VMY and TOE up 20% today.Despite exploration activity currently...

VMY and TOE up 20% today.

Despite exploration activity currently being suspended at the Company’s Yanrey Project on account of a decision in June 2017 by the current Western Australian State Government to place a ban on mining of uranium in Western Australia, the Yanrey Project remains a valuable and globally significant asset.

The Yanrey Project, located in northwest Western Australia, forms part of a newly recognised and emerging uranium province that has potential to be world class in scale and mineral endowment. The project is underpinned by the Bennet Well Uranium deposit secured by a vast suite of exploration licences covering the most prospective portion of the mineral province.

Prior to the ban being put in place the Company had developed the project to an exciting stage. The Company had identified a large resource of 30.9 Mlb (13,990 t) grading at 360 ppm U₃O₈ (38.8 Mt @ 360 ppm eU₃O₈, derived from a cut-off of 150 ppm – JORC 2012) at the Bennet Well deposit which is yet to be closed off.

The geology of the deposit has characteristics that allow for extraction by in-situ recovery (ISR) mining techniques. ISR mining is a world-wide and long utilised method of extraction causing negligible disruption to the land surface and little disruption to the hosting aquifer. The mining method is environmentally friendly and inexpensive allowing for economic returns even at historically low uranium commodity prices. The inexorable rise of global energy demand, particularly carbon-neutral sources of energy, along with reduced supply signals a significant rebound in uranium commodity price. Analysts are predicting the commencement of a long-sustained cycle of higher uranium price.