Enterprise Metals (ASX: ENT) has potentially uncovered a new uranium province in the Yilgarn Craton of Western Australia, with orientation airborne electromagnetic traverses over the Peranbye Project area revealing extensive and deep palaeochannels below the present day lake and river systems.
These palaeochannels, which are up to 150 metres deep, are considered to be highly prospective for both surface and deeper sand hosted uranium mineralisation.
At the Peranbye Project, Enterprise is targeting calcrete and sand hosted uranium deposits.
Dr Jingbin Wang, chairman, commented on the positive find: "Together with uranium anomalism detected in airborne surveys, and our previously reported highly anomalous surficial uranium assays, this airborne EM data strongly supports the company's view that the area is prospective for uranium.
"These palaeochannels have not previously been explored for uranium, and the company has now obtained a dominant land position (1,443 square kilometres) in a potentially new uranium province with excellent infrastructure. We are looking forward to eventually drill testing these targets."
The 16 individual airborne electromagnetic traverses were designed to test Enterprise' theory that the current day shallow lake systems are the surface manifestation of ancient, deep river systems.
Conductivity depth images clearly define these palaeochannels, and Enterprise now plans to drill test the deep palaeochannels, subject to various approvals.
Wang is executive director of China Nonferrous Metals Resource Geological Survey, a position he has held since 2003, and is currently chairman of Sinotech Minerals Exploration Co.
A subsidiary of Sinotech Minerals Exploration Co, Sinotech (Hong Kong) Corporation, is a major shareholder in Enterprise, and earlier this year acquired further shares through an early exercise of options at a premium to share price.
This signifies the upside that Sinotech sees in Enterprise and its exploration assets.
Wang has also held the title of vice president of the China Nonferrous Metals Industry Association since 2008.
He is considered a leader in the non-ferrous metals industry in China with great expertise in mineral exploration and mining amassed over his 24 years of experience.
New ASX-listed uranium company
Enterprise plans to spin off its uranium assets into a new entity to be called Enterprise Uranium.
Following the demerger, Enterprise plans to pursue an ASX listing of the new company, for which it envisages a $4 to $5 million IPO.
A separate ASX listing of the new company would facilitate a capital raising for progressing exploration of the uranium assets without diluting Enterprise's shareholder equity in its non-uranium assets.
Enterprise intends to apply for about 19% of Enterprise Uranium at IPO.
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