Special Report: Exploration at Delecta’s REX project in Colorado is off to an encouraging start with initial sampling returning intriguing uranium and vanadium grades.
Uranium was noted in 12 of the 17 samples with an average grade of 0.22 per cent and a peak value of 0.53 per cent, while vanadium averaging 0.64 per cent was found in all the samples with a top hit of 1.36 per cent.
The REX claims are situated within the prolific Uravan Mineral Belt that produced 86 million pounds of uranium at a grade of 0.24 per cent and 441 million pounds of vanadium at a grade of 1.25 per cent from 1898.
Delecta (ASX:DLC) managing director Malcolm Day says the company is excited about the preliminary grab sampling results as it was untargeted and without the aid of a scintillometer.
Scintillometers are used by geologists to assess a gamma count rate in c/s, with higher counts associated with uranium mineralisation.
“The project’s history of uranium mining, its proximity to operating infrastructure and the prevailing supportive government regime, bodes well for the development of the project,” Day added.
Geological mapping and sampling targeting the host Salt Wash sandstones with a scintillometer and portable XRF analyser is ongoing to allow rapid determinations for both uranium and vanadium.
This is also expected to help with the definition of potential drill targets.
Delecta is also continuing due diligence on strategic uranium, gold and copper projects through its partnership with US-based project generator Sunrise Minerals INC, which it holds a 60 per cent interest in.
Uranium and vanadium potential
The 2072-hectare REX project hosts four historical uranium mines that were subject to varying levels of exploration, though only limited data regarding drill hole position and grades is available.
Additionally, samples were rarely taken, and the vanadium mineralisation ws not documented due to the previous focus on uranium.
It also benefits from being within trucking distance of Energy Fuels’ White Mesa mill, the only fully licensed and operational conventional uranium mill in the US that has about 90 per cent spare capacity that could be available for toll treating.
Delecta also noted previously that no modern exploration had been carried out on the project.
Confidence in the uranium sector is also picking up with demand expected to outstrip supply, while the US government’s 2021 Federal Budget includes a proposal to purchase $US150m of uranium per annum from domestic sources.
This story was developed in collaboration with Delecta, a Stockhead advertiser at the time of publishing.
This story does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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Barry Stroman was a reporter for Zerg Watch, before becoming the lead editor. Barry has previously worked for Wired, MacWorld, PCWorld, and VentureBeat covering countless stories concerning all things related to tech and science. Barry studied at NYU.