Orpheus Uranium (ASX:ORP) has entered a binding agreement to acquire seven new exploration licences over 2,513km2 in South Australia’s Lake Eyre Basin from Adavale Resources (ASX:ADD).
This deal builds on the company’s strategy of establishing a portfolio of uranium exploration assets in top districts. The new licences provide Orpheus with a consolidated, district-scale uranium exploration position in the region.
The acquisition criteria used by Orpheus are based on key geological and commercial attributes, including the ability to secure full ownership of a project with known uranium mineralisation exceeding 100 parts per million equivalent uranium oxide, a sedimentary roll-front uranium mineralisation style, and limited recent exploration.
Historical drilling and helicopter-borne electromagnetic surveys have identified prospective palaeochannel-hosted sedimentary sequences and widespread uranium anomalism within the acquired tenure. The eastern portion of EL6553 contains 36 drillholes with over 100ppm equivalent uranium oxide, with peak responses over 450ppm equivalent uranium oxide.
The new tenure also provides Orpheus with exposure to known uranium systems and priority targets at George Creek and MacDonnell Creek.
The acquisition also includes the transfer of native title mining agreements with the Adnyamathanha Traditional Lands Association and the Dieri Aboriginal Corporation.
The terms of the agreement include a $50,000 non-refundable exclusivity payment, $300,000 in cash, and 2.5 million Orpheus Uranium securities payable upon execution of the agreement and satisfaction of conditions precedent, with a six-month escrow. An additional $300,000 cash and 2.5 million Orpheus Uranium securities will be paid upon the transfer of the tenements and assignment of the deeds for the native title mining agreements, with a six-month escrow period.
Managing Director Clinton Dubieniecki says this is a strategic acquisition for the company, consolidating its land package in one of Australia’s top uranium jurisdictions.
“It adds known uranium anomalism, a district-scale opportunity adjacent to our Marree Project, and a pathway to advance the project within our exploration pipeline,” Dubieniecki says.
“Our strategy is to build a balanced uranium portfolio across Australia’s leading uranium districts. This acquisition strengthens that platform and gives Orpheus the opportunity to unlock value through modern targeting and exploration programs implemented by our team of internal experts.”
The company plans to engage with key stakeholders to potentially begin on-ground activities and progress the project towards advanced exploration.
Orpheus Uranium is an Australian exploration company focused on exploring for uranium in South Australia and the Northern Territory, with recently expanded tenure into Western Australia.
Write to Amy Rotman at Mining.com.au
Images: Orpheus Uranium
