Moab Minerals has a new name and a renewed focus on its REX uranium project in Colorado, USA. Pic via Getty Images.
Moab returns to the ASX with a focus on its REX uranium-vanadium play
Mining
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Moab Minerals, formerly Delecta, has recommenced trading on the ASX with a continued focus on exploring and developing its REX uranium-vanadium project in Colorado.
The name change highlights its move from being a diversified company to one focused on the REX project about 130km east of Moab, Colorado, to meet the growing demand for uranium as sentiment towards nuclear energy as a clean, carbon-free source of energy continues to improve.
US President Joe Biden recently passed the Inflation Reduction Act with about US$369bn in climate provisions and multiple incentives which pave the way for nuclear energy to help ensure energy security and cut emissions by 40% before the end of the decade.
Moab Minerals (ASX:MOM) has a 60% interest in REX, which contains a number of historical uranium mines including Blackfoot/Rattlesnake, Wedge, Merry Widow, Sunbeam and
Vanadium King that have not been subject to exploration since the 1970’s outside of the company’s initial – and highly encouraging – sampling within its 20km2 area.
The company plans to lodge a drill permit application with Bureau of Land Management Colorado next month and is currently developing targets for soil sampling at the company’s newly acquired Woodlands project in north Western Australia.
“We are pleased to have the company’s shares recommencing trading on the ASX at this very important time in the global uranium market,” managing director Malcolm Day said.
“With nuclear energy continuing to gain significant momentum as the global shift towards carbon free power accelerates, Moab is strongly positioned with the REX Project.”
Capital raising
The relisting follows the successful raising of $4m through an issue of 200 million shares priced at 2c per share.
Proceeds from the share issue will be used to continue exploration at REX and other projects.
Besides the flagship REX project, Moab also owns the Highline cobalt-copper project in Nevada’s Goodsprings district, the Speedway gold project in Utah, as well as the Woodlands base metal and gold project and Mount Amy project in Western Australia.
Project Summary
REX is located within Colorado’s highly prospective Uravan Belt – an important source of uranium and vanadium in the US for more than 100 years with production of more than 85 million pounds of uranium and over 660 million pounds of vanadium.
It is within trucking distance of the White Mesa Mill, the only operating conventional uranium-vanadium mill in the US that has 90% spare capacity available to toll-treat mined ore.
Speedway is an early stage greenfields gold exploration project which covers 5.82km2 about 170km west of Salt Lake City.
It hosts three coincident geochemical and structural anomalous zones that have been identified for follow-up exploration for “Carlin-type” gold mineralisation.
Highline is prospective for copper and cobalt mineralisation from hydrothermal alteration where Moab believes the lack of previous exploration and drilling presents an opportunity for the application of modern exploration techniques.
The anomalous cobalt-copper-gold values in rock samples collected at multiple sites within the 0.37km2 project area, about 50km southwest of Las Vegas, indicates that the project has the potential to be part of a broader mineralised system.
Woodlands covers 193km2 about 875km northeast of Perth, Western Australia, in the Gascoyne Province with access via the Woodlands – Mt Augustus Road which passes through the northern area of the tenement and various station tracks and exploration grids.
It is located within the same structure that hosts the Abra lead-silver-gold-copper deposit about 75 km to the east and is considered to be prospective for sedimentary exhalative (SEDEX) base and precious-metal mineralisation.
Previous surface geochemical exploration identifying a number of zinc-copper targets within favourable stratigraphy that have not been drill tested.
The 155.34km2 Mount Amy project is 1,050km north of Perth, Western Australia, in the Shire of Ashburton with access provided through the Northwest Coastal Highway to the south of the tenement or the unsealed Ashburton Downs – Meekatharra Road.
It is a conceptual gold target, with no subsurface exploration, located at the northern extent of the Nanjilgandy Fault, the same structure that hosts the Paulsens and Mount Olympus gold deposits.
Historical surface sampling has outlined a number of geochemically anomalous areas and historical rock sampling has returned anomalous base metal assays, which warrant further testing.
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This article was developed in collaboration with Moab Minerals (ASX:MOM), 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.
