Anson Resources Ltd (ASX:ASN) has staked an additional 66 mineral claims at its Yellow Cat Project in the Thompson District, Grand County, Utah.
The new claims abut and surround the original Yellow Cat Project claims and increase ASN’s landholding by 78% in the rich uranium and vanadium field.
Effectively, ASN increased its footprint by 5.5 square kilometres to 12.6 square kilometres.
ASN is encouraged by the visible mineralisation within the numerous underground workings.
Near term production opportunity
In late September, ASN confirmed high grades of uranium and vanadium from its Stage 2 exploration program at Yellow Cat. High-grade assay values of up to 87,600 ppm uranium (10.33% U3O8) and 143,500 ppm vanadium (25.61% V2O5) have been returned.
During Stage 2 exploration, ASN mapped the new area and found the character of the mineralisation to be consistent with that of the uranium and vanadium mineralisation within the Salt Wash Member of the Morrison Formation.
Numerous historical workings within the Yellow Cat Project area are still open and in excellent condition providing easy access to map the mineralisation and collect samples from adit walls.
Historical production at the Thompson District from as recently as the late 1980s presents an opportunity for near-term production of both uranium and vanadium.
ASN would also be encouraged by field XRF analysis of the mineralisation and laboratory assays.
High-grade assay values of up to 10.33% U3O8 (sample location YC2) and 25.6% V2O5 (YC11) were reported.
The staking of these new claims, based on the nature and direction of the mineralised trend, provides approximately 2 kilometres of untested potential strike length. In addition, the mineralisation is shallow or comes to the surface and as a result, the mineralised horizon is located above the water table.
Well-positioned to capitalise on rising prices
The Yellow Cat project is within the Colorado Plateau physiographic region, which has seen growing interest from ASX listed exploration and development companies due to recent increases in uranium prices and industry support from the United States Government.
The US is the largest consumer of uranium, however, domestic production of uranium is almost non-existent due to low prices and anti-competitive practices by foreign suppliers.
In late 2020, the US Government approved the proposed establishment of a US national strategic uranium reserve.
The Thompson District could help deliver that reserve.
During an era of peak production in the district from 1935 through 1954, approximately 42,000 short tons (38,102 metric tonnes) of ore averaging 0.30% U3O8 and 1.80% V2O5 was produced.
While that is significant, ASN can leverage a large amount of data that will help it redevelop highly prospective targets.
A review of historical drilling programs at Yellow Cat has identified high-grade uranium and vanadium mineralisation results. Mineralised intercepts from these historic drill holes range from 2ft (~0.6 metres) at 0.127% U3O8 and 0.83% V2O5, to 7ft (~2.1 metres) at 0.237% U3O8 and 1.07% V2O5, including 0.3 ft (~0.1-metre) at 3.75% U3O8 and 3.34% V2O5.
Historical and current production in this region is supported by the only conventional fully licensed and operational uranium/vanadium mill in the United States – the White Mesa Mill, which is owned and operated by Energy Fuels Inc and is within trucking distance southeast of the Yellow Cat Project.
ASN will be looking to strike an agreement with Energy Fuels in the future as the latter has historically accepted toll milling agreements as well as purchase programs for processing ores from third party mines.
What this could mean for ASN is a low-cost opportunity to utilise existing infrastructure and eliminate the significant capital requirement of developing a mill.
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