising a contractor for an airborne electromagnetic survey as the first step to test the potential for a greenfield ISR uranium opportunity at Big Lake Uranium Project in South Australia.
The purpose of the survey is to delineate interpreted palaeochannels within the Eyre formation of the Tertiary sediments that would form a favourable environment for uranium deposition.
SkyTEM Australia has been contracted to complete the survey utilising the SkyTEM 304 system, which is proven to deliver accurate data from the top few metres to depths of up to 350 metres.
A total of 1,350 line kilometres are proposed, over north-south lines spaced at between 400 and 500 metres, to cover the prospective target area.
Towards first pass drill testing
Alligator CEO Greg Hall said: “We are hugely excited to commence airborne exploration of the Big Lake project and we see the program as a key step to advancement and testing of a conceptual new ISR field in South Australia.
“The intention is for the survey to allow focused first pass drill testing in Q3 2021.”
AGE’s exploration is targeting channel-hosted roll front resources comparable to existing resources such as Honeymoon, Four Mile and Beverley within South Australia.
Exploration grant
The project was granted funding under the South Australian Government’s Advanced Discovery Initiative (ADI) scheme.
This provides funding as part of the government’s Growth State Agenda to accelerate mineral discovery through innovative exploration and research projects in regional and frontier terrains throughout South Australia.
Following completion of the stage 2 application to the scheme in March 2021, the company was awarded $152,400 towards its ‘Greenfields exploration for ISR uranium deposits in the Cooper Basin’.
Hall said: “The South Australian ADI scheme is an excellent program with strong competition for funding and shows the department’s committed and ongoing support towards the mineral industry with a combined $10 million in grants to be awarded as part of the scheme.
“We are proud to be operating in two outstanding supportive Australian jurisdictions of South Australia and the Northern Territory for our uranium exploration programs.”
Earning period
Alligator and the shareholders of Big Lake Uranium Pty Ltd agreed on an extension to the Earning Period from July 21, 2021, to December 31, 2021, to enable completion of the proposed work program.
In lieu of granting the extension, Alligator has agreed to the payment of a variation consideration in the form of a one-off cash payment of $30,000 within 10 business days of the proposed variation becoming into effect.
The proposed variation extends the time to satisfy the milestone for the relevant performance shares, which are categorised as the acquisition shares.
This constitutes an amendment to the terms of those performance shares and any change to or amendment of the performance shares requires prior ASX and shareholder approval.
Alligator will be engaging with the ASX to seek a waiver from this requirement on the basis that the extension was required as a result of a ‘Force Majeure’ event created by the COVID pandemic.
Big Lake opportunity
Alligator entered into a share sale agreement with Big Lake Uranium (BLU), a privately-owned company and a holder of exploration licence 6367 in the Cooper Basin in South Australia, in 2019 which provides the opportunity to earn 100% interest in the project.
The company is targeting sandstone-hosted uranium in the Moomba Gas Fields, South Australia, and it also targets REDOX and roll front uranium mineralisation within paleochannels of the Lake Eyre formation.