The new landholding was previously drilled for 550 holes at 26,000m with high-grade mineralisation returning within 5m of surface.

Okapi Resources Ltd has snapped up additional high-grade uranium pounds after executing a mining lease with the State of Colorado.

The mining lease includes a 100% interest in a 640-acre strategic landholding next to, and contiguous with Okapi’s (ASX:OKR) position over the High Park deposit within the Tallahassee Uranium District and within 25km of its flagship Tallahassee Uranium Project.

OKR executive director David Nour said Okapi is pleased to have acquired additional high-grade pounds on “very sensible terms”.

“The upfront cost of US$62,000 represents an acquisition cost of less than US$0.025 per pound.

“This represents yet another highly value-accretive acquisition for Okapi shareholders,” he said.

Mining lease terms

The uranium stock has entered a 10-year mining lease with an option to extend the lease for a further 10 years as long as minerals are being produced in paying quantities.

The lease covers a 640-acre parcel of land referred to as a ‘section’ and is 1 mile x 1 mile across (1.6km x 1.6km), owned by the State of Colorado.

Financial terms of the lease include:

  • One-off payment of US$42,000;
  • Annual rent US$3,200;
  • Annual advanced royalty payment of $16,800 deductible from future royalty payments; and
  • Sliding scale gross production royalty linked to the uranium price ranging from 5%; and
  • increasing to 12%, depending on the prevailing uranium price.

Previously drilled in the 70s

OKR’s new project area was previously drilled out on 30m centres with around 550 holes for 26,000m back in the late 1970s.

It was previously held by Black Range Minerals Limited, who established a JORC 2012 resource of 2.48 million pounds of uranium oxide at 570ppm.

Mineralisation at High Park is shallow, within 5m of the surface with an average thickness of around 2m and is amenable to open pit mining. A trial mining program was completed in 1977, where more than 10,000t of ore was mined and processed at the former Canon City Processing Facility.

The mineralisation is hosted by clay-bearing conglomerates within an extinct fluvial system or palaeochannel.

 

 

 

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.

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