Canadian uranium explorer Consolidated Uranium has agreed to acquire the Huemul-Agua Botada uranium-vanadium-copper mine and surrounding prospective land totalling 27,350ha, in the Malargüe department of southern Mendoza province, Argentina.

Huemul is considered to be the first mine in the country, which produced uranium between 1955 and 1975.

The mine produced 500,000lb of triuranium octoxide (U₃O₈) before it was closed in 1976.

The Huemul project consists of three areas, namely the Huemul Mine, the Silvana Claim and Huemul Norte and Sur Claim applications. It covers nearly 22,432ha.

Owned by NewEra Metal Resources, the NewEra Claims cover nearly 2,352ha and will be acquired by Consolidated Uranium.

Covering nearly 2,566ha of area, the company acquired Cerro Butalo Claims in 2020 through an option agreement with Green Shift Commodities.

For Consolidated Uranium, the transaction will unite all of the large land packages for the first time, including the Huemul area, which was subject to exploration by several different owners in the past.

With the entire land package now owned by a single owner, there can be a potential for more regional exploration, stated the Canadian firm.

In addition to producing uranium, the Huemul mine also produced nearly 175,000lb of vanadium oxide (V₂O₅) and 5.2 million pounds of copper (Cu) from nearly 130,000t of ore at an average of 0.21% U₃O₈, 0.11% V₂O₅ and 2.00% Cu. 

Consolidated Uranium chairman and CEO Philip Williams said: “The Huemul Project, with its history of uranium mining and large, consolidated land package positions CUR to be one of the leading uranium explorer-developers in Argentina's Neuquén basin, which could rival the large historic uranium-producing basins located in the western US and Kazakhstan.

“Huemul was Argentina´s first producing uranium mine and we believe that its location in the emerging mining-friendly department of Malargüe, as well as its vanadium and copper potential, represents an exciting opportunity for the company.”