Basin Energy gears up for Phase 2 drilling at Geikie uranium project
Special Report: Basin Energy is preparing to start Phase 2 drilling at its Geikie uranium project in Canada’s world-class Athabasca Basin early next year.
The region has long been host to the world’s highest grades of uranium – and in recent weeks has become a hotbed of M&A activity.
The company’s neighbour 92 Energy (ASX:92E) announced last week a three-way merger between themselves, Atha Energy (CSE:SASK) and Latitude Uranium (CSE:LUR) which includes 92E’s Gemini discovery 8km to the west of the Geikie project.
The merger comes barely a month since the uranium spot price broke through US$80/lb for the first time in more than 12 years, suggesting sentiment has well and truly returned to the sector.
Basin Energy (ASX:BSN) considers the acquisition to further validate the prospectivity of the Eastern Athabasca Basin and demonstrates the heightened interest in this historically overlooked part of the region.
“The recent news of consolidation in the Eastern Athabasca further supports our interpretation of the prospectivity of this previously overlooked part of the prolific Athabasca Basin,” BSN MD Pete Moorhouse said.
“We are continuing to see a very positive sentiment in the uranium space with the uranium spot price now at 15-year highs.
“BSN is extremely well positioned to capitalise on this through the exploration of its projects in the world-class Athabasca Basin.”
Maiden drilling completed in back in August successfully identified uranium mineralisation, with assays up to 0.27% U3O8.
The 2,000m Phase 2 drilling program is now scheduled to mobilise in early February, allowing drilling to commence by mid-February and is expected to take six weeks to complete.
Modelling and integration of a recently completed Airborne Gravity Gradiometer (AGG) data – designed to target areas of enhanced basement alteration associated with drill defined uranium fertile structural corridors – has provided a series of high priority targets to test.
The company proposes to follow-up on the encouraging results intersected at the Preston Creek (3 drill holes) and Aero Lake prospects (2 drill holes).
BSN will also conduct initial drilling on two new regional drill targets, Johnson Lake (2 drill holes) and Hunter North (1 drill hole).
“BSN is preparing for a busy winter exploration season at its Athabasca uranium projects,” Moorhouse said.
“We are excited to be following up on the success of our Phase 1 drilling at Geikie, which intersected significant uranium mineralisation, with a robust Phase 2 drill program.
“Our first phase of drilling identified uranium mineralisation and the key ingredients for an Athabasca basement-hosted, high-grade uranium deposit, including significant alteration associated with regional structures.
“Our AGG survey then defined a series of compelling gravity lows indicating the potential for intense alteration.
“This combined data leaves us with very exciting drill targets that we are eager to move forward on in phase two of drilling.”
This article was developed in collaboration with Basin Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.