Okapi picks up historical Sunnyside uranium mine amid booming market sentiment
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Okapi Resources is moving towards its goal of becoming a leader in North American carbon-free nuclear energy with the acquisition of the historical Sunnyside uranium mine in Utah.
The company nabbed the past-producing mine by staking mining claims that cover 960 acres adjacent to its existing Rattler uranium project.
It’s a smooth move considering uranium sentiment – and prices – are going gangbusters right now.
That’s mainly driven by the Sprott Physical Uranium Trust which has reportedly bought the equivalent of France’s entire annual uranium supply.
Okapi Resources (ASX:OKR) is confident Sunnyside could present a significant opportunity for new discoveries because historical production at the mine was at grades of 1,500 parts per million uranium and 1.5% vanadium.
But that was in the early 1900s so there’s been no modern exploration at the site since.
“The acquisition of a 100% interest in the past-producing, high-grade Sunnyside Uranium Mine demonstrates the deep in-country knowledge and expertise of Okapi’s team,” Okapi executive director David Nour said.
“This acquisition represents yet another highly value-accretive acquisition for Okapi shareholders.
“The team remains focussed on executing its strategy as it becomes a new leader in North American carbon-free nuclear energy.”
Planning for its maiden, high-impact exploration programs at Rattler and Sunnyside is well advanced.
And Okapi is keeping an eye out for future uranium acquisition opportunities throughout North America.
Location map showing the proximity of the Rattl
er uranium project to the White Mesa uranium/vanadium processing facility.
The acquisition has increased the company’s landholding by 90% from around 1,020 acres to 1,960 acres.
Plus, it complements Okapi’s Rattler project which includes the historic Rattlesnake open pit mine which was in production until the 1950s.
Rattlesnake reportedly totalled 285,000 tonnes of ore at 2,800 parts per million uranium and 1.0% vanadium for 1.6 million pounds of uranium and 4.5 million pounds of vanadium.
Not to mention the company’s claims neighbour is Energy Fuels’ La Sal Project, which was mined from 2006-2012 with ore processed at the nearby White Mesa uranium mill.
In 2014 the reported remaining resources at La Sal totalled 1.3 million tonnes at 1,700 parts per million uranium and 8,880 parts per million vanadium, for 4.5 million pounds uranium and 23.4 million pounds of vanadium.
White Mesa is key to Okapi’s plans, because the projects are only 85km away from the only operating conventional uranium mill in the USA.
This article was developed in collaboration with Okapi Resources, 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.