Okapi Resources Ltd Reaches Agreement to Acquire High-Grade Uranium Assets in the Athabasca Basin

“Our detailed due diligence over the past two months has demonstrated the excellent geological potential of all six properties,” MD said. Okapi will now embark on phased and integrated exploration programs on the projects.

Okapi Resources Ltd (ASX:OKR) has entered into its agreement with ALX Resources Corp (TSX-V:AL) to acquire six advanced exploration projects in Canada’s Athabasca Basin, the world’s first high-grade uranium district. world.

The Athabasca Projects include 75 granted mining claims covering over 55,000 hectares with the six projects along the basin margin or within the Carswell Impact Structure.

The depth of the mismatch is relatively shallow at 300 meters or less and generally closer to 100 meters making them ideal for targeting shallow high grade uranium deposits.

“Excellent geological potential”

Okapi Resources Managing Director, Andrew Ferrier, said, “We are delighted to complete the acquisition of the six high-grade exploration properties in the Athabasca Basin, the world’s premier uranium district.

“Our detailed due diligence over the past two months has demonstrated the excellent geological potential of all six properties.”

Exploration programs

Okapi will now embark on phased and integrated exploration programs on the newly acquired projects over the next 12 months.

Two properties – Middle Lake and Newnham Lake – were prioritized for drilling as soon as the necessary drilling permits were received from the Government of Saskatchewan, while coordinating and consulting with First Nations to ensure stakeholders are properly represented.

In the meantime, Okapi is working on a comprehensive compilation, review and reinterpretation of historical data from the exploration program to create updated geological models towards the goal of generating drill targets on all six properties.

Location of Okapi projects in the Athabasca Basin.

Drilling permits filed

“The team’s initial work will focus on the Middle Lake and Newnham Lake projects which have the characteristics of potential Level 1 uranium discoveries,” Ferrier said.

“The team has preemptively filed drill permits on the Middle Lake project and is currently in the process of also filing drill permits at Newnham Lake. This will likely provide the opportunity and flexibility to drill one of two targets in the North American summer and the following winter.

“We look forward to establishing Okapi in the Athabasca Basin and building a strong and lasting relationship with all project stakeholders. »

Latest technologies

Okapi will apply the latest image interpretation and modeling technologies to remotely identify the underlying potential for economic uranium mineralization in Athabasca Group sediments and Precambrian basement rocks beneath the unconformity.

This will be followed by conventional surface-based exploration methods using portable and portable devices to identify near the surface uranium, thorium and other pathfinder elements. Exploration field data will then be integrated with previously developed geological models and applied to drilling targeting.

Okapi worked closely with a very reputable Saskatchewan-based technical services company to help classify and prioritize properties by geological prospectivity.

Due diligence has shown that there are numerous high priority targets on the properties and the company will focus on drilling on two of the six properties – Middle Lake and Newnham Lake – identified as having the best exploration potential.

Middle Lake Project

The Middle Lake project is adjacent to the former Cluff Lake mine. The Cluff Lake mine was operated by Orano (formerly Areva), the French multinational nuclear fuel company, from 1980 to 2002, producing 64.2 million pounds of U3O8 at 0.92% U3O8.

This project comprises three claims totaling 4,833 hectares and borders the Cluff Lake Mine property on two sides.

Middle Lake is also 10 kilometers north of Orano-UEX’s Shea Creek deposit (resources of 96 million pounds at 1.3% U3O8), 75 kilometers north of NextGen’s Arrow deposit (resources of 337.4 million pounds at 1.8% U3O8) and 75 kilometers from Fission Uranium Corp’s Triple R Deposit (resources of 135.1 million pounds at 1.8% U3O8).

Block trains grading up to 16.9% U3O8 were discovered in the northern part of the Middle Lake project. In the southern zone there are six blocks of sandstone together that assayed between 0.32% and 3.7% U3O8 with an adjacent basement block assaying 8.95% and 1.72% U3O8.

Newnham Lake Project

Newnham Lake consists of 14 claims totaling 16,940 hectares and straddles the northeast margin of the Athabasca Basin. It is underlain by a series of graphitic metapelites where several fault zones have been identified along strike and intersecting basement rocks.

Several intersections with grades between 1,000 ppm U3O8 and 2,000 ppm U3O8 were intersected in relatively shallow historical drilling within a 25 kilometer folded and faulted conductive trend.

Importantly, the depth of the Athabasca Basin unconformity at Newnham Lake is approximately 100 meters deep, mitigating the need to drill deep holes to uncover uranium mineralization hosted in sandstone or rock. basement.

Other projects Okapi intends to focus on following the two priorities are Perch, Lake Edward Bay, Kelic Lake and Argo.

The company will also seek to consolidate and expand its holdings in the Athabasca Basin through highly accretive acquisitions in 2022.

Location of Okapi’s North American Uranium Projects.

“Straight to Strategy”

“The closing of this transaction is directly related to Okapi’s strategy as we continue to seek to acquire assets under the right circumstances and provide shareholders with diversified exposure to the uranium space in North America,” said Ferrier.

“We continue to believe that uranium is currently in an uptrend and Okapi is currently assembling and growing the right portfolio of assets to create shareholder value.”

Overview of the Athabasca Basin

The Athabasca projects are all in Saskatchewan, Canada. Saskatchewan was ranked the top region in the world for mining investment opportunities in the Mining Journal’s 2020 Global Risks Report.

The Athabasca Basin is home to the largest and richest uranium mines in the world, including Cameco’s McArthur River and Cigar Lake uranium mines. Cigar Lake and McArthur River contain total Mineral Reserves of 165.6 million pounds at 15.9% U3O8 and 391.9 million pounds at 6.9% U3O8 respectively.

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