Okapi snaps up old uranium mine in USA

Multi-mineral exploration company, Okapi Resources has snapped up a
100 per cent interest in the historical Sunnyside uranium mine in Utah, USA, after staking mining claims that cover 960 acres adjacent to Okapi’s existing Rattler uranium project.

The Sunnyside uranium mine comprises several small past-producing pits and adits where uranium was mined in the early 1900’s at grades reported to have been 1,500 parts per million uranium oxide and 1.5 per cent vanadium oxide. According to Okapi the project has seen no modern exploration since.

The company says the acquisition of the Sunnyside uranium mine complements its existing Rattler uranium project next door.

Okapi’s Rattler project is adjacent to Energy Fuels’ La Sal Project which has remaining resources totalling 1.3 million tonnes at 1,700 parts per million uranium oxide and 8,880 parts per million vanadium oxide, for 4.5 million pounds of uranium oxide and 23.4 million pounds of vanadium oxide.

Importantly, Rattler is only 85 kilometres north of Energy Fuels’ well known White Mesa uranium-vanadium plant, surprisingly the only operating conventional uranium mill in the USA.

Okapi Resources Executive Director, David Nour said: “The acquisition of a 100% interest in the past-producing, high-grade Sunnyside Uranium Mine demonstrates the deep in-country knowledge and expertise of Okapi’s team. This acquisition represents yet another highly value-accretive acquisition for Okapi shareholders. The team remains focussed on executing its strategy as it becomes a new leader in North American carbon-free nuclear energy.”

Okapi’s acquisition of Sunnyside almost doubles the company’s total landholding in Utah from approximately 1,020 acres to a total of approximately 1,960 acres. The expanded project area in the La Sal Uranium district now comprises ninety-eight mining claims.

The new claims are located immediately along strike from the recently acquired Rattler project, which includes the historical Rattlesnake open pit mine, discovered around 1948 and remained in production until about 1954.  Historic production from the Rattlesnake pit mine reportedly totalled 285,000 tonnes of ore at 2,800 parts per million uranium oxide and 1.0 per cent vanadium oxide for 1.6 million pounds of yellowcake and 4.5 million pounds of vanadium oxide.   This is on par with the world’s average grade for uranium of 0.2 per cent.

Up until 1991, historic production from the entire La Sal district is estimated to comprise around a mammoth 6.4 million pounds of uranium oxide at an impressive 0.32 per cent and 29 million pounds of vanadium oxide at 1.4 per cent.

The Sunnyside uranium deposit is a channel-sandstone type deposit with the ore mined composed of the uranium minerals, pitchblende and torbernite. Management says Okapi’s planning for its maiden, high-impact exploration programs at Rattler and Sunnyside is already well advanced.

The company is confident Sunnyside could present a significant opportunity, particularly given the rising uranium price.

Okapi’s shares soared recently after it unveiled a stunning 174 metre gold intercept going 1.83 grams per tonne gold from surface at its Australian Enmore gold project in northern New South Wales. The company said the size of the intercept suggests it could be onto a potentially large, high-grade gold system at Enmore.

This ASX-listed company is on track to claim its goal of becoming a major player in the North American carbon-free nuclear energy sector as it continues to assemble a portfolio of high-quality uranium assets through both acquisition and exploration.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au