92 Energy powers ahead with uranium exploration in Canada’s Athabasca Basin

92 Energy ASX 92E uranium exploration Canada Athabasca Basin
Canada’s Athabasca Basin hosts the world’s highest grade uranium deposits and is home to Cameco’s Cigar Lake and McArthur River mines.

After listing on the ASX in April with projects in the world’s highest grade uranium district Athabasca in Canada, 92 Energy (ASX: 92E) has powered ahead with exploration to take advantage of the expected uranium rebound.

The company was admitted to official quotation in mid-April after raising $7 million via the issue of 35 million shares at $0.20 each.

According to 92 Energy, the Athabasca Basin in Canada’s Saskatchewan Province hosts the highest-grade and lowest cost uranium deposits globally.

It is home to Cameco’s Cigar Lake, McArthur River operations, and NextGen Energy’s Arrow deposit, as well as Rio Tinto’s (ASX: RIO) and Roughrider project.

Right place, right time

As demand for clean, base-load energy solutions continues, a rebound in the uranium price is widely anticipated in the coming years.

By 2040, it is estimated 85% of electricity will be sourced from a clean zero-carbon provider to meet global net zero emission commitments.

Because nuclear energy is a zero emission source, it is predicted it will be in high demand.

92 Energy says the timing is right for a new uranium explorer in a region with “significant opportunity” to uncover new high-grade uranium resources.

Athabasca Basin uranium projects

All-up, 92 Energy owns 100% of five projects comprising 21 claims within the Athabasca Basin.

The projects comprise Gemini, Tower, Clover in the basin’s southeast and Powerline and Cypress River in the northwest.

92 Energy noted it has selected the claims using its own prospectivity model.

The company is on the hunt for high-grade unconformity type U uranium deposits.

Globally, there are 15 major types of uranium deposits, according to the International Atomic Energy Agency (IAEA).

Unconformity-style uranium deposits are found in Canada and Australia.

Over the last 40 years, all of the uranium generated in Saskatchewan was from unconformity deposits.

Exploration history and plans

92 Energy has already completed a versatile time domain electromagnetic survey (VTEM) over the southern section of Gemini.

The survey has identified several conductive features which are partially coincident with previously reported lake and muskeg geochemical anomalies. This survey data will be used to firm up initial priority targets for follow up work, with drilling to begin next month.

Over at the Tower project, 92 Energy noted it is only 10km southeast of Cigar Lake. Historic exploration has been limited with only three holes drilled and a GEOTEM survey flown in 2005, which was the first fully digital airborne EM system.

Drilling identified unconformity from 170m to 260m.

The Clover project is also described as underexplored. It is 20km from McArthur River and 30km west of Cigar Lake. This project also has three historic drill holes which identified unconformity of 500m in places.

92 Energy considers Powerline as highly prospective with previous exploration documenting 35 occurrences of uranium. The majority of exploration was carried out prior to 1980.

The depth to unconformity is 0m. A desktop review of all data is underway at Powerline.

A desktop review is also being undertaken of historic information on Cypress River.

At Cypress River, seven uranium occurrences have been noted, with the project believed prospective for shallow, basement-hosted unconformity deposits.

As well as drilling at Gemini next month, 92 Energy is preparing for a program in January and February.

Experienced team

Powering 92 Energy, is a team of executives and geologists highly experienced in uranium.

92 Energy’s chairman is Richard Pearce who has more than 30 years’ experience in mining. He was a founding director of two successful uranium initial public offerings – Nova Energy and Wildhorse Energy.

In the chief executive officer role is Siobhan Lancaster. Ms Lancaster has in excess of 20 years’ experience in the corporate and mining sector. She was a key player in facilitating The China Guandong Nuclear Power Corporation’s $2.1 billion takeover of Extract Resources.

Former chief geologist for Paladin Andy Wilde has taken the role of exploration manager at 92 Energy.

Non-executive director Oliver Kreuzer was previously team leader of Australia’s largest uranium prospectivity study. He also works with the IAEA on uranium mineral systems.

Executive director Matt Gauci has consulted at Kintyre, Ranger and Olympic Dam. He was also managing director of Uranex.

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