As Macusani Yellowcake (YEL-V) closes in on finalizing its friendly takeover of Southern Andes Energy (SUR-V) the company continues to prove 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% 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.
Indeed the deal with Southern Andes has much to do with Macusani’s bullishness on Chilcuno Chico as 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 an area of roughly 700 metres by 750 metres to date, with Manto B remaining open in all directions.
As for Manto A, Macusani says while the structure shows some continuity, its shape and the occurrence of uranium mineralization is more irregular than at Manto B.
The company’s current 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 and results from holes drilled there are pending.
The Company currently has three rigs turning at Kihitian one of which is testing the Quebrada Blanca.
Macusani and Southern Andes Energy announced a merger agreement at the beginning of February, and if the deal goes through, the merged company control roughly 900 sq. km of uranium exploration ground in what is emerging as the world next key uranium district — the Macusani Plateau in south-eastern Peru.
The merger is expected to be completed in April and calls for Southern Andes shareholders to get 0.8 of a Macusani share for each of their Southern Andes share. Once the deal is finalized Macusani shareholders will own 65% of the merged company with Southern Andes shareholders holding 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 & 3, both of which boast compliant resource estimates.
The company’s Corachapi property has measured resource of 1 million tonnes grading 0.014% U3O8 for 300,000 lbs of U3O8 and indicated resources of 10.6 million tonnes grading 0.02% U3O8 for 4.7 million lbs of U3O8.
Its Colibri 2 & 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 of U3O8.
In Toronto on March 20, Macusani shares were flat at 14.5¢ on 38,000 shares traded. Its shares have moved between 12¢ and 54¢ over the last 52 week period ant it has 108 million shares outstanding.
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