Valor Resources has secured an 80 per cent share of the highly-prospective Hook Lake uranium project in Canada, just two days after acquiring the 83-square-kilometre Frazer Lake lithium project across the country in Ontario.
The company today confirmed it had made the third and final “anniversary” payment to Skyharbour Resources to complete the Hook Lake deal. As part of a revised agreement, it was required to pay Skyharbour C$75,000 (AU$85,300) and issue it 31.75 million shares.
Hook Lake is in the Athabasca Basin in northern Saskatchewan – a region that has become widely known as being the world’s leading producer of high-grade uranium.
While the lithium price has retreated during recent times, the price of uranium has been running hard and recently surged to more than USD$100 (AU$154) per pound. The significant price lift has placed a spring in the step of uranium explorers and Valor is positioning itself in prime position to benefit from the metal returning to favour, due to the role it can play in the world’s future transition to clean energy.
The company’s recent focus at its uranium projects has been defining priority drill targets to test and it has a possible treasure trove to explore at its many sites in the world-class Athabasca basin.
A total of 11 targets have been identified at Hook Lake through airborne-gravity surveys, with initial reconnaissance work completed at some targets. However, further surveys and lake sediment sampling is planned for the highest-priority targets during this year’s Canadian summer.
Management says the top three targets are V-Grid, West Way and Thompson Lake South. They feature several strong gravity lows identified from the airborne surveys.
Valor Resources executive chairman George Bauk said: “This part of the Athabasca Basin is regarded as one of the hottest uranium exploration addresses in the world right now, thanks to the recent Gemini-92 Energy and ACKIO-Baselode Energy discoveries, located 30km north of Hook Lake.”
The company also fully owns four other projects in the region. Hidden Bay, Cluff Lake, Surprise Creek and Beatty River have many drill-ready targets identified and they are screaming out to feel the hard edge of the drill bit.
Valor has increased its stake in Hook Lake and acquired the purchase option agreement on the Frazer Lake lithium project using a mix of cash and shares. The company has met its exploration expenditure commitments at Hook Lake, spending C$3.5 million (AU$4 million) during the three-year farm-in period.
92 Energy’s nearby Gemini uranium discovery, now known as GMZ, included a highlight hit of 17.6m at 0.43 per cent uranium oxide.
Baseload Energy also discovered its ACKIO near-surface, high-grade uranium deposit in the region. It measures greater than 375m along strike and more than 150m wide and comprises at least 11 separate zones, with mineralisation starting from 28m below surface and extending to about 300m depth.
Valor has several promising projects, with the company’s focus on in-demand commodities uranium, lithium and copper, with all of its projects based in Canada.
Despite recently divesting some promising copper projects in Peru, it retained a 20 per cent interest in the operations, in addition to a 20.58 per cent shareholding in Firetail Resources, the company now driving the projects forward.
With the history of high-grade discoveries in the Athabasca Basin coupled with the region’s recent finds – not to mention a surging uranium price – things may soon get interesting for Valor.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Craig Nolan
