DevEx has big plans to mark a big return to uranium exploration

With uranium trading within spitting distance of the magic US$60/lb mark which could incentivise new production, companies are starting to revive efforts to deliver the energy commodity (reports Stockhead).

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Deep Yellow is carrying out an all-scrip takeover of Vimy Resources that is expected to increase the chances of developing Vimy’s “world class” Mulga Rock uranium mine in WA while Paladin Energy and Boss Energy have both raised funds to progress their respective projects.

Likewise, DevEx Resources (ASX:DEV) is dusting off its highly prospective Nabarlek project centred at the historical Nabarlek uranium mine, which was considered Australia’s highest-grade mine with previous production of 24Mlbs grading 1.84% U3O8.

The 4,700sqkm project is located within the Alligator Rivers Uranium Province (ARUP) in the Northern Territory, well known for its world-class deposits with over 500mlbs of current U3O8 endowment, and is considered to be a close analogue to uranium deposits in Canada’s Athabasca Basin.

Nabarlek Project hosts multiple, shallow, near-mine, high-grade targets defined along strike from historical uranium intercepts such as 25m at 0.32% U308 and 6m at 7.6% U3O8.

It is also one of the very few high-grade exploration assets on the ASX, putting DevEX in rarefied space for investors seeking exposure to the revitalised uranium sector.

The highest grades of uranium mined from the Nabarlek pit were sourced from areas adjacent to the North Fault, so it should come as no surprise that the company is prioritising the northeast tail extending away from the pit along the untested portion of the North Fault.

This will represent the initial targets for a planned 8,000m reverse circulation and diamond drilling program that is expected to begin June or July during the first half of the dry season in 2022 pending drill approval from the NT Regulator.

DevEx will also target the Nabarlek South prospect located about 1km from the mine within a similar structural setting to the historical pit.

Mineralisation at Nabarlek South is associated with the junction of the Nabarlek Fault and Gabo Fault with a cluster of high-grade uranium intercepts defining a northeast plunging uranium shoot.

Notable results include 25m grading 0.32% U3O8 including two intercepts of 2m at 1% U3O8 and 3m at 1% U3O8, and 8m at 0.47% U3O8 including 2m at 1.3% U3O8.

DevEx plans to carry out diamond drilling to drill within and down plunge from these intercepts.

Other targets include the eastern Nabarlek prospects that are also located within structural lookalikes to the historical mine.

Exploration and drilling is planned for the Zeus to U40 Corridor – located southeast of high-grade uranium-copper-gold intercepts – and the KP prospect, an undrilled radon geochemical anomaly.

The company will also seek to mature geochemical (radon-cup) anomalies to drill-ready status.

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