Core Energy Minerals (ASX:CR3) has executed a staged earn-in agreement with Deep Yellow (ASX:DYL) subsidiaries and Toro Energy affiliates for the Nova Uranium Joint Venture (JV) in Namibia’s Erongo Region.
Under the terms, Core Energy can earn up to 51% of the Nova JV through $5 million in exploration expenditure across two phases. The company will then spend $2 million over 18 months to earn 25%, then an additional $3 million over 24 months for another 26%.
The Nova JV comprises two exploration licences covering 826.9km2, including the Barking Gecko and Iguana prospects. Previous drilling at Barking Gecko returned 45m @ 222 parts per million (ppm) uranium oxide (U3O8) from 120m and 21m @ 886ppm U3O8 from 199m. Meanwhile, drilling at Iguana returned 10m @ 136ppm U3O8 from 38m and 14m @ 184ppm U3O8 from 72m.
Managing Director Tony Greenaway says the JV represents a ‘transformational’ expansion of the company’s footprint in Namibia and is “a vote of confidence” in its uranium technical expertise.
“The Nova JV tenements host some of the most advanced basement-hosted uranium targets in the region … and sit directly within the same geological corridors that host world-class deposits such as the Husab, Rössing, and Etango hard rock deposits, and Deep Yellows own Tumas palaeochannel deposit, which is rapidly advancing towards [a financial investment decision],” Greenaway says.
The transaction consolidates Core Energy’s footprint alongside its 100%-owned Gemsbok and Oryx projects.
Exploration will commence in the September quarter, including target ranking, structural analysis, and a maiden drilling program managed by Core Energy.
The Nova JV is currently owned 65% by Deep Yellow subsidiary Reptile Mineral Resources and Exploration, 25% by Toro Energy subsidiary Nova Energy Africa, and 10% by Sixzone Investments.
Core Energy Minerals is a mineral explorer with a critical minerals and uranium portfolio in tier one mining jurisdictions.
Write to Paula Fabe at Mining.com.au
Images: Core Energy Minerals
