Oropa’s strategic uranium acquisitions

Diversified gold & uranium explorer, Oropa Ltd has scored a coup in its international....

  Diversified gold & uranium explorer, Oropa Ltd has scored a coup in its international growth strategy after entering into arrangements to secure a 90% interest in two contiguous uranium exploration projects located just 20km north of Paladin Resources Ltd’s Kayelekera uranium deposit in northern Malawi, Southern Africa.The Perth-based company – which is also exploring the +710,000oz Pungkut Gold Project in North Sumatra, Indonesia – said yesterday that it was rapidly acquiring strategic landholdings in Malawi prospective for uranium mineralization, with the newly acquired project areas considered highly prospective for roll-front style uranium deposits.Oropa has executed Memorandum of Understandings (MOUs) with the owners of the two granted Exploration Prospecting Licences (EPLs), Ngana and Ngana East, which cover a combined area of 285sqkm and, importantly, cover basin structures containing Karroo sediments which are similar to the host rocks at the nearby Kayelekera roll-front uranium deposit.The Kayelekera Project (Proven and Probable Ore Reserve of 10.46Mt at 0.108% U3O8) is scheduled to be commissioned in late 2008 with planned annual production of 3.3 million pounds of U3O8 over a mine life of 7 years. The development of this project has sparked significant investment and interest in uranium exploration in Malawi.The new licences represent an important addition to Oropa’s strategic landholdings in Malawi, which currently include two granted EPL’s (Mzimba Northwest and Chitunde); a further EPL (Chinzani) – adjacent to Globe Uranium’s Kanyika uranium project area – is currently under ministerial consideration.“We believe that Malawi offers significant opportunities for uranium exploration,” commented Oropa’s CEO, Phil Christie. “The starting point for target definition for uranium exploration in Malawi was a countrywide radiometric survey conducted in 1984/85 by Hunting Geology and Geophysics Limited,” he said. “Despite the proximity of the Ngana and Ngana East Project areas to the Kayelekera Uranium Project, these areas were not covered by that survey and therefore offer a significant untested Karroo sedimentary environment for roll-front style uranium mineralization in northern Malawi.“Previous and current mineral exploration in these areas has been exclusively focused on coal, with no previous uranium exploration undertaken,” Mr Christie said. “Because of their strategic location close to a major new uranium mine and their geological pedigree, we believe this represents an exciting opportunity for the company.”Under the terms of the MOUs, Oropa will incorporate two independent Malawian joint venture companies which will apply for the other mineral rights to the existing licences. Oropa will hold a 90% shareholding in each. The current holders’ 10% interest are free carried with each having the option to buy back up to a 20% contributing interest from Oropa at cost up until 1 month after the commencement of a Feasibility Study undertaken by either of the joint venture companies.