Okapi Resources Ltd (ASX:OKR, FRA:260) has acquired a 100% interest in the past-producing Sunnyside Uranium Mine by staking mining claims that cover 960 acres adjacent to the company’s existing Rattler Uranium Project in Utah, USA.
Sunnyside is a high-grade asset with historic uranium production at grades of 1,500 ppm uranium and 1.5% vanadium and the acquisition lifts the company’s landholding in Utah by 90%.
Okapi is planning maiden, high-impact exploration at Rattler and Sunnyside and this is well in its advanced stages.
Promisingly, no known modern exploration methods have been used, providing an opportunity for new discoveries.
“High value-accretive acquisition”
Okapi executive director David Nour said: “The acquisition of a 100% interest in the past-producing, high-grade Sunnyside Uranium Mine demonstrates the deep in-country knowledge and expertise of Okapi’s team.
“This acquisition represents yet another highly value-accretive acquisition for Okapi shareholders.
“The team remains focused on executing its strategy as it becomes a new leader in North American carbon-free nuclear energy.”
Acquisition of the Sunnyside Uranium Mine complements the company’s existing Rattler Uranium Project which is contiguous with Energy Fuels Inc’s La Sal Project.
In 2014, Energy Fuels reported remaining resources at La Sal totalling 1.3 million tonnes at 1,700ppm uranium and 8,880ppm vanadium, for 4.5 million pounds uranium and 23.4 million pounds of vanadium.
Importantly, the La Sal Project is fully permitted for mining and was operational from 2006 to 2012 with ore processed at the nearby White Mesa Uranium Mill.
La Sal Uranium District, including the Rattler Uranium Project.
Okapi continues to assess additional value accretive uranium acquisition opportunities throughout North America.
Sunnyside Uranium Mine
Acquisition of the Sunnyside Uranium Mine increases Okapi’s total landholding in Utah from around 1,020 acres to a total of around 1,960 acres.
The company’s expanded project area in the La Sal Uranium District now comprises 98 Bureau of Land Management (BLM) unpatented Federal mining claims 85 kilometres north of Energy Fuels Inc’s White Mesa Uranium/Vanadium mill in Utah – the only operating conventional uranium mill in the USA.
The new claims are immediately along strike from Okapi’s Rattler Project that includes the historical Rattlesnake open-pit mine, which was discovered around 1948 and was in production until about 1954.
Production from the Rattlesnake Open Pit Mine reportedly totalled 3.2 million tonnes of ore at 2,800 ppm uranium and 1.0% vanadium for 1.6 million pounds of uranium and 4.5 million pounds of vanadium.