Kopore Metals Ltd (ASX:KMT) has inked a deal with Paladin Energy Ltd (ASX:PDN) to acquire historical mining information on the Agadez uranium play in Niger, West Africa.
The explorer hopes to wind back the clock and analyse exploration data that Paladin collected just over a decade ago as it maps out its forward work programs at the newly-acquired uranium asset.
Agadez represents a unique exploration opportunity in a prolific mining jurisdiction that carries a 50-year history of uranium production.
Amid a favourable uranium market — bearing the highest prices since 2011 — Kopore is determined to realise Agadez’s mineralised potential in the year ahead.
“Hit the ground running”
Kopore managing director Caroline Keats said the historical information was “extremely valuable” to Kopore.
“This data, which includes geological and geophysical information, surveys, photographs, drill logs and assay results, will enable the company to not only validate the historically reported information but inform the forward work programs, without the significant expense and delay for the company to have to re-do a number of the exploration programs,” she explained.
“The receipt of this historical information is very timely, as we are looking to finalise the acquisition of the Agadez Project following shareholder approval on March 4, 2022.
“The only remaining condition is the target obtaining a two-year extension on the three granted exploration permits to November 2024 (on satisfactory terms).
“This will leave Kopore ready to hit the ground running in Niger.”
The story so far
Agadez exploration asset spans a 726-square-kilometre landholding and three tenements in the Niger’s uranium-rich Tim Mersoi Basin.
The most prominent uranium prospect is the Takardeit target, where NGM Resources Ltd reported a maiden mineral resource estimate in 2010.
Takardeit’s resource is reported at 23 million tonnes, grading 210 parts per million (ppm) triuranium octoxide for 11 million pounds of uranium ore, using a 120ppm cut off.
That same year, Paladin Energy picked up the Agadez project for A$27 million, when uranium fetched around US$45 a pound.
In the 12 years since, the uranium spot price has risen considerably, with the commodity now fetching US$58.50 per pound.
One year after taking over the property, Paladin completed roughly 12,000 metres of drilling on the hunt for uranium.
But in 2016, the explorer relinquished all title in the permits and has no ongoing interest in the Agadez Project — leaving the door open for Kopore to acquire the uranium opportunity.
In December last year, Kopore inked a binding share sale agreement with Endeavour Financial AG to acquire its subsidiary, and with it, the Agadez project.
Now, the explorer is blazing a new path at the uranium asset, with the forward work programs to be shaped by the historical mining data that’s come before.
Burgeoning uranium market
Amid political turmoil in Eastern Europe and rising oil and natural gas prices, investors are bullish on uranium.
This week, uranium futures traded above US$60 a pound — the highest they’ve been since March of 2011.
In a note on uranium’s performance this month, market data provider Trading Economics said mounting supply concerns and stronger global demand prospects were fuelling uranium’s rise.
“The Kremlin signed a decree that will include a ban on raw material exports, raising alarms about US uranium imports,” it notes.
“The US nuclear energy sector produces 20% of the country's electricity and relies on Russia for 16% of its imports. On the demand side, elevated oil and natural gas prices prompted utilities to search for cheaper alternatives.
“Elsewhere, South Korea elected a new, pro-nuclear president, boosting nuclear energy-related stocks in the country, and strengthened uranium’s demand prospects.”
President-elect Yoon Suk-yeol has promised that nuclear will make up 30% of the country’s future energy generation — a move that further bolsters the uranium outlook.
According to Trading Economics data, the ore could fetch US$61.66 per pound by the end of this quarter.
A year from now, analysts are betting on a US$66.93-per-pound price target.
Source: Trading Economics.