Vancouver, British Columbia--(Newsfile Corp. - July 29, 2024) - Cosa Resources Corp. (TSXV: COSA) (OTCQB: COSAF)(FSE: SSKU) ("Cosa" or the "Company") is pleased to announce it has entered into an asset purchase agreement (the "Purchase Agreement") with Skyharbour Resources Ltd. (the "Vendor") dated July 26, 2024, for the acquisition (the "Acquisition") of two mineral claims in the Athabasca Basin, Saskatchewan (the "Claims").
Highlights
Two mineral dispositions totalling 6,049 hectares to be acquired, doubling the footprint of the Orbit uranium project (the "Orbit Project") to 12,718 hectares
Expands Cosa's control of untested strike length to eight kilometres located on trend with uranium mineralization, hydrothermal alteration, and reactivated graphitic faulting to the southwest
Keith Bodnarchuk, President and CEO of Cosa, commented: "This acquisition adds significant value and exploration runway to the Orbit Project, which is proximal to infrastructure and within 25 kilometres of the Key Lake Uranium Mill and the former Key Lake Uranium Mine. We are very pleased to expand this project, which is situated in a highly prospective area that has been largely overlooked by modern exploration despite having shallow target areas with no sandstone cover. We appreciate the effort from the Skyharbour team to complete this agreement in a timely manner. Cosa will continue to identify and pursue cost-effective opportunities to add to our pipeline of exciting projects and drill targets as we remain fully funded to complete all of our exploration plans into 2025."
Andy Carmichael, VP of Exploration of Cosa, commented: "The northern magnetic-low trend at the Orbit Project hosts known occurrences of uranium mineralization, hydrothermal alteration, and reactivated graphitic faulting on strike to the southwest, all of which can be important indicators of a uranium deposit on trend. We are excited to have nearly doubled the completely untested strike length of this trend contained by the Orbit Project. Furthermore, the southern portion of the Orbit Project hosts several complex magnetic low trends that have not been significantly explored and warrant additional work."
The Expanded Orbit Project
The Orbit Project is located roughly 19 kilometres south of the Athabasca Basin and 22 kilometres south of the Key Lake Mill and former Key Lake Mine (Figure 1) and is accessible by a network of trails extending to within 11 kilometres of the Orbit Project from Provincial Highway 914. Despite the Key Lake Mine's historical production of over 209 million lbs U3O8 at an average grade of 2.3%, the Orbit Project and surrounding area have seen little modern exploration.
The northern portion of the expanded Orbit Project captures nearly eight kilometres of the interpreted strike extension of a northeast-trending magnetic low corridor that hosts occurrences of graphitic faulting, strong hydrothermal alteration, and weak uranium mineralization including 0.07% U3O8 in drill hole TED-01 (106.4 - 106.6 metres). The trend is sub-parallel to that which hosts the Gaertner and Deilmann uranium deposits of the former Key Lake Mine.
The southern portion of the Orbit Project covers curvilinear, northeast-trending magnetic lows crosscut by lineaments identified from regional magnetic data which suggest favourable structural complexity. As with the northern portion of the Orbit Project, this area is untested by drilling. Like the 100% owned Aurora project to the northeast, Cosa believes that the Orbit Project is underexplored and remains prospective for near surface and open-pit amenable uranium mineralization. The Company aims to complete initial drill testing at the Orbit Project in 2025.
Acquisition Details
Pursuant to the Purchase Agreement, Cosa has agreed to acquire a 100% unencumbered ownership of two mineral claims from the Vendor in exchange for 250,000 common shares of the Company (the "Consideration Shares"). The Consideration Shares will be subject to a four-month hold period pursuant to applicable Canadian securities laws, after which 50% of the Consideration Shares will become free trading. The Vendor has agreed to voluntary resale restrictions whereby the balance of 50% of the Consideration Shares will become free trading six months after closing. The Acquisition is subject to standard closing conditions, including the approval of the TSX Venture Exchange (the "TSXV").
Figure 1 - Orbit Uranium Project and Expanded Claims
Cosa Resources is a Canadian uranium exploration company operating in northern Saskatchewan. The portfolio comprises roughly 209,000 ha across multiple projects in the Athabasca Basin region, all of which are underexplored, and the majority reside within or adjacent to established uranium corridors.
Cosa's award-winning management team has a long track record of success in Saskatchewan. In 2022, members of the Cosa team were awarded the AME Colin Spence Award for their previous involvement in discovering IsoEnergy's Hurricane deposit. Prior to Hurricane, Cosa personnel led teams or had integral roles in the discovery of Denison Mines' Gryphon deposit and 92 Energy's Gemini Zone and held key roles in the founding of both NexGen and IsoEnergy.
Cosa's primary focus through 2024 is initial drilling at our Ursa Project, which captures over 60-kilometres of strike length of the Cable Bay Shear Zone, a regional structural corridor with known mineralization and limited historical drilling. It potentially represents the last remaining eastern Athabasca corridor to not yet yield a major discovery. Modern geophysics completed by Cosa in 2023 identified multiple high-priority target areas characterized by conductive basement stratigraphy beneath or adjacent to broad zones of inferred sandstone alteration - a setting that is typical of most eastern Athabasca uranium deposits. Initial drilling results from Ursa in winter 2024 are positive and include the intersection of a broad zone of alteration with associated structure in the Athabasca sandstone located 250 to 460 metres above the sub-Athabasca unconformity. Follow-up is planned in the second half of 2024.
Qualified Person
The Company's disclosure of technical or scientific information in this press release has been reviewed and approved by Andy Carmichael, P.Geo., Vice President, Exploration for Cosa. Mr. Carmichael is a Qualified Person as defined under the terms of National Instrument 43-101. This news release refers to properties in which the Company has no interest. Mineralization on those neighboring properties does not necessarily indicate mineralization on the Company's properties.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking information within the meaning of Canadian securities laws (collectively "forward-looking statements"). Forward-Looking statements are typically identified by words such as: believe, expect, anticipate, intend, estimate, plans, postulate and similar expressions, or are those, which, by their nature, refer to future events. All statements that are not statements of historical fact are forward-looking statements. Forward-Looking statements in this press release include but are not limited to statements regarding, the Company's exploration and development plans. Although the Company believes any forward-looking statements in this press release are reasonable, it can give no assurance that the expectations and assumptions in such statements will prove to be correct. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, changes in the state of equity and debt markets, fluctuations in commodity prices, delays in obtaining required regulatory or governmental approvals, and other risks involved in the mineral exploration and development industry, including those risks set out in the Company's management's discussion and analysis as filed under the Company's profile at www.sedarplus.ca. Forward-Looking information in this news release is based on the opinions and assumptions of management considered reasonable as of the date hereof, including the price of uranium and other commodities; costs of exploration and development; the estimated costs of development of exploration projects; the Company's ability to operate in a safe and effective manner and its ability to obtain financing on reasonable terms. Although the Company believes that the assumptions and factors used in preparing the forward-looking information in this news release are reasonable, undue reliance should not be placed on such information. The Company disclaims any intention or obligation to update or revise any forward-looking information, other than as required by applicable securities laws.
