22 October 2020
VALOR RESOURCES LIMITED ACN 076 390 451
22 Lindsay Street
Tel: +61 8 9200 3467
Fax: +61 8 9200 4469
Mr George Bauk
Mr George Bauk
Mr Brian McMaster
Ms Paula Smith
Mr Gary Billingsley
ACQUISITION OF URANIUM PROJECTS IN CANADA
& CHANGE OF DIRECTORS
Two substantial exploration assets located within the prolific Uranium district of the Athabasca Basin covering 861km2
Athabasca Basin has an average resource grade of 2% U3O81 and Historically the basin has produced approx. 20% of world's primary uranium
Hook Lake Uranium Project:
Rock chip sampling of Hook Lake Project has returned grades of up to 68%
Multiple priority targets of surface vein hosted mineralisation identified Cluff Lake Uranium Project:
Located within the Carswell a meteorite impact structure that is host to the Cluff Lake Open Pit Mine which produced 64Mlb U3O8 at an average grade of 0.92% U3O82and is located directly adjacent Pitchblende's
Mineralised boulders, subcrop and outcrop defined- priority targets
CPS Capital acted as Corporate Advisor for the transaction
Appointment of highly credentialed mining professionals, Mr George Bauk as Executive Chairman and Mr Gary Billingsley as Non-Executive Director
Figure 1: Uranium enriched surficial mineralisation at Hook Lake
1Fision Uranium PDAC Presentation 2 UEX Corporation, Technical Report on Shea Creek Property
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Valor Resources Limited ("Valor" or the "Company") is very pleased to announce it has entered into a binding term sheet ("Agreement") to acquire 100% of the issued capital of Pitchblende Energy Pty Ltd ("Pitchblende") the holder of interests in two uranium projects located in Saskatchewan, Canada ("Projects"). The transaction is subject to various conditions precedent including shareholder approvals as detailed further in this announcement.
In conjunction with the transaction, Valor is pleased to announce the following changes to the Board of Directors effective immediately:
Appointment of Mr George Bauk as Executive Chairman;
Appointment of Mr Gary Billingsley as Non-Executive Director;
Mr Brian McMaster will remain on the Board as a Non-Executive Director;
Dr Nicholas Lindsay has resigned as Executive Director - Technical;
Ms Paula Smith will continue as Non-Executive Director and Company Secretary.
The Board wishes to thank Dr Lindsay for his service to Valor and provides further details regarding the new Board appointments below.
Figure 2: Regional Project Location Plan
Commenting on the Agreement, Valor's Executive Chairman, George Bauk stated: "The acquisition of the Hook Lake Project and the Cluff Lake Project in the Athabasca Basin provides the Company with an exciting opportunity to discover uranium within a world class uranium district. Following the approval from shareholders of the transaction, the Company plans to hit the ground running with a well-plannedexploration program."
We have strengthened the team with Gary Billingsley joining the board, a veteran in the mining industry with a geology background who lives in Saskatoon, Saskatchewan. This is a significant advantage to Valor as we manage our way through Covid-19 and having someone I have known for 15 years provides the Board with additional support whilst we have limited ability to travel overseas"
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Athabasca Basin, Saskatchewan
Historically, the Athabasca Basin region of Saskatchewan, Canada produces over 20% of the world's primary uranium supply. Since 1968, 18 major uranium deposits have been discovered in the Athabasca Basin including 10 of the world's top 15 highest-grade uranium mines, and the world's largest uranium producer at the McArthur River Mine. Despite over 50 years of intense uranium exploration, major discoveries are still being made, with several new discoveries in recent years. Canada and the Province of Saskatchewan, in particular, continue to rank among the top mining jurisdictions in the world for investment by the Fraser Institute, and the Athabasca Basin remains the world's premiere location for uranium exploration.
Hook Lake Uranium Project (previously referred to as Falcon Point Uranium Project):
Subject to shareholders approving the issue of 250 million shares to British Columbia-registered Skyharbour Resources Ltd (Skyharbour), Pitchblende will have the right to earn an 80% working interest in the Hook Lake Uranium Project located 60km east of the Key Lake Uranium Mine in northern Saskatchewan. Covering 25,846 hectares, the 16 contiguous mineral claims host several prospective areas of uranium mineralisation:
Hook Lake/ Zone S - High grade surface outcrop with reported grades up to 68% U3O8(grab). Significant structural lineaments present several prospective regional targets. A bio-geochemical survey carried out over the trenches in 2015 yielded along-strike U anomalies 2 km to the northeast
Figure 3: Uranium Scree from Hook Lake Project
Nob Hill - Fracture-controlledvein-type uranium mineralisation on surface outcrop with up to 0.13%-0.14% U3O8. (grab). Diamond drilling intersected elevated uranium in several drill holes with values up to 422 ppm U over 0.5 m
West Way - Vein type U mineralisation within a NE-trending shear zone. Grab samples taken from the surface showing contained variable uranium values including up to 0.48% U3O8. Drilling of the structure intersected the altered shear zone at depth, along with anomalous Cu, Ni, Co, As, V, U, & Pb
Grid T - Fracture-hosted secondary uranium mineralisation in sheared calc-silicates and marbles in a 100 m x 20 m zone of anomalous radioactivity with grab samples having up to 800 ppm U
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Alexander Lake Boulder Field - 30 biotite-quartz-k-feldspar pegmatite boulders NE of Alexander Lake. The best results include: 360 ppm U, 1,400 ppm U and 1,600 ppm U respectively
Thompson Lake Boulder Field - Numerous radioactive boulders and blocks of pegmatized meta-arkose, pegmatite, and granite. The best value obtained was 738 ppm U from a granite boulder
NE Alexander Lake - Several calc-silicate,plagioclase-quartz granulite, quartzite, and meta-arkose boulders with up to 4,800 ppm U, 7,600 ppm Mo and 1,220 ppm Ni
Figure 4: Hook Lake Project Geology
The project area is in close proximity to two all-weather northern highways and grid power.
Compilation and reinterpretation of previous exploration work results is already underway. It is anticipated that the initial phase of exploration work by Valor will include further bio-geochemical surveys, detailed UAV magnetics, ground gravity and resistivity surveys as well as detailed geological and structural mapping. Based on this work drill targets will be selected.
Pitchblende's right to earn its 80% interest in the Hook Lake Project is conditional on Valor spending up to $400,000 over the next 6 - 9 months to undertake a preliminary assessment of the Project. In the event Valor decides to proceed, it will seek further shareholder approvals as may be required by ASX.
If Valor decides to proceed with the Hook Lake Project, it will be required to commit up to $3.1 million in exploration expenditure to secure its 80% interest in the Hook Lake Project. In the event that it decides not to proceed, VAL will cancel up to 150 million of the shares to be issued to Skyharbour (the actual number to be based on the date of termination of the agreement with Skyharbour (Skyharbour Agreement)).
Cluff Lake Uranium Project
Pitchblende owns a 100% equity interest in 18 contiguous mineral claims covering 60,296 hectares in northern Saskatchewan. The property is located 7km east of the former-producing Cluff Lake Uranium Mine and much of the project area is located within the Carswell geological complex that hosts the Cluff Lake Mine. The mine
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