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Okapi Resources delivers maiden JORC mineral estimate at Tallahassee uranium project of 27.6 million pounds of uranium oxide
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The company’s strategy is to become a new leader in North American carbon-free nuclear energy by assembling a portfolio of high-quality uranium assets through acquisitions and exploration.
Okapi Resources (ASX:OKR) has established a maiden JORC 2012 mineral resource estimate for the Tallahassee uranium project in Colorado of 25.4 million tonnes at 490 parts per million uranium oxide for 27.6 million pounds, using a 250ppm cut-off grade.
Today’s announcement compares against Peninsula Energy (ASX:PEN) JORC resource for its Lance project in the US of 50.7Mt at 480ppm uranium oxide for 53.6Mlb, measured to a cut-off grade of 200ppm. Here they are side-by-side.
While Peninsula currently has a market capitalisation above $270 million, Okapi’s sits sub-$60 million.
Okapi executive director David Nour said on the back of today’s landmark announcement the company would look to continue to add ounces to its US uranium holdings through exploration and acquisition.
“This is yet another significant milestone for Okapi, achieving a maiden JORC 2012 mineral resource that provides a robust platform on which to add further pounds via exploration within our current landholdings and through further value-accretive acquisitions,” he said.
“The team is also well advanced in planning a maiden drilling program of circa 10,000 metres at the Tallahassee Uranium Project.”
Large swathes of ground untested
OKR holds a 100% interest in mineral rights across 7,500 acres in the Tallahassee Creek Uranium District of Colorado, with large swathes of ground untested or poorly tested by drilling.
Further work is required to fully define the boundaries of the prospective mineralised channel.
The portfolio of assets also includes an option to acquire 100% of the high-grade Rattler Uranium Project in Utah, which includes the historical Rattlesnake open pit mine.
Rattler is 85km from the White Mesa Uranium Mill, the only operating conventional uranium mill in the USA and provides a near term, low-capital development opportunity.
Drilling to expand and improve confidence in resource
The 10,000m drilling program will be conducted to expand the existing resource base, improve confidence in the existing resource base, and acquire samples that can be used for initial metallurgical test work.
Depending on the results of this work, Okapi said initial conceptual mine design work may be undertaken to help determine the most appropriate work programs to implement thereafter.
Geology and mineralisation
Uranium deposits in the Tallahassee district are tabular deposits associated with redox interfaces.
Mineralisation is hosted in Tertiary sandstones (Echo Park Formation) and/or clay bearing conglomerates (Tallahassee Creek Formation).
These formations were deposited in a now extinct braided-stream fluvial system (or paleochannel).
The paleochannels were later partially buried by the extrusion of the Thirtynine Mile Andesite, which preserved the sedimentary sequences and allowed them to be gradually enriched with uranium.
The Noah, Northwest Taylor and Boyer Deposits are all hosted by the more favourable Echo Park sandstones, so mineralisation is generally thick and laterally continuous, and commonly comprises high-grade mineralisation within broader, lower-grade envelopes.
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.
