Star Minerals (ASX: SMS) is set to kick off drilling at its Cobra uranium project in Namibia which will comprise the first step of its staged earn-in to the project, estimated to contain 9 million pounds of uranium oxide.
Star’s assessment of the project, which sits in the country’s highly-prospective Erongo region has generated a number of exploration targets for initial scout drilling.
Namibia is virtually “Uranium Central” in Africa and is considered to be one of the choice jurisdictions for uranium exploration and mine development on the continent because of its stable political environment, well-established mining regulations and – most importantly – its giant and rich uranium deposits.
These factors – along with Kalahari Copper Belt exploration - have lifted Namibia’s ranking to 6th for new mining investment, according to a 2022 annual survey by the Fraser Institute. The country was also the world’s third-biggest producer of uranium, accounting for 11 per cent of global production in 2022.
The Cobra project finds itself placed literally and figuratively in elephant country, being strategically and geologically perfectly situated, just 13km north-west of the renowned Rössing uranium mine.
The Rössing mine is one of the world’s longest-operating uranium mines, producing more than 260 million pounds of uranium since 1976. In 2019, initial majority owner Rio Tinto sold its 69 per cent interest in the operation to China National Uranium Corporation.
The next nearest major uranium operation is the Husab (previously Rossing South) mine which sits just 20km to Cobra’s south-east. Husab was discovered in 2008 by Extract Resources.
It was acquired by China General Nuclear Power Group through its subsidiary, Taurus Minerals Limited in 2012, picking up a 90 per cent stake in the operation from Extract Resources for about US$2.2 billion.
Paladin Energy’s Langer Heinrich mine lies 55km south-east of Cobra. Over the last decade, the mine has produced more than 43 million pounds of uranium oxide and shows no signs of slowing down.
From a nearology point of view, Cobra couldn’t be dropped in a more prospective location.
The project also ticks all the boxes logistically, sitting just 52km by road north-east of the city of Swakopmund, from which the deepwater port of Walvis Bay and the International Airport require only another 36-40km travel by road.
Cobra is centred on Rössing-type alaskite uranium deposit. The description “alaskite” is applied locally to a late-phase pale-coloured variety of granite, often with a coarse pegmatitic texture and it may host uranium minerals, most notably uraninite, but betafite may also be present in some occurrences.
The site sits on a single exploration permit held by Namibian company Pennywort Investments, with Canadian-listed Madison Metals holding an 85 per cent interest through its Namibian subsidiary. The permit expires on 17 October 2025 and can be extended by additional two year periods.
A private Namibian company, Cobra Resources previously held the tenements and undertook the majority of field work in 2015. Drilling mainly involved reverse- circulation (RC) holes put in between January and July of 2015, resulting in uranium being identified in selected areas. About 50 holes for 3720m comprise the current mineralisation database for Area 1 and Area 3 of the project.
A 2015 assessment of the resource by consultants SRK was commissioned by Cobra Resources, yielding a total combined Area 1 and Area 3 mineral resource estimate which included 15.6 million tonnes inferred at 260ppm uranium oxide (as U3O8) for a contained metal total of 9.0 million pounds of the oxide – the most common form of “yellowcake”.
Area 3 contains the lion’s share of the resource, with an inferred 14.65 million tonnes of material going 270ppm uranium oxide. It also has a higher grade than Area 1 with Area 3 comprising 14.65 million tonnes of inferred material at 270ppm U3O8 for a contained 8.6 million pounds of uranium oxide.
The exploration team has reviewed the permitting and planning to begin further exploration activities at the Project as soon as possible in order to progress towards resource definition drilling. Evaluation of the strike potential and twinning some of the existing holes which make up the foreign uranium estimate will form early work programs at the Project.
Star Minerals Chair Ian Stuart
Star has entered into an earn-in and exploration rights agreement with Madison under which Star is granted the right to acquire a 51 per cent and up to 85 per cent equity interest in successive stages in Pennywort, which is the registered holder of the Cobra exploration permit and its associated exploration and mining information.
Madison currently holds an 85 per cent equity interest in Pennywort through a wholly-owned Namibian subsidiary, while the remaining 15 per cent interest in Pennywort is privately held by a Namibian local resident.
The strike potential north of Area 3 has been mapped with radiometric instruments and followed up with spectrometer readings. The data reveals further strike potential extending northwards for about 2.8km from the northernmost previous drill holes.
Madison has applied for and obtained approval for drilling of 6 holes at the Area 3 northern target zone.
The company will also provide the necessary Namibian staff necessary to operate the program, in which the principal objective is to convert Cobra’s foreign resource estimate into a JORC-compliant resource. Having ready-made drill targets lined up to be set up upon should also prove to be a significant head start for Star.
After sitting pretty quietly since 2015, its probably well past time the Cobra project had its day in the Namibian sun.
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