West Perth-based Jackson Gold Ltd has acquired an option to earn a 92.5 per cent stake in an Argentinian uranium project, by spending $500,000 on exploration within three years.
West Perth-based Jackson Gold Ltd has acquired an option to earn a 92.5 per cent stake in an Argentinian uranium project, by spending $500,000 on exploration within three years.
The full text of a company announcement is pasted below
Australian mineral exploration company Jackson Gold Limited ("Jackson" or the "Company") (ASX: JAK) , through its wholly owned subsidiary Jackson Global Limited, has signed an exclusive option agreement with a private party, to earn 92.5 percent in the highly prospective Rio Colarado uranium project in Argentina.
Jackson will earn an initial 51 percent in the project by completing a minimum work programme, including 3000 metres of drilling. Subsequent to the initial interest, the company can earn 92.5 percent of the project by completing exploration expenditure of $500,000 within three years.
The uranium project covers an area of 762km² and has extensive outcrops of defined hardrock mineralisation and large untested radiometric uranium anomalies in adjacent covered areas and granite basement.
Mineralised sediments at the project extends for 16km with surface sampling and mapping of intermittent outcrops indicating widths of between 10 and 20 metres. Where sampled, these sediments include better zones of between 300 and 3,000 ppm U308 over widths of up to 10.7 metres.
Adjacent to these high-grade areas the background anomalism averages 90 ppm U308.
Jackson Gold's new Managing Director Brett Smith said the acquisition of the Argentinean uranium project was part of the company's ongoing review of global resource opportunities following the recent $7m sale of its +500,000 ounce Wallbrook gold resources asset.
"We are delighted to secure such a highly prospective uranium project in Argentina, a country which has favourable legislation that deals with uranium exploration, mining and processing as well as a mature and growing uranium power generation industry," Mr Smith said.
"Importantly for Jackson, Argentina has been a nett importer of uranium since 1999 and has an internal market for the product.
"In Argentina costs are substantially lower, plus human and infrastructure resources are more available than presently seen in Australia. This is encouraging for the development of our newly acquired project and other opportunities we are currently reviewing in the country.
"Our due diligence has confirmed historical measurements that show at least four outcropping target areas with hundreds of metres of strike length. We now plan to undertake an aggressive surface sampling and mapping program before drilling in October to unlock the uranium potential of the project."
The Rio Colorado Project in Argentina, combined with the Company's 100 percent owned copper-gold-uranium Boolaloo Project in the Pilbara of Western Australia and a 22 percent holding of un-listed Central-Asian uranium-copper-gold explorer Leopard Minerals Plc, offers shareholders excellent exposure to exploration success for these metals.
Jackson will continue to investigate other potential uranium, copper and precious metal opportunities in Australia and Argentina.
Argentinean Project Generation
The Company has been reviewing Australian and international project opportunities for the last six months in anticipation of the sale of the key Wallbrook gold resources. Argentina has emerged as one preferred country for exploration due to:-
- The Government legislation and tax regime provides an attractive and incentivised environment for foreign investment in mining and exploration.
- Mineral Tenure rights are secure rights in Argentina, and the likelihood of expropriation is considered low.
- The country has existing world-class mines and good potential for new discoveries.
- In Argentina there is good availability of skilled personnel for exploration, mining and project development.
Generally costs are substantially lower and resources more available than presently seen in Australia.
With respect to Uranium:-
- Argentina has favourable and responsible legislation that deals with uranium exploration, mining and processing.
- Argentina has a mature and growing uranium power generation industry with existing requirements internally for uranium. The Government maintains a first right to purchase uranium products from mining, at international market prices.
- The country has real potential for the discovery and mining of economic uranium deposits.
