Frontier Pacific, Solex stocks down as low uranium grade reported in Peruadmin
Frontier Pacific Mining Corp. shares dropped 11 per cent and Solex Resources Corp. fell nine per cent Tuesday after Frontier acknowledged it found low-grade uranium at the Macusani project in southern Peru.
The results came from the first five holes on the Calvario 3 zone.
The holes were completed before Christmas as the start of Frontier’s planned $2.5-million (U.S.) drill program to test up to eight targets on the joint venture.
The objective is to obtain a measure of the average grade and continuity of the uranium mineralization, the company said.
”The first five drill holes of a planned 60-hole program on the Calvario 3 target intercepted a flat-lying ignimbrite volcanic flow containing an average grade of 0.013 per cent or 0.26 pounds per ton uranium over a stratigraphic thickness of 33 feet (10 metres),” Frontier said in a release.
”Although the uranium grade is low in these first holes, the average in-situ value of uranium, at current metal prices of $72 per pound, is $20 per ton.”
Still, Frontier said the venture participants are ”very encouraged by the continuity of uranium mineralization between the holes (and) the stratigraphic thickness of the uraniferous ignimbrite” and they expect the overall grade will improve as the zone continues to be drilled.
Frontier holds an option to earn a 50 per cent interest in the Macusani uranium project from joint-venture partner Solex. It has a 100 per cent mining lease option on the Dixie Creek gold property in Nevada and is developing the Perama Hill gold project in northern Greece, held by subsidiary Thracean Gold Mining SA.
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