Tanzania, a leading African gold producer and soon-to-be a major supplier of global graphite, also holds untapped potential in uranium.
With increasing demand and rising prices for this metal, Australian mining company Moab Minerals has recently acquired two promising uranium projects in the East African nation.
Exploration Commences in August/September
Moab Minerals is set to begin its inaugural uranium exploration activities in Tanzania in August/September 2024. The company announced this development on July 9th, following the finalization of its acquisition of an 81.85% stake in a portfolio of uranium projects in the country.
Manyoni Project Takes Priority
Moab will initially focus its efforts on the Manyoni project, where previous work has resulted in a JORC-compliant mineral resource declaration of 20.5 million pounds at a grade of 147 ppm. The company currently holds approximately $1.9 million in funding to support these initial endeavors and may seek additional investment to further explore the second project, Octavo.
Capitalizing on Favorable Market Conditions
With uranium demand and prices on the rise, Moab is well-positioned to capitalize on the renewed investor interest in the metal. “Given the current uranium price of around $85/lb, Moab is in the right place at the right time to re-evaluate the Manyoni uranium project and to commence exploration on the Octavo uranium project,” commented Malcolm Day, Moab’s Managing Director.
Diversifying Tanzania’s Mining Landscape
While Tanzania is renowned as a major African mining jurisdiction, it is primarily recognized for its gold mines and graphite resources, rather than its uranium potential. Moab Minerals’ success in the country could attract further investment in this sector, contributing to the government’s goal of increasing the mining sector’s contribution to 10% of GDP by 2025.