TNT preps maiden drilling at East Canyon as uranium, vanadium prices stir
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TNT Mines (ASX:TIN) is preparing to kick off a first phase drilling program at East Canyon in the US, where high grade assays of up to 1.27% uranium and 8.30% vanadium were returned from sampling.
Vanadium prices are on the move once again, with prices for the flow battery and steel ingredient hitting +$US8/lb in China.
Meanwhile, uranium demand is expected to explode in the coming years.
Since acquiring the ~18.7sqkm East Canyon project in May 2020, TNT has been progressing towards a first phase drilling program.
The project features numerous historic workings, including None Such and Bonanza.
Early-stage exploration, including geochemical sampling and mapping, has confirmed the presence of extensive high-grade uranium and vanadium mineralisation in these historical workings.
The drill permitting process has taken longer than anticipated, but TNT has now reached the final stages, with payment of drilling bond to the US Bureau of Land Management to happen this week as required prior to the issue of the permits.
Drilling is expected to kick off after the permits and remaining environmental approvals are received.
The Phase one drilling will focus on the northern part of the claim holdings and the Bonanza and None Such workings, where visible uranium and vanadium was observed during field reconnaissance.
“The Bonanza workings were discovered to be more extensive than first understood through mapping, while the extent of the high-grade channel sample mineralisation identified at both locations was highly encouraging,” TNT says.
“Some of the samples collected emitted radiation levels that exceeded the safe handling limits of the ALS laboratory in Nevada and required special packaging before being transported to ALS’s facility in Vancouver, Canada, which is suitably configured to handle samples of this nature.”
The district hosts several significant uranium-vanadium operations including TSX-listed Energy Fuels’ La Sal Complex mine and White Mesa Mill, which is the only operational uranium mill in the US.
Energy Fuels has historically accepted toll milling agreements as well as purchase programs for processing ore from third party mines.
There is currently no relationship or arrangement in place between Energy Fuels and TNT, but White Mesa does present a potential processing solution for ore from East Canyon should economic resources be identified, the company says.
This article was developed in collaboration with TNT, 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.