Star Minerals eyes 51pc earn into promising Namibian uranium project

SMS to acquire 51% of Cobra uranium project in Namibia
Project is close to long-running Rossing uranium mine
Company to spend US$2.425 on exploration over three years

Special Report: Star Minerals has entered into a binding agreement with Madison Metals (CSE:GREN) for a farm-in and joint venture to acquire up to 51% of the Cobra uranium project in Namibia.

The project has an estimated quantity and grade of mineralisation of 15.6Mt at 260ppm U3O8 for 9Mlb U3O8.

Cobra is also in Namibia, considered a favourable jurisdiction for uranium mining due to its stable political environment, well established mining regulations, and rich uranium deposits, accounting for 11% of global production in 2022.

It’s also close to the Rossing uranium mine, one of the world’s longest-operating uranium mines, having produced more than 260 million pounds of ‘yellowcake’ since 1976.

Under the agreement, Star Minerals (ASX:SMS) can spend US$3.95m over three years (US$2.425m on exploration) to advance the project in addition to staged progress payments to Madison to earn 51% of the project.

Bonus in-country expertise

Star will be the operator of the project, and work with Madison, which has a team based in Namibia – one that can be utilised to realise the full potential on the Cobra project.

“We are delighted to add such a significant foreign uranium estimate to the company and look forward to working with Madison to confirm and upgrade the estimate and test the exciting exploration potential in the area,” SMS chair Ian Stuart said.

“Star have in-house expertise in uranium and specifically Namibian exploration experience via Ashley Jones who will manage the project from here.

“Ashley has considerable experience working in Africa and has previously resided in Namibia for 3-years and more recently worked on the Letlhakane uranium project in Botswana for five years from 2014 – 2019.

“Star sees enormous potential to upgrade and increase the existing estimates.

“We are buoyed by excellent long-term fundamentals for uranium and its role as a sustainable and carbon free energy source for the future.”

Expansion and further discovery potential

The company is confident the 297km2 tenement has prospective geology for resource expansion and further discoveries.

Notable historic drill intercepts include:

60m at 333ppm U3O8 from 6m, including 5m at 414ppm U3O8 in from 13m, including 6m at 676ppm U3O8 24m, including 10m at 732ppm U3O8 from 38m
7m at 971ppm U3O8 from 38m, including 2m at 2883ppm U3O8 from 38m,
9m at 636ppm U3O8 from 71m, including 5m at 1037ppm U3O8 from 74m; and
14m at 360ppm U3O8 from 47m, including 3m at 836ppm U3O8 from 47m.

Meanwhile, the company will continue to advance its efforts to monetise the Tumblegum South gold project and add value to its highly prospective West Bryah copper gold project in Western Australia.

This article was developed in collaboration with Star Minerals, 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.