ASX-listed Okapi Resources has reinforced its uranium footprint in the United States after securing full ownership of 45 new mining claims and one State Mineral lease in Colorado. The acquisition stretches the boundaries of the company’s Maybell uranium project where historical production tipped the scales at 5.3 million pounds of triuranium octoxide running a solid average grade of 1300 parts per million.
The purchase also includes the procurement of an extensive historical database laden with key geological data that Okapi says will fast track the ground’s evaluation. The package includes more than 400 electronic well logs, detailed maps, geological reports and maps.
Additionally, the database holds the design, construction and operating information pertaining to the mining and uranium production operations of Union Carbide – a significant historical uranium producer in the region.
Between 1954 and 1964, Union Carbide ran a number of shallow open pits along a 2 km strike in the Maybell district. Records reveal the assets held an average grade of 1300 ppm triuranium octoxide and produced about 4.7 million pounds of uranium. After an on-site mill was built in 1958, annual production climbed significantly. From 1958 to the mine’s closure in 1964, the Maybell region produced between 500,000 and 720,000 pounds annually.
Union Carbide resumed mining operations in 1976 following a surging uranium price but it was again discontinued in 1981 following waning demand for the commodity.
With uranium currently trading at approximately US$48 per pound and tipped to touch US$54 per pound by 2030 by data analysis company S&P Global Market Intelligence Okapi is looking to return the area to its glory days.
Through the agreement, Okapi has picked up a large piece of the Maybell mineralised trend, which houses the zone’s historical production along with several additional prospective areas.
Okapi Resources Managing Director, Andrew Ferrier said:“Maybell has potential to be a significant project as the uranium renaissance in the United States continues to build. The next steps at Maybell include reviewing and analysing the recently acquired data package ahead of implementing exploration and drilling programs to validate existing mineralisation and delineate additional mineralisation and evaluate the potential of developing a shallow open pit operation.”
As part of the latest deal Okapi will complete a refundable cash deposit of US$50,000 upon execution of the acquisition agreement to Arden Larson and Uranium Recovery Corp. Subject to several conditions Okapi will then pay the vendors a further US$25,000 in cash and issue them with A$80,000 worth of fully paid ordinary shares.
Perth-based Okapi has also agreed to grant the sellers a royalty of 0.5 per cent of the gross smelter return on all materials produced from the newly acquired tenements. Weaved into the deal is an option for Okapi to reduce the royalty down to 0.25 per cent through the payment of US$100,000 in cash.
The Maybell uranium project lies 5 kilometres east of Maybell and 40 kilometres west of Craig in Moffat County, Colorado. The project is nestled in a rural area that is notable for past uranium mining along with the current production of coal and natural gas.
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