As Macusani Yellowcake (YEL-V) finalizes its friendly takeover of Southern Andes Energy (SUR-V), the company is proving up the uranium potential of southern Peru.
The company’s most recent assay results come from the Chilcuno Chico anomaly on its Kihitian property.
The highlight intercept returned 0.1679% uranium oxide (U3O8) over 10 metres from the 240-metre level, but overall the results extend both of the two mineralized zones in the area: Manto A and Manto B.
The deal with Southern Andes has much to do with Macusani’s bullishness on Chilcuno Chico. Its geological model posits that Manto B — which is a continuous mineralized layer — extends towards ground held by Southern Andes.
Drilling at the Chilcuno Chico target has delineated a 700-by-750-metre area to date, with Manto B remaining open in all directions.
Macusani says that while the Manto A structure shows continuity, its shape and the occurrence of uranium mineralization is more irregular than it is at Manto B.
The company’s drilling program at Kihitian is also hitting a new target known as Quebrada Blanca, which is 2 km northwest of Chilcuno Chico. Macusani says it has identified widespread uranium mineralization close to surface at Quebrada. Results from holes drilled there are pending.
The Company has three rigs turning at Kihitian, and one is testing the Quebrada Blanca.
Macusani and Southern Andes Energy announced a merger agreement at the beginning of February. If the deal goes through, the merged company control 900 sq. km of uranium exploration ground in what is emerging as the world’s next major uranium district: the Macusani Plateau in southeastern Peru.
The merger is expected by April and calls for Southern Andes shareholders to get 0.8 of a Macusani share for each of their Southern Andes shares.
Once the deal is finalized Macusani shareholders will own 65% of the merged company, and Southern Andes shareholders will hold the remaining 35%.
The combined company will have cash reserves of $11 million, which Macusani says is enough to take it through its exploration ambitions until the end of 2013.
Kihitian is one of three key projects that Macusani Yellowcake operates on the Macusani Plateau, and it is the least developed.
The other two are Corachapi and Colibri 2 and 3, which boast compliant resource estimates.
The company’s Corachapi property has a measured resource of 1 million tonnes grading 0.014% U3O8 for 300,000 lbs. U3O8, and indicated resources of 10.6 million tonnes grading 0.02% U3O8 for 4.7 million lbs. U3O8.
Its Colibri 2 and 3 projects have indicated resources of 9.2 million tonnes grading 0.027% for 5.4 million lbs., and 34.3 million tonnes grading 0.02% U3O8 for 15.1 million lbs. U3O8.
Macusani shares traded for 14.5¢ at presstime. Its shares have moved between 12¢ and 54¢ over the last 52-week period, and it has 108 million shares outstanding.
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