Marenica Energy (ASX: MEY) has identified uranium and gold at its recently acquired Minerva project in Australia’s Northern Territory.
The uranium and gold mineralisation were discovered through a detailed review of extensive historical drilling data at the project.
Better historical uranium results were 11m at 4,218 parts per million uranium oxide from 129.5m, including 0.5m at 41,200ppm uranium oxide from 138m; 4m at 4,334ppm uranium oxide from 145m, including 0.5m at 25,000ppm uranium oxide from 146.5m; and 5.5m at 11,131ppm uranium oxide from 117.5m, including 2m at 20,725ppm uranium oxide from 118m.
Meanwhile, gold intercepts were 0.5m at 19.2 grams per tonne gold and 0.5m at 2.3g/t gold.
The review of historical data identified mineralisation in 49 drill hills with samples grading more than 10,000ppm uranium oxide.
According to Marenica, the data reveals about 2,400m of strike at the project.
Marenica managing director Murray Hill said confirmation of the uranium and gold at the project was “very exciting”.
“Uranium and gold, both yellow metals, have experienced substantial price increases during 2020.”
He added the company plans to further assess the project and firm up exploration plans.
Australian uranium project acquisitions
Marenica acquired Minerva along with several other Australian uranium assets in December last year.
Minerva’s exploration licence remains pending, but once granted Marenica will wholly-own the project.
In addition to Minerva, Marenica secured Angela, Thatcher Soak, Oobagooma projects and has a joint venture over Bigrlyi, Malawiri, Walbiri and Areva.
The December acquisition added 48 million pounds to the Marenica’s uranium resources with an average grade of 859ppm uranium oxide.
Since late February, the uranium price has rocketed more than 30% from about US$24.80 per pound to around US$33.20.
Driving the upward price momentum is diminishing global supplies due to COVID-19 induced shutdowns with just six mines producing about two-thirds of the world’s uranium.
Additionally, new reactors are about to be brought online with many others under construction.
The Australian Government’s latest Resources and Energy Quarterly forecasts the uranium price will continue rising and reach about US$40/lb by 2024.
Marenica’s shares were up 6% to $0.065 in early morning trade.