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Moab Minerals
Investor Insight
With its high-quality uranium assets in Tanzania, as well as a highly experienced corporate and in-country management team, Moab Minerals presents a compelling case for investors evaluating opportunities in the rapidly growing uranium market.
Overview
Moab Minerals (ASX:MOM) is an exploration company with the primary goal of developing its uranium assets in Tanzania. On the 8th July 2024 the company announced the acquisition of a majority stake in Katika Resources, a Tanzanian company, that holds the Manyoni and Octavo uranium projects. The Manyoni project was previously explored by Uranex Ltd from the early 2000’s until 2013. The Octavo uranium project is adjacent to Rosatom’s world class Nyota uranium deposit (Mkuju River project), which was formerly held by ASX listed Mantra Resources before the AU$1.02 billion takeover in 2011.
Tanzania is a global leader in identified uranium resources, which coupled with a supportive government, puts the country in a good position to establish itself as a significant player in the global nuclear energy sector. Significant Tanzanian deposits include Namtumbo (Mkuju), Bahi, Galapo, Minjingu, Mbulu, Simanjiro, Lake Natron, Manyoni, Songea, Tunduru, Madaba and Nachingwea. Of these projects, Mkuju River is the largest, boasting a mineral resource of 8,500 tons U3O8 and, once operational, will be the country’s first operating uranium mine.
With a high-calibre team of highly experienced mining and business leaders with successful track records, and a Tanzanian based team of technical experts, Moab is well positioned and well-funded to deliver on its commitment to expedite the exploration and development of its uranium projects in Tanzania.
Company Highlights
- Moab Minerals is a uranium exploration company developing its primary uranium assets in Tanzania - Manyoni and Octavo.
- Tanzania is a global leader in identified uranium resources and companies operating in the country benefit from a supportive pro-mining government.
- Positive outlook for uranium, with demand expected to increase by 28 percent in 2030, and 51 percent by 2040.
- The Company is looking to start drilling 1,500 metres in August/September to validate historical drill results from Uranex (early 2000’s-2013) and to test extensions of the known mineralization at Manyoni.
- Additional upside exists from Moab’s uranium-vanadium asset (REX project) located in Colorado and within trucking distance of the White Mesa Mill.
Key Projects
Manyoni Uranium Project
The Manyoni Uranium Project is strategically located just outside of the town of Manyoni in the Republic of Tanzania, and benefits from established infrastructure such as a modern railway and highway system, as well as available power and water resources.
Manyoni is located in the central part of the Tanzanian Archaean Shield, a stable platform of granite-gneiss terrane with marginal greenstone belts. The uranium is deposited in a shallow playa lake system as schröckingerite (in the lake sediments) and carnotite in the granitic saprolite below the lake sediments. The mineralization varies from flat-lying to shallowly dipping as it follows the direction of the palaeo-drainage to the south-east. The average depth of the mineralized interval is 10 metres.
The Manyoni uranium project was extensively explored and drilled by its previous owner, Uranex (ASX:UNL), now Magnis Energy Technologies (ASX:MNS).
Moab has executed a binding agreement with AuKing (ASX:AKN) to acquire four highly prospective prospecting licences immediately adjacent to the Manyoni uranium project, representing the consolidation of all of the Manyoni uranium deposits for the first time in over 10 years. Stage one 105-hole core drilling program is underway and will be followed by the stage two program of 100 exploration core holes. Moab intends to release its maiden JORC (2012) mineral resource estimate in 2025 following the completion of preliminary drilling activities. A scoping or preliminary feasibility study is planned to be completed in the same year.
Octavo Uranium Project
The Octavo uranium project is strategically located adjacent to Rosatom’s world-class Nyota uranium deposit (Mkuju River project), formerly owned by ASX-listed Mantra Resources before a AU$1.02 billion takeover deal in 2011.
Uranium mineralization at Octavo consists of Triassic sandstone overlying granite basement rocks.
Exploration Plans
Exploration at the company’s Mayoni project will include: 1) twinning historic drill holes, which involves drilling 60 holes to an average depth of 25 metres, and 2) a bench scale metallurgical test work program. In addition to the 2024 drill program, Moab is planning to undertake an exploration drilling program designed to target extensions to the known mineralization at Manyoni.
At the Octavo uranium project in southern Tanzania, work is focused on the acquisition of high-quality airborne radiometric and magnetic survey data which are expected to deliver uranium targets for ground follow-up.
REX Project
The project is located in Colorado, USA, (60 percent owned by Moab Minerals) within the vicinity of many historic uranium mines, including Blackfoot/Rattlesnake, Wedge, Merry Widow, Sunbeam and Vanadium King. The project boasts 256 contiguous BLM mining claims (~5,000 acres which is 20 sq km) and is located ~130 km east of the town of Moab. The project is within trucking distance of the White Mesa Mill, the only operating conventional uranium-vanadium mill in the US. Recent exploration results from Rex include strongly anomalous uranium and vanadium up to 0.53 percent U3O8and 3.32 percent V2O5.Management Team
Malcolm Day - Managing Director
Malcolm Day has been managing director of Moab Minerals since 1999. He’s a civil engineer and licenced surveyor with eight years of experience in the civil construction industry. Day also spent three years working as a mining and resource exploration surveyor in remote parts of Western Australia. Day has been managing director of Moab Minerals (ASM:MOM) since 1999 and a non-executive director of European Lithium Limited (ASX:EUR) since 2012.
Bryan Hughes - Non-executive Chairman
Bryan Hughes is the past chairman and founding partner of Pitcher Partners, accountants, auditors and advisors, and now a director of 101 Advisory. Hughes has over 30 years of experience in the resource sector, and has developed and overseen commercial, operational and financial strategies which have led to the development and success of numerous companies in many jurisdictions around the world. Hughes sits on several private and public company boards.
David Wheeler - Non-executive Director
David Wheeler has more than 30 years of senior executive management, directorships, and corporate advisory experience. He is a foundation director and partner of Pathways Corporate, a boutique corporate advisory firm that undertakes assignments on behalf of family offices, private clients, and ASX listed companies. He has engaged in business projects in the USA, UK, Europe, NZ, China, Malaysia, Singapore and the Middle East. Wheeler is a fellow of the Australian Institute of Company Directors and has experience on public and private company boards, currently holding a number of directorships and advisory positions in Australian companies.
Tanzania Management
Godluck Sekwao - Exploration Manager
Experienced geologist with 16 years of experience across all aspects of geological projects, with a particular focus on exploration. Sekwao most recently worked with Shanta Gold across its East African projects.
Charles Sayi Mihayo - Senior Geologist
Charles Sayi Mihayo is an experienced geologist with over 18 years of experience across Africa in project discovery, development, and mining production across a range of commodities.
Ryoba Chacha - Consulting Geologist
Ryoba Chacha has over 15 years of experience working on geological projects, particularly in East Africa. He has also previously worked on the Manyoni project as a project geologist with Uranex.
Quarterly Activities Report - For Period Ended 30 September 2024
September 2024 Quarter Activities
- Licence Application lodged and granted for southern tenement (213km2) contiguous to the Ulytau Uranium Project
- Licence Application lodged and granted for the northern tenement (39km2), which sits immediately north of the historic Bota Burum Uranium mine
- The new tenements are interpreted to contain the same mineralised uranium trend to that of the existing Ulytau Project area
- Received Category four (4) exploration works approval to enable the immediate commencement of geophysical and soil sampling programs, further reinforcing the positive operating environment and Government support in Kazakhstan
- Progressed Category two (2) drilling approval and commenced site based activities in preparation for drilling commencement
Commenting on the Quarter, C29 Metals Managing Director, Shannon Green, stated: “"We are excited with the rapid progress made during the Quarter in both advancing our drilling permit and expanding our highly prospective Ulytau Uranium Project, with both the northern and southern tenement applications successfully granted thereby expanding the Project area to 276km2. This achievement underscores the efficiency and support of the local Government, allowing us to advance our
exploration efforts swiftly. The Ulytau region continues to demonstrate significant potential, and with strong local support and community engagement, we are excited to further explore this mineralised trend and enhance our growth strategy in Kazakhstan."
Exploration Program – Ulytau Uranium Project
The Company commenced initial exploration activities on its Ulytau Uranium Project in August 2024 after receiving Category four (4) exploration approval. The initial geological program consisted of tenement wide mapping and some initial soil sampling to assist with finalising drill hole locations.
The geology team utilised a handheld X-ray fluorescence (“XRF”) unit to provide real time geological information to the team and valuable geological data that will assist with the initial drill hole targeting and methodology.
Post Quarter end on 16 October 2024, the Company announced that it had received official notification from the Natural Resources and Environmental Management Department the company has met all regulatory requirements for the issue of the drill permit, enabling the commencement of mobilisation for the initial drilling at its Ulytau Uranium project.
License Applications for Project Expansion
The Company expanded its footprint at the Ulytau Uranium Project with the lodgement of two new applications for tenements in July 2024, the tenements, located to the North and to the South and South-East have a combined size of ~252km2 (Figure 1). Both applications were reviewed and granted by the Ministry during the Quarter, increasing the total footprint of the Ulytau Uranium Project to ~276km2.
Figure 1 – The interpreted mineralised uranium trend with new licence applications
The two granted areas have been interpreted as having a similar mineralised trend to that of the existing Ulytau Uranium Project area. Please refer to ASX Announcement “License Applications Lodged around Ulytau Uranium Project” dated 24 July 2024 and the further clarification on 25 July 2024.
Click here for the full ASX Release
This article includes content from C29 Metals Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Joint Ventures, M&A Ramp Up in Critical Minerals Space
Critical minerals shortage
Across the globe, nations are pivoting away from fossil fuels and towards green energy, mainly through electrification, with huge investments underway to transition the transportation, heating and cooling, and manufacturing sectors. Most modes of generating and storing green electricity require a long list of minerals the economy did not previously need in meaningful quantities.
Most nations lack stable supply chains for these minerals and other elements, posing potential risks to their economic future, and the future of their defense sector. For example, an article published by the Carnegie Endowment for International Peace suggests the US and the North Atlantic Treaty Organization could be at risk in a crisis because of limited access to the minerals they need for a conflict. As well, attempts to control the supply chain can turn to a geopolitical wrangling between nations.
Trade in energy-related critical minerals has risen from US$53 billion to US$378 billion over the last 20 years, according to data from the World Trade Organization. Minerals and rare earth elements could see demand quadruple by 2050.
Problem solved
Demand and prices for many critical minerals have seen a dramatic turnaround in recent years due to the soaring green economy. However, mining development and production don’t pivot that quickly. We’re living in that challenging lag right now.
To help speed up the process of getting early stage deposit discoveries into production, or expand or revitalize existing mining properties, more junior mining companies and others in the space are working together.
Joint ventures allow two organizations to combine capital, expertise, access, historical data and other resources, such as extraction or processing facilities, and that results in a percentage profit sharing later on.
Such partnerships allow companies to diversify. While critical minerals are in hot demand, prices still fluctuate and shortages can shift, as can access to perks such as government funding.
Ventures are common between junior miners and more established mining businesses. The former may have access to a deposit, experience with early stage development and flexibility. Larger mining companies tend to have access to capital and possess different types of managerial and technical expertise. Many of these established firms also seek access to critical mineral opportunities, and are willing to invest to gain them.
Saga Metals (TSV:SAGA), for example, struck a joint venture deal with Rio Tinto Exploration Canada, a subsidiary of mining giant Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), for its Legacy lithium project in James Bay, Quebec.
The total Legacy property spans over 65,849 hectares with 34,243 hectares optioned to Rio Tinto, hosting the same geological setting along strike from Rio Tinto’s other lithium project, Winsome Resources (ASX:WR1,OTCQB:WRSLF), Azimut Exploration (TSXV:AZM,OTCQX:AZMTF) and Loyal Lithium (ASX:LLI) in the La Grande sub-province.
Saga Metals' Amirault lithium project.
“It lends credibility to management’s ability to execute these types of agreements with a company as big as Rio, but it also validated the ground we staked/acquired, and management’s ability to find quality projects,” said Mike Stier, CEO and director of Saga Metals.
Such relationships are being struck in a range of mineral sectors.
“It drives shareholder value. Companies may realize what their limits are and a bigger company can come in after you’ve taken it from A to B and they can go from B to G,” said Stier.
M&A activity, meanwhile, offers similar benefits. Mining outfits in acquisition mode may purchase smaller, junior miners, or their interest in certain properties, to help expand their portfolios. Growing mining companies often seek projects at all stages of development to ensure diversification inside the organization.
Overall, the amount of mining M&A has been growing over the past few years, sitting flat between 2022 and 2023. However, the value of the deals has been on a more dramatic rise.
Collaborations of note
Saga Metals and Rio Tinto Exploration’s C$44 million two stage earn-in option agreement has led to the commencement of initial exploration in August 2024 at the Legacy lithium project.
This project is undergoing fieldwork with a focus on pegmatite mapping and geophysical surveys. Saga has 1,274 claims covering 65,849 hectares in the region, in what has become the newest lithium district in and around James Bay.
“We’ll also be keeping our eyes and ears open to the macro landscape with respect to the critical minerals in our portfolio,” said Stier of next steps for Saga Metals. “We’ll push our projects forward and continue them through their stages of development, de-risking them as we go.”
In uranium mining, Paladin Energy (ASX:PDN,OTCQX:PALAF) has agreed to acquire Fission Uranium (TSX:FCU,OTCQX:FCUUF). The deal will enable Paladin to list on the TSX, leading to increased trading liquidity and an enhanced capital markets presence. Paladin will become a multi-asset uranium company with benefits to the Patterson Lake South project. Paladin’s CEO has made it clear that the company has future acquisitions in mind as well.
Recently, Lundin Mining (TSX:LUN,OTC Pink:LUNMF) and BHP (ASX:BHP,NYSE:BHP,LSE:BHP) agreed to jointly acquire Filo (TSX:FIL,OTCQX:FLMMF), in a deal worth an estimated C$4.1 billion. The 50/50 joint venture has the aim of developing an emerging copper district in Argentina, focusing on the Filo del Sol project and the Josemaria project.
Investor takeaway
Partnerships and collaborations between mining companies have become an emerging standard of practice as the critical minerals race pushes on and both business and government try to secure supply lines. With myriad benefits, expect more future alliances in the critical minerals mining industry.
This INNSpired article is sponsored by Saga Metals (TSXV:SAGA). This INNSpired article provides information which was sourced by the Investing News Network (INN) and approved by Saga Metalsin order to help investors learn more about the company. Saga Metals is a client of INN. The company’s campaign fees pay for INN to create and update this INNSpired article.
This INNSpired article was written according to INN editorial standards to educate investors.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Saga Metals and seek advice from a qualified investment advisor.
1st Quarter Activities and Appendix 5B
HIGHLIGHTS
- Completion of drilling at the Mkuju Project - 20 diamond core holes for 2800 m of drilling, testing the SWC and Mtonya targets, and testing potential extensions to the Likuyu North deposit.
- At SWC, high-grade uranium from surface including:
- 3.8m @ 2,458ppm eU3O8 from surface,
- 2.4m @ 3,528ppm eU3O8 from surface,
- 1.8m @ 3,089ppm eU3O8 from surface and 1.2m @ 988ppm eU3O8 from 5.9m depth
- At Mtonya, best interval of 2.3m @ 372ppm eU3O8 from 6.16m depth.
- At Likuyu North, possible moderate extension to the deposit indicated by visual mineralisation in LNDD015, now awaiting assays; and
- LNDD020 drilled central to the Likuyu North deposit to provide information for an initial assessment of In-Situ Recovery (ISR); intersected 6 mineralised intervals including:
- 2.5 metres with an average grade of 438 ppm eU3O8 from 17.1m depth.
- 7.1 metres with an average grade of 1,963 ppm eU3O8 from 63.1m depth.
MKUJU URANIUM PROJECT - TANZANIA
Table 1 summarises the work completed during the quarter at the Mkuju Project.
Table 1. Summary of the work at each target
Figure 1: The Mkuju Project area over airborne radiometric data with important deposits and targets labelled.
SWC TARGET EXPLORATION
During May 2024 a camp was constructed and a drilling and exploration crew was mobilized. The holes drilled at SWC are shown on Figure 2. Table 2 provides the results of the SWC and Mtonya drilling. The drilling at SWC was to follow-up on the high-grade intervals achieved from the trenches reported in the Company announcement dated 9th January 2024.
Figure 2. Map of the SWC and Mtonya targets showing historic and Gladiators drilling
All holes were vertical, drilling was by diamond core and the deepest was 188.7 metres. The results were reported in announcements dated 24th June and 16th August 2024. Selected results are provided below:
- SWDD001: 3.8m @ 2,458ppm eU3O8 from surface.
- SWDD002: 2.4m @ 3,528ppm eU3O8 from surface.
- SWDD005: 1.8m @ 3,089ppm eU3O8 from surface and 1.2m @ 988ppm eU3O8 from 5.9m depth
- SWDD006: 5.3m @ 143ppm eU3O8 from 3.0m depth
The trench and high-grade drilling intersections are interpreted to be the remains of a layer that is preserved on topographic highs within a relatively downthrown block, as illustrated in Figure 3, which represents a cross-sectional interpretation through SWC. Where the layer is at or very near surface as in SWDD001 and SWDD002, enrichment by supergene processes may have occurred whereas where deeper and unaffected by the surficial enrichment, as in SWDD006, grades are lower. No significant mineralisaton was intersected deeper in the holes drilled at SWC.
Click here for the full ASX Release
This article includes content from Gladiator Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Moab Minerals Investor Kit
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