Diversified ASX-listed resources company, GTI Resources (ASX: GTR) is making excellent ground with its Utah, USA based uranium play.
The company today announced it had secured a significant data package, identified during its due diligence enquiries into the two mineral leases it is acquiring from TSX.V listed Anfield Energy Inc. (CVE: AEC).
GTR is entering into a binding agreement to acquire 100% of two mineral leases from Anfield Energy, which will significantly expand its uranium prospects in Utah.
GTR’s land position will expand to more than 5.5 kilometres along the interpreted strike of the mineralised trend with significant exploration upside within untested areas under cover.
The data includes drill hole logs and maps, resource maps, assay reports and project level exploration and evaluation reports.
It also includes valuable information regarding the company’s Jeffrey, Rats Nest and Moki claim groups, as well as other ground of potential interest.
Importantly for the company, the data validates GTR’s acquisition of the mineral leases from Anfield.
The acquired leases contain historical underground production workings and are prospective for uranium and vanadium as evidenced from recent sampling conducted during acquisition due diligence.
Executive director Bruce Lane said of this latest news, “The historical data package gives GTR a head-start in planning the next phase of exploration in Utah.
‘’The company’s ground position has been enhanced significantly by securing the prospective ground between our Jeffrey and Rats Nest projects and the new data package will help us quickly improve our understanding of the potential of the expanded project area and the Moki project which sits next to the Tony M Mine.
‘’The new ground substantially increases the interpreted mineralised strike zone within GTR’s land package and improves the opportunity to define an economic resource in the area.
‘’The mineralised trend which was confirmed during our recent round of drilling at Jeffrey remains open in both directions and in particular to the south which runs into the new leases.
‘’The initial sampling conducted on the new leases shows prospectivity for commercial grade ores and the possibility that exploration and development could be relatively quick and inexpensive.”
Is there are a relationship between GTR and the Tony M Mine?
GTR will now rapidly review and field reference the acquired data to support the next phase of its exploration activities within its Henry Mountains projects.
It will also assess drill intercept maps and an evaluation report for the company’s Moki project located near Ticaboo, Utah.
Historical drilling took place on this property, which is positioned immediately east of the Tony M Mine owned by Energy Fuels Inc. As such it is of particular interest to GTR.
The Tony M Mine was developed in the late 1970s with production as recently as 2008 by then mine owner Denison Mines.
The mine was purchased by Energy Fuels Inc. in 2012 as part of a larger transaction.
Approximately 1 million lbs of U3O8 was extracted from the Tony M mine by intermittent mining between 1979 and 2012.
The most recent resource estimate (June 2012, NI 43-101 report by Energy Fuels Inc.) for the Tony M Mine and adjoining mineral resources, reports a global resource (Indicated and Inferred) of over 20 million pounds.
The acquisition of this data for the Moki project will aid in understanding the local mineralisation, as well as determining if there is a trend relationship with the known ore-grade mineralisation at the Tony M Mine.
Uranium price surges
GTR’s expansion plans came at a good time on a macro level.
The uranium price is up some 25% in the last four months, driven by the US government’s support for an accelerated long-term nuclear power program and sustained output from Kazakhstan, previously a major source of supply.
Further, the last few weeks have seen an increase in the prices of industrial metals such as iron ore, copper and nickel, suggesting a ramp-up in manufacturing in countries such as China is imminent.
A surge in the Shanghai Composite index points to an economic recovery in China and the broader region, and an uptick in manufacturing activity invariably creates demand for energy, some of which is supplied by uranium-fed nuclear power plants.