Australian uranium explorer Marenica Energy (ASX: MEY) has uncovered additional prehistoric riverbeds (known as palaeochannels) at its Namib IV project site in Namibia.

These palaeochannels hold the potential for uranium mineralisation and while they are not visible from the surface of the tenement, geophysical exploration work has uncovered at least 19km worth of old riverbed networks at the site.

Marenica managing director Murray Hill said the find is “great news” and that further exploration of the site is due to commence shortly.

“The structure of this palaeochannel system at Namib IV is extremely promising and we look forward to mobilising a drill rig, within weeks, to to test this expansive system,” he said.

“The other great news is that we are getting closer to commencing an airborne electromagnetic survey of the Namib area, with final approvals expected this month.”

The palaeochannel at Namib IV is separate to similar systems identified at Marenica’s Hirabeb site (where exploration last year identified mineralisation along a 30km stretch of palaeochannel) and Koppies site.

Please join Murray Hill, MD of Marenica Energy on Monday 29th March for a live investor briefing, where he will discuss their planned exploration activity for the next 12 months across the company’s giant palaeochannels in Namibia. Click here to book your spot.

Share price holding strong as base-load demand grows

The company’s shares are enjoying continued share price strength as demand for uranium reaches critical mass.

Shares in the business increased over 300% in the 12 months to March 22 (prior to the discovery of Namib IV’s palaeochannels), up from less than four cents a piece to break above 15 cents in early January, before settling between 12.5 cents and 16 cents since then.

It’s been a busy year for the business, which launched an aggressive campaign of exploration programs in its sizable Namibian tenement holdings after exploration found mineralisation along a 30km stretch of prehistoric riverbeds.

Marenica also completed proof-of-concept testing of its patented U-pgrade^TM beneficiation process at its Angela mine site in the Northern Territory.

This process, developed in concert with the CSIRO, reduced acid consumption by 77% (down from 104kg of acid per tonne of ore to 24kg), potentially offering significant cost and environmental benefits.

Meanwhile demand for radioactive fuels is tipped to grow as decarbonisation efforts around the world continue to mount.

Buying behaviour within the industry also indicates sentiment around uranium remains positive, too, despite the price easing off through February.

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Past performance is not a reliable indicator of future performance. 

Reach Markets have been engaged by MEY to help manage their investor communications.

Sources:

• FN Arena, Uranium Week: Uranium Sentiment Boost
• Marenica Energy, Extensive Palaeochannels Continue to be Identified
• Marenica Energy, Exploration Activities Update
• Marenica Energy, Australian Energy & Minerals Investor Conference Online Presentation
•  Yahoo Finance, Marenica Energy (ASX: MEY)