Getting close: Moab refines upcoming drilling after first hole hits near-surface uranium at REX
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Moab believes it could be on the edges of a new high grade uranium-vanadium discovery at REX, with a 18 hole program now required to dial in on the motherlode.
The REX project is within the famed Uravan mineral belt of Colorado – an important source of uranium and vanadium in the US with output of more than 85Mlbs of uranium and 660Mlbs of vanadium over the past 100 years.
Moab Minerals’ (ASX:MOM) 60%-owned REX project hosts many historical uranium mines, including Blackfoot/Rattlesnake, Wedge, Merry Widow, Sunbeam and Vanadium King.
These had not been subject to exploration since the 1970s, other than initial sampling by the company.
The initial three holes are part of a planned 21 hole program to test a potential eastwards extension of mineralisation from historical workings at the Faery Queen and 45-90 mine.
Assaying of the first three holes has resulted in the intersection of near-surface uranium mineralisation in REX-01 and no significant mineralisation in REX-02 and REX-03.
Whilst the uranium and vanadium results in REX-01 were of low tenor compared to historical grades in the REX property, the hole did identify two horizontal mineralised zones at very shallow depth that correlate with the known mineralisation in the nearby mines, the company says.
As such, the Company concluded that potential lies to the north of the recently completed drill holes, and that additional drilling should be focussed there and east of the Forty Five Ninety mine.
Historical records obtained by the Company indicate that this area is likely to be prospective based on the likely preservation of prospective stratigraphy.
“The recently completed drill program has demonstrated the continuation of uranium in the Salt Wash Sandstone albeit at low grade,” managing director Malcolm Day.
“We believe that a high-grade channel may continue north of the Moab drill area and the larger drill program is necessary to locate that channel.
“It is also significant that the mineralisation occurs at a very shallow depth which brings the possibility of open pit mining into perspective.”
Moab is currently waiting on approval of its Wastewater Management Plan before it can secure the go ahead for the remaining 18 holes in its planned drill program.
As part of this, it has already completed extensive baseline environmental studies which are a necessary input to the Wastewater permit application.
This article was developed in collaboration with Moab Minerals, 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.