Alligator has entered into a farm-in agreement to acquire 100% interest in the Big Lake Uranium (BLU) opportunity in South Australia exploring for ISR uranium targets.

This opportunity represents Alligator Energy’s first venture away from the Alligator Rivers for uranium exploration. The BLU project compliments Alligator’s existing strategy in the exploration for economically viable uranium deposits in favourable jurisdictions for uranium mining. Both represent opportunities for uranium projects that can be profitable through low uranium price cycles.

The project has a definitive exploration pathway with a low cost strategy to test the uranium mineralisation model, with exploration work to commence immediately and first pass drilling expected for Q2 2020.

 

Big Lake Uranium Opportunity

  • South Australian jurisdiction – Existing uranium production, with strong Government and public familiarity, excellent regulator experience and uranium concentrate logistics
  • Shallow sandstone hosted deposits – In Situ Recovery (ISR) – deposit style is amenable to rapid and low-cost exploration, and exploitation
  • Strong Uranium endowment in region – crustal scale heat anomaly – uranium rich basements – uranium present within drainage channels – host to world class ISR deposits
  • Untested model of familiar mineralisation settingSource: U rich basement rocks – transport: systems allowing fluids from uranium bearing basement rocks into sandstone basins – trap: hydrocarbons (gas) providing reductant for uranium deposition. Similarities with the Kazakhstan, Texas and Wyoming uranium fields
  • Known uranium – Oil and gas well gamma logging showing uranium – one previous explorer found anomalous uranium, but failed to test the paleochannel model

Big Lake Loc Plan 3

Big Lake Project Setting and South Australia Uranium Mines

Exploration Licence 6367 in the Cooper Basin South Australia was granted on 23 July 2019 forming the “Big Lake Project”. The Big Lake Project targets REDOX and roll front uranium mineralisation within paleochannels of the Lake Eyre formation. The model is for uranium to be sourced from distal uranium rich basement rocks and transported as oxidised fluids through paleochannels. The area is located on the margins of deep-seated dome structures associated with known gas reservoirs within the Moomba Gas Fields of South Australia.

Initial work completed by BLU included proprietary isopach modelling that identifies variations in basement lithology depths, the location of constraining ridge lines and hydrocarbon influenced domes. The modelling of basement topography has allowed interpretation of hydraulic pathways through potential paleochannels, forming the basis for the area selection within the Cooper Basin.

 

Farm-in Agreement

Alligator has signed a Farm-In & Share-Sale Agreement with BLU on 4th December 2019 that allows it to earn a 100% interest in the Big Lake Project mineral title.

The principal terms of the agreement are:

  • The AGE and BLU agree to use their best endeavours and negotiate on an exclusive basis and in good faith to enter into a Farm-in Agreement that is in a fuller form but consistent with this HoA before 25 November 2019 or such other agreed date;
  • AGE to pay BLU $10,000 once the signed Farm-in Agreement becomes unconditional and to issue 3 million fully paid ordinary shares to Taycol Nominees Pty Ltd (subject to Shareholder approval at the 2019 AGM) for introduction of the BLU opportunity (Facilitation Fee Shares) ;
  • AGE to spend at least $220,000 over the period to 21 July 2021 to progress assessment of the concept and to meet the minimum expenditure commitments for the exploration licence;
  • On expending at least $220,000 on exploration and evaluation during the farm-in period, AGE has the right to acquire a 100% interest in Big Lake Uranium Pty Ltd (a single purpose entity set up to acquire EL 6367) through the issue of 30 million fully paid ordinary shares in AGE (Acquisition Shares);
  • BLU has agreed to a voluntary escrow period for the Acquisition Shares of six months (50%) and twelve months (50%) from the date of issue;
  • If AGE withdraws from the farm-in arrangement or does not incur the minimum expenditure it will hold no interest and has no rights for reimbursement;If AGE discovers and defines a JORC compliant Inferred Resource of 25 million lbs U3O8 at 1,000ppm uranium or greater on the Project within eight (8) years, then Alligator agrees to issue a further 30 million fully paid ordinary shares in AGE to the BLU Shareholders or their nominees (Contingent Consideration Shares).

Project Location

BLU loc regionalBLU loc close

 

Back to home