Recharge Metals finalises acquisition of the Newnham Lake uranium project
Ground gravity survey to be carried out to confirm drill targets
$1.44m share placement completed to accelerate exploration in Canada
Special Report: Recharge Metals has tucked the highly prospective Newnham Lake project uranium project in Canada’s Athabasca Basin securely into its pocket after finalising the acquisition of the newest asset in its North American portfolio.
The 15.84km2 Newnham Lake project is near the northeast margin of the Athabasca Basin, one of the world’s premier uranium districts that not only produces about 20% of the current global supply but also hosts the largest uranium deposit – McArthur River.
Newnham Lake is 56km northwest of IsoEnergy’s Hurricane deposit which hosts a high confidence indicated resource of 63,800t grading an eye-watering 34.5% U3O8 for 48.6Mlb of contained U3O8.
Recent discoveries in the Athabasca such as NexGen’s Arrow deposit (337.4Mlbs @ 1.8% U3O8) have also highlighted the potential for ‘basement-hosted’ mineralisation, where large, high-grade deposits occur below the unconformity.
Recharge Metals (ASX:REC) previously noted that two deeper drill holes completed by ALX Uranium Corp in 2018 confirmed the presence of uranium mineralisation over significant widths, as well as visible pitchblende, intense faulting and strong hydrothermal alteration deep in the basement.
Priority targets already identified by the company include significant alteration identified in basement rocks, a strong and wide conductive zone trending east-west across the entirety of the project with coincident low resistivity and anomalous radon, and shallow historical drilling which demonstrated anomalous uranium at the unconformity.
REC will also be able to leverage its established Canadian footprint, in-country relationships, and its focus on green energy.
Acquisition wrapped up
The company has now completed the acquisition of Newnham Lake from DGRM (DG Resource Management) and Kalt Industries for C$300,000 ($337,717) in cash and C$200,000 worth of REC shares priced at 6c each, as well as a 1% gross overriding return royalty for both vendors.
REC has also completed a $1.44 million share placement to sophisticated and professional investors to accelerate exploration activities at the project.
“We are pleased to announce the finalisation of the acquisition of the Newnham Lake Uranium Project, located in the Athabasca Basin – one of the world’s premier uranium districts,” REC managing director Felicity Repacholi said.
“The potential for significant new discoveries in the Athabasca was highlighted last week when NexGen announced an exciting new greenfields discovery. Recharge was attracted to the Newnham Lake project given the historical uranium intersections, coupled with the strong conductive corridor.
“Our team is now working through the historical data and is focused on planning the exploration program at Newnham Lake with oversight from Dahrouge Geological.”
Planned work
REC will soon undertake a ground gravity survey to expand on the existing data from Newnham Lake.
This will help confirm drill targets selected from previous geophysical data set.
This article was developed in collaboration with Recharge Metals, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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