Okapi Resources Ltd (ASX:OKR) has acquired additional high-grade uranium pounds covering a highly strategic landholding that is immediately next to, and contiguous with its existing land position over the High Park Deposit.
The High Park Deposit is in the greater Tallahassee Uranium District in Colorado, U.S.
Okapi executive director David Nour said: “Okapi is pleased to have acquired additional strategically located high-grade pounds on very sensible terms.
“The upfront cost of US$62,000 represents an acquisition cost of less than US$0.025 per pound.
“This represents yet another highly value-accretive acquisition for Okapi shareholders.”
Location map showing the proximity of the High Park Property to the Tallahassee Uranium Project
Okapi has secured a 100% interest in the 640-acre landholding through the execution of a mining lease with the State of Colorado.
The new project area is contiguous with Okapi’s existing mining claims at the High Part Uranium deposit 25 kilometres northeast of the company’s flagship Tallahassee Uranium Project.
Okapi has the right to explore, prospect, develop and mine uranium within the new project area.
The area was previously drilled out on 30-metre centres with about 550 holes drilled for 26,000 metres completed in the late 1970s.
2.48 million pounds uranium resource
The new project area was previously held by Black Range Minerals Limited who established a JORC 2012 resource of 2.48 million pounds of uranium at 570ppm uranium.
Mineralisation at High Park is shallow within 5 metres of the surface with an average thickness of around 2 metres.
The mineralisation is amenable to open-pit mining with a trial mining program completed in 1977 where over 10,000 tonnes of ore was successfully mined and processed at the former Canon City Processing Facility.
Mining lease terms
Okapi has entered into a 10-year mining lease with an option to extend the lease for a further 10 years as long as minerals are being produced in paying quantities.
The lease owned by the State of Colorado covers a 640-acre parcel of land referred to as a ‘section’ and is 1 mile x 1 mile across.
The financial terms of the lease include:
- One-off payment of US$42,000;
- Annual rent US$3,200;
- Annual advanced royalty payment of $16,800 deductable from future royalty payments; and
- Sliding scale gross production royalty linked to the uranium price ranging from 5% and increasing to 12%, depending on the prevailing uranium price.