Xcite Resources entered into six option agreements with Eagle Plains Resources to earn up to an 80% interest in six uranium projects totaling 5,905 hectares near Uranium City, Saskatchewan.
Highlights
- Projects are located near Uranium City in the Beaverlodge District of Lake Athabasca
- Beaverlodge historical production of 70 million pounds U3O8
- High-grade surface showings up to 36% U3O8
Vancouver, British Columbia, December 14, 2023 - Xcite Resources Inc. (“XRI”: CSE, or Xcite) entered into six individual option agreements with Eagle Plains Resources Ltd. (“EPL”: TSX-V, or “Eagle Plains”), whereby Xcite may earn up to an 80% interest in six uranium projects totaling 5,905 hectares in close proximity to Uranium City in northern Saskatchewan.
Chris Cooper, Xcite’s Chairman of the Board commented, “We are pleased to enter the world’s best uranium district with a premier portfolio of properties that have demonstrated high-grade surface showings with a strong potential for a world-class discovery. This transaction will lead us to the forefront of the energy metal arena and allow our shareholders to capitalize on the emerging uranium market.”
Tim Termuende, P.Geo. President and CEO of Eagle Plains commented, “We are excited to partner with Xcite to accelerate the exploration of the Uranium City projects. Considering the rich production history of many of the individual projects, we welcome the opportunity to conduct modern exploration methods combined with continually advancing geological understanding of the genesis and controls of uranium mineralization known to exist there.”
Athabasca Basin History and Mineralization
The Beaver River, Black Bay, Don Lake, Gulch, Lorado, and Smitty projects are located in the Beaverlodge District near Uranium City in the Lake Athabasca region of Saskatchewan. Occurrences of uranium mineralization are abundant in the region and have been explored and documented since the 1940s. The Beaverlodge camp was the first uranium producer in Canada, with historic production of approximately 70.25 million pounds of U3O8 between 1950-1982, from ore averaging 0.23% U3O8. The two largest producers were the Eldorado Beaverlodge (Ace-Fay-Verna) and the Gunnar uranium mine. Since the early 90’s, limited uranium exploration work has been conducted in the Beaverlodge area.
Xcite Resources’ management cautions that past results or discoveries on proximate land are not necessarily indicative of the results that may be achieved on the subject properties.
Beaverlodge-style uranium deposits host structurally controlled, high-grade mineralization in veins and breccia fills within basement rocks. Mineralization often occurs at geological contacts and consists of structures filled with hematite, chlorite, and graphite associated with pitchblende (an ore mineral of uranium).
Athabasca Basin Project Summaries
Beaver River (1,455 ha)
- Four Saskatchewan Mineral Deposit Index (“SMDI”) occurrences
- Grab samples from the VIC U-Cu-Ni occurrence (SMDI 1553) returned values up to 27.62%, 36.30% and 29.70% U3O8 (AF 74O05-0051); mineralized zone approximately 1,097m in length (AF 74O05-0066)
- Rock chip samples at SMDI 1994, 800m southeast of the VIC occurrence, returned U3O8 values of 29.89% over 29.2cm, 18.09% over 15.2cm and 3.09% over 60.9cm (AF 74O05-0077)
Black Bay (1,114 ha)
- Six SMDI occurrences
- Black Bay Uranium Mine (SMDI 1296) discovered in 1953; mineralization developed in three main shoots along a strike length of approximately 152.4m (500’) and a down-dip distance of 731.5m (2,400’); 1,355 tons produced at 0.17% U3O8
- Grab samples from drill core at the Bluegrass U Zone (SMDI 1295), located 600m northwest of the Black Bay Mine, returned 16.74% and 9.64% U3O8 at a depth of 12.8m
Under the terms of the option agreements, Xcite may earn an 80% interest in each individual property by completing CDN$3,200,000 in exploration expenditures, issuing 750,000 common shares of Xcite and making cash payments to Eagle Plains of CDN$55,000 over four years. Upon Xcite fulfilling the terms of any or all of the earn-in agreements, an 80/20 joint venture will be formed, with Eagle Plains retaining a carried interest in all expenditures until delivery by Xcite or its assigns of a bankable feasibility study. During the option earn-in period, XRI will be appointed as operator, and EPL will manage the exploration programs under the direction of a joint technical committee. The projects are owned 100% by EPL, which will retain an underlying 2% NSR royalty on each of the properties.
About Xcite Resources Inc.
Xcite Resources is an early-stage exploration company working to become a leader in the discovery and development of energy transition metals. The uranium project portfolio in the Athabasca Basin will propel our efforts to achieve a high-grade discovery.
On Behalf of the Board of Directors
Chris Cooper
Chairman
Cautionary Note Regarding Forward-Looking Statements: Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.