Moab Minerals Ltd. has terminated its agreement to acquire the Sasare gold and copper project in Zambia to refocus its efforts on the advancement of its Manyoni uranium project in Tanzania.
Moab agreed to acquire 100 per cent of the shares in Imbas Mining Pty Ltd., which holds the right to earn up to 80 per cent of the Sasare gold and copper project.
Moab said it was not satisfied with the outcome of its due diligence investigations and has decided to terminate the acquisition.
Malcom Day, Managing Director of Moab, said: “With the termination of the Sasare acquisition, the company is refocusing its efforts on the advancement of the Manyoni uranium project.
“Manyoni is a shallow, paleochannel-hosted uranium system with an established JORC-compliant mineral resource estimate, and we believe it offers a clear pathway for value creation as we progress metallurgical test work and advance development studies.
“Current uranium market conditions further support this strategic focus.”
The decision to pivot to the Manyoni uranium project is supported by the current strength of the uranium market, with spot uranium prices at approximately US$89.25 per pound, as of January 27.
The Manyoni uranium project also has significant development potential, with a central high-grade core within the C1 mineralisation that may support potential early-stage development. Drilling has confirmed a consistently mineralised paleochannel system with less than three metres of overburden, which may lead it to low-cost strip mining.
Moab plans to undertake mineralogy test work on core samples as part of a larger metallurgical program, to inform the potential development strategy for the Manyoni project.
Following completion of the metallurgical test work, expected in the June quarter, the company will undertake a scoping study.
Moab will also continue to evaluate other resource opportunities as they arise.
