Riversgold locks in two uranium prospective tenements north of Yanrey
Special Report: Riversgold has secured two highly prospective tenements – Onslow South and Menzies East – for uranium as yellowcake prices soar to new heights of +US$100/lb.
Riversgold (ASX:RGL) is adding another two tenements to its portfolio in Western Australia, both considered highly prospective for uranium.
Sentiment for the energy metal is at an all-time high, coinciding with the biggest lift in uranium contracting by nuclear plants in years since the Fukushima incident in 2011.
While there have been some notes of caution, RGL and many other junior explorers are grabbing a piece of the pie with the view the uranium market is forecast to face a supply-demand deficit that could benefit a new throng of yellowcake miners.
The first project, Menzies East, covers some 52km2 of ground with two occurrences of uranium reported, including 1970s trench sampling assaying up to 5,430ppm U3O8 and auger drilling results up to 800ppm U3O8.
Meanwhile, the Onslow South project is 40km south of Onslow and 20km northeast of Paladin Energy’s (ASX:PDN) Manyingee uranium deposit, which contains an indicated resource of 15.7Mlb @ 850ppm U3O8 and an inferred resource of 10.2Mlb @ 850ppm U3O8 (using a cut-off grade of 250ppm U3O8).
It also abuts the northern boundary of Cauldron Energy’s (ASX:CXU) Yanrey uranium project, home to a resource at Bennet Well of 30.9Mlb (~14,000t) of contained uranium oxide.
RGL says both tenements have been acquired through direct pegging.
“We are excited about these projects joining the RGL tenement portfolio,” RGL executive chairman David Lenigas says.
This article was developed in collaboration with Riversgold, 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.