Explorer NickelX Ltd (ASX:NKL) is moving into the uranium space, diversifying its portfolio with the acquisition of 100% ownership rights to four highly prospective uranium targets.
This collection of tenements, now known as the Elliot Lake Uranium Project, spans 129 square kilometres in Ontario, Canada, aligning with the historically prolific Elliot Lake Uranium District.
To say it’s a good district for uranium is an understatement – it’s renowned for uranium production exceeding 360 million pounds of U3O8 from 13 underground mines.
Proximity to infrastructure
What’s more, the company is enthusiastic about the project’s logistical and operational feasibility. It’s conveniently near essential infrastructure and resources including electrical and water supplies.
Importantly, it’s also close to Cameco’s Blind River, the world's largest commercial uranium refinery.
NickelX plans to leverage low-cost staking for securing exploration rights, highlighting the project's 30 multi-cell mining claims.
The company will explore conglomerate-hosted uranium along the lesser-known extensions of the Elliot Lake mining centre.
Timely shift
The shift into uranium and gold comes just as global market dynamics have put nickel prices in retreat.
The company has been actively seeking to expand its exploration activities into these more lucrative sectors as part of an effort to diversify its portfolio and spread risk with value-accretive exploration projects.
NickelX is set to collaborate with leading uranium exploration experts from CSA Global and Southern Geoscience with a focus on gathering comprehensive geological, geophysical and geochemical data.
This collaboration aims to identify high-priority drilling targets and initiate stakeholder dialogues, including engagements with relevant First Nations groups, to outline proposed work programs.
Still targeting nickel
In other news for the company, it has completed a 1,700-metre reverse circulation (RC) drilling program at the Dalwallinu Nickel-Copper-PGE Project in Western Australia.
Conducted within budget and schedule, this program targeted geophysical and geochemical anomalies with preliminary analyses indicating sporadic nickel and copper presence.
Samples are under laboratory review and further investigations may extend to a comprehensive airborne electromagnetic survey to uncover additional drill targets.