Anson Resources Ltd (ASX:ASN, OTCQB:ANSNF) has been given the green light for a Notice of Intent (NOI) to drill 24 exploration holes for approximately 1,000 metres (3,280 feet) at its Yellow Cat Uranium and Vanadium Project in the Thompson District of southeastern Utah, USA.
The company’s wholly owned Utah-based subsidiary UV1 Minerals LLC has been granted two key approvals for the NOI application from the US Department of the Interior, Bureau of Land Management (BLM) and the Utah Division of Oil, Gas and Mining (UDOGM), Minerals Division.
Aim of drilling
Drilling will test the 2-kilometre strike extension following the east-west mineralized trend striking from the Windy Point Mine to the Mineral Treasure Mine. Sampling in this area has previously yielded values up to 10.33% U3O8 and 25.6% V2O5.
From this drilling, Anson aims to formulate a JORC-compliant resource utilising the new data along with the large amount of data collected from historical drilling.
A step forward
Anson Resources executive chairman and CEO Bruce Richardson said, “While the company’s primary focus is on the development of its lithium projects in Utah, USA, we are continuing to develop the Yellow Cat Uranium and Vanadium Project.
"The approval to drill from the Bureau of Land Management, Department of Interior, is a step forward in this process.”
The mineralisation trend is shallow or comes to the surface and as a result, the mineralised horizon is above the water table which will result in shallow drilling and minimal disturbance. The company believes this supports continued low-cost exploration.
Low-cost exploration
An initial drilling program consisted of 28 exploratory holes in the Yellow Cat/Poison Strip area. Four of the drill locations have been deleted due to the proximity of historical mining activity for a proposed total of 24 holes.
Fifteen exploratory holes will be drilled on the eastern side of the mineralized zone next to the Windy Point Mine with the remaining holes to be on the western side surrounding the Mineral Treasure mine.
Drilling will be conducted to depths ranging from 12 to 40 metres and 1,000 metres (3,280 feet) will be drilled including diamond coring.
Plan showing the Yellow Cat planned drill hole locations and the U&V mineralization trend.
Samples from this work will be assayed for uranium and vanadium to confirm U3O8 from calibrated downhole gamma logging.
This relatively inexpensive shallow drilling program is expected to be completed within 15 days of commencement.
Surveys completed
Environmental and cultural surveys required for the drilling approvals were undertaken over the two proposed exploration areas covering 77 acres of Areas of Potential Effects. The environmental survey determined the proposed project would not directly impact any special status plant species (SSS).
In addition, the cliffs and rocky outcrops within half a mile of the proposed drill sites were considered poor nesting habitat for birds that nest in those types of areas as they lacked sufficient height and ledges to provide nesting platforms.
The prospectivity of the area has been previously shown by the two earlier exploration programs.
Anson previously carried out field XRF analysis of the mineralisation and laboratory assays at ALS in Reno and Vancouver. High-grade assay values of up to 10.33% U3O8 (sample location YC2) and 25.6% V2O5 (YC11) were recorded.
Interest in region
Yellow Cat is within the Colorado Plateau physiographic region; an area that has seen significant new interest due to recent increases in uranium prices and recent industry support from the US government.
The US is currently the largest consumer of uranium while at the same time, domestic production of uranium is almost nonexistent due to low prices and anti-competitive practices by foreign suppliers.
Historical and current production in this region is supported by the White Mesa mill, the only conventional fully licensed and operational uranium/vanadium mill in the United States. This mill is owned and operated by Energy Fuels (TSX:EFR) Inc and within trucking distance southeast of Yellow Cat.
Energy Fuels has historically accepted toll milling agreements as well as purchase programs for processing ores from third-party mines, which may represent a low-cost opportunity to utilise existing infrastructure, eliminating the significant capital requirement of developing a mill.
Figure showing the upper scenario for uranium supply and demand (tU).
A vital resource
Uranium is a vital resource in the global transition to sustainable and scalable energy solutions. Globally, 60 nuclear reactors are currently under construction and a further 110 have been planned.
The US is the world’s largest uranium consumer and domestic production is limited, with more than half of the supply imported from Russia and Kazakhstan.
Nuclear energy makes up approximately 10% of the world’s electricity and is forecast to increase to meet growing electricity demand and decarbonization targets.
This energy source has experienced a boost in favour, as governments worldwide come to recognize the imperative of dependable baseload power to counterbalance the intermittent nature of renewable energy sources.
Uranium demand is forecast to increase by 44% in the next 15 years, however, due to the depressed uranium market over the past decade, very few projects have entered the development pipeline leading analysts to predict a major supply shortage in coming years.
"The company is continuing to monitor the changing market conditions for uranium and expects to conduct this drilling program in the coming months subject to the availability of appropriate drilling rigs and local conditions,” Richardson added.