AuKing Mining Ltd intends to aggressively explore the Grand Codroy uranium exploration project in southwest Newfoundland, Canada, after completing the acquisition this week.
This claim, covering 2,200 hectares about 50 kilometres north of Port aux Basque, was selected due to the presence of several documented uranium occurrences located along a major radiometric high.
AuKing’s exploration team will seek to begin an initial soil sampling program at Grand Codroy as soon as suitable people can be identified and mobilized for the task.
The company intends to carry out that program before the Canadian winter season.
Similar to US districts
The style of low-grade mineralisation within extensive, organic-rich siliciclastic rocks is similar to sandstone-hosted uranium districts in the western United States which have produced significant uranium from conventional and low-impact, low-cost in-Situ Recovery (ISR) operations.
Notable high-grade historical rock samples have been returned from the area, including >20,000ppm (2%) copper and 435ppm uranium, >20,000ppm (2%) copper and 400ppm uranium and 22,000ppm (2.2%) uranium from Grand Codroy River as well as 595ppm uranium from Overfall Brook.
Location of Grand Codroy Uranium Project, showing historical uranium and copper occurrences across the tenure (Source – Newfoundland Labrador Dept of Industry, Energy and Technology’s 'Mineral occurrences database system report').
Largely untouched
AuKing said the potential for ISR amenable uranium mineralisation had never been evaluated in the Bay St George Sub-basin and the Grand Codroy tenure area was largely untouched by modern exploration.
Based on regional maps the widespread nature of the noted uranium occurrences and the volume of potential host rock is significant in this area and could potentially represent an economic uranium target.
Impressive results have been reported by Infini Resources Ltd at its Portland Creek Uranium Project to the north of Grand Codroy.
“Significant incentive”
AuKing’s managing director Paul Williams said now the acquisition had been completed the company would seek to take an aggressive approach to exploration.
“We see strong interest from investors with companies seeking to develop uranium projects around the world.
"The ongoing impressive exploration results of other companies in the region, such as Infini Resources Ltd, provide us with a significant incentive to get started on soil sampling and related exploration activities as soon as possible,” he said.
Acquisition agreement
In September 2024, AuKing entered into an agreement to acquire all the shares in Australian-registered company Lithium Rabbit Pty Ltd (LR), which held 100% of one mineral claim of an area totalling 2,200 hectares that comprises the Grand Codroy Project.
READ: AuKing Mining to acquire Grand Codroy uranium exploration project in Canada
The purchase price comprises:
- A$50,000 cash payment (the payment of which has been deferred by agreement with the LR vendors until November 30, 2024);
- The issue of 21,428,571 ordinary AuKing shares (comprising a $150,000 amount of shares at an issue price of $0.007 per share – half of these shares will be the subject of a voluntary 6 month escrow from trading on the ASX);
- A further number of ordinary fully paid AuKing shares based on an amount of $100,000 and the applicable previous 20 trading day VWAP calculation for the shares trading on the ASX. These deferred shares are, subject to shareholder approval, to be issued within 12 months from the date of acquisition at no less than 0.5c per share (or a total of 20 million shares); and
- A 2% net smelter royalty on all materials produced from Grand Codroy. 1% of this royalty can be purchased by AuKing for $1 million at the election of AuKing.