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Highlights
Terra Uranium initiates exploration at the historic Spire and Horizon projects in Canada's Athabasca Basin under an option agreement with ATHA Energy.
Initial work includes airborne geophysical surveys and ground reconnaissance targeting near-surface uranium deposits.
A joint venture will be established with ATHA after meeting certain expenditure milestones, leading to increased equity for Terra.
Terra Uranium (ASX:T92) has commenced exploration activities at the historic Spire and Horizon projects, located on the eastern rim of Canada’s Athabasca Basin. This exploration is conducted under an option agreement with ATHA Energy, which requires Terra to allocate a specified budget towards these projects by the end of December. The initial exploration program is set to include airborne geophysics, encompassing gravity, magnetic, and radiometric surveys, followed by ground reconnaissance aimed at investigating historic mineralized boulder samples.
The exploration is strategically focused on identifying basement-hosted, near-surface uranium deposits along significant structural corridors known for their potential uranium mineralization. The completion of this initial phase of work is anticipated within the week.
Under the terms of the option agreement established in October, Terra will invest a total of $820,000 into the Spire and Horizon projects, part of a broader staged exploration expenditure of $5.19 million required by 2028. Upon fulfilling the third expenditure requirement, Terra and ATHA will enter a joint venture arrangement, granting Terra a 50% participating interest, with ATHA retaining a 50% free-carried interest. Following the completion of subsequent expenditures, Terra's equity could increase to 70%, while ATHA would hold a 30% interest.
The Spire and Horizon projects encompass 12 mineral claims covering an area of 610 square kilometers within the Needle Falls Shear Zone (NFSZ), which is characterized by regional-scale Tabbernor faults known to host uranium deposits. Historical exploration in the area dates back to 1963, initially focused on zinc and silver, with uranium-specific reconnaissance conducted as recently as 1980.
In 2023, ATHA's preliminary exploration program identified approximately 144 kilometers of conductors associated with the NFSZ and its cross-cutting structures, suggesting a high concentration of shallow uranium and copper targets. The new field program is managed by Troy Marfleet, Terra's recently appointed exploration manager, who brings extensive experience in greenfield uranium projects across the Athabasca and Thelon basins, supported by local firm Axiom Exploration.
