Moab Minerals is acquiring the Manyoni and Octavo uranium projects in Tanzania. Pic via Getty Images
Moab Minerals doubles down on uranium with potentially transformational acquisition of Tanzanian assets
Mining
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- Moab Minerals is acquiring package of advanced, large-scale uranium projects in Tanzania
- Manyoni project has historical JORC 2004 uranium resources
- Work will be carried out to update resource to JORC 2012 standards and extend existing mineralisation
Special Report: Moab Minerals has expanded its uranium portfolio with the potentially transformational acquisition of a package of advanced, large-scale projects in Tanzania.
The company is no stranger to uranium with recent drilling at its historical REX project in Colorado’s famed Uravan mineral belt having intersected shallow mineralisation in one of the three initial holes.
However, with uranium sentiment remaining positive – thanks to a shortage of material and tight spot markets – Moab Minerals (ASX:MOM) has moved to increase its uranium exposure by entering a binding share sale agreement to acquire 81.85% of Linx Resources, which owns 80% of the Manyoni and Octavo uranium projects in Tanzania.
Both projects sit in the central part of the Tanzanian Archaean Shield – a stable platform of granite-gneiss terrane with marginal greenstone belts.
Radiometrically “hot” granites have been subject to erosion over geological time, contributing uranium and other metals into the pluvial streams and lakes which drain the shield.
The Mayoni and Octavo projects. Pic: Supplied (MOM)
Existing historical resource
Manyoni is 100km northwest of Tanzania’s capital Dodoma and was previously explored by ASX-listed company Uranex – now Magnis Energy Technologies (ASX:MNS).
Uranex’s work identified six separate resource areas and resulted in the definition of a resource of 20.5Mlb of U3O8 at a grade of 147ppm U3O8, under the older JORC Code 2004 rather than the current JORC Code 2012.
MOM believes the resource estimate is reliable as it has access to the historical databases and the mineral resource estimate report from Hellman & Schofield.
“We are very pleased to announce the acquisition of such high potential uranium projects,” MOM managing director Malcolm Day said.
“The fact that Uranex previously explored the Manyoni uranium project and announced a JORC 2004 mineral resource estimate of 20.5Mlbs at 147ppm in 20101 is a great start for the company.
“Post completion of the transaction, our priority will be to convert the historic resource to a JORC 2012 compliant mineral resource estimate. With the current spot price of uranium at a 17 year high of circa US$92/lb, it’s an exciting commodity to be exploring for.”
Work ahead
To update the resource to the current JORC 2012 standards, the company will drill ~300 holes immediately adjacent to existing holes (twinning) using sonic drilling, which provides the highest core recovery and sample quality.
This is aimed at addressing assay reliability, as noted by Hellman & Schofield.
MOM will also carry out bench-scale metallurgical test work on a representative suite of bulk samples from the above drill program, while undertaking additional bulk density measurements to check historical records.
On the exploration front, the company has plans to drill for extensions to known mineralisation. This will be aided by ground geophysical surveys designed to locate buried alluvial channels and concealed faults (which are believed to control the high-grade uranium mineralisation).
It will acquire high quality airborne geophysical data sets from the Geological Survey of Tanzania to assist with exploration targeting.
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.
