Kingsland’s maiden Cleo uranium resource sets stage for future growth
With the outlook for uranium continuing to improve, Kingsland has picked the right time to unveil a maiden JORC Resource of 5Mlbs of U3O8 for the Cleo deposit within its Allamber project.
The estimate follows its 30 hole drill program in the second half of 2022 which returned high grade hits of up to 16m grading 1,425 parts per million (ppm) U3O8 from a down-hole depth of 116m and also comes less than nine months after its listing on the ASX.
While uranium prices have yet to cross the critical US$60/lb mark it last touched in April last year, Sprott Physical Uranium Trust technical advisor Per Jander has warned that new uranium demand is likely to come soon when supplies remain tight, which will send prices rising.
Kingsland Minerals (ASX:KNG) also appears to be well positioned to meet this expected increase in demand given that the Cleo deposit remains open at depth and along strike.
“We are very pleased to deliver this Mineral Resource Estimate for Cleo less than nine months after first listing on the ASX in June 2022,” managing director Richard Maddocks said.
“There is still unfinished work at Cleo with mineralisation open along strike and at depth. This first MRE sets a firm platform upon which to build the resource base for Cleo.”
The Cleo Inferred Resource of 6.8Mt grading 345ppm U3O8 for 5.2Mlbs of contained U3O8 is reported at a 150ppm cut-off that reflects the generally shallow nature of the mineralisation and its amenability to potential open pit mining methods.
Notably, it is substantially larger than a previous third-party resource of 1.41Mt at 304ppm U3O8, or 0.94Mlbs of contained U3O8, calculated using the older JORC 2004 standard and at a lower 100ppm U3O8 cut-off.
Cleo is located within the broader Allamber project in the Northern Territory’s historic Pine Creek mining region where mining, predominantly for gold, has taken place since the 1870s.
The project area is well serviced with sealed roads and other infrastructure and services that enable exploration programs to progress in a timely manner.
Additionally, there are no native title claims or determinations covering the project area.
This article was developed in collaboration with Kingsland 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.