Valor Resources Limited (Valor) or (the Company) (ASX: VAL) is pleased to provide its report for the quarter ended 30 September 2020.
CORPORATE & PROJECT UPDATE
As announced on 31 January 2020, Valor intends to continue its focus on developing the exploration potential of its 100% owned Berenguela South and Picha Projects however during the quarter a strict Covid-19lock-down regime was applied in Peru preventing any substantive mining exploration activities being undertaken. Desktop studies have continued with the emphasis on facilitating a re-start of field activities as soon as circumstances allow.
As previously announced, the documentation has been completed to transfer the entities which hold rights to the Berenguela Project back to SSR Mining Limited (SSR) (or its nominee) on terms where the consideration for the transfer is the release and discharge of Valor's acquisition obligations including the release of outstanding amounts of USD $10.8m owed to SSR and relevant security interests. Settlement of the transfer had been delayed as a result of Covid-19 closures however the parties are proceeding to finalise the necessary documentation for settlement as soon as possible.
In accordance with Listing Rule 5.3.5, Valor advises that the payments to related parties as advised in the Appendix 5B for the period ended 30 September 2020, pertain to director fees, accounting fees and serviced office rent and IT support paid during the quarter.
ACQUISITION OF URANIUM PROJECTS & CHANGE OF DIRECTORS
Subsequent to quarter end, Valor announced 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").
In conjunction with the transaction, Valor announced the appointment of Mr George Bauk as Executive Chairman and Mr Gary Billingsley as Non-Executive Director and the resignation of Dr Nicholas Lindsay as Executive Director - Technical.
The transaction is subject to various conditions precedent including shareholder approvals as detailed further in the announcement dated 22 October 2020 and extracted below.
Two substantial exploration assets located within the prolific Uranium district of the Athabasca Basincovering 861km2
Athabasca Basin has an average resource grade of 2% U3O81and Historically the basin has produced approx. 20% of world's primary uranium supply
Hook Lake Uranium Project:
Rock chip sampling of Hook Lake Project hasreturned grades of up to 68% U3O8
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 U3O8at an average grade of 0.92% U3O82and is located directly adjacent Pitchblende's Project
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
1Fision Uranium PDAC Presentation 2 UEX Corporation, Technical Report on Shea Creek Property
Figure 1: 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 awell-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"
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 2: 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
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
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Valor Resources Ltd. published this content on 29 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 29 October 2020 11:09:09 UTC