Mining
Tuesday, February 20th, 2024 5:42 pm EDT
Key Points
- Atco Mining Inc. has signed a definitive option agreement with Standard Uranium Ltd. to acquire up to a 75% interest in Standard’s Atlantic Uranium Project located in the Eastern Athabasca Basin of northern Saskatchewan. This project covers 6.5 km of an 18 km long conductive corridor, hosting numerous uranium occurrences, including mineral claims totaling 3,061 hectares.
- The Atlantic Uranium Project holds significant potential for high-grade uranium mineralization, with historical drilling indicating the presence of metal-enriched fault zones and elevated uranium concentrations in sandstone layers. Recent pre-drill targeting surveys have identified subsurface density anomalies, suggesting substantial alteration zones in the sandstone and near basement conductors.
- Pursuant to the Option Agreement, Atco will have the option to earn a 75% interest in the Project over three years by completing cash payments, issuing common shares to Standard Uranium, and incurring exploration expenditures totaling $6.3 million. The project is fully permitted for drilling, and Atco aims to commence its drill program shortly, positioning itself in the prolific mining jurisdiction of the Athabasca Basin.
Atco Mining Inc. (the “Company” or “Atco”) (CSE:ATCM)(OTC:ATMGF)(Frankfurt:QP9) is pleased to announce that it has signed a definitive option agreement (the “Option Agreement”), dated February 16th, 2024, with Standard Uranium Ltd. (“Standard Uranium”), an arms-length party, to acquire up to a 75% interest in Standard’s Atlantic Uranium Project (the “Project”) located in the Eastern Athabasca Basin of northern Saskatchewan. The Project consists of 7 mineral claims totaling 3,061 hectares and covers 6.5 km of an 18 km long, east-west trending conductive corridor located due west of IsoEnergy Limited’s (TSXV:ISO) Hurricane deposit.
Atco believes the Atlantic Project is prospective for the discovery of classic high-grade unconformity-related uranium mineralization akin to the recently discovered Hurricane deposit nearby. (Cautionary Statement: Mineralization hosted on adjacent and/or nearby and/or geologically similar properties is not necessarily indicative of mineralization hosted on the Company’s properties.)
- Depth to the unconformity is approximately 230 to 485 meters from surface.
- Historical drilling by Cameco in 1992 (Hole BE-04) encountered up to 0.06% U3O8 over 0.5 metres in the sandstone, proximal to the unconformity. Additionally, the hole encountered elevated uranium and nickel, as well as illite and chlorite alteration in the lower 10 metres of sandstone.
- Follow-up drilling by Denison Mines in 2012 (Hole BL12-13), next to BE-04, encountered a metal-enriched fault-zone in the sandstone located 130 metres above the basement rocks that contains 10.2 ppm uranium, 786 ppm lead, and 2,270 ppm zinc over 0.1 metre. Additionally, a composite sample of the basal 13.4 metres of sandstone returned 477 ppm uranium. At the western claim block, drilling by Denison Mines in 2016 (Hole BL16-32) identified 342 ppm uranium over 0.5 metres at the base of the sandstone.
- Standard Uranium recently completed additional pre-drill targeting on the Project which consisted of a high-resolution ground gravity survey on the western claim block to identify subsurface density anomalies, potentially representing significant alteration zones.
The Project is fully permitted for a drill program and is included within a signed exploration agreement with the local First Nations and Indigenous communities.
“This is an incredible opportunity for the company,” says Etienne Moshevich, CEO of Atco. “Not only are we sticking with our original vision of focusing on the clean energy sector, but we’re adding a drill ready uranium project in arguably the most prolific mining jurisdiction. The Athabasca Basin holds some of the highest grading uranium deposits in the world and we are working at positioning Atco in the region. With our drill program to start shortly, I expect a lot more news and attention to garner around our story. I look forward to keeping everyone updated with our progress over the coming weeks. This is a very exciting time for Atco and our shareholders.”
About the Atlantic Uranium Project
The Atlantic project is situated in the Mudjatik geological domain where several recent discoveries have been made, including IsoEnergy’s Hurricane uranium deposit. The Project covers 6.5 km of an 18 km long, east-west trending conductive exploration trend which hosts numerous uranium occurrences. Standard Uranium completed a high-resolution ground gravity survey on the project in 2022, revealing multiple subsurface density anomalies, potentially representing significant hydrothermal alteration zones in the sandstone and proximal to basement conductors.
Historical drilling by Cameco in 1992 (Hole BE-04) encountered up to 0.06% U3O8 over 0.5 metres in the sandstone, proximal to the unconformity. Follow-up drilling by Denison Mines in 2012 (Hole BL12-13), next to BE-04, encountered a metal-enriched fault-zone in the sandstone located 130 metres above the basement rocks that contains 10.2 ppm uranium, 786 ppm lead, and 2,270 ppm zinc over 0.1 metre. Additionally, a composite sample of the basal 13.4 metres of sandstone returned 477 ppm uranium. At the western claim block, drilling by Denison Mines in 2016 (Hole BL16-32) identified 342 ppm uranium over 0.5 metres at the base of the sandstone.
Terms of the Agreement
Pursuant to the Option Agreement, Atco has been granted the option (the “Option”) to earn a 75% interest over three years in the Project. The Option is exercisable by Atco completing cash payments, arranging for the issuance of common shares to Standard Uranium and incurring exploration expenditures on the Project, summarized as follows:
| Consideration Payments | Consideration Shares* | Exploration Expenditures | Operator Fee (10-12%) | |
| Year 1 | $110,000 | 3,000,000 | $1,300,000 | $130,000 |
| Year 2 | $120,000 | 6,000,000 | $2,000,000 | $240,000 |
| Year 3 | $200,000 | 6,000,000 | $3,000,000 | $360,000 |
| Totals | $430,000 | 15,000,000 | $6,300,000 | $730,000 |
The scientific and technical information contained in this news release has been reviewed, verified, and approved by Neil McCallum, P.Geo, director of both Atco Mining and Standard Uranium and a “qualified person” as defined in NI 43-101.
About Atco Mining (CSE: ATCM):
Atco is a junior exploration mining company focused on exploring for green energy metals throughout Canada. Atco is also exploring salt opportunities in Western Newfoundland. Investors are encouraged to visit the company’s website here: www.atcomining.com
For further information contact:
Atco Mining Inc.
Email: info@atcomining.com
Telephone: (604) 681-0084
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this news release. The Canadian Securities Exchange has not in any way approved nor disapproved the contents of this news release.
FORWARD LOOKING STATEMENTS:
Certain information in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. Forward-looking statements are often identified by terms such as “will”, “may”, “should”, “anticipate”, “expects” and similar expressions. All statements other than statements of historical fact included in this news release are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company’s expectations are detailed from time to time in the filings made by the Company with securities regulations. The reader is cautioned that assumptions used in the preparation of any forward-looking information may prove to be incorrect. Events or circumstances may cause actual results to differ materially from those predicted, as a result of numerous known and unknown risks, uncertainties, and other factors, many of which are beyond the control of the Company. The reader is cautioned not to place undue reliance on any forward-looking information. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. The forward-looking statements contained in this news release are made as of the date of this news release and the Company disclaims any intention or obligation to update or revise such information, except as required by applicable law.
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