Okapi Resources Ltd (ASX:OKR) has extended its US uranium interests by acquiring the Maybell Uranium Project in Colorado, which boasts historical production along with other known mineralised occurrences and prospects.
The company has staked 468 federal unpatented mining claims covering 3,600 hectares to acquire the project and in doing so has secured a significant portion of the Maybell mineralised trend.
Based on the historical production and exploration data there is potential for the further delineation and discovery of near-surface uranium resources.
Okapi’s managing director Andrew Ferrier said: “We are excited by the opportunity to acquire the Maybell Uranium Project in Colorado, USA. This adds another uranium asset to Okapi’s North American portfolio.
"Completing the Maybell Uranium Project acquisition clearly exhibits the strength of the management team to identify and acquire highly prospective uranium projects in the USA.”
In producing area
Maybell Project is in Moffat County in northwestern Colorado, 5 kilometres east of the town of Maybell and 40 kilometres west of the town of Craig.
The project area is in a rural part of Colorado, known for historical uranium mining and present-day coal and natural gas production.
Location of Maybell Uranium Project in northwestern Colorado, USA.
Okapi’s new project covers a large area that generally follows the outcrop of uranium-bearing tuffaceous sandstones of the Miocene age Browns Park Formation.
Uranium is widespread in the Browns Park Formation, however, the most important ore deposits are in the upper sandstone unit, which comprises buff to grey, fine to medium grained sandstone.
This sandstone unit varies in thickness from 60 to 300 metres and can host zones of uranium mineralisation up to, and potentially greater than, 30 metres thick.
The underlying Wasatch formation, a host rock for uranium in Wyoming, is also present in the area and is known to contain uranium mineralisation.
Physical characteristics of these permeable sandstones make them amenable for conventional heap leach processing, as well as potential candidates for In-situ Recovery (ISR) production.
“Directly on strategy”
"Staking the Maybell Uranium Project is directly on strategy for Okapi who are looking to acquire assets in the right circumstances with the aim of expanding the portfolio and providing shareholders with a diversified exposure to uranium in North America,” Ferrier said.
"We continue to believe that the uranium space is in an upward trend and Okapi is currently assembling and developing the right portfolio of assets to create value for shareholders.”
Historical production
At Maybell, Union Carbide operated a series of shallow open pits along a 2-kilometre strike between 1954 and 1964 where records show the mines produced about 4.3 million pounds U3O8 at an average grade of 1,300ppm U3O8.
Annual production increased sharply in 1958 with the construction of an on-site processing facility and between 1958 and 1964, the area produced annually between 500,000 and 720,000 pounds of uranium.
When uranium prices rose sharply in the mid-1970’s, Union Carbide resumed operations in 1976 through open-pit mining and heap leaching of lower grade material.
A portable ion exchange unit was installed at site and the eluate was trucked to Union Carbide’s mill in Gas Hills, Wyoming.
Production continued until 1981 when mining ceased due to falling uranium prices. Approximately 1.0 million pounds U3O8 was produced over this period.
Upcoming work
Okapi has started compiling historical exploration information and acquiring additional exploration data.
The company plans to undertake an integrated exploration program, subject to obtaining the necessary exploration permits, to confirm the historical information with the intention of producing a resource estimate for the project area.