Terra Uranium (ASX:T92) has received rock chip results of up to 7,950 parts per million (ppm) uranium from the Amer Lake Project in Nunavut, Canada.
During a recent field visit, the company collected 16 rock samples, as well as two boulder samples in the Main and Horned Lake areas. The main sample returned up to 1,510ppm uranium, while the Horned Lake sample assayed 7,950ppm uranium.
The field team noted most boulders within areas of interest had been overturned and split, which suggests extensive historical prospecting.
Following today’s announcement, Terra Uranium’s share price has increased 38.29% to $0.130 as of 10.30am AEST.
Executive Chairman Andrew Vigar says the results confirm the tenor of the mineralisation and that the current defined resource is a small part of a “much larger system.”
“This is a truly game-changing acquisition for Terra, as it gives us a real ‘pounds in the ground’ with potential for higher grades and extensions,” Vigar says.
During March 2024, Terra Uranium announced a proposed acquisition of the Amer Lake Project, in which the original binding letter of intent between the company and the vendor outlined specification conditions needing to be satisfied before 27 April 2024.
The company has agreed to extend this period. The extension allows for remaining due diligence matters to be attended, including the claim renewal being conducted by the vendor.
Terra Uranium says drafting of the definitive acquisition documents are nearing completion.
Upon closing the acquisition, Terra Uranium plans to conduct a review of the complete historical geological data, develop plans to conduct verification drilling over the Main Zone deposit, as well as re-estimate the Amer Lake Main Zone resource.
The Amer Lake Project comprises six claims totalling 1,190 hectares to be acquired, and two claims totalling 1,526 hectares already staked by Terra Uranium. Amer Lake’s mineralisation is a sandstone-hosted type, similar to large, near-surface deposits in the US.
Terra Uranium is a mineral explorer focused on its position in the Athabasca Basin, Canada. The company holds 29 claims covering 1,203km2 which forms the Engler Lake, HawkRock, Pasfield Lake, Parker Lake, Rapid River, and Yurkowski Lake projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Terra Uranium
