NewPeak Metals (ASX:NPM) is in the final stages of acquiring the George River Uranium-REE-Scandium Project in Canada, which the company says will be a significant step under its “rejuvenation plan”.
In early January this year, NewPeak embarked on a “wholistic” scheme to trade out some of its assets — including gold projects in New Zealand and Finland — and instead focus on battery and critical minerals.
The George River tenement package consists of 363 claims in Québec and 154 claims in Labrador, spanning a total of 23,184 hectares. The tenement area encompasses the Stewart Lake, Nanuk, Crater Lake, and Strange Lake North properties.
Under the terms of the acquisition, originally put forward in April, NewPeak will pay $500,000 through the issue of 33 million shares to the vendors at $0.015 each, as well as a 2% net smelter royalty on all future minerals produced at the tenements.
NewPeak will also pay $300,000 in either shares or cash to the vendors, upon spending at least $500,000 on exploration activities.
The remaining conditions include NewPeak converting its outstanding directors’ fees and converting loans into shares, as well as the completion of a rights issue and placement — all $0.015 per share.
The rights issue opened on 7 June and will close on 28 June.
At the Stewart Lake property, four zones of anomalous uranium mineralisation were uncovered within an area of 12km by 6km. The company says outcrop results include mineralisation of up to 0.8% triuranium octoxide.
NewPeak says at the Nanuk property, there are three zones of anomalous uranium mineralisation identified with an area of 10km by 4km, with results as high as 1.18% triuranium octoxide.
Meanwhile, at Crater Lake, total rare earth oxide (TREO) and scandium mineralisation within a high-level syenite porphyry intrusion has been identified. The project has similar geology, and sampling has recorded 23.9% TREO and 985 parts per million (ppm) scandium.
The company intends to start an exploration program with the aim of moving the George River Project towards the definition of mineral resources.
NewPeak will begin with a detailed review and evaluation of historical exploration. Once complete, reconnaissance geochemical sampling, scintillometer traverses, and broad-scale geological mapping will be carried out.
The company will also follow up on priority areas with wide-spaced, low-detection soil sampling, alongside rapid air blast or aircore drilling in areas with shallow cover previously tested by trenching.
Upon completion, geophysical surveys and sampling will be undertaken ahead of reverse circulation drilling and diamond drilling to allow the definition of mineral resources and for metallurgical purposes.
Write to Aaliyah Rogan at Mining.com.au
Images: iStock, NewPeak Metals
