Snow Lake Resources seems to be moving fast on bringing the Engo Valley Uranium project to the exploration stage a few months after acquiring a 65% stake with the ability to earn up to 85% interest upon exploration expenditures.
The Engo Valley Project is in the Skeleton Coast National Park in the Opuwo District of the Kunene region.
Gencor, which discovered the deposit in 1973, delineated four anomalies—D1, D2, D3, and D4—and launched a program comprising airborne, ground radiometric, geological mapping, diamond and percussion drilling, limited resistivity work, and a limited radon etch survey.
The D1 anomaly, previously part of EPL 3306 owned by Metals Australia Ltd., before being incorporated into EPL 5887, was divided into D1 Extension, Main Uranium Occurrence, and Louw’s Valley.
Gecko’s widespread, non-systematic, and non-grid pattern drilling concentrated on the D1 and the main uranium occurrence area, defining a mineral resource of 5.683 million tonnes at 340ppm U3O8.
The company drilled 5,784 meters, including 1,061 metres of diamond drilling, but calculated a non-JORC-compliant mineral resource.
The current holder of the Engo Valley Uranium licence 5887 is Namibia Minerals and Investment Holdings holds the Engo Valley Uranium EPL 5887, owned by the Namibian metallurgist and material scientist J. Malakia Amakutuwa.
Before Snow Lake came in, Namibia Minerals and Investment Holdings partnered with the British Colombian Nuclear Energy Exploration and Development Corp.
Nuclear Energy Exploration and Development Corp. describes itself as a special situation acquisition company focused on investing in and acquiring growth assets in uranium exploration.
The company further says it acquired Namibia Minerals and Investment Holdings (Pty) Ltd, which holds 100% rights to the Namibian Engo Valley Uranium Project with the Exclusive Prospecting Licenses 5887, through a share exchange, with intentions to advance the project into a producing mine.
Nuclear Energy Exploration and Development Corp’s 2024 first-quarter corporate presentation does not mention capital, but it mentions a recent Namib Geological Services diamond drilling program at the main uranium occurrence, indicating a potential of 21.4 million lbs with a grade of 236.42ppm U3O8.
The company says the same diamond drilling program also defined a target at the D1 with a potential of 16.1 million lbs with a grade potential of 276.41ppm U3O8.
According to Nuclear Energy Exploration and Development Corp, the recently identified anomaly D5, south of D1, has good potential for significant uranium mineralization.
Although Snow Lake Resources does not mention Nuclear Energy Exploration and Development Corp as the British Colombian vendor that signed the February deal, there is no information to suggest that there could be a different company.
Considering that Snow Lake Resources has been on the rapid move, barely two months after clinching the deal, the Engo Valley Uranium project could be coming alive after decades.
In any case, Snow Lake Resources’ March 2024 investor presentation says the company’s market capitalization (Basic) was N$386 million (US$20.9 million) and had N$92.4 million (US$5 million) cash.
Snow Lake Resources says it has 20,319,789 outstanding shares, 1,712,407 options with a weighted average exercise price of US$5.18, 1,525,054 warrants with a weighted average exercise price of US$2.99, and 670,000 restricted stock units. The company also has 24,227,250 fixed deposit shares outstanding.
So far, Snow Lake Resources wants to:
- Review of all historical exploration date and all previous drill results
- Analyse prior airborne radiometric survey data
- Carry out fresh twin-hole diamond drilling of historical drilling
- Carry out grid diamond infill drilling
- Prepare an initial SK-1300-compliant mineral resource estimate
- Prospect and geological map additional, previously untested anomalies
Snow Lake Resources’ program of action aligns with Nuclear Energy Exploration and Development Corp’s target time frame of producing reports of an inferred resource by the second quarter of 2024.
Frank Wheatley, CEO of Snow Lake, said the company’s first step of compiling all of the historical exploration data will greatly assist in designing subsequent phases of exploration and targeting the initial drill program, which is designed to verify the project’s uranium potential.
On April 8, 2024, Wheatley said they had completed the design of the 2024 exploration program on the Engo Valley Uranium Project.
Wheatley also said the results from historical (non-SU-1300 compliant) work point to the potential of this project to host significant uranium mineralization.
“We are eager to confirm and expand on the historical work done as we work towards delineating an SK-1300-compliant mineral resource estimate. We are now in the process of finalizing contracts with our consultants and service providers and are looking forward to beginning mobilizing to the site in the next couple of weeks,” Wheatley added.
