How Will Elevate Uranium Unlock Value from Its New Napperby Acquisition?

Strategic Expansion in Australian Uranium

Elevate Uranium Ltd (ASX – EL8) has completed a significant acquisition, purchasing 100% of Uranium Generation Pty Ltd from Core Lithium Ltd. This transaction brings the Napperby Uranium Project in the Northern Territory and several other uranium assets in South Australia into Elevate’s portfolio, increasing its global Mineral Resources to 169 million pounds of uranium oxide (U3O8). The acquisition aligns with Elevate’s strategy to consolidate uranium projects in established Australian jurisdictions where its proprietary beneficiation technology can unlock additional value.

Napperby – A Key Addition Near Existing Assets

The Napperby Uranium Project, located approximately 150 kilometres northwest of Alice Springs and just 25 kilometres from Elevate’s Minerva Project, is the cornerstone of this acquisition. It hosts a JORC 2012 compliant Inferred Mineral Resource of 8.03 million pounds of U3O8 at an average grade of 382 parts per million. The mineralisation occurs in shallow, calcrete-hosted sediments within a broad paleochannel system, offering potential for resource extensions given the wide-spaced historical drilling.

Elevate’s Managing Director, Murray Hill, highlighted the synergy between Napperby’s shallow mineralisation and the company’s patented U-pgrade™ beneficiation process, which has demonstrated the ability to concentrate uranium and reduce processing costs. Previous metallurgical testing on Napperby samples confirmed their amenability to this process, suggesting a pathway to produce a high-grade concentrate that could enhance project economics.

Exploration Upside at Fitton and Entia

Beyond Napperby, the acquisition includes the Fitton Uranium Project in South Australia’s Flinders Ranges, a region known for uranium production. Historical drilling at Fitton returned promising high-grade intersections, including intervals exceeding 1,000 ppm U3O8. The project remains underexplored, with significant potential for further discoveries along mineralised structures.

The Entia Project in the Northern Territory, also acquired, is at an early exploration stage but is considered prospective due to favourable geology and regional structures. Additional tenements in both jurisdictions further expand Elevate’s footprint in uranium-rich regions.

Transaction Details and Strategic Implications

The acquisition was completed with a total consideration of AUD 5 million, split evenly between cash and equity issuance, alongside a 1% net smelter royalty on production from the Napperby Project. This structure reflects a balanced approach to funding while aligning interests between Elevate and Core Lithium.

By integrating these assets, Elevate Uranium consolidates its position as a leading ASX-listed uranium developer with a diversified resource base spanning Australia and Namibia. The company’s focus on applying its U-pgrade™ beneficiation technology across its portfolio could provide a competitive advantage in unlocking value from surficial uranium deposits.

Looking Ahead

While the Napperby resource is currently classified as Inferred with some uncertainty due to drill spacing, Elevate plans to undertake further exploration and infill drilling to better define the resource and assess its economic potential. The company’s expertise developed in Namibia, where similar mineralisation styles exist, may accelerate this process.

Investors and industry watchers will be keen to see how Elevate advances these projects, particularly the application of U-pgrade™ technology and the results of upcoming feasibility studies. The acquisition marks a pivotal step in Elevate’s growth trajectory within the uranium sector, reinforcing its strategic focus on value creation through innovation and consolidation.