Okapi picks up uranium exploration portfolio in Canada’s high-grade Athabasca Basin

Okapi Resources (ASX: OKR) is set to acquire a portfolio of advanced uranium exploration projects in Canada’s Athabasca Basin after securing a binding conditional agreement with ALX Resources (TSXV:AL).

The deal, which will be fully funded via existing cash reserves, will see Okapi pick up six projects over 75 granted mineral claims totalling 55,000 hectares in one of the world’s premiere high-grade uranium jurisdictions.

The company notes that each of the projects are located along the margin of the Athabasca Basin or in the Carswell Impact Structure, where uranium deposits are typically located at shallower depths of 300m to 100m below surface.

“A number of world-class uranium discoveries have been made in the Athabasca Basin in recent years following new advancements in the understanding and exploration of high-grade unconformity style uranium deposits”

Speaking on the acquisition, Okapi Resources Executive Director David Nour said: “This acquisition is highly complementary to Okapi’s existing portfolio of advanced uranium projects providing Okapi shareholders with exposure across the full exploration and development spectrum.

A number of world-class uranium discoveries have been made in the Athabasca Basin in recent years following new advancements in the understanding and exploration of high-grade unconformity style uranium deposits. The Cluff Lake Exploration Project and the Newnham Lake Project have the hallmarks for potential tier-1 uranium discoveries.

We also remain focussed on advancing Okapi’s Tallahassee Uranium Project towards production following the recent announcement of our Maiden JORC 2012 Resources of 27.6 million pounds @ 490ppm U3O8.”

Included in the purchase are:

1. Cluff Lake Exploration Project (80%) – three claims totalling 4,833 hectares, adjacent to the the former Cluff Lake Mine which produced 64.2mlbs of U3O8 @ 0.92% U3O8 between 1980 and 2002. The focus of initial exploration of high-grade unconformity-related uranium deposits, with previous grades of up to 16.9% U3O8 from basement boulder-trains.
2. Newnham Lake Project (100%) – co-focus of initial exploration, covering 14 claims over 16,940 hectares. Historical grades of 1,953ppm U3O85 from drilling at the unconformity contact.
3. Perch Project (100%) – one mining claim over 1,682 hectares.
4. Lazy Edward Bay Project (100%) – 42 mining claims over 11,263 hectares.
5. Kelic Lake Project (100%) – 12 mining claims over 13,620 hectares.
6. Argo Project (100%) – three contiguous mining claims over 6,975 hectares.

The terms of the property purchase agreement will see Okapi pay an initial $50,000 non-refundable deposit to secure a 60-day exclusivity period, before paying an additional $1,000,000 cash amount along with $1,050,000 worth of fully paid ordinary shares in Okapi, subject to conditions precedent. ALX will also retain a 1.5% net smelter returns royalty on output from certain mineral claims.

Moving forward, Okapi reports that it will work on data review and high-priority target generation across the projects using an extensive radiation, geochemical and geophysical database included in the acquisition. Drilling data is being reviewed and incorporated.

Images: Okapi Resources Limited