CONTACT RESOURCES CAN NOW ACQUIRE 100% OF THE CORACHAPI URANIUM PROJECT – PERU
The Company (ASX:CTS) is pleased to announce that it has agreed to acquire the rights to the final 20% of the Corachapi Uranium Project in southeastern Peru. This enables Contact to obtain a 100% interest in the project area subject to meeting certain expenditure conditions. Contact has already made a cash payment of US$50,000 with a further payment of US$35,000 due when all drill permitting procedures are completed and will also issue the vendors two million fully paid CTS shares. This consideration is calculated on the same proportionate basis as the Company negotiated with Range Resources Ltd, the previous holder of 80% of the project. The agreement is subject to formal documentation. A Shareholders meeting will be called shortly to ratify the share issue component referred to above and other relevant matters. At the Corachapi Project area, Contact has outlined an open-ended Inferred Mineral Resource estimate (no lower cut-off grade) of 3.79 million tonnes (Mt) at an average grade of 0.115% U3O8. Contained within this global estimate (not additional to it) is a higher grade uranium-mineralised core of 1.25Mt at an average grade of 0.338% U3O8. (Note: 0.338% = 3.38kg/t or 7.4lbs/t). Converting this total equates to an estimate of 9.29 million pounds of uranium oxide (U3O8). Last quoted U3O8 spot price was US$95/lb (27th March, The Age, Melbourne). This mineralisation is principally ‘autunite’, an hydrated calcium uranium phosphate, hosted within a rhyolitic ignimbrite of Tertiary age and has been tested to a vertical depth of just 20 metres below the natural land surface. Contact regards the potential for expansion of the resource, both at depth and elsewhere with the Project area, as significant.
great news..
CTS Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
