Uranium and copper-focused microcap ENRG Elements Ltd (ASX:EEL) has seen its price rise a quarter of a percent on news it has acquired the Lamont Lake uranium project in the prospective Canadian province of Saskatchewan.
ENRG told the market it had paid $27,500 in Canadian currency, together 33,333,333 shares to finalise the acquisition, with this to be followed up by a payment of either $100,000 in Australian currency or the issue of shares worth the same amount in six months’ time.
In its previous announcement of the acquisition on August 1, the company emphasised the importance of Lamont Lake’s territory, being located not only 85 kilometres northwest of Uranium City, but also immediately north of the Athabasca Basin, which hosts some of the world’s highest-grade uranium deposits.
The project comprises four mineral claims across approximately 22 square kilometres of land.
Within this are 11 historic uranium occurrences which include promising historical assays and geological data, with the latter indicating evidence of shallow uranium mineralisation, occurring from near surface down to ~57 metres, with approximate grades of between 0.02% and 0.5%.
Additionally, early analysis has hinted that the project hosts geology close to what has been seen in the Beaverlodge deposits area located around 90 kilometres to the southeast, with the latter producing approximately 56 million pounds (Mlb) of triuranium octoxide (U3O8) at an average grade of 0.24% U3O8.
Managing Director Caroline Keats said Lamont Lake was an important addition to ENRG’s exploration and development plans.
“We are very pleased to have completed the acquisition of the Lamont Lake uranium project located in a world-class uranium province which enhances ENRG’s Company’s strategy of diversifying jurisdictional risk and represents a valuable opportunity for ENRG, offering significant optionality and near-term exploration potential,” she said.
“The acquisition of the Project presents ENRG with a compelling prospect and enhances diversification within the Company’s project portfolio.”
At 14:14 AEST, ENRG was trading at 0.2 cents: a rise of 25% since the market opened.