Junior explorer Valor Resources has met its first-year expenditure and cash payment commitments under a farm-in agreement where it is looking to take an 80 per cent stake in the Hook Lake uranium project located 60 kilometres east of the Key Lake uranium mine in northern Saskatchewan in Canada.
Expenditure by Valor has now exceeded the C$750,000 requirement set out in the farm-in agreement with a C$75,000 cash payment also made on time.
Valor has undertaken a wide range of exploration activities furthering the ore body knowledge at Hook Lake during the last 12 months. Two airborne geophysical surveys were conducted in addition to field work programs with rigorous interpretation undertaken of both the data collected during 2021 and historical datasets.
Second year expenditure requirements are already well underway with a diamond drill rig currently cutting its way through a program at Hook Lake. Valor is now planning a 2,500 metre drill program in the world class uranium endowed Athabasca basin in Canada aimed at testing the extent of mineralisation after the company identified anomalous rock chips grading up to 59.2 per cent uranium.
An airborne gravity survey is also set to launch over Hook Lake in April 2022 with field-based work also ready to commence as soon as weather permits, contributing to the 2022 expenditure requirements.
Valor kicked off exploration at Hook Lake shortly after signing the earn-in agreement with Skyharbour Resources on the 11th of February 2021. It has a three year period of expenditure and cash payment commitments to earn up to an 80 per cent working interest in the 16 contiguous mineral claims, covering over 25,000 hectares.
The company’s Hook Lake project is one of five projects owned by Valor across the vast mineral field, where it now controls more than 980 square kilometres of prime uranium hunting ground. The region is famous for its high-grade uranium mines which include the Cluff Lake, Uranium City and Rabbit Lake operations.
Additionally, the Athabasca basin houses Cameco’s Cigar Lake underground mine that boasts a serious average grade of 15 per cent uranium and produces approximately 4,600 tonnes of per annum.
Valor’s Executive Chairman, George Bauk said:
“Robin Wilson, our Exploration Manager, has led a team including Dahrouge Consulting and Terra Resources with the assistance of our Canadian-based Director Gary Billingsley, to advance the project through to our maiden drill program”.
“The funds raised in December 2021 of A$5.4m through the Canadian Flow Through Scheme, will enable us to advance the Hook Lake Uranium Project and our other six properties in the Athabasca Basin. Money raised through this scheme is for direct exploration expenditure in Canada”.
On the surface, Valor looks to be well on its way towards amassing a prospective looking bundle of tenements courtesy of its farm-in agreement and more importantly, they are in a solid uranium post code.
Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au
By Matt Birney
