Adelaide-based uranium explorer Uranium Equities has signed an agreement with the world’s second largest metals and mining company to farm-out up to 80% of its Headwaters uranium project in the Northern Territory.
Under the agreement, Vale Exploration, a wholly owned subsidiary of Companhia Vale do Rio Doce (Vale), will earn up to 80% equity in the Headwaters Project located in the East Alligator Uranium Field by funding exploration of the project up to the stage of a bankable feasibility study. Headwaters was previously known as Mt Evelyn.
Uranium Equities Managing Director Mark Chalmers said exploration of the region had identified significant uranium, gold and platinum group mineralisation within “near surface and outcropping sediments and volcanics”.
He said surface radiometric anomalies with sampling had revealed 1.56% of uranium (U3O8), anomalous gold (236.6ppm Au), and platinum group elements (49.6ppm Pd) and (8.03ppm Pt).
“This is a highly prospective, yet under-explored region and we are very pleased to have a
strategic association with Vale in the Headwaters Project,” Chalmers said.
Vale — headquartered in Brazil — will:
- Commit $1 million to exploring the Headwaters Project within two years of exploration
- licences being granted (likely this year);
- Earn a 70% interest in the project by funding exploration to the point where a bankable feasibility study is supported and within five years of completing the initial earning requirement;
Uranium Equities will project manage the exploration in its initial stages.
The Headwaters Project is located within the Alligator Rivers Uranium Field to the south-east of major uranium deposits at Ranger, Jabiluka, Koongarra and Nabarlek.