Vancouver’s Forum Energy Metals (TSX.V:FMC) has reported encouraging drill results from its Fir Island project in Canada.

Forum is exploring its 100%-owned property in the western state of Saskatchewan, on the northern border of the United States.

Forum said it had confirmed signs of uranium mineralisation across six holes totalling 1,819m, just 1km south of five previous drilled holes at Fir Island.

The exploration is within trucking distance of the McLean Lake uranium mill.

These positive results mean Forum will now engage in a much larger drilling programme in winter 2021, supported by its funding partner Orano Canada.

This year’s drilling scheme is the first to be funded by Orano, backed by an option agreement which allows Forum to earn a 70% interest in Fir Island. Under the terms of the deal Forum will spend $6m on exploration by 2023.

Orano Canada is a leading uranium producer and has been operating in Canada for 55 years. It operates the McClean Lake uranium mill and is a major partner in the Cigar Lake, McArthur River and Key Lake operations.

In 2018 it processed 18 million pounds of the element, which is used for fuel in nuclear power stations worldwide. It is a subsidiary of energy giant Orano Group, which is majority-owned by the French government.

The world supply of uranium has been hammered by the Covid-19 pandemic, as we reported in detail here. These issues have given uranium producers a huge leg up as spot markets soar.

Forum said its drilling programme at the East Channel Fault revealed potential for uranium mineralisation with similar rock structures to its 2015 drilling scheme.

These include elevated geochemistry with uranium up to 283ppm, boron up to 2,160pp, copper at 314ppm and nickel at 2,140ppm in two drill holes that intersect the East Channel Fault.

Regional magnetic and gravity surveys suggest that the structure continues for 8km to the southwest and 2km to the north, all on Forum’s property, the company said in a release.

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance