Marenica sniffs out extensive new uranium system in Namibia

Marenica’s uranium exploration efforts in Namibia continue to bear fruit with the company identifying a large palaeochannel system that extends for at least 19km.

The Namib IV system adjoins and is located northeast and southwest of the Hirabeb and Koppies systems respectively, though it is also separate from these two systems.

It was discovered from Marenica Energy’s (ASX:MEY) maiden geophysical exploration program that focused on the central area of the 379sqkm exclusive prospective licence EPL 7662.

“Our exploration successes continue in Namibia, where Marenica is the holder of the largest area for uranium exploration leases,” managing director Murray Hill said.

“The structure of this palaeochannel system at Namib IV is extremely promising and we look forward to mobilising a drill rig, within weeks, to test this expansive system.”

Hill added that the company expects to commence an airborne electromagnetic survey of the Namib area shortly after final approvals are received this month.

“The airborne EM is expected to outline new and extensive palaeochannel systems and enable rapid planning of detailed drill programs on highly prospective targets,” he added.

marenica energy namibIV uranium — Location of Namib IV in the Namib Area. Pic: Supplied

Uranium on the upswing

Uranium prices are trading close to $US30 ($38.78) per pound, almost 25 per cent higher than its market low of $US24 per pound a year ago.

The demand for the fuel continues to climb with China and India building multiple new uranium power plants while supply is expected to be constrained.

Kazakhstan’s Kazatomprom, the world’s largest producer of uranium, reported a 21 per drop in inventories in 2020 and has flagged that it might buy uranium on the spot market. Cameco is currently not producing but filling contracts through spot buying of uranium.

This article was developed in collaboration with Marenica Energy, 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.