NickelX Ltd (ASX:NKL) has started a field reconnaissance program, including mapping, sampling and drill hole siting at its Elliot Lake Uranium Project in Ontario, Canada, where the company is targeting conglomerate-hosted uranium mineralisation.
In addition, NickelX has added a further 51 square kilometres of highly prospective ground to the Elliot Lake Project, having secured the rights to an additional 11 multi-cell claims — the 'Blind River Block' — via low-cost staking.
The Elliot Lake Uranium Project now comprises 41 multi-cell mining claims covering 180 square kilometres.
Here, the company is targeting conglomerate-hosted uranium and rare earth element (REE) mineralisation along the underexplored interpreted extensions to the historic, major uranium mining centre at Elliot Lake.
The claim blocks cover highly prospective uranium targets along strike from the Elliot Lake uranium district, which historically produced more than 360 million pounds of triuranium octoxide (U3O8) from 13 underground mines.
Uranium mineralisation at Elliot Lake is hosted by stratabound conglomerate beds, making it relatively continuous and predictable. The mineralised beds can be up to 19.5 kilometres long, 8 kilometres wide and 4 metres thick.
The known deposits typically have excellent lateral and downdip grade and thickness continuity, providing potential for large-scale deposits.
High-priority target areas
The multiple high-priority uranium targets at the Elliot Lake Uranium Project have been defined by re-processing geophysical data combined with recent geological data review.
Reprocessing the geophysical data highlighted strong U2/Th ratio radiometric anomalism within and interpreted to trend into, the company’s Kirkpatrick, Inspiration and Quirke West claim blocks where uranium anomalism and mineralisation have been identified by previous explorers.
The high-priority target areas identified by NickelX are the focus of now commenced detailed field activities, including mapping, sampling, drill hole siting and engagement with First Nations groups, while also evaluating additional opportunities within the district.
“Primed for major turnaround”
NickelX chairman Jonathan Downes said: “NickelX is excited by the potential of the Elliot Project which has known uranium occurrences within its large licence holdings and is located close to historic and large-scale uranium mining operations.
“These historic mines produced 362 million pounds of uranium oxide from the same style of mineralisation identified within NickelX’s’ licences. This project area has been overlooked in recent times but represents an incredible opportunity to revitalise NickelX.
“Adding to the value of the Elliot Lake Uranium Project is the year-round road access to many areas which materially changes the cost and access profile for exploration.
“In conjunction with the expansion of Elliot Lake Uranium Project and commencement of exploration activities, NickelX is pleased to have secured a highly regarded and uranium-experienced managing director, Mr Peter Woods.
“NickelX is primed for a major turnaround with a tight capital structure, low enterprise value, technical team and proven MD, the leverage is extremely attractive.”
The project area has excellent year-round access, is close to infrastructure and service centres, electrical and water supplies and the world's largest commercial uranium refinery at Blind River, operated by uranium major Cameco Corporation.
The Elliot Lake Uranium Project in south-central Ontario, Canada. The project is next to the historic Elliot Lake uranium production centre where 362 Mlbs U3O8 were mined in the 1950s to 1990s. Also shown is the location of Cameco Corp’s Blind River uranium refinery, which is 12 km SW of the project.
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