News: Uranex Limited to provide offtake update

Uranex Limited (ASX:UNX) has been granted an ASX trading halt pending release of an announcement relating to a Memorandum of Understanding regarding offtake.

The company had last month raised $5 million through a placement of 31.25 million shares at $0.16 each to advance its Nachu Graphite Project in Tanzania.

Shares in the company are currently trading at $0.19.

It also commenced an electro-magnetic survey as well as a 8,000 metre reverse circulation program.

Drilling will explore the possibility of deeper extension to the current known mineralisation blocks and to provide sufficient information so that higher grade zones can be converted into a JORC Resource.

Diamond drilling will commence during July and will be used to both provide further geological information for JORC Resource calculations and also provide core to be used in further metallurgical test work.

Uranex expects to deliver a Resource estimate by November this year.

Testwork had produced a graphite concentrate of 99.4% total graphitic carbon using a caustic bake process on a sample of D block flotation concentrate.

The project also has large flake size and a resource that is close to surface.

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