NickelX explores Canadian uranium opportunities, targeting Elliot Lake district

NickelX (ASX: NKL) is preparing to start work at its new Canadian uranium project.

Best known for its Western Australian exploration activities, the company added to its portfolio when it acquired rights to the highly prospective Elliot Lake uranium project in Ontario earlier this year.

The project is located along strike from the well-known uranium district of the same name, which historically produced 362 million pounds of uranium oxide from 13 underground mines within an area of just 225 square kilometres.

NickelX’s claims host known uranium occurrences associated with a conglomerate style of mineralisation and the Australian company is preparing a closer look at the area’s potential.

Priority targets

A first-pass geological review by NickelX has already identified three priority target areas – two of which have known mineralisation – over a combined 35km strike of prospective tenure.

Together with expert uranium contractors from CSA Global and Southern Geoscience, NickelX is progressing preparations for field work including verification of uranium occurrences, mapping, sampling and drill hole siting for a potential program targeting the northern hemisphere summer.

This reconnaissance program is planned to commence in Q2 CY2024.

The company has already initiated engagement with the relevant First Nations groups with respect to proposed future exploration activities and is evaluating further project generation and acquisitions in the district.

Under-explored extensions

The company is targeting conglomerate-hosted uranium along the under-explored, interpreted extensions to the historic major uranium mining centre at Elliot Lake.

The targeted uranium mineralisation style is stratabound and consequently relatively continuous and predictable.

The known deposits typically have excellent lateral and downdip grade and thickness continuity, providing potential for large-scale deposits.

NickelX’s highest priority target is the Crazy Lake-Gods Lake Trend, sitting along strike from the large historic Quirke No 1 mine around 14 km to the east.

The team is completing an ongoing geophysical data review designed to further constrain target sites and generate additional targets.

Dalwallinu project

Closer to home, NickelX is waiting on results from a recently-completed 1,700m reverse circulation drilling program at its Dalwallinu project in the West Yilgarn area of WA.

Drilling targeted two high-priority geophysical anomalies from the modelled moving loop electromagnetic and fixed loop electromagnetic bedrock conductors (DEM1 and DEM2) and four highest-priority geochemical anomalies.

Initial review from the on-site analysis and drill logs indicated intermittent nickel and copper anomalies at DEM1 and DEM2 and the four geochemical anomalies.

However, the sulphide horizons encountered that corresponded with the modelled conductors targeted did not contain significant levels of nickel, copper or platinum group elements in assay.

Samples have been submitted for laboratory analysis, with the results to form the basis for future work.