Trench Metals advances on Athabasca uranium news
Trench Metals Corp. [TMC-TSXV, 33H2-FWB] shares advanced on Friday after the company said it has struck a deal to acquire the Carter Lake uranium project in Saskatchewan. It will secure the asset by acquiring all of the outstanding shares of the project’s owner Carter Lake Resources Corp.
Under the agreement, Trench is proposing to issue 2.6 million shares to the vendor.
The Carter Lake uranium project spans over 691 hectares on the western flank of Saskatchewan’s Athabasca Basin within the Carter Lake corridor that runs parallel to the renowned Patterson Lake corridor which hosts mineralization control points for NexGen Energy Ltd.’s [NXE-TSX, NYSE] 100%-owned Rook 1 uranium project. Rook 1 hosts, the Arrow Deposit, one of the world’s largest uranium deposits on its Rook 1 property, which hosts the Arrow Deposit.
The Patterson Lake corridor also hosts Fission Uranium Corp.’s [FCU-TSX; FCUUF-OTCQX; 2FU-FSE] Patterson Lake South property, home of the high-grade Triple R uranium deposit.
The acquisition of the Carter Lake project is intended to align with Trench Metals’ strategic growth plans, adding to its existing position in the Athabasca region.
The principal exploration focus at Carter Lake centres around approximately 4.7 kilometres of subsurface conductive anomalies that were previously identified through MetaTEM and VTEM surveys conducted by ESO Uranium Corp. These anomalies are interpreted as a conductive horizon situated at or above the unconformity, potentially indicative of hydrothermal enrichment.
“Excitingly, recent assessments through radon gas emission surveys have confirmed the presence of uranium decay along the conductive trend,’’ the company said.
In early trading Friday, Trench Metals shares advanced on the news, rising 2.08% or $0.005 to 24.5 cents. The shares are currently trading in a 52-week range of 68 cents and 15 cents.
Prior to the announcement Trench Metals held the option to acquire a 100% interest in two uranium projects in the Athabasca Basin. They include the Higginson Lake project, which covers an area of approximately 5,900 hectares and is 52 kilometres northeast of the town of Stony Rapids. The portfolio also includes the Gorilla Lake project, which covers around 7,000 hectares in the Northern Mining District of Saskatchewan near the Shea Creek uranium deposit.
In a press release on July 7, 2023, Trench released interpretation results obtained from a Sentinel-2 visible/near infrared [VNIR] and shortwave [SWIR] satellite study conducted over the Higginson Lake project. It said the study has identified three distinct target zones displaying a strong correlation with historic radioactive deposits, samples from the 2022 program and helium gas emissions. “These findings provide valuable guidance for the company’s exploration efforts and contribute to the development of a deposition model,’’ the company said.
“The satellite study unveiled three significant target zones, each associated with specific geological units and exhibiting compelling indicators of uranium mineralization,’’ it said.