Eagle Plains Resources (EPL.V) has released an update on the Uranium City projects where JV partner Xcite Resources (XRI.V) is working on the earning-in agreement. The fieldwork was focusing on the Beaver River, Black Bay, Don Lake, Lorado and Smitty targets. The field program validated the potential for Beaverlodge style mineralization due to the outcropping tectonic fabric, the electromagnetic conductors and the elevated values in pathfinder elements that point towards the presence of uranium mineralization (six samples contained U3O8 mineralization as shown below with three samples returning values of less than 0.01% while one sample returned north of a percent.
As a reminder, Xcite Resources is required to spend C$3.2M on exploration and issuing 750,000 shares and making C$55,000 cash payments per project it wants to obtain an 80% stake in, within a period of four years. Cash is still difficult to come by for exploration companies so we expect Xcite will have to make some choices sooner rather than later to decide which projects it would like to keep.
Eagle Plains also announced the previous earn-in partner on the Iron Range project defaulted on its obligations, but the company immediately found a new partner for the project as Earthwise Minerals (WISE.C) and EPL have commenced negotiations to land on a deal whereby Earthwise can earn an 80% stake in the project. Hopefully the project will now get some more attention as some of the historical drill holes were very interesting with for instance 14 meters containing 5.1 g/t gold, almost 4% ZnPb and 75 g/t silver. This confirms the project’s potential to host IOCG and Sullivan Style sedex mineralization.
Both companies have already settled on a LOI which will allow Earthwise to earn a 70% stake in Iron Range by making C$4M in exploration expenditures while issuing 1.5 million shares and paying C$250,000 in cash. Subsequent to establishing its 70% stake, Earthwise can increase its stake to 80% by making a C$1M cash payment and completing a bankable feasibility study.
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