- Grant of EL27584 tenement area is expected to substantially enhance value of Devil’s Elbow U-Au-Pd Project
- EL27584 secured in times when uranium is experiencing bull run and a renewed call for clean energy
- Over 50 nuclear power plants under development accounting for 50% of current capacity highlight brighter future for uranium mines
- Future exploration planning underway, drilling activity planned for 2020
Australian exploration company, Eclipse Metals Limited (ASX:EPM) has announced the grant of Exploration Licence, EL27584 at the Devil’s Elbow Uranium, Gold, Palladium Project in the Northern Territory. The exploration licence was awarded by NT’s Department of Primary Industry and Resources to wholly owned subsidiary of EPM, North Minerals Pty Ltd.
Grant of EL27584, A Major Milestone for Eclipse and Devil’s Elbow
Eclipse Metals has been expecting the grant ever since receiving advice of consent from Commonwealth Minister for Indigenous Australians, the Hon Ken Wyatt, in compliance to section 42(8) of the Aboriginal Land Rights Act 1976 of Northern Territory in January 2020. A bilateral agreement granting consent by traditional landowners had already been ratified by the Northern Land Council (NLC) Executive Council in late-2019.
Uranium and gold mineralisation at the project areas was discovered and initially explored by Uranerz Australia and later between 2002 and 2008, it was explored by Cameco Australia prominently to the north of Ranger Fault. The Devil's Elbow U-Au-Pd prospect, located ~285km east of Darwin, hosted within the renowned Alligator Rivers Uranium Field, is ~60km from Rio Tinto’s Ranger Uranium Mine.
The Devil’s Elbow prospects have showcased strong similarities to the Jabiluka Uranium-Gold mine, and the uranium and gold mineralisation is interpreted to be hosted in alterations of the Cahill Formation.
Eclipse Metals recognises the tenure grant as an important milestone for the Company and an enhanced value of the project area with significant historical exploration expenditure. The project is expected to evolve as the major asset generating extensive value for EPM, its shareholders and the local community.
Uranium prices have surged significantly due to supply disruptions amid the pandemic. A positive shift in the global energy market has created a renewed interest in uranium, unarguably one of the cleanest energy sources.
In the past, assaying of shallow trenched samples had delivered high-grade uranium, gold and palladium results including 3.2% U3O8, 3.7% U3O8, 4.40% U3O8 and 5.8% U3O8, with 38.1g/t Au and 28.02g/t Pd, corresponding to fractures in alterations of the Nungbalgarri Volcanics.
The Company has conducted extensive analysis of historical exploration data and utilised the assessment to identify several new electromagnetic, gravity and radiometric targets. Securing large and extensive project areas are expected to maximise the prospectivity of Devil’s Elbow Project and substantially expand the value generation potential associated with the project.
Devil’s Elbow Project Progresses on Exploration Path
The brownfield granted tenure will be valued separately to assess substantial rise in the asset base. Further, an assessment of elaborate historical technical data along with defined walk-up drill targets will provide a concrete platform for planned exploration programs.
Further planning for on-ground exploration activities is underway and is expected to commence considering the practical situations related to current travel restrictions due to the pandemic.
A conventional helicopter supported diamond drilling program has been proposed and is anticipated to follow up on the targets identified from geological and geophysical studies. The exploration program is anticipated to target regions around the Devil’s Elbow, Terrace and Ferricrete uranium deposits with priority targets identified by historical geochemical and radiometric anomalies within EL27584.
Stock Performance - EPM settled the day’s trade at $0.009 on 4 June 2020, an increase of 12.5% against previous close. On 5 June 2020 (AEST 01:08 PM), the stock was trading flat, with a market capitalisation of $12.73 million. The last one-month and six-month return was noted at 50% and 125%, respectively.
(Note: All Currency in Australian Dollars unless otherwise specified)
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