Delecta has started a series of sampling and mapping programs at its REX uranium project in Colorado as sentiment in the uranium sector improves.

Uranium prices have been ramping up recently after the Sprott Physical Uranium Trust started buying up physical uranium.

With physical yellowcake being squirreled away for the long term, spot prices have climbed to about US$42.40 per pound, well above five-year highs and putting it within reach of even exceeding Morgan Stanley’s April forecast that prices could hit US$48/lb by 2024.

Given this positive environment, Delecta (ASX:DLC) has made the straightforward decision to resume exploration at REX with sampling of surface outcrops and selected underground workings already identifying visible uranium mineralisation.

Initial sampling carried out last year had returned high-grade uranium and vanadium results with 12 samples returning an average grade of 2,246 parts per million (ppm) uranium with a peak value of 5,280ppm uranium.

“Due to renewed optimism surrounding future uranium pricing, the company recently decided to ramp up exploration at its majority owned REX uranium-vanadium project,” managing director Malcolm Day said.

“The project’s history of uranium mining, its proximity to operating infrastructure and the prevailing supportive government regime, bodes well for the development of the project.

“We look forward to continuing exploration at the REX project and evaluating other potential uranium-vanadium projects in the area.”

Sampling of historical workings at the REX project. Pic: Supplied

REX project and upcoming activity

Delecta owns 60% of Sunrise Minerals, which in turn holds 100% of the REX project that covers about 20sqkm in the prolific Uravan Mineral Belt that produced 86 million pounds of uranium at a grade of 0.24 per cent and 441 million pounds of vanadium at a grade of 1.25 per cent from 1898.

REX hosts four historical uranium mines that were subject to varying levels of exploration, though only limited data regarding drill hole position and grades is available.

Samples were rarely taken and the vanadium mineralisation was not documented due to the previous focus on uranium.

It is also located within trucking distance of the White Mesa Mill, the only operating conventional uranium-vanadium mill in the US that has spare capacity available to toll treat mined ore.

Delecta plans to continue mapping and sampling operations along the sandstone mesa rims, which are known to host significant uranium mineralisation, using a scintillometer and handheld XRF analyser.

Additionally, the company will carry out geo-referencing of existing underground mines, with mapping and sampling to establish the presence of mineralisation and locate previous surface drill holes, to delineate further targets for drilling.

It will also engage with the US Bureau of Land Management in regards to entering historical workings and drilling programs.




This article was developed in collaboration with Delecta, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.