Australia-based Recharge Metals (ASX: REC) signed a definitive agreement to purchase the Newham Lake uranium project in Canada’s Athabasca Basin from DG Resource Management (DGRM) and Kalt Industries for CAD$500,000 in cash and shares and a 1 per cent return royalty.
On Wednesday, the company announced that it had completed legal, technical and geological due diligence on the project.
The Newnham Lake Uranium Project encompasses an area of 15.84 square kilometres and is situated near the northeast margin of the Athabasca Basin.
Newnham Lake is located 56 kilometres to the northwest of IsoEnergy Limited’s (TSXV: ISO) Hurricane Zone, which contains an Indicated Resource of 48.6 million pounds of U₃O₈ based on 63,800 tonnes grading 34.5 per cent U₃O₈, including 43.9 million pounds of U3O8 at an average grade of 52.1 per cent U3O8 within the high-grade domain.
The company’s modern uranium discoveries in the Athabasca region have emphasized the potential for “basement-hosted” mineralization, where large, high-grade deposits are situated below the unconformity, such as NexGen Energy Ltd‘s (TSX: NXE) (NYSE: NXE) (ASX: NXG) Arrow Deposit (337.4 million pounds at 1.8 per cent U3O8).
In the 1970s and 1980s, historical drilling identified anomalous uranium mineralization near the unconformity at shallow depths. Key drilling intersections revealed 488 ppm U3O8 over 2.2 meters, including 2,260 U3O8 over 0.13 meters from a depth of 82.9 meters.
Map of the Newnham Project. Image via Recharge Metals.
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Historical drilling confirms presence of uranium
In 2018, ALX Uranium Corp (TSXV: AL) (FSE: 6LLN) (OTC: ALXEF) completed two deeper drill holes, confirming the presence of uranium mineralization over significant widths. They also observed visible pitchblende, intense faulting, and strong hydrothermal alteration deep in the basement.
Additionally, Newnham Lake enables REC to leverage its established Canadian footprint, in-country relationships, and focus on green energy.
Recent notable examples of this style of uranium mineralization within the Athabasca Basin include the discoveries at Arrow and Triple R in Patterson Lake South.
NexGen also uncovered the Arrow Deposit in 2014, which currently stands as the largest, highest-grade undeveloped uranium deposit in Canada, boasting a resource of 337.41 million pounds at 1.9 per cent U3O8.
Similarly, Fission Uranium Corp (TSX: FCU) discovered the Triple R Deposit in 2012, which currently holds a resource of 135.1 million pounds at 1.8 per cent U3O8.
Eagle Point, integrated into Cameco Corporation’s (NYSE: CCJ) (TSX: CCO) Rabbit Lake Operation since the 1990s, represents an older discovery of a basement-hosted uranium deposit. Recent basement-hosted discoveries include neighbouring Baselode Energy Corp.’s (TSXV: FIND) (OTCQB: BSENF) ACKIO discovery and 92 Energy Ltd’s (ASX: 92E) Gemini discovery.
Additionally, 92 Energy is a recent acquisition target of uranium junior ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF), which is also acquiring Latitude Uranium Inc. (CSE: LUR) (OTCQB: LURAF).
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