Atomic Eagle Adds 429 km2 Sitwe Uranium Licence in Luangwa Valley

Strategic Expansion of Uranium Portfolio in Zambia

Atomic Eagle Limited (ASX:AEU) has taken a significant step to cement its status as a leading uranium explorer in Zambia by entering a binding option agreement to acquire 100% of the Sitwe Uranium Project. This 429 km² licence, located in the Luangwa Valley Karoo Basin, expands Atomic Eagle’s Zambian footprint by 38%, adding substantial scale to its existing portfolio centered on the flagship Muntanga Uranium Project.

The Sitwe Project lies on a geological trend continuous with Malawi’s Kayelekera uranium deposit, underscoring the prospectivity of the region. Historical drilling at Sitwe North, conducted by African Energy Resources between 2010 and 2012, revealed encouraging high-grade uranium intercepts, including a standout 1m at 1,620ppm U3O8 from 35m depth. The mineralisation occurs in feldspathic gneiss near the unconformity with Karoo sediments, with uranium grades and thicknesses indicating meaningful exploration potential.

Capital-Efficient Entry via Option Agreement

The acquisition is structured as a low-risk option requiring Atomic Eagle to spend US$200,000 on exploration and statutory costs by June 2027, followed by a US$400,000 payment to exercise full ownership. This disciplined approach allows the company to advance the project while maintaining flexibility in capital allocation.

Atomic Eagle’s CEO Phil Hoskins emphasised the strategic fit: "Sitwe complements our flagship Muntanga Project by adding a large, prospective licence position in a highly endowed basin, with encouraging historical results and clear potential for further discovery." The company is currently planning initial exploration activities at Sitwe, including surface mapping and ground radiometric surveys to prioritise drill targets.

Exploration Upside and Regional Context

The Sitwe licence encompasses both basement Irumide metamorphics and Karoo Basin sedimentary rocks; the latter being the host to several significant uranium deposits in southern Africa. Multiple untested radiometric anomalies have been identified across the licence, offering substantial upside beyond the historical drill footprint. The mineralisation remains open along strike and at depth, with only a small portion of the licence systematically explored to date.

Atomic Eagle’s expansion at Sitwe dovetails with its ongoing aggressive drilling campaign at Muntanga, where a 30,000m program aims to boost resources and refine the project’s development potential. Recent results from Muntanga have already demonstrated resource growth, reinforcing the company’s ambition to establish a district-scale uranium mine in Zambia. The company’s established infrastructure access near Chirundu and proximity to export routes add further strategic value to its Zambian assets.

This move also diversifies Atomic Eagle’s geological risk by adding a separate basin to its portfolio while leveraging its in-country operational experience. The company’s ability to advance multiple projects concurrently could position it well in the evolving uranium market.

Atomic Eagle’s strategy to build scale through acquisitions and systematic exploration in a stable, mining-friendly jurisdiction like Zambia reflects a methodical approach to resource growth. The Sitwe option acquisition, combined with the ongoing Muntanga drilling, marks a pivotal phase in the company’s development trajectory.

Investors will be watching closely as Atomic Eagle progresses its initial Sitwe exploration and awaits further assay results from its Muntanga drill program, which has already shown promising expansions in high-grade uranium zones high-grade uranium zone and a recent 24% resource increase resource increase.