Canada-listed Megawatt Lithium and Battery Metals Corp are planning the rapid development of the Arctic Fox and Isbjorn uranium projects in Australia’s Northern Territory following high grades of uranium confirmed at the sites.
The properties, located near some of the country’s most well-known uranium deposits and accessible to the Darwin port, had been previously earmarked as having significant exploration potential for uranium and rare earth mineralisation, most notably surface samples providing targets areas ready for detailed investigations.
Arctic Fox, which is contiguous to Arafura Resources’ world-class Nolans Bore deposit and close to the site’s soon to be operating plant and critical infrastructure, has been confirmed for consistent U308 grades as high as 1,179 parts per million. In contrast, the nearby Isbjorn area had samples ranging from 302ppm to just under 700ppm.
MegaWatt’s announcement comes as competition intensifies between leading nations keen to stockpile limited uranium supplies for future energy needs. The result has seen prices skyrocket above $US42 a pound, the highest since December 2012, supported by the strong demand and limited supply.
The company cited the NT government’s pro-uranium mining stance and compelling sector economics as primary considerations for a detailed assessment of targets before commencing an extensive exploration drilling programme across the sites.
“Clearly, both properties are prospective for uranium mineralisation, evidenced by numerous high-grade surface samples that reconcile with the observations from the recent field trip,” chief executive David Thornley-Hall said.
“In addition, the fundamental outlook for uranium has improved significantly this year, while the properties are located in a region with first-rate infrastructure and jurisdiction which is pro-uranium mining.”
MegaWatt plans to provide regular progress updates, including critical assay results expected in the coming weeks.
The company’s Canadian Securities Exchange-listed share price was 23 Canadian cents today (9:30 pm GMT+8 hours)