Australian-listed Core Energy Minerals is targeting a 51% stake in the Nova Uranium Joint Venture in Namibia’s Erongo Region through an earn-in agreement that could see it spend about N$58 million (A$5 million) on exploration.
The agreement is with Reptile Mineral Resources and Exploration, a wholly owned subsidiary of Deep Yellow, Nova Energy Africa and Sixzone Investments.
Under the staged agreement, Core Energy can initially earn a 25% interest in the Nova JV by spending N$23 million (A$2 million) on exploration within 18 months.
The company can increase its stake to 51% by spending a further N$35 million (A$3 million) over the following 24 months.
“The Company has executed a staged exploration earn-in agreement with Reptile Mineral Resources and Exploration Pty Ltd, Nova Energy (Africa) (Pty) Ltd and Sixzone Investments (Pty) Ltd whereby Core Energy can earn up to a 51% interest in the incorporated joint venture company, Nova Energy (Namibia) (Proprietary) Limited,” the company said.
The Nova JV comprises two exploration licences, EPL3669, known as Tumas North, and EPL3670 at Chungochoab.
The licences are located near Core Energy’s wholly owned Gemsbok and Oryx uranium projects, expanding the company’s exploration footprint in Namibia’s uranium-rich Erongo Region.
The transaction will increase Core Energy’s total uranium exploration landholding in Namibia to about 826.9 square kilometres, including the Gemsbok and Oryx licences.
The Nova project includes several exploration targets, including the Barking Gecko prospect, where historical drilling identified uranium mineralisation.
Previous drilling at Barking Gecko returned an intersection of 21 metres grading 886 parts per million eU3O8, according to the company.
Core Energy Managing Director Tony Greenaway said the agreement significantly expands the company’s position in Namibia.
“The Nova Joint Venture Project with uranium heavyweights Deep Yellow and Nova Energy represents a transformational expansion of Core Energy Minerals’ footprint in the world-class uranium mining jurisdiction of Namibia,” Greenaway said.
He said the Nova licences contain advanced uranium targets within geological corridors associated with major Namibian uranium deposits, including Husab, Rössing and Etango.
Core Energy plans to begin exploration during the September quarter, starting with the integration of historical exploration data, geological and geophysical analysis and the ranking of priority targets.
The work will be used to identify targets for the company’s planned maiden drilling programme.
Core Energy said the enlarged exploration portfolio gives it exposure to both basement-hosted and palaeochannel-hosted uranium systems across the Etango-Husab-Tumas uranium corridor.
