Okapi Resources Ltd (ASX:OKR) is acquiring a portfolio of six advanced exploration projects from ALX Resources Corp in the world’s premier high-grade uranium district, the Athabasca Basin in Canada.
The company is targeting high-grade unconformity-related uranium deposits via the acquisition of six strategically placed exploration assets covering more than 55,000 hectares.
Okapi will initially focus on the Cluff Lake Exploration Project and the Newnham Lake Project where the team will target high-grade unconformity-related uranium deposits
“Complementary to existing portfolio”
Okapi executive director David Nour said: “This acquisition is highly complementary to Okapi’s existing portfolio of advanced uranium projects providing Okapi shareholders with exposure across the full exploration and development spectrum.
“A number of world-class uranium discoveries have been made in the Athabasca Basin in recent years following new advancements in the understanding and exploration of high-grade unconformity style uranium deposits.
“The Cluff Lake Exploration Project and the Newnham Lake Project have the hallmarks for potential tier-1 uranium discoveries.
“We also remain focused on advancing Okapi’s Tallahassee Uranium Project towards production following the recent announcement of our maiden JORC 2012 resources of 27.6 million pounds at 490ppm U3O8.”
Location of Okapi’s North American Uranium Projects
Acquisition plan
The ALX transaction will also see Okapi acquire the Kelic Lake, Argo, Lazy Edward Bay and Perch projects all of which straddle the margin of the Athabasca Basin with the potential to discover shallow unconformity style uranium mineralisation.
These acquisitions are highly complementary to Okapi’s existing portfolio of advanced North American uranium assets providing shareholders with additional exposure to exploration success.
Data review and priority target generation are well advanced for Cluff Lake Exploration Project and Newnham Lake Project
Notably, the acquisition and exploration programs are fully funded from existing cash reserves.
Cluff Lake Exploration Project
The Cluff Lake Exploration Project adjoins the former Cluff Lake Mine which was operated by Orano (formerly Areva), the French multinational nuclear fuel company, from 1980 to 2002 producing 64.2 million pounds at 0.92% uranium.
This project is also 10 kilometres north of Orano-UEX’s Shea Creek deposit (resources of 96mlbs at 1.3% U3O8), 75 kilometres north of NextGen’s Arrow deposit (resources of 337.4mlbs at 1.8% U3O8) and 75 kilometres from Fission Uranium Corp’s Triple R Deposit (resources of 135.1mlbs at 1.8% U3O8).
Notably, boulder-trains with grades of up to 16.9% uranium have been discovered in the northern portion of the Cluff Lake Exploration Project.
Several walk-up drill targets have been identified with advanced exploration methods such as VTEM, gravity and radon.
Cluff Lake Exploration Project.
Newnham Lake Project
Newnham Lake consists of 14 claims totalling 16,940 hectares and straddles the north-eastern margin of the Athabasca Basin
Grades of up to 1,953ppm uranium in historic drilling at the unconformity contact, uranium mineralisation detected along with a poorly tested 5-kilometre trend within a 25-kilometre conductive trend extending into outcropping basement rocks.
Historical exploration was undertaken prior to the recent understanding of the importance of basement-hosted uranium deposits with little drilling below 25 metres depth.
There is shallow depth to unconformity of 100 metres vertically below the surface with potential for discovery of basement hosted uranium mineralisation
The company has identified multiple high-impact walk-up drill targets for future drill programs.
Newnham Lake Project
Athabasca forward work program
Data review and high priority target generation are well advanced in relation to the Cluff Lake Exploration Project and the Newnham Lake Project.
The acquisition includes a substantial database of radiation, geochemical and geophysical data to be compiled and reviewed.
Drilling data is also being reviewed, compiled and incorporated into the company’s database.