Subiaco-based oil and gas explorer Monitor Energy Ltd subsidiary Issyk-Kul Energy has acquired a uranium exploration licence in north-eastern Kyrgystan, the company announced today.
Subiaco-based oil and gas explorer Monitor Energy Ltd subsidiary Issyk-Kul Energy has acquired a uranium exploration licence in north-eastern Kyrgystan, the company announced today.
The full text of a company announcement is pasted below
Australian based resources company Monitor Energy (ASX: MHL) is pleased to announce that the Company has acquired 100% interest in a new uranium exploration licence in the north-eastern region of the Kyrgyz Republic. The license is issued to its wholly owned, locally registered subsidiary Issyk-Kul Energy.
The Kalmaksu licence is valid for two years between 4 May, 2007 and 4 May, 2009. The licence covers 27,200 hectares (272 square kilometres) of land and is located north of Lake Issyk-Kul. It is also in close proximity to two of Monitor's four existing petroleum exploration licenses, which total an area of 9,900 square kilometres.
Monitor believes that the company's new licence is located in a highly prospective area for uranium as historic exploration data of the Kalmaksu licence area, including mapping, geophysics surveys and sparse drilling, has identified zones of mineralisation for uranium as well as molybdenum, lead and sliver.
The Kyrgyz Republic has a history of uranium mining, with production of approximately 3,000 tonnes mined up until the 1970s. Advanced exploration has been previously conducted by Soviet geologists but limited drilling was carried out.
The company intends to expedite its uranium exploration program in the region, which will include detailed geological mapping, surface and underground sampling and radiometric surveys to determine drill targets.
The growing global focus on alternative energy sources has seen uranium prices reach record levels.
The Kyrgyz Republic is well located to take advantage of increasing demand for uranium in China and Japan. This is underscored by the recent agreement between China and Japan to expand China's nuclear power station capacity by around 30 new power reactors by 2020. Japan also intends to add new power stations, but at a slower rate of growth.
Monitor has a strong focus on energy opportunities in the Kyrgyz Republic and beyond. Current oil and gas technical work in the area includes new age interpretation of existing seismic data in the southern license areas, which has indicated several large untested, four way dip anticlines with geology similar to both the adjacent Fergana and Tarim basins. The company is currently in negotiations with geoscience field data acquisition contractors to obtain modern geophysical data to assist with prospect development.
