Delecta (DLC) is reporting a delay in receiving its results from the REX Uranium Project, after a lab rejected the assays due to high radiation levels.
The adult entertainment company recently took samples from the old mine dumps and exposed mineralisation at the project.
The diversified business is exploring REX as it acquired a 60 per cent stake in Sunrise Minerals, which owns the asset in Colorado, US.
DLC sent the samples from REX to ALS Global in Nevada, but the lab has rejected the material due to the radiation exceeding laboratory threshold limits.
Instead, the samples have been shipped to ALS Global in Vancouver, where the lab has the the capability to measure high Naturally Occurring Radioactive Materials (NORM).
ALS reports three of DLC’s fieldwork samples have high levels of NORM.
Managing Director Malcolm Day said the company was now expecting a slight delay in the assay results due to the transfer.
“Visible uranium and vanadium mineralisation has been observed throughout the REX Project, confirming the potential for high-grade uranium and vanadium within the Project area,” Mr Day said.
“It’s encouraging that interim assays have returned elevated levels of uranium mineralisation from initial sampling programs and the company considers the small delay in lab samples to be a net positive in the context of expected higher-grade assays.
“Our initial exploration has confirmed the company’s view that the REX Project is prospective for higher-grade uranium mineralisation in what is an extremely
buoyant uranium market.”
DLC shares are trading 9.09 per cent in the green at 1.2 cents each at 12:08 pm AEDT.
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