Snow Lake Exploration Program Underway at Engo Valley Uranium Project
Snow Lake Resources, trading as Snow Lake Energy (NASDAQ: LITM), has initiated its 2024 exploration program at the Engo Valley Uranium Project in Namibia. This marks the first exploration at the site since the 1970s. Current activities include topographical and radon cup surveys, locating historic drill collars, and preparing for a 1,000-meter reverse circulation drill program. The project spans 69,530 hectares under Exclusive Prospecting License 5887, valid until February 2026. Snow Lake aims to acquire up to 85% of Namibia Minerals and Investment Holding, which owns the project. Namibia, a prominent uranium producer, ranks 5th in Africa for mining investment.
- Completed topographical survey and initial analysis of airborne survey data for Engo Valley.
- Started radon cup survey and locating historic drill collars.
- Plans for a 1,000-meter reverse circulation drill program are underway.
- Multi-phase 2024 exploration program designed.
- Engo Valley Uranium Project spans 69,530 hectares with a valid license until February 2026.
- Snow Lake aims to acquire up to 85% of NMIH, owning 100% rights to the project.
- Namibia ranks 5th in Africa for mining investment and is the world's third-largest uranium producer.
- Exploration work marks the first activity since the 1970s, indicating a long period of inactivity.
- Acquisition of up to 85% of NMIH still subject to customary closing conditions.
- Potential logistical challenges due to the remote location of the Engo Valley Project.
Insights
Snow Lake Resources' initiation of the 2024 exploration program on the Engo Valley Uranium Project marks a significant step in their strategic development. Initiating a multi-phase exploration program after a long hiatus since the 1970s presents both opportunities and risks for investors.
Short-term Impact: The initial stages, including topographical surveys and radon cup surveys, are essential preparatory activities but provide limited immediate financial upside. The market may react to the mobilization of field crews and completion of initial surveys, viewing it as a commitment to development and potentially enhancing the stock sentiment.
Long-term Prospects: The exploration results, especially from the 1,000-meter reverse circulation drill program and downhole gamma logging, are critical. Positive results could significantly uplift the company's valuation, as indicated uranium resources could transition to proven reserves. However, investors must remain cautious about the inherent uncertainties in exploration activities. The results could substantially impact future investments and stakeholder perceptions about Snow Lake's growth prospects.
Industry Context: Namibia's ranking as the 5th highest African mining jurisdiction and its notable uranium production underscore the project's potential value. The presence of other significant uranium projects and mines in the region provides a favorable backdrop, suggesting a supportive environment for new ventures.
Expert Insight: The exploration data (historical and new) will be important for validating the site's potential. Investors should monitor upcoming drilling results and any updates on resource estimates aligned with current mining codes. Strategic developments like acquiring up to 85% of NMIH further solidify Snow Lake's position, though these are contingent on successful exploration outcomes and regulatory approvals.
Economic Implications: The exploration program's progress will be a pivotal factor in assessing Snow Lake's future financial outlook. Early-stage exploration activities typically incur costs without immediate revenue generation. However, the strategic value of successful uranium exploration could justify these initial expenditures.
Capital Allocation & Risk: Investors should critically assess the capital deployed in these exploration activities. Given the historical data and existing infrastructure, there's a foundational basis for potential resource discovery, but financial prudence remains key. The company’s ability to manage exploration costs while progressing towards tangible results will be a critical factor in sustaining investor confidence.
Market Sentiment & Valuation: From a market perspective, the exploration program could enhance Snow Lake's valuation through speculative interest. Yet, tangible results are needed to substantiate any significant upward revision in stock price. The acquisition of NMIH adds strategic value, but the completion and effectiveness of the acquisition remain vital to fully realize potential synergies.
Investor Takeaway: Retail investors should be aware of the high-risk, high-reward nature of such exploration programs. While there is a potential for significant upside if the exploration proves successful, it is equally important to recognize the inherent uncertainties and invest with a balanced perspective.
Winnipeg, Manitoba--(Newsfile Corp. - June 4, 2024) - Snow Lake Resources Ltd., d/b/a Snow Lake Energy (NASDAQ: LITM) ("Snow Lake" or the "Company") is pleased to announce that field crews have established their exploration camp and have initiated the 2024 exploration program on the Engo Valley Uranium Project.
CEO Remarks
"Our exploration field crews have started the first exploration program on the Engo Valley Uranium Project since the 1970's" commented Frank Wheatley, CEO of Snow Lake. He continued: "The topographical survey, ground geophysics, and the radon cup survey are well underway, and our crews continue to locate drill collars from the historic 1970's drill campaign, in anticipation of the first drill program to be undertaken on the project in the past 40 years."
2024 Exploration Program
Snow Lake has designed a multi-phase exploration program for 2024 for the Project, which includes:
- analysis of all airborne survey data flown by the Namibian Government over the project area, together with all other historical exploration reports and data on the project area on file with the Namibian Ministry of Mines and Energy (now complete);
- topographical survey of the project site (now complete);
- locating all historic drill collars from Gencor's 1970 drilling campaign (in progress);
- radon cup survey of all historical targets, as well as a number of new targets, in order to verify the historical airborne survey data and to confirm new drill targets (in progress);
- an initial 1,000 - meter reverse circulation drill program to twin the historical drill holes, and to begin an in-fill grid pattern between the historical drill holes (mobilization);
- downhole radiometrics on each of the new drill holes (pending).
Exploration field crews began mobilizing to site in May in order to undertake the field portion of Phase 1 of the program. Results from the radon cup survey, the initial phase of drilling, and the downhole gamma logging, will inform the second round of drilling.
Images of the set up for the drone survey is set out in Figure 1, together with one of the historic drill collars, is set out in Figure 2.
(Figure 1 - Drone Survey Setup)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9547/211562_45c67c8444a2fa85_001full.jpg
(Figure 2 - Historic drill collar from the 1970's drilling campaign)
To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/9547/211562_45c67c8444a2fa85_002full.jpg
Engo Valley Uranium Project
The Project is located in the Skeleton Coast, in the Opuwo District of the Kunene Region, along the coast of northwest Namibia, approximately 600 kilometers north of Swakopmund, Namibia. It is accessible from the south via 190 km of desert track roads from Mowe Bay, via the Sarusas mine. To the east, there are unconfirmed track roads that connect the project area to the settlement of Orupembe.
Uranium mineralization was discovered on the Project in 1973, exploration was conducted intermittently by Gencor between 1974 and 1980, and based on that work, Gencor calculated a historical, non-current mining code compliant, resource estimate for the Project.
The Project is considered to be a top tier exploration project.
Exclusive Prospecting License 5887 ("EPL-5887") is held by Namibia Minerals and Investment Holding (Pty) Ltd. ("NMIH"). It covers an area of 69,530 hectares, is valid until February 12, 2026, and covers base and rare metals, industrial minerals, non-nuclear fuel mineral, nuclear fuel minerals, precious metals and precious stones. EPL-5887 covers the areas of historic exploration work conducted by Gencor.
As detailed in Snow Lake's press releases of February 21, March 4, March 6, and April 8, 2024, Snow Lake and a private British Columbia company have entered into a binding letter of intent, pursuant to which Snow Lake will acquire up to
Namibia
Namibia is ranked as the 5th highest African mining jurisdiction for mining investment according to the Fraser Institute's 2023 annual survey, and was the world's third-largest producer of uranium, accounting for
The Langer Heinrich uranium mine commenced production in 2007, was placed on care and maintenance in 2018, and is currently in the process of restarting production in 2024.
Deep Yellow Limited is progressing its Tumas uranium project towards production, which would become the 4th uranium mine in Namibia, as the Namibian Ministry of Mines and Energy issued a mining license for the Tumas uranium project in September 2023.
Bannerman Energy Ltd. is developing its Etango uranium project in Namibia, and in December 2023, received its mining license from the Namibian Ministry of Mines and Energy.
About Snow Lake Resources Ltd.
Snow Lake Resources Ltd., d/b/a Snow Lake Energy, is a Canadian clean energy development company listed on NASDAQ: LITM with a global portfolio of clean energy mineral projects comprised of two hard rock lithium projects and two uranium projects. The Snow Lake Lithium™ Project is an advanced stage exploration project located in the Snow Lake region of Northern Manitoba and the Shatford Lake Lithium Project is an exploration stage project located adjacent to the Tanco lithium mine in Southern Manitoba. The Black Lake Uranium Project is an exploration stage project located in the Athabasca Basin, Saskatchewan and the Engo Valley Uranium Project is an exploration stage project located in the Skeleton Coast of Namibia. Snow Lake is focused on advancing all of its projects through the various phases of exploration and development and into production in order to supply the minerals and resources needed for the clean energy and electric vehicle transitions. Learn more at www.snowlakelithium.com.
Forward-Looking Statements: This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the "safe harbor" provisions under the Private Securities Litigation Reform Act of 1995 that are subject to substantial risks and uncertainties. All statements, other than statements of historical fact, contained in this press release are forward-looking statements, including without limitation statements with regard to Snow Lake Resources Ltd.. We base these forward-looking statements on our expectations and projections about future events, which we derive from the information currently available to us. Forward-looking statements contained in this press release may be identified by the use of words such as "anticipate," "believe," "contemplate," "could," "estimate," "expect," "intend," "seek," "may," "might," "plan," "potential," "predict," "project," "target," "aim," "should," "will," "would," or the negative of these words or other similar expressions, although not all forward-looking statements contain these words. Forward-looking statements are based on Snow Lake Resources Ltd.'s current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Further, certain forward-looking statements are based on assumptions as to future events that may not prove to be accurate. Some of these risks and uncertainties are described more fully in the section titled "Risk Factors" in our registration statements and annual reports filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Snow Lake Resources Ltd. undertakes no duty to update such information except as required under applicable law.
Contact and Information
Frank Wheatley, CEO
+1 (604) 562-1916
Investor Relations
Investors:
ir@snowlakelithium.com
Website:
www.snowlakeenergy.com
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1 Fraser Institute. GlobalData's Global Uranium Mining to 2026 Report.
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FAQ
What is the Snow Lake Resources (NASDAQ: LITM) 2024 exploration program?
Where is the Engo Valley Uranium Project located?
What steps has Snow Lake Resources taken so far in the 2024 exploration?
When did Snow Lake Resources begin the 2024 exploration program?
What is the significance of the Exclusive Prospecting License 5887 (EPL-5887)?
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