C29 Metals Ltd (ASX:C29) has reported a range of significant developments for the quarter ending March 31, 2024. The company held cash on hand of $1.09 million.
Key activities include the announced acquisition of the high-grade Ulytau Uranium Project in Kazakhstan. This project has a non-JORC foreign estimate of 9.85 million pounds of uranium at a concentration of 2,790 ppm.
Kazakhstan's status as the world’s largest and most cost-effective uranium producer, responsible for about 43% of global supply, highlights the strategic importance of this acquisition.
The company also completed its Mayfield seven-hole maiden drilling program, achieving a total of 2,488 metres drilled. This feeds into the company’s efforts to expand its portfolio and reinforce its position in the mining sector.
Mayfield Location plans, highlighting local Mines, known production, named local prospects; and drill plan with position of significant results.
In terms of financial activities, C29 secured firm commitments to raise $3 million through a placement, structured in two tranches, with the second tranche expected to settle after the Extraordinary General Meeting (EGM) scheduled post-May 6.
Additionally, the company has strengthened its leadership with the appointment of Shannon Green as managing director.
“The March quarter was a monumental period for the company, with the transformational acquisition of the Ulytau Uranium Project in Kazakhstan," Green said.
"With a non-JORC foreign estimate of 9.85M/lbs Uranium at 2,790ppm and the drilling approval process already underway, we look forward to undertaking our first drill campaign at the project in Q3 of this year.
“Coupled with the acquisition, to fund exploration at the project, we received firm commitments to raise $3 million before costs across two tranches, with tranche two settling post-May 6 after the EGM.
“During the quarter, the company also released results from the company’s maiden reverse circulation (RC) drill program at its 100% owned Mayfield Copper-Gold Project, delivering positive outcomes in respect of an initial drilling campaign.
“We look forward to an exciting period for the company, as we advance Ulytau and create shareholder value.”
To advance exploration
C29 is progressing well with the drilling approval process and anticipates the start of its initial drilling programs in Q3 CY2024.
These programs aim to validate historical data and explore underexplored and unexplored areas across the tenement, contingent upon receiving the necessary approvals.
Initial non-ground engaging geological field works are set to begin shortly. These activities include the identification of historic drill collars, field mapping, and the translation of technical documents and data to establish a new geological database.
At the Mayfield Project in Queensland (EPM19483), the company has already conducted a successful maiden RC drill program. The notable results from this drilling include:
- 12 metres at 1.55% copper and 0.17 ppm gold from 48 metres depth, including 3 metres at 4.88% copper and 0.40 ppm gold from 56 metres (Hole MFRC008).
- 10 metres at 0.50% copper from 212 metres and 3 metres at 0.71% copper from 229 metres (Hole MFRC002), within a wider low-grade intercept of 75 metres at 0.21% copper from 159 metres.
- 2 metres at 0.56% copper from 85 metres (Hole MFRC007), within a wider low-grade intercept of 34 metres at 0.15% copper from 65 metres.
These findings suggest that the copper-gold mineralisation at Mayfield is associated with a large 'redrock' alteration halo, typical of iron oxide-copper-gold (IOCG) systems.
The discovery of significant copper-gold intervals in three separate settings at Mayfield is considered a promising outcome, indicating the potential for a large mineralising system with an extensive reach.