- Eclipse Metals is a multi-commodity explorer, enjoying investor, indigenous and government support for Devil’s Elbow U-Au-Pd Project in the NT
- Grant of EL27584 in Devil’s Elbow Prospect allows accelerated growth in the neighbourhood of Ranger and Nabarlek uranium mines
- At Queensland Manganese Prospect, which previously defined high-grade manganese mineralisation, EPM plans to continue work in 2020
- Backed by strong management, EPM remains committed to advance on Devil’s Elbow U-Au-Pd Project and Queensland Mn Project
A new entrant to the ASX in 2011 was Australian mineral exploration company, Eclipse Metals Limited (ASX:EPM), which held highly prospective uranium tenements in Northern Territory. The Company utilised the downtime in the uranium market led by Fukushima disaster to grow its portfolio to manganese, vanadium and precious metals including gold, platinum and palladium prospects in Northern Territory and Queensland, while also advancing on its uranium projects.
The same confidence was shown by the Company’s investors with no major investors pulling out their investments since 2011, which is truly a remarkable milestone for EPM.
Eclipse’s Call of the Time - Devil’s Elbow Project in A Geologist’s Heaven
While the Fukushima disaster in 2011 adversely impacted the uranium industry, leading to reduction in demand and price, and in turn closure of several supply sources, the COVID-19 pandemic has reinvigorated us to move to cleaner, reliant and sustainable power sources.
A major transition from thermal to nuclear power generation might be anticipated. Though demand gap following the Fukushima disaster has already been filled, about 55 nuclear reactors are under construction, consequently, demand for uranium is expected to surge in future, mostly from the Middle East and Asian countries.
Uranium prices have surged significantly due to supply disruptions amid the pandemic and the positive shift in global energy market has created a renewed interest in uranium, unarguably one of the cleanest energy sources.
Eclipse Metals’ Devil’s Elbow Uranium, Gold and Palladium Prospect is located within the renowned Alligator Rivers Uranium Field, approximately 65 kilometres from Rio Tinto’s Ranger Uranium Mine, the largest uranium mine of the Southern Hemisphere.
The region hosts the Ranger Uranium Mine, as well the mega world-class Nabarlek high-grade uranium and copper mine. Alligator Rivers Uranium Province (ARUP) is a prominent and world-class uranium province in terms of uranium endowment and geological setting, attracting mining majors including Rio Tinto and Cameco. The province holds the potential to host another Ranger or Nabarlek, as believed by both Rio Tinto and Cameco.
Almost 95% of known uranium resources and 96% of past uranium production of the entire Northern Territory can be accounted to ARUP. Securing exploration tenements in ARUP is unusual and will possibly reflect in the value generation for Eclipse Metals in future. Carl Popal, Chairman of Eclipse Metals, describes ARUP as ‘a geologist’s heaven’.
After year-long co-operation and negotiations with traditional landowners, Eclipse Metals was granted consent by traditional landowners for its Devil’s Elbow prospect, with the grant process ratified by the NLC Executive Council and announced in early 2020.
Subsequently, Commonwealth Minister for Indigenous Australians, Honorable Ken Wyatt also issued an advice of consent for the Devil’s Elbow project. Finally, in the first week of June 2020, the Exploration Licence EL27584 at the Devil’s Elbow Uranium, Gold, Palladium Project was granted by the Northern Territory’s Department of Primary Industry and Resources to North Minerals Pty Ltd, a wholly owned subsidiary of Eclipse.
Consent by landowners, government support and finally, granting of the exploration licence, are important milestones for Eclipse Metals, which now plans to advance on the detailed exploration program in 2020, seeking uranium, gold and palladium mineralisation within the tenement area.
Eclipse Metals has observed steady and sustainable growth in its share prices, with advancement on its project. From $0.005 at end-February 2020, the stock price has grown tremendously, closing the day’s trade at $0.009 a share on 11 June 2020, highlighting an increase of 12.5% from its previous close. In the last three-month and six-month period, the stock has delivered a return of 60% and 100%, respectively.
Despite headwinds arising from the pandemic, Eclipse’s focus on the project advancement has enabled investors and shareholders to gain substantial returns on their investments.
Eclipse Metals’ Stock Skyrockets 12.5% on Bourses Post Grant of Devil's Elbow EL27584: Must Read
Queensland Manganese Prospect
Eclipse Metals also owns key manganese exploration project in the May Valley region of the south-eastern Queensland. The granted exploration licences stretch across 31km2 and include the historically mined Amamoor deposit. A reconnaissance diamond drilling program in 2018 at the Mary Valley Manganese project returned high-grade manganese mineralisation.
Best intersections from the Amamoor prospect:
- 2m @ 46.3% MnO from 7.8m in Hole ADD006;
- 4m @ 26.3% MnO from 14.9m in Hole ADD007;
- [email protected] 7.00%MnO from 2.0m in Hole ADD002B.
The Company plans to continue to work on the Queensland Manganese Prospect in 2020, for which EPM has received all government approvals.
Highly Proficient and Experienced Team
The Management and Technical team hold extensive exposure to diversified minerals, in addition to minerals exploration, construction, project management, capital raisings and financial management across geographies. The senior management holds significant equity holdings of Eclipse Metals, therefore aligning their interests with the shareholders to generate value.
Carl Popal, Chairman of Eclipse Metals, leads the Company, holding over 20 years of entrepreneurial experience. His two decades of vast experience cover diverse range of commodities trading, construction, asset and corporate management, and minerals exploration.
Though EPM is focused on increasing shareholder wealth with the exploration for and development of its existing asset base, Eclipse Metals also continues to seek additional prospective projects for further value generation.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.