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11/07/2024
Mining NewsUncategorized

European Uranium Resources acquire majority share in copper-silver Russia project

The  current mineral license for the Unkur Project covers mining of copper, silver and associated metals and is valid until the end 2039.

White Rock, British Columbia – European Uranium Resources LTD. has agreed to the terms to acquire an initial interest of 60% in the Unkur Copper-Silver Project located in eastern Russia. In connection with the Unkur Acquisition, EUU intends to raise C$2.0 million through a private placement of common shares and consolidate its shares on an up to 10:1 basis. The Company has entered into subscription agreements with cornerstone investors for C$1.5 million of the planned Private Placement. Following the closing of the Unkur Acquisition and ancillary transactions, EUU intends to change its name to Azarga Metals Corp.

Supported by

Dorian Nicol, President and Chief Executive Officer stated: “This acquisition will allow the Company to proceed with exploration of an exciting new copper and silver project in a favourable location. We are preparing to conduct our first drilling program at Unkur in the fall of this year.” He then went on to say: “With our low overhead cost and current low cost of drilling in Russia, we currently anticipate the fundraising to sustain active exploration at the project for a period in excess of two-years.”

Unkur copper-silver project

Sediment-hosted copper and silver mineralization has been identified across the 5,390 hectare Unkur Project license area, in outcrops, trenches and by diamond drilling over a strike length of approximately five kilometers.

Diamond drilling was conducted at the Unkur Project in 1971 and 1978, with eight holes intersecting high-quality copper mineralization. The deepest mineralized intersection was at a relatively shallow down hole depth of 242.4 meters.

Limited work has been undertaken on the Unkur Project since the late-1970s.

The Unkur Project was successfully acquired through a Russian Government public tender by Azarga Metals Limited following extensive preparatory work by that organization including data collation and prospecting at the site over a period in excess of three years.

The current mineral license for the Unkur Project covers mining of copper, silver and associated metals and is valid until the end 2039.

Given extensive historical geophysics and some drilling, EUU management considers the Unkur Project a drill ready project that is highly prospective for the delineation of a shallow deposit of substantial copper mineralization with associated economically important grades of silver.

The Company believes there is good potential to delineate a substantial economically viable copper-silver deposit at the Unkur Project. EUU’s initial target is for the delineation of 20-40 million tonnes of mineralization at 0.6-0.9% copper and 60-80g/t silver. The geological style of this type of sediment hosted copper deposit around the world is known to have potential to host hundreds of millions of tonnes of mineralization. In line with this, management believes there is potential to discover a very large deposit within the Unkur Project license area. It should be noted with respect to the Company’s initial target that the potential quantity and grade is conceptual in nature, that there has been insufficient exploration to define a mineral resource and that it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Location and access

The Unkur Project consists of one 5,390 hectare license that lies in the Kalarsky district of the Zabaikalsky administrative region of Russia, approximately 380 kilometers north of the China-Russia border and 15 kilometers to the east of Novaya Chara town.

The Baikal-Amur Mainline railway passes within approximately seven kilometers of the Unkur Project and Novaya Chara is approximately 22 kilometers along the year-round natural road beside the railway. The town of Chara, where there is an operating commercial airport, is approximately 33 kilometers from the project area.

Railway routes directly connected to the BAM railway provide access to China and also Russia’s far eastern ports on the Pacific coast.

A power line crosses over the Unkur Project license area connecting to a high-voltage sub-station at Novaya Chara with a capacity of 200 megawatts.

The Unkur Project sits in a broader district known for its copper and precious metals mineralization. It is within 20 kilometers of Udokan, which is reportedly one of the three largest undeveloped copper deposits in the world today.

Source: Junior mining network

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