(MENAFN- ProactiveInvestors - Australia) Energy and Minerals Australia (ASX: EMA) has increased the Inferred resource at its Mulga Rock Project to 62.2 million pounds of contained uranium with the release of a maiden JORC resource for the Princess Deposit.
Mulga Rock has also grown in status, with it now containing Western Australia's second largest uranium resource and Australia's largest undeveloped uranium resource.
The Princess Deposit hosts an initial Inferred resource of 1.9 million tonnes at 600 parts per million for 2.5 million pounds of contained uranium.
Importantly, these resources are very shallow, with mineralisation identified in a range from 36 to 66 metres below surface, similar to other resources at Mulga Rock.
Continuous mineralised intervals of up to 8 metres thick have been discovered less than 40 metres from surface.
Confirmation of a JORC resource at Princess supports the high potential for discovery of similar resources within Energy and Minerals Australia's large landholding at Mulga Rock.
The main part of the Princess Deposit is 900 metres long and 200 metres wide.
The deposit is located about 1 kilometre from the proposed processing plant.
Potential base metals
Results for base metals also indicate a close association of uranium and base metals mineralisation, with localised anomalous gold results.
Of particular significance are intercepts of 8 metres at 0.37% copper from 43 metres and 6 metres at 0.83 grams per tonne (g/t) gold from 39 metres.
While the current drill spacing is not appropriate to assess the grade distribution and continuity of these intercepts, gold and copper distribution show a close relationship with the uranium mineralised envelope, in particular in the western portion of the Princess Deposit.
Exploration plan
Energy and Minerals Australia plans to increase the resource at the Princess Deposit from Inferred to the higher confidence Indicated category.
This will require diamond drilling as well as the use of multi-tool wireline logging, with the program potentially also delivering initial resource estimates for a number of base metals at the Ambassador and Princess deposits.
Strong shareholder and noteholder support
One of the company's shareholder's, Acorn Capital Limited, and noteholders, Acorn Capital Limited and Macquarie Bank, have reaffirmed their support for the company, participating in the recent $4.2 million convertible note funding.
Analysis
This is a strong endorsement of the Mulga Rocks Project the support from Acorn and Macquarie. Today's announcement keeps momentum flowing for the company.
With today's increase in resources to 62.2 million pounds of contained uranium, Energy and Minerals Australia is undervalued with an EV/Resource pound relative to its developer peers in Australia and Canada of just A$0.307.
The company raised $4.2 million via a convertible note facility in November to continue the development of the Mulga Rocks deposits.
The project, which consists of four separate deposits named Ambassador, Emperor, Shogun and Princess, is one of Australia's largest undeveloped uranium resources.
It shares access infrastructure with the large Tropicana Gold Project, owned by Anglogold Ashanti (ASX: AGG) and Independence Group (ASX: IGO), and which is presently in construction.
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