ENRG Elements secures deal to acquire Lamont Lake uranium project in Canada

Perth-based ENRG Elements (ASX: EEL) will make an upfront payment of $30,400 and issue 33.3 million shares to acquire the Lamont Lake uranium project in Canada from private vendor Marino Specogna.

A deferred consideration of $100,000 cash or shares will also be made within six months of the deal.

ENRG said there has been minimal modern exploration across the Lamont Lake tenement package, presenting it with an “exceptional opportunity” to build upon the historical uranium findings.

Well-situated

Lamont Lake sits 85 kilometres north-west of Uranium City in North Saskatchewan and immediately north of the Athabasca Basin, home to some of the world’s highest-grade uranium deposits.

The project encompasses four mineral claims and 11 historic uranium occurrences over 22 square kilometres in an area of shallow mineralisation from near-surface to 57m depth, with grades between 0.02% and 0.5%.

ENRG’s initial analysis of Lamont Lake indicates geological similarities to the historical Beaverlodge region 90km to the south-east, which mined 17 deposits from 1953 to 1982 to produce approximately 56 million pounds of uranium oxide at an average grade of 0.24%.

Previously identified mineralisation has minimal ground cover, indicating that future exploration efforts could be conducted at relatively lower costs when compared to deeper deposits in the Athabasca Basin.

An airborne survey completed in 1967 by former owner Numac Oil and Gas identified significant radioactive areas and isolated occurrences, 11 of which were within the project boundaries.

Portfolio diversification

Managing director Caroline Keats believes Lamont Lake presents a “compelling near-term exploration prospect” that could enhance diversification of the company’s project portfolio.

“Lamont Lake is located in a world-class uranium province and presents a valuable opportunity for ENRG, offering significant optionality and near-term exploration potential while contributing to our strategy of diversifying jurisdictional risk,” she said.

“We continue to review historical data and expect to complete exploration planning over the coming weeks.”

“We are also assessing a number of strategic opportunities to bolster our presence in key markets and will provide updates to shareholders on any significant developments.”