| Atomic Acquires Uranium Potential on Shores of Lake Nyasa, Tanzania |
By Sylvia Young
Atomic Minerals (TSX.V ATL) is applying some old real estate wisdom to its newest uranium acquisition in Tanzania: location, location, location – as well as a room with a view. This thinking nets the company over one million acres of prime ground in an area known for hosting sizeable uranium deposits.
As per its October 3rd press release, Atomic has signed an amended letter of intent (LOI) with Geo Can Resources Company Ltd. to acquire up to 90% interest in over 1,300,000 acres of uranium property in southwest Tanzania divided into 10 separate licenses. As a result of this amendment, Atomic stands to double the size of its holdings in Tanzania.
In addition to the non-refundable deposit of US$65,000 which the Company already paid Geo Can on July 25th, Atomic paid Geo Can US$300,000 on execution of the amended LOI as well as reimbursing Geo Can for land registration fees of US$42,000.
The agreement is subject to the results of Atomic’s due diligence on the Property (including the preparation of a title opinion and a Technical Report pursuant to National Instrument 43-101) and TSX Venture Exchange (“TSX-V”) approval. The property will also be subject to a 2% NSR royalty, which Atomic may buy out at any time for US$5 million.
The property is located on the on the shores of Lake Nyasa (which, in neighboring Malawi, is known as Lake Malawi) and extends into the Ruhuhu Basin in southern Africa’s vast Karoo Basin system – an area known to contain significant sandstone-hosted roll front deposits. Roll fronts are found around the world and are the type of uranium deposit mined by the in-situ leaching method. Famous examples of roll fronts are the Colorado Plateau and the world-class Mi Vida, near Moab, Utah. The southwestern part of Tanzania offers investors several possibilities for uranium discovery due to the fact that the Karoo Basin and the Usagaran-Ubendian belt host a number of different types of uranium deposits, the most economical of which are roll front and unconformity “vein” type.
Radiometric surveys carried out by Geo Can on the property indicate the potential for uranium. Several anomalous hits of over 3100 cps (cycles per second), including one of over 5000 cps have been recorded.
Other mining companies exploring in the area include Paladin Resources (Malawi), Universal Exploration and Western Metals (both in Tanzania). Located across Lake Nyasa, just 60 km from Atomic’s property PL4514 is Paladin’s Kayelekera Project (a roll front deposit), which has a current resource of over 25,000,000 pounds of U3O8 and is due to go into production in late 2008.
Western Metals, an Australian explorer whose Mtonya property is located in a neighbouring Karoo sequence east of Atomic’s Ruhuhu ground, has recently returned drilling results showing multiple thick subsurface uranium mineralized zones with initial assay results showing high-grade peak intersections of 7 metres at 1,233 ppm U3O8 (including 3 metres at 2,607 ppm U3O8).
High uranium prices have encouraged investors to broaden their horizons and to recognize opportunities farther afield. According to Western Metals, Tanzania represents a worthwhile investment. “Tanzania has an annual growth rate of 5.8% since 2006. The Mining Act of 1998 legislated a clear exploration and mining regime that guarantees against nationalization and expropriation with a fair, predictable tax regime. A Chubb Group World Risk Survey in 2006 had Tanzania in the 10 lowest investment risk countries.”
The Tanzanian government’s Department of Mines section of the national website showcases the government’s efforts to create an investment-friendly climate. It “mark[s] a clear shift in favour of private sector development and market-oriented economic management. With this effect the government has commenced on setting up constructive partnerships to promote private sector enthusiasm and accelerate economic growth. With these changes therefore, the roles [sic] of the government has been redefined from that of owning and operating the mines to that of providing a clear policy guidelines, stimulating private investment and providing support for investors.”
The company plans to complete a 43-101 report on all ten Tanzanian properties by November 1st, with the subsequent initial exploration program to be based on the report’s recommendations. A drill program will follow as soon as possible (prior to year end). Atomic’s near and mid-term goal is to continue to acquire additional land in the Ruhuhu Basin area and along the shore of Lake Nyasa, directly across the lake from Paladin’s Kayelekera Project Deposit. The company also seeks to build alliances and partnerships with key players in the area.
The rest of the article is here: http://resourcexinvestor.com/news.php?id=2934
Article Source: UnArchived Articles
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