Okapi joins uranium elite after US acquisition

Okapi Resources has become a key player in the new energy sector after completing the acquisition of 51 per cent interest in the high-grade Hansen uranium deposit in Colorado, USA, from STB Minerals.

Importantly, the transaction swells the company’s existing resources at its Tallahassee project by 81 per cent to 42 million tonnes at 540 parts per million for 49.8 million pounds of triuranium octoxide and increases the grade of Okapi’s existing JORC mineral resource about 10 per cent, transforming Perth-based Okapi into one of USA’s most significant uranium players.  

Okapi’s Hansen operation takes in two uranium deposits known as Hansen and Picnic Tree that are south of and adjacent to a pair of Okapi's other energy operations – its wholly owned Taylor and Boyer uranium deposits. 

Hansen boasts a JORC-compliant mineral resource of 22.2 million pounds of triuranium octoxide grading 610 ppm. The company has said it will continue to chase up opportunities to strengthen its ground in the area.

According to Okapi, its Hansen uranium deposit was initially uncovered in the late 1970s and was later permitted for production after a round of encouraging feasibility studies. The project, however, was stopped in its tracks after the uranium market collapsed in the early 1980s.

Activity in the region was revived in 2006 when ASX-listed explorer Black Range Minerals started acquiring uranium leases in the Tallahassee district.

By 2010, Black Range had acquired the majority of the district's mineralisation and had finished a number of drilling campaigns that resulted in a mineral resource of 90.4 million pounds of triuranium octoxide with a triuranium octoxide concentration of 600 ppm.

Okapi management says its acquisition deal was significant, given US President Joe Biden recently announced a US4.3 billion dollar plan to wean the country away from Russian-sourced uranium.

USA is one of the world’s biggest producers of nuclear power, generating about 20 per cent of the country’s electricity needs. Recent figures suggest the US imports almost 25 per cent of its enriched uranium — a processed form of the material — from Russia, with the material ultimately finding its way into nuclear reactors.

Recent studies suggest America’s move to distance itself from Russian uranium could see the country turn to some of its allies, including Australia, for the material — potentially opening up a raft of opportunities for ASX-listed companies such as Okapi Resources.

The price of the commodity is currently hovering around US$48 per pound, retreating from highs of about US$64 in April.

Is your ASX-listed company doing something interesting? Contact: matt.birney@businessnews.com.au