Erongo’s high-grade uranium draws attention – Market Bull

Namibia’s Erongo region remains steadfast in demonstrating its potential, emerging as a prime contender to become one of the globe’s foremost uranium hotspots.

Erongo

The region boasts a multitude of established and globally renowned uranium mines, each boasting high-grade historical uranium grades, contributing to Namibia’s substantial 11% share of the world’s uranium output.

Among the noteworthy geological features is the Alaskite Alley, which hosts intrusive Alaskites and has been the site of renowned projects such as China General Nuclear Power Corporation‘s (CGN) Husab Project and China National Nuclear Corporation’s Rössing Uranium Mines, signifying its immense importance.

The region’s consistent success with projects, coupled with its rich alaskite and calcrete prospectivity, has prompted a rush of explorers to Namibia, drawn by the impressive returns achieved by major companies based in Erongo.

Deep Yellow

Tumas Project

With a market cap of $1.56 billion, Deep Yellow Limited’s (ASX:DYL) world-class Tumas deposit hosts a considerable resource of 114Mlb @ 263ppm U3O8.

Since 2016, Deep Yellow has embarked on numerous successful exploration campaigns which multiplied the Project’s palaeochannel/calcrete resource fourfold.

Tumas features approximately 125km of highly prospective paleochannels, with 40% remaining untested, offering untapped uranium potential.

Since February, Deep Yellow has been actively implementing a 650-hole resource upgrade program, aiming to delineate six years of proven reserves for detailed mine scheduling at Tumas, highlighting its enduring potential.

The company’s recent Definitive Feasibility Study (DFS) results from December 2023, affirmed the commercial viability of the Project as a long-term, high-margin, and globally significant uranium operation.

Omahola Project

Adding to Deep Yellow’s Namibian uranium portfolio is the Omahola Project, hosts an inferred resource base of 125.3 Mlb U308 at 190ppm.

Situated within Erongo’s Alaskite Alley, it spans a 35km by 14km northwest-southeast trending zone where uranium mineralisation is found across three deposits: Ongolo, MS7, and Inca.

Importantly, a significant portion of Omahola remains underexplored, presenting a substantial opportunity for Deep Yellow to discover additional uranium resources, with 50% of the basement prospective zone yet to be explored.

DYL’s Australian Security Exchange-listed share price is currently trading at $1.650 (1:00 pm UTC+ 8 hours).

Bannerman Energy

Etango Project

Located between Gemsbok and Omahola lies Bannerman Energy‘s (ASX:BMN) Etango Project, which possesses a world-class uranium mineral resource endowment of 207 Mlbs of contained U3O8.

Over the past 15 years, Bannerman has grown its market cap to $684.72 million, a growth trajectory closely linked with the extensive exploration efforts at Etango.

Nevertheless, despite years of heavy exploration, annual DFS reports consistently reaffirm the Project’s prospectivity.

In 2020, Bannerman completed a promising scoping study that unveiled Etango’s potential to produce 8 million metric tonnes of uranium per annum (8Mtpa), spurring further studies to enhance Bannerman’s comprehension of Etango’s value.

Critically, the DFS conducted in December confirmed, definitively, the robust overall viability of developing and operating the Etango (8Mtpa) Project.

Subsequently, a mining license was granted to fund the Project, leading Bannerman to commence operations, including the construction of a temporary water pipeline and an access road.

Shortly after, another scoping study in February 2024 revealed the Project’s potential to increase throughput and operating life, solidifying its significance.

BMN’s Australian Security Exchange-listed share price is up 0.7% and is currently trading at $4.460 (1:00 pm UTC+ 8 hours).

Paladin Energy

Langer Heinrich

Holding a market cap of $4.88 billion, Paladin Energy‘s (ASX:PDN) Langer Heinrich Uranium Mine is on track to become a significant player in the decarbonisation economy, achieving uranium concentrate and drumming production on March 30, 2024.

Located 80km east of Swakopmund and 85km northeast of Walvis Bay, Langer enjoys smooth access to and from the well-established Walvis port, which it has been utilizing to export its uranium output. This output is substantial enough to supply more than 10 1,000Mwe nuclear power plants for a year.

Over the last decade, Langer has produced more than 43 million pounds of U308 and shows no signs of slowing down, with Paladin anticipating that it will soon reach 77 million pounds.

Following the commencement of commercial production on March 30, Paladin plans to ramp up operations. Their next steps include finishing the construction of the Project’s product inventory before proceeding with customer shipments.

PDN’s Australian Security Exchange-listed share price is currently trading at $16.365 (1:00 pm UTC+ 8 hours).

OAR Resources

OAR Resources (ASX:OAR), the latest addition to Erongo’s landscape with a market cap of $6.32 million, anticipates substantial returns driven by the region’s prospectivity.

This expansion comes on the heels of acquiring both the Gemsbok and Oryx uranium projects.

These projects hold strategic positions near power networks, railways, and established infrastructure, with Walvis Bay, Namibia’s largest port, a mere 50km away.

The accessibility to and from the port is notably convenient, facilitated by well-maintained roads surrounding both projects.

Gemsbok

Strategically positioned in the southern end of the Alaskite Alley, only 20km north of Deep Yellow’s Tumas Project, Gemsbok covers 3,862 hectares and provides OAR with great potential for uncovering multiple types of uranium deposits.

In particular, Gemsbok is known to be prospective for calcrete and gypcrete uranium mineralisation.

Oryx

OAR recently received an exploration application for a substantial 18,968-hectare area, enhancing their position to explore uranium deposits within the region.

Particularly noteworthy is Oryx’s potential to access the same drainage system hosting Deep Yellow’s significant Tumas Deposit.

These recent acquisitions strategically align with exploration targets akin to some of the world’s most prominent uranium deposits, suggesting promising future growth prospects.

OAR’s Australian Security Exchange-listed share price is currently trading at $0.002 (1:15 pm UTC+ 8 hours).

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