WestKam Gold Acquires Powerline One Uranium Project
WestKam Gold Finalizes Acquisition of Powerline One Uranium Project
WestKam Gold Corp. (TSX-V:WKG), a promising player in the mining industry, has successfully finalized and signed a Purchase Agreement with Ameranium Resources Corp. for the acquisition of a full legal and beneficial interest in 131 lode claims in the state of Utah, encompassing 2,649 acres known as the Powerline One Project.
Overview of the Powerline One Project
The Powerline Project is strategically located in what is known as the Colorado Plateau, renowned for its rich history in uranium mining. This region has produced over 328 million pounds of U3O8 since the 1950s, making it the most productive mining region for uranium in the United States. Peter Laipnieks, President of WestKam, emphasized the significance of this project, stating its favorable mining conditions, low-cost year-round operational capacity, and the completed environmental and archaeological surveys that facilitate rapid advancement.
Geological Features and Historical Data
The historical work conducted at the Powerline Project has identified a significant target zone, which extends across the property. Records from past abandoned oil and gas wells reveal areas with anomalous API readings, indicating high-grade radioactive material presence. The Samson 12-1 well, a focal point of this project, shows multiple anomalies in the Chinle formation, with gamma ray logs indicating a thick zone of uranium mineralization.
Notably, a 35.4-metre (116-feet) thick zone of uranium has been detected, including a section with an estimated grade of 0.0258 percent U3O8. Significantly, this zone is located well beneath the potable water table, suggesting that it can be efficiently mined using in situ leach (ISL) methods. ISL technology now accounts for around 56 percent of the uranium mining output globally, highlighting its importance in modern mining practices.
Exploration Plan for the Powerline One Property
WestKam has outlined a detailed multi-phased exploration program for the Powerline One Property. The initial phase will involve verifying the stratigraphic observations from previous seismic data analyses conducted by Ameranium in 2023. This will concentrate on gathering information adjacent to three historically documented oil and gas wells within the claim area.
Phase Two Drilling Campaign
The subsequent phase will involve at least one drill hole, targeting core samples to confirm the extent and grade of the identified mineralized zones. This phase will also entail conducting down-hole geophysical surveys to enhance understandings of the underground formations.
Financial Terms of the Acquisition
According to the terms stipulated in the Purchase Agreement, WestKam will compensate Ameranium a total of 4,500,000 common shares upon closing, along with a cash payment of US$105,000. This transaction is subject to approval from the TSX Venture Exchange. Furthermore, all shares issued will be subject to a hold period in accordance with Canadian securities regulations.
Expert Insights and Company Profile
The technical and scientific information contained in this announcement has been validated by Lorne Warner P.Geo, a qualified professional under National Instrument 43-101 standards, underscoring the credibility of the data surrounding the Powerline One Project.
WestKam Gold Corp. is a Canadian-listed junior gold exploration company focused on advancing exploration and development initiatives across projects in Western North America. The company is committed to sustainable practices and operates under regulations compliant with mining and environmental standards.
Name of contact person: Peter Laipnieks, President & CEO.
Frequently Asked Questions
What is the Powerline One Project?
The Powerline One Project consists of 131 lode claims over 2,649 acres in Utah, previously owned by Ameranium Resources Corp.
What does the acquisition mean for WestKam Gold?
This acquisition enhances WestKam's portfolio by providing access to a promising uranium mining site with strong discovery potential.
How does the mineralization at the Powerline Project compare to the industry?
The project has shown significant historical data indicating high-grade uranium mineralization, which is appealing compared to other sites.
What are in situ leach (ISL) methods?
ISL methods refer to a mining technology used to extract uranium from underground deposits without the need for traditional mining techniques.
Who approved the technical information in the announcement?
The information was reviewed and approved by Lorne Warner P.Geo, ensuring adherence to recognized geological standards.
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