Project Overview
African Energy owns or is earning an interest in seven uranium projects covering over 10,000 square kilometres in southern Africa, ranging from bankable feasibility studies at the Njame and Gwabe deposits in the Chirundu JV in Zambia, to large tenement holdings with prospective geology and uranium anomalies defined by airborne radiometric surveys. African Energy's projects are located in sedimentary rocks of the Karoo Supergroup. A significant amount of known uranium mineralisation occurs in the Karoo sediments in Zambia, Malawi, Botswana, Zimbabwe, Tanzania, Mozambique and South Africa. This uranium mineralisation is of the style referred to as "sandstone-type uranium deposits" which have been the source of a significant proportion of global uranium mine production, mainly from the United States and Kazakhstan.
Until recently there has been no commercial uranium production from the Karoo Supergroup, but the commissioning of Paladin's Kayelekera mine in Malawi this year demonstrates the potential for this style of mineralisation. This view is further supported by ongoing feasibility studies at Chirundu (African Energy) and Mutanga (Denison Mines Corp) in Zambia, Letlhakane (A-Cap Resources) in Botswana and Mkuju River (Mantra Resources) in Tanzania.
African Energy's primary goal is to bring the uranium deposits in southern Zambia to commercial production and to use the cash flow developed from this operation to provide leveraged growth through mergers, acquisitions and organic exploration success.
In the near term, the primary objectives of the Company will be:
- A major exploration drilling programme in southern Zambia designed to identify and delineate additional resources which can feed into the proposed Njame uranium processing facility in the Chirundu JV;
- Re-scoping and recommencement of bankable feasibility studies to evaluate the viability of mining and processing the uranium mineralisation discovered at the Njame and Gwabe deposits in Zambia supplemented by any new discoveries;
- Exploration and drilling programmes to define the resource potential of high priority targets in the Sese project in Botswana and the Sitwe prospect in northern Zambia;
- Continued assessment of less advanced projects to provide a pipeline of exploration drilling opportunities, and
- Continued assessment of opportunities for the acquisition of new projects.