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Will Eclipse Metals Seize the Moment as Uranium Demand Heats Up?

Summary

  • A major resurgence in the uranium industry has been observed during 2020 and the trend is anticipated to continue over the upcoming times.
  • Eclipse Metals owns the Devil’s Elbow prospect, which is located in the NT’s Alligator Rivers Uranium Field.
  • Historical sampling program has indicated the presence of high-grade uranium, palladium, and gold mineralisation.

The coronavirus outbreak, which was restricted to China until January 2020, soon began to spread its tentacles across the globe, freezing the economies to a standstill. However, in the midst of massive lockdown restrictions, people were delighted to breathe in the cleanest air in a long time, courtesy reduced industrial activities.

As every cloud has a silver lining, it would not be incorrect to say that something as cataclysmic as the coronavirus outbreak could make the globe sit up and realise the importance of transitioning to clean energy. The new definition of the so-called modern technology now includes environmental sustainability.

One of the cleanest sources for clean and sustainable energy is uranium. Frequent uranium supply cuts and rising demand expectations have started to reflect in uranium prices. With growing electricity demand, the prices are expected to continue to surge through 2021.

Source: EPM ASX update, dated 25 August 2020

Good Read: Eclipse Metals (ASX:EPM) All Smiles Amid Shifting Focus to Clean Energy

Uranium seems to have reached an inflection point, from where its demand is likely to grow further, on the back of rising calls for clean energy transition.

Eclipse Metals: A Diversified Australian Explorer

Australia-based Eclipse Metals Limited (ASX:EPM) holds an impressive portfolio of gold, manganese, base metals, and uranium mineralisation. It plans to create value and enhance the shareholders’ wealth through capital growth and finally, dividends.

The Company plans to achieve these goals by exploring and developing viable mineral projects to advance the mining operations. Currently, it is engaged in exploring two key assets, the Devil’s Elbow uranium project and Mary Valley manganese project in the Northern Territory and Queensland jurisdictions, respectively. 

Devil’s Elbow Uranium Project in the Northern Territory

The Exploration licence 27584 at the Devil’s Elbow uranium, gold, and palladium project in the Northern Territory was secured in May this year. The project is located within the world-renowned Alligator Rivers Uranium Field, which hosts the Ranger, Nabarlek, and Jabiluka uranium mines.

Also Read: Eclipse Metals (ASX:EPM) Further Advances Uranium and Manganese Projects in September Quarter

The large uranium deposits in the uranium field account for over 96% of the historical uranium production and more than 95% of the identified resources in the Northern Territory.

In the past, Uranerz Australia had discovered and explored uranium, palladium, and gold mineralisation. After that, Devil’s Elbow was explored to the north of the Ranger Fault by Cameco Australia (2002-08).

In conjunction with the uranium opportunity, gold and palladium present a strong potential to further enhance the mineral project’s economics.

The prospect exhibits strong similarities with the renowned Jabiluka uranium and gold mine, which was discovered in 1971. The uranium and gold mineralisation are hosted within alterations of the Cahill formations, close to the reverse faulting structure, outlining similarities to the Devil’s Elbow prospect.

The historical near surface trenching samples indicate the presence of high-grade uranium, palladium, and gold mineralisation of up to 5.8% U3O8, 38.1g/t Au and 28.02g/t Pd respectively.

On the basis of the historical exploration results, Eclipse Metals has identified numerous new electromagnetic, gravity and radiometric targets at the unexplored anomalous structural zones and in areas south of the Ranger Fault, warranting additional exploration activities. Meanwhile, the Company’s planning for field exploration remains in progress.

On 24 December 2020 (AEDT 11:21 AM), EPM traded at AUD 0.012.

 

 

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