Cosmos Exploration To Acquire Project In Emerging Canadian Uranium Mining District

Cosmos Exploration Ltd (ASX: C1X) shares are trading higher after agreeing to earn an 80% interest in the Fenix Uranium Project in Nunavut, Canada.

The project is located in the Thelon Basin, an emerging uranium mining district with striking similarities to the Athabasca Basin, Saskatchewan.

Map of Canada illustrating the similar size of the equivalent age Athabasca and Thelon Basins which are the most renowned districts for unconformity-related uranium deposits in Canada.

Radioactive boulder trains

Fenix covers 162.7 square kilometres with historical groundwork that defined six interpreted radioactive boulder trains assaying up to 6% U3O8.

The source of the boulder trains remains undiscovered and represents a significant exploration opportunity for Cosmos.

Cosmos shares rose ~9% higher intra-day following the announcement, trading at A$0.049.

“Standout acquisition”

Cosmos Executive Chairman Jeremy Robinson said: “Cosmos has been searching for an attractive Uranium opportunity for some time now and believes this to be a standout acquisition in a world class, high grade uranium province.

 “The presence of high-grade boulders and historic intercepts indicates that there is likely a deposit nearby.”

Resurgent uranium market

The uranium price has increased progressively in the last several years from its low in 2017-2018 which saw the price as low as US$20/lb.

Early this year, the uranium price surged to above US$100/lb for the first time since the last “uranium boom” in 2006, when the price reached as high as US$141/lb.

Forecasts by Citi predict uranium prices to average $US110/lb in 2025 due to underinvestment in the uranium supply chain following the 2011 Fukushima disaster.

Anticipating a surge in uranium demand, Cosmos sees this as a prime opportunity to unearth high-quality uranium in a world-class location.

 

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