C29 Metals has signed a binding share sale and purchase agreement to acquire complete ownership of the Ulytau Uranium Project in Kazakhstan.

Situated near Lake Balkhash in south Kazakhstan, the Ulytau Project is poised for significant development, with historical geological work indicating substantial uranium deposits.

This project, located 15km south of the historic BotaBurum mine, has been the subject of geological surveying since 1957.

It has a non-JORC foreign estimate of 9.85 million pounds of uranium at a concentration of 2,790 parts per million (ppm).

Notably, multiple non-JORC foreign drill intersects have revealed uranium concentrations exceeding 6,000ppm U308 (triuranium octoxide) from 3m below the surface.

According to an independent geology report, there is potential for the foreign estimate to be expanded, as the mineralisation appears open in most directions.

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This suggests that there is significant scope for upgrading the project’s uranium resources in the future.

C29 Metals has announced plans to initiate ground geological works immediately through its established in-country network.

These initial efforts will focus on locating historic drill collars, field mapping, and translating technical documents and data to create a new geological database.

Additionally, the company has outlined its intention to begin initial drilling programmes for historic data validation and to explore underexplored and unexplored areas within the tenement.

These activities are scheduled to start in the third quarter (Q3) of the calendar year 2024, subject to necessary approvals.

In support of these developments, C29 Metals has secured firm commitments for a placement to raise $3m (A$4.54m) before costs.

The fundraise will be conducted in two tranches, providing the financial backing needed to advance the Ulytau Uranium Project.

C29 Metals non-executive chairman David Lees said: “We are very excited to have secured a high-grade uranium project of this quality at a time where the uranium industry is experiencing unprecedented supply pressure, with spot prices at a 16-year high.

“The Ulytau Uranium Project represents a substantial opportunity for the company, with the project holding a non-JORC high-grade foreign estimate.

“Over 2024, we aim to create shareholder value as we execute on a systematic exploration programme with drilling expected to commence in Q3 CY2023, dependent on approvals.”