Neo Energy Metals’ (LSE:NEO) South African subsidiary Desert Star Uranium has received approval for a mining right application in regard to the Henkries Node Mine in the Northern Cape region.
The mining right application is in respect of several minerals, including antimony, cobalt, copper, kieselguhr, lead, molybdenum, nickel, tin, uranium, and zinc, consistent with the known polymetallic character of Henkries.
The Department of Mineral and Petroleum Resources confirms that the application has been accepted and will be processed and evaluated.
Desert Star is required to submit documentation within 60 days confirming its black economic empowerment shareholding structure, in compliance with the minimum 30% BEE shareholding requirement applicable to new mining rights under the Mineral and Petroleum Resources Development Act.
The company is also required to lodge a notice of intent to apply for a water use licence within the Department of Water and Sanitation.
Neo Energy notes that the acceptance of the application does not of itself confer the right to begin mining activities. The company will provide a further update upon the granting of the mining right.
Uranium opportunity
Henkries is a near-surface, paleochannel-hosted uranium deposit located in the Northern Cape Province. Mineralisation occurs in unconsolidated sands from surface to a maximum depth of 8m, requiring no drilling or blasting.
The project has a resource of 4.7 million pounds @ 399 parts per million uranium, with 25km of identified paleochannel remaining undrilled on the licence.
A Feasibility Study was conducted in 2024, which indicates an annual production of 580,000 pounds of uranium at a cash cost of US$33 ($46) per pound, with a net present value of US$60 million at an internal rate of return of 25%. The total initial capital requirements is US$65 million.
Neo Energy Metals is a uranium and gold company listed on the London Stock Exchange Main Market and the A2X Markets. The company also plans to list on the JSE Main Board sometime this year.
Write to Aaliyah Rogan at Mining.com.au
Images: Neo Energy Metals
