Anson Resources (ASN) is planning to begin an exploration program over uranium and vanadium lode claims at its Yellow Cat Project in Utah.
The 85 lode claims form a highly prospective exploration land package for both uranium and vanadium rich mineralisation. In total, they cover an area of 708 hectares, or seven square kilometres.
During a recent review of historical drilling, the company identified high-grade uranium and vanadium mineralisation results. These include up to 0.3 feet at 37,500 parts per million (ppm) uranium oxide and 3.34 per cent vanadium pentoxide.
“Since we secured the ground in 2019, we have held the view that Yellow Cat would add considerable value and optionality to Anson’s portfolio when uranium markets began to recover,” Executive Chairman and CEO Bruce Richardson said.
The decision to kick off exploration soon aligns with the rising uranium prices. the price of uranium has increased by 38 per cent in the past three months.
The U.S. Government has tightened its policy to stimulate domestic production in order to create a uranium reserve of between 17 million and 19 million pounds over the next decade.
“This policy change represents a paradigm shift in the uranium market and provides an exceptional opportunity for which Anson is well placed,” Bruce stated confidently.
Strategically, Yellow Cat is located just 40 kilometres from the Paradox Brine Project. This allows Anson to potentially leverage its infrastructure and investment in the Paradox Brine Project to develop a second project in the area.
Exploration is expected to commence at Yellow Cat over the next few weeks. The program will start with further data compilation and geochemical sampling, before a proposed shallow drilling program begins.
Company shares are up 3.45 per cent and trading for three cents each at 10:28 am AEST.
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