Valor Resources has extracted a handy $5.4m from the market to throw at its Canadian uranium projects as it ramps up exploration activities amid strengthening uranium prices. The Perth-based explorer is knee deep in a flurry of exploration activities as the uranium price is spurred on by increased global demand for yellow cake.
The company recently completed a placement through the issue of 319 million new shares priced at 1.71 cents. Curiously, the price represents a seven per cent premium to Valor’s closing market price of 1.6 cents on the 22nd November 2021 and a four per cent discount to the 15-day volume weighted average price.
Valor is juggling seven projects in the uranium-rich Athabasca Basin of northern Saskatchewan, Canada that boasts some of the world’s highest-grade uranium deposits including Cameco’s Cigar Lake deposit which has a reported uranium oxide grade going a spectacular average of 15.92 per cent.
Proceeds from the placement will reportedly be used to accelerate exploration activities at the two main projects – the Hook Lake and Cluff Lake projects - where several high priority targets have been earmarked for further investigation.
The Hook Lake project covers around 300 square kilometres of uranium-rich stratigraphy on the south-eastern margin of the Athabasca Basin.
During 2021, the company completed airborne electromagnetics, magnetometer and radiometric surveys followed by ground mapping, sampling and assaying.
Rock chip sampling across Valor’s Hook Lake project area revealed several high-grade uranium assays greater than 6 per cent uranium oxide, including a whopping 59.2 per cent uranium oxide, confirming the presense of historic high-grade uranium mineralisation.
Interestingly, elevated rare earths above 0.5 per cent total rare earth oxide, silver greater than a respectable 50 grams per tonne and 1.8 per cent lead were also present in the rock chips.
The company says it is putting the finishing touches on a 5000 metre diamond drilling program due to commence in January 2022.
Valor’s Cluff Lake project is located 7km east of the Cluff Lake uranium mine that produced some 62.5 million pounds of yellowcake between 1980 and 2002.
The company says numerous high priority targets were identified over two discrete areas via interpretation of historical geophysical and geological data.
It says the geological setting at the project is geological settings analogous to that of the Cluff Lake Mine through
Management says the highest priority target covers an area 1400m by 700m. Geophysics indicates the area of interest is approximately 300m below surface and proximal to the contact between the Athabasca Basin sediments and the Archean gneissic basement, the same depth at which the historic Cluff Lake mineralisation was discovered.
Further airborne and ground geophysical surveys in conjunction with detailed mapping and sampling are slated to commence early next year aimed at further refining targets for drilling by the end of 2022.
Valor Resources Executive Chairman, George Bauk said:
“The flow through funding completed this week has provided the company with the funds to aggressively advance the projects in 2022 with the first key activity being the Hook Lake drilling program which is set to commence in early January. Camp construction is scheduled for early December 2021 and we are currently finalising the selection of a drilling contractor.”
“We have seven quality projects and following the completion of the drilling program at Hook Lake, we will have a group of geoscientists continue working on the other properties. Cluff Lake will be the initial focus but we will continue to look for quality exploration targets o all of our projects in the Basin.
With an extra $5.4 million stuffed in the till now, Valor looks set to aggressively explore two high priority projects in the world’s most enviable uranium address at a time when the uranium price is enjoying its time in the sun again.
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