Energy Metals – ASX: EME

Energy Metals Limited (Stock Symbol – ASX: EME) operates as a uranium exploration company in Australia.

The company holds interests in eight projects covering an area of approximately 1,042 square miles located in the Northern Territory and Western Australia.

The Company’s projects include Bigrlyi, Ngalia regional, Macallan in the Northern Territory; Anketell, Mopoke Well, Lakeside, Manyingee and Lake Mason in Western Australia.

Energy Metals Project Locations
Energy Metals Project Locations. Source: Energy Metals

Energy Metals’ largest shareholder (with 66.45% of issued capital) is China Uranium Development Co., Limited, a wholly owned subsidiary of major Chinese utility China General Nuclear Power group (CGN) (formerly known as China Guangdong Nuclear Power Holding Company).

CGN is one of only two companies authorised by the Chinese government to import and export uranium. This unique relationship with CGN give Energy Metals direct exposure to the uranium market as well as access to significant capital and places the Company in a very strong position going forward.

Energy Metals Northern Territory Projects

The Bigrlyi deposit in the Ngalia Basin contains approximately 27 million pounds of uranium in the inferred and indicated categories. The project is 72.4% owned by Energy Metals. The Bigrlyi deposit is a tabular sandstone hosted uranium vanadium deposit located on the northern margin of the Ngalia Basin, approximately 350km northwest of Alice Springs. The Bigrlyi Project comprises 10 granted exploration licenses in retention (ELRs). The project, which is a joint venture with Northern Territory Uranium (20.8%) and Southern Cross Exploration (6.8%), was subject to significant exploration activity for the period 1974 to 1982 including over 400 drill holes, resource estimations and metallurgical test work programs. The project was put on care and maintenance in 1983.

Energy Metals Bigrlyi Resource Table
Bigrlyi Mineral Resources. Source: Energy Metals

The Ngalia Regional project comprises nine 100% owned exploration licences and three exploration licenses in retention (total area over 2,000 km² ) are located in the Ngalia Basin, between 180 and 350 km northwest of Alice Springs in the Northern Territory. These tenements surround the Bigrlyi project JV tenements (72% EME) and other small JV tenements. EME’s Ngalia Regional tenements and the imbedded small JV tenements contain a number of uranium deposits such as Walbiri, Sundberg, Hill One, Camel Flat, A15E, BigWest, Cappers, Karins and uranium exploration targets at the Dingo’s Rest, Penrynth and Malawiri prospects.

Energy Metals Project Tenements
Project Tenements. Source: Energy Metals

Six of nine Ngalia Regional Exploration Licences have been granted. Three applications (EL’s 24450, 24462 and 27169) are located on Aboriginal freehold land. The consent of the Traditional Owners is required before the Aboriginal freehold tenements can be granted. Energy Metals has been negotiating with the Traditional Owners through the Central Land Council and is confident that the Company will eventually gain access to these areas.

Most uranium deposits and occurrences known within the Ngalia Regional Project area are of the tabular sandstone type, hosted in the Carboniferous Mt Eclipse Sandstone. One exception is the Cappers deposit which is a surficial calcrete style of uranium deposit and another is the Crystal Creek prospect on EL30004 which is hosted in ferruginous veins within basement granite.

Walbiri Deposit

– Located 50km east of Bigrlyi, Walbiri was discovered in 1972 by Central Pacific Minerals (CPM) Ltd and explored until 1976. Uranium mineralisation occurs as discrete tabular sheets within lower Mt Eclipse Sandstone. Review of historical exploration data allowed a maiden JORC resource of 7,037t U3O8 at 641ppm (200ppm cut-off grade) to be estimated (October 2015).  EME believes there is considerable potential to expand the resource.

Walbiri Satellite Deposits

– The Sundberg and Hill One deposits are located immediately west and east of Walbiri, respectively. Review of historical exploration data allowed estimation of maiden JORC resources of 260t U3O8 at 259ppm for Sundberg and 159t U3O8 at 321ppm for Hill One, both at 200ppm cut-off grade (refer October 2015 ASX release).

Camel Flat Deposit

– Located 30km southeast of Bigrlyi immediately south of the Yuendumu thrust. Minor anomalism was discovered in the mid 1970’s by CPM and later explored by AGIP Australia Pty Ltd. Mineralisation is a hybrid of structural and redox controlled tabular lenses. Drilling by EME in 2008 intercepted high grade mineralisation >2m thick, this was followed up in 2010-2013 resulting in a maiden resource estimate (February 2014) of 292t U3Owith an average grade of 0.14%.

A15E Deposit

– Located immediately east of the Bigrlyi A15 deposit (2,260t U3O8 @ 0.17%). The A15E deposit was discovered by EME in 2011 as a result of widely spaced reconnaissance drilling. A15E is a shallow (<100m deep), high grade deposit exhibiting “Bigrlyi-style” uranium mineralisation. Follow up drilling in 2012 delineated steeply dipping plunging tabular ore bodies. The resource was drilled out in 2013 resulting in a maiden resource estimate of 187t U3O@ 0.13%.

BigWest Deposit

– Located <2km southwest of Bigrlyi’s A1 prospect. BigWest is a blind discovery made by EME in 2013. Buried under 2-5m of alluvium, mineralisation occurs as steeply dipping 1-3m thick tabular ore lenses. The BigWest deposit is an extrapolation along strike of the Unit B/C contact at Bigrlyi’s A2 deposit. Mineralisation is redox controlled and hosted in similar lithological units of a different alluvial fan to the A2 deposit. The northern redox boundary playing host to >80% of Bigrlyi’s uranium resource is yet to be sufficiently tested due to large amounts of ground water and clays resulting in difficult drilling conditions. The maiden BigWest resource estimate as of February 2014 is 142t U3O@ 0.04%.

Cappers Deposit

– Uranium mineralisation is associated with calcareous alluvial deposits at <10m depth. Cappers has similarities to the Napperby deposit located 20 kms to the SE. Total resource at Cappers using a 100ppm cut-off is 3,200t U3Owith an average grade of 145ppm.

Karins Deposit

– Located 30km southeast of Yuendumu on joint venture tenement applications (EME 53%, PDN 42% & SXE 5%), Karins is a historical deposit explored by CPM in the period 1974-1981. Based on re-processed historical gamma logs, EME announced a maiden JORC (2012) resource estimate of 691t U3O@ 0.056% (200 ppm cut-off) in July 2015.

Macallan Project

The Macallan project comprises a single exploration licence application (ELA27333), located 460 km NW of Alice Springs and 140 km from Bigrlyi. The tenement (area 225 km²) was applied for to cover a strong 3km-wide bullseye radiometric anomaly identified through the interpretation of regional airborne geophysical data. The anomaly, which lies within the Tanami Desert, occurs in an area dominated by extensive sand plain, dune and sheet wash cover. A recent interpretation of palaeovalley systems within central Australia by Geoscience Australia indicates that the Macallan anomaly lies within the Wildcat Palaeovalley, an ancient valley system that drains into Lake Mackay to the southwest. Energy Metals considers that the Macallan anomaly most likely represents a surficial accumulation of uranium minerals associated with the Wildcat palaeodrainage system; though other explanations are possible.

ELA27333 lies on land under Aboriginal Freehold title and access is subject to negotiation with the Traditional Owners and the CLC. A draft exploration access deed from the CLC is currently under consideration and if agreement can be reached, access to evaluate the anomaly may be possible in the near term.

Anketell in Western Australia has 6 million pounds of uranium in the inferred category, and is 100% owned.

The 100% owned Mopoke Well project has over 3.5 million pounds of uranium in the inferred category.

Energy Metals Mopoke Project Location
Mopoke Project Location. Source: Energy Metals

Energy Metals has an inferred resource of almost 2.8 million pounds of uranium at the Lakeside project and is 100% owned.

The 100% owned Manyingee project south of the port of Onslow demonstrates another 2.85 million pounds of uranium at 250 ppm cut off grade.

At a 100 ppm cut off grade, the Lake Mason project places 2.3 million pounds of uranium in the indicated category, with another 1.4 million pounds in the inferred category. The project is located near Sandstone and is also 100% owned.

The company is based in West Perth, Australia.

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