MAN Hits 0.73% Uranium Rock Chips in the USA

Published 26-MAR-2024 11:00 A.M.

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Mandrake Resources (ASX: MAN) just released the assay results from the rock chips that “exceeded laboratory radiation limits” from its project in Utah, USA.

A few weeks ago MAN completed a rock chip sampling program at its project targeting uranium mineralisation - a total of six samples were collected.

MAN initially reported the results from the first three rock chips, but couldn't get the remaining three assays because the assay lab said they “exceeded laboratory radiation limits”.

Today, MAN put out the results from those three rock chips and returned a peak uranium grade of 0.73%.

For some context on the result - A$1.5BN Energy Fuels La Sal producing mine has a 4.3m lb uranium resource with average grades of ~0.26%.

So the 0.73% grades from today’s sample & the previous grades in the 0.4-0.55% range are relatively strong compared to existing projects in the area.

Regional context is especially important considering MAN’s project is <5km away from Energy Fuels already producing La Sal mine.

MAN’s project is also ~100km away from the only operating conventional uranium mill in the US (White Mesa Mill) - that plant is also owned by Energy Fuels.

Below is where MAN’s project sits relative to Energy Fuels assets:

Why we are interested in MAN’s uranium potential:

MAN initially entered Utah looking for lithium brines…

We are still very interested in the lithium project (we think lithium will eventually bounce back).

...but given the lithium price weakness and strength in the uranium price, we are happy to see MAN put some of its $16M cash pile towards exploring its ground for uranium in the near term.

Here’s why:

The uranium price is ripping - Uranium spot prices are at near 16 year highs and could be about to explode even higher... just like we have seen with the last two uranium spot price cycles.
Utah is the third biggest uranium producing state in the USA - between 1949 and 2019 the Lisbon Valley in Utah (where MAN’s project is) produced ~8% of all US uranium supply.
MAN’s project has ~20 historic uranium mines/occurences - a 16 mile long strike area with ~40 different uranium occurrences runs through MAN’s project area…
Much bigger companies are active in the region - A$1.5BN Energy Fuels & TSX listed Consolidated Uranium capped at A$225M.