Will this Canadian REE company decide to advance its uranium projects in Athabascan?
Defense Metals intends to determine whether resuming exploration work at Geiger North and Klaproth will increase the value it is currently creating for shareholders.
In recent years, when the uranium market has been depressed, Defense Metals Corp. (DEFN: TSX.V; DFMTF: OTCQB; 35D: FSE) focused on advancing the rare earth elements project, Wicheeda. However, now that spot uranium prices have reached multi-year highs, the Vancouver-based explorer has decided to determine whether his two uranium projects are worth moving forward to create more shareholder value. .
“Together, the two projects encompass five mineral claims over 9,363 hectares.
These two projects are Geiger North and Klaproth, which Defense Metals acquired in 2018. Geiger North consists of three lots totaling 1,233 hectares (1,233 ha) and Klaproth, two properties covering 8,130 ha. Together, the two projects encompass five mineral claims over 9,363 ha.
The location of the projects is advantageous and strategic, as they are found in the prolific northeastern Athabasca Basin of Saskatchewan, Canada, adjacent to the Wollaston-Mudjatik Transition Zone, a structure related to most of the major uranium deposits in the region.
In addition, Geiger North and Klaproth are strategically interspersed among the projects of major miners including Iso Energy Ltd., Cameco Corp., Orano Canada Inc., Denison Mines Corp. and Purepoint Uranium Group Inc. Just 35 kilometers (35 km) away is the McClean Lake plant.
The next step for Defense Metals and its two Athabasca projects is to examine all of the existing data on them. These will include information from previously completed exploration work, including diamond drilling, geochemical surveys and magnetic and electromagnetic geophysical surveys, on the ground and airborne.
Once done, the company should then be able to choose whether or not to resume exploration efforts at Geiger North, subject to a 2% net smelter income royalty, and / or Klaproth. If it decides to go ahead, the work would likely include airborne electromagnetic geophysical surveys “to identify potential conductive anomalies in the subsoil,” as stated in a press release.
Timing plays a role, not only in terms of the strength of the uranium market, but also because Geiger North’s claims are only valid until summer-fall 2022, Klaproth’s until the beginning of 2023.
Meanwhile, Defense Metals continues to move forward on the Wicheeda rare earth deposit, in which it has the option of acquiring a 100% stake. To date, on this British Columbia project, the junior explorer has identified a mineral resource comprising 4,890,000 tonnes (4,890 Mt) containing an average of 3.02% light rare earth elements (LREE ) of indicated resources and 12.1 Mt of LREE representing on average 2.90% of inferred resources.
In addition, the company had metallurgical tests carried out at Wicheeda which extracted 90% of the rare earth elements and recovered 85% of a high-quality LREO concentrate.
With Wicheeda, Defense Metals has the option to acquire 100% of another mining asset, the Lac Burge gold property, approximately 215 km northeast of Val d’Or, Quebec.
Defense Metals was founded in October 2016 as First Legacy Mining Corp. The name has been changed to Defense Metals Corp. about two years later, in December 2018.
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