Alligator Energy Ltd (ASX: AGL) has executed a unique Exploration Agreement to search in an area that is highly prospective for uranium with Traditional Owners in western Arnhem Land in the Northern Territory of Australia.
The Nabarlek North Project, made up of Exploration Licences 27252, 27253, 28389, 28390, 29991, 29992, 29993 and 31480, is located near the previously producing Nabarlek uranium mine
Alligator CEO Greg Hall said Nabarlek North provides exceptional exploration opportunity in Australia’s premier uranium province and is highly prospective for undercover high-grade uranium mineralisation.
Mr Hall said the Nabarlek North package of eight tenements will increase AGE’s exploration footprint by 80%, and lies 11 km to the north of the historic Nabarlek uranium mine (24 Mlbs @ 1.84% U3O8), and 200 metres from the U40 prospect (includes 6.3m at 7.23% U3O8).
He said the Project area is amenable to lower cost exploration and provides an opportunity to deploy the exploration knowledge, skills and techniques developed by Alligator over the past nine years of exploration in the ARUP in an area with less sandstone cover thickness.
In a first for Alligator and the Traditional Owners, the Exploration Agreement allows for a one-off option for the Traditional Owners to acquire a 25% direct ownership in an economic uranium resource (if found), in exchange for a reduction in certain production related royalties and payments. This option arises at the time a feasibility report is finalised in relation to a proposed mining right application.
“We are very pleased to be able to conclude this Exploration Agreement with the Traditional Owners and the NLC. In particular the option for Traditional Owners to take an equity position if an economic discovery were to be made, means that the local groups will have a direct say through an owners’ group in any potential future mine operation, and receive direct economic benefits from the output of such a mine,” Mr Hall said.
“It is an option, and the Traditional Owners may alternatively elect to support a future project through the Agreement on the basis of the normal royalties and payments.”
“Our geological team is excited to have the opportunity for exploration in this highly prospective region. Following a district-wide Alligator Rivers technical review completed last year, in conjunction with expert uranium geologists experienced in the region, the Nabarlek North Project was highlighted as a priority target area for undercover uranium mineralisation.
“Alligator is keen to commence exploration work subject to granting of the tenements and as support from the market allows.”
The Exploration Agreement will now be lodged with the Department of Primary Industries and Resources along with an application for grant of the Exploration Licences. This process is expected to take a number of months, allowing exploration to be commenced during the 2020 field season if market conditions permit.
