C29 Metals to start drilling at Ulytau uranium project after receipt of environmental permit

C29 Metals (ASX: C29) has received an official Category 2 environmental permit, allowing drilling to start this month at the Ulytau uranium project in southern Kazakhstan.

This permit follows the signing of a commercial agreement last month with Volkov Geology, which manages all geological, study and drilling services for its parent company Kazatomprom, currently the only uranium producer in Kazakhstan.

Managing director Shannon Green said the quick turnaround for receipt of the permit demonstrates the positive operating environment in Kazakhstan and the support it has been enjoying throughout the process.

Geological services

Under the terms of the agreement, Volkov will provide technical geological services for the upcoming diamond drilling program.

Volkov holds the permits needed for the transportation of uranium and is able to ensure strict compliance with all regulations during the program.

Drilling and geophysical work will be carried out by an independent contractor.

C29 Metals expects that Volkov’s scope of work will expand to include studies, geological modelling, and resource estimation in the new year.

Historical intercepts

C29 Metals will complete several holes at Ulytau to test and verify historical intercepts in a small area of the tenement.

The final design is at an advanced stage and plans to extend the initial diamond drill holes to a depth of 500 metres to test the area of highest geological confidence.

This drilling will also allow C29 to test the geological theory that the mineralised trend is part of a larger multi-element geological occurrence.

The company’s geology team has an established base of operations at the nearby village of Aksuyek and will utilise a handheld x-ray fluorescence unit in the field, providing real-time data to assist in prioritising samples for assay.

Project location

The Ulytau project is located in the Almaty region of southern Kazakhstan, where exploration for uranium has been ongoing since 1953.

It sits approximately 15km south-west of the large Bota Burum mine, which commenced production in 1956 and continued until 1991.

Total mined reserves at Bota Burum have been quoted at 20,000 tonnes (44 million pounds) uranium.