Cosmos Exploration Limited (ASX: C1X) reached a conditional agreement to pick up 80 per cent interest in the Fenix Uranium Project in Canada’s Thelon Basin from Northex Capital Partners.
Announced on Friday, Cosmos agreed to pay CAD$50,000 up front and over 2 million shares. Cosmos will also get the earn-in interest after spending CAD$1 million on exploration within three years, after which it will pay additional cash and share payments.
Additionally, this agreement depends on satisfactory due diligence and necessary approvals.
The Fenix Project is located about 100 km north of the Kiggavik deposit and 50 km southwest of the Amer Lake uranium deposit within the Amer Group belt. Cosmos is also optimistic about the Thelon Basin’s potential for significant uranium discoveries and plans to start exploration activities in the summer of 2024.
The company is preparing to conduct rock and boulder sampling programs to evaluate the project, with work expected to begin in mid-2024. Furthermore, the company plans to report the results, which will comply with the Joint Ore Reserve Committee (JORC) Code 2012, in the December 2024 quarter.
“Cosmos has been searching for an attractive uranium opportunity for some time now and believes this to be a standout acquisition in a world-class, high-grade uranium province,” Jeremy Robinson, Cosmos executive chairman, said.
Cosmos is also exploring geophysical techniques to reveal the project’s potential and establish drill targets for a maiden drill program.
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The Fenix Project includes a substantial land position
The Fenix Project includes a substantial land position of 162.7 km² with historical groundwork that has defined six interpreted radioactive boulder trains, with assays reaching up to 6 per cent U₃O₈. The sources of these boulder trains remain undiscovered, representing significant exploration opportunities for Cosmos.
There has been very little drilling to date, with a highlight intersection of 0.7 per cent U₃O₈ over 0.4 meters within a broader interval of 0.2 per cent U₃O₈ over 3.9 meters. It also remains open at depth.
Leo Horn, an experienced Athabasca uranium geologist and Cosmos Technical Director, will lead the exploration. Cosmos has also secured firm commitments for a $1.01 million placement at $0.0425 per share to support the acquisition.
Cosmos believes the Thelon Basin uranium district holds significant potential for new discoveries of world-class unconformity-style uranium deposits. Other companies have recently achieved significant success, including Forum Energy Corp (TSX.V: FMC) (OTCQB: FDCFF) with their recent discovery intersection of 3.25 per cent U3O8 over 7.6 meters at Tatiggaq. ATHA Energy Corp (TSXV: SASK) (OTCQB: SASKF) (FRA: X5U) is also launching a 10,000-meter drill program this year to expand its Angilak Deposit, which holds 43 million pounds of U3O8.
The Thelon Basin benefits from relatively well-developed mining infrastructure. The town and inland port of Baker Lake support Agnico Eagle’s (NYSE: AEM) (TSX: AEM) large-scale gold mines, Meadowbank and Amaruuq, which collectively produced over 400,000 ounces of gold last year. The estimated resources included 2.7 million ounces of gold in 2017.
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