Gladiator Resources (ASX:GLA) is open to potential joint ventures (JVs) or strategic partnerships amid a surging uranium bull market.
Speaking to Mining.com.au, Non-Executive Chairman Greg Johnson says the company could engage in a partnership with a ‘larger player’ sooner than later based on results returned from its 742km-square Mkuju Uranium Project in Tanzania.
Results were generated from target trenches at the South West Corner (SWC) tenement and exceeded 4,425 parts per million (ppm) triuranium octoxide (U3O8).
“We’re always open to those sorts of discussions, and realistically, based on the grades we’re getting, we would expect to be a target for a larger player sooner rather than later. We can’t control that process though, so we continue doing what we’re doing and hopefully continuing on the same trajectory into 2024.
The grades uncovered, particularly at the South West Corner tenement were absolutely outstanding, some of them maxing out at the upper detection limit of 4,245ppm U3O8 of the analytical method employed. The samples are now being re-analysed by another detection method that has higher detection limits, but irrespective of the additional results, these grades indicate an incredibly rich vein of uranium in the area.”
Johnson says the company will seek to undertake a drilling program in May 2024 once the Tanzanian wet season ends. Drilling is expected to be funded from a capital raise in January/February this year.
“Keeping in mind that SWC is in the same geological area as Uranium One’s world-class Nyota deposit, we are really looking forward to kicking off the drilling program as soon as the end of Tanzania’s wet season allows.
Our operating costs are very low during the Tanzanian wet season, and we have ample cash to cover those costs, but we will be doing a capital raise during January/February to fund the drilling program scheduled to commence in May.”
On the right track
He adds these latest results follow the company concluding the final part of the divestment of its gold assets so that Gladiator can solely focus on uranium in November 2023.
“The sale of Bendoc was the final part of our divestment of our gold assets so that the company can be totally focused on the uranium tenements. This was a decision by the board based on the run of the uranium price – a run that can only continue given the increasing global demand which will outstrip current supply.”
According to Trading Economics, uranium has continued to hold the surge from late 2023 that has taken prices to 16-year highs amid ‘strong’ demand and risks to supply. As of 1 January 2024, the price of uranium has increased 86.28% to US$91 per pound year-on-year.
Gladiator Resources is an explorer and miner solely focused on uranium.
As of 30 September 2023, Gladiator Resources had $515,000 cash and cash equivalents at hand according to its latest quarterly report. The company plans to increase its equity through a capital raise in January/February 2024.
Write to Adam Drought at Mining.com.au
Images: Gladiator Resources
