Star shareholders give greenlight for Cobra yellowcake earn in

Star Minerals is approved ready to roll on an initial six-hole campaign
Cobra already plays host to a significant non-JORC resource near one of the world’s most eminent mines
Star believes the huge prospective tenement area makes for an easy entry to pounds in the ground

Special Report: Star Minerals is looking to the drill after shareholders give the thumbs up to earn in to the large-scale Cobra uranium project in Namibia.

Star Minerals (ASX:SMS) can build up to an initial 51% majority and up to 85% under the agreement with Madison Metals (CSE:GREN), who already have the approvals and targets for an initial six-hole campaign into Cobra.

The project, lying close to the world’s longest-running uranium mine at Rossing, holds a non-JORC resource estimate of 15.6Mt at 260ppm U3O8 for 9 million pounds, with fresh targets lying across 2800m of strike.

The project’s Area 3 holds the bulk of the uranium and ground radiometric surveys have shown a continuation of the area’s mineralisation to be explored.

And with shareholder approval now obtained, Star Minerals chair Ian Stuart said the company was excited to earn in at Cobra.

“The exploration team has reviewed drill planning to begin further exploration activities at the project in order to progress towards resource definition,” Stuart said.

“The project has permits in place to drill immediately and the evaluation of the strike potential and twinning some of the existing holes which make up the foreign uranium estimate are expected to form early work programs at the project.

“Star will liaise closely with the Madison’s in-country team to get the first program underway, subject to completion of the conditions precedent of the earn in. Star looks forward to updating its shareholders as the transaction progresses.”

Elephant country

While Namibia might not be the best-known jurisdiction among novice investors, its reputation in the uranium world is proven and considerable.

Rossing, just 10km away, is one of the world’s largest deposits, with the nearby Husab and Langer Heinrich mines offering further proof of prospectivity.

Star believed the huge tenement area entirely composed of prospective geology with easy access to infrastructure made for a very attractive entry to pounds in the ground after the project lay idle through a uranium downturn.

Now there seems to be little doubt about uranium’s place in a global energy transition, with previously mothballed assets offering large-scale opportunity back in the spotlight.

Star can earn its majority stake by spending a little under US$4m over the next three years and will be the operator of the project as it works alongside Madison’s experienced Namibian-based team.

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.