Pegasus Resources (TSXV: PEGA) continues to consolidate its position within the uranium industry. The company this morning announced that it has entered an option agreement to acquire another property within the space, with the latest being found within South Dakota.
The property in question is found within lands currently managed by the United States Forest Service in Fall River County. In total, the property consists of 147 lode mining claims, which cover approximately 3,037 acres of land, that sits atop the Fall River and Lakota formations. The property is found 5.5 kilometres to the southwest of enCore Energy Corp’s (TSXV: EU) Dewey-Burdock ISR uranium deposit, which is hosted within the same sandstones and contains a resource of 17.12 million lbs of U3O8 at 0.116% U3O8.
Notably, previous field work was conducted by Union Carbide Corp in the late 1970’s, which resulted in a non-compliant historic resource of 2,379,990 lbs of U3O8. The resource consisted of both open-pit and underground models, with mineralization found in three separate areas. A further 1,440,000 lbs U3O8 is said to be found within an additional potential resource that is based on “geologic projection of the measured and indicated resources,” which is proximal to the defined deposits. This additional potential resource is also viewed as being non-compliant.
Two of the non-compliant deposits are said to be between 350 feet and 500 feet deep, with mineralization believed to be below the water table. The mineralization previously identified on the proeprty is said to be found in three sands of the Lakota formation.
Broken down, the first deposit, referred to as October Jinx, had 1,187,400 lbs of measured U3O8 at 0.133% U3O8, and a further 453,000 lbs of indicated U3O8, again at 0.133% U3O8. The Viking deposit meanwhile had 336,000 lbs of measured U3O8 at 0.101% U3O8. Both deposits are viewed as being underground models, and are non-43-101 compliant.
In terms of open pit mining resources, the property is said to have at least eight separate small deposits. On a combined basis, six of them, referred to as the Long Mountain deposits, contained 402,990 lbs of measured U3O8 at 0.062% U3O8, while two deposits collectively referred to as Fox River had no reported resource. Again, these figures are historical in nature and not 42-101 compliant.
The property was acquired via an all-cash transaction with Cowboy Exploration and Development, which saw the firm pay a total figure of US$1.5 million for 100% ownership. The figure is payable over a period of three years.
Initially, Pegasus has indicated it plans to acquire additional public and already identified privately owned data packages for the property, after which the firm intends to conduct drilling on the property to confirm historical data on the property. The company will also produce a compliant resource on the property, confirm tests for ISR amenability, and search for additional mineralization.
Pegasus Resources last traded at $0.09 on the TSX Venture.
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