Marenica Energy Ltd (ASX: MEY) is a Waterford based company engaged in the evaluation and exploration of uranium deposits in Namibia. The company is also involved in the beneficiation process called U-upgrade. It has two uranium projects, both located in Namibia.
On 25th March 2019, Marenica Energy informed ASX about the company securing a strategic Uranium License. Today, on 29 March, the company released an amended version of the previous press release.
Marenica Energy has been granted an exclusive prospecting license (EPL) 6987 in Namibia. The EPL 6987 is known by the name Koppies. It covers the eastern extension of the Tumas palaeochannel which hosts other uranium deposits, including the Tumas and Tubas uranium deposits owned by Deep Yellow Limited (ASX: DYL).
The company noted the drilling results reported by DYL during 2018 for the Tumas East Uranium Prospect, and the drilling came within 100 metres of the boundary with Koppies License. Further, on 11 July 2018, DYL announced an inferred resource in excess of 60Mlb U3O8 in the Tumas palaeochannel.
DYL recently announced drilling results at Tumas 1,2 and 3 deposits, and the same could be read here.
Mr. Murray Hill, the Managing Director of MEY stated that securing the Koppies license is a strategic development for the company. Koppies is the first of the company’s EPL applications to be granted in the greater Namibia project area. He also highlighted that the previous drilling test results from the Koppies license has enabled the estimation of an exploration target. The historical drilling results covered a vast area, and it provides the company with significant drilling targets to pursue.
Mr. Hill also stated that the drilling costs in Namibia are low compared to Western Jurisdictions.
It is to be noted that the data used in the exploration target estimation process came from historical work undertaken around the project area in 1978 by General Mining. The exploration target reported is an estimate only, as defined by JORC 2012 clause 17. The exploration target is conceptual in nature, and the company intends to test the exploration target with extensive scout drilling, to be followed by a focused infill drilling.
With the EPL granted, MEY is intending to commence an exploration program including locating the extensions of the palaeochannel through the EPL to zero in additional drill targets over and above identified from historical drilling. A drill program would be completed to test these drill targets.
Environmental clearance process has been started and is expected to take two months. The company has plans to include electromagnetic surveys during its exploration activities on EPL 6987. The initial phase of exploration is expected to be completed within three to six months from the environmental clearance.
Marenica intends to use its in-house product, U-pgrade beneficiation process and it would lead to materially lower capital and operating costs for calcrete-hosted uranium deposits like Koppies.
Stock Price Information:
The stock has delivered a YTD return of 25 percent. The stock has been in a downtrend in the past one month, and it has dropped by 16.67 percent.
The shares of MEY closed the day’s trading flat at A$0.100 on ASX (As on 29 March 2019).
MEY’s market capitalization stood at A$7.23 million. The ASX reported average trading volume is 104,708. The company’s EPS stood at -0.022 AUD. The 52-week high is A$0.150, and the 52-week low was A$0.072
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