With yellowcake prices sky-high, Manhattan Corporation seeks exploration approval for Ponton uranium project

Ministerial approval request to restart exploration at Ponton being sought
Ponton is in the Gunbarrel Basin, where paleochannels are known to host a number of uranium deposits
Uranium prices are skyrocketing, with analysts predicting increasing demand for U3O8

Special Report: Manhattan Corporation is looking to rejuvenate exploration of its Ponton uranium project northeast of Kalgoorlie, with ministerial consent being sought for further drilling of the contained Double 8 deposit.

There’s method to Manhatten Corporation’s (ASX:MHC) move, as yellowcake prices have skyrocketed since the start of 2023, this week hitting 16-year highs of +US$100/lb.

In a note late last year, Sprott Asset Management declared uranium was currently in the midst of a bull market, with little end in sight.

“The energy transition and the willingness of global governments to support the nuclear energy industry are contributing factors to expected long-term supply shortfalls of uranium,” according to Sprott.

“As once dormant mines begin to start producing again, disruptions are becoming the trend rather than the exception, making it difficult to close the widening supply/demand gap.

“Rising uranium prices are leading to renewed investment in the industry, and uranium miners may be uniquely positioned to benefit from the growth in this sector.”

Exploring Ponton

Ponton is just ~40km from the Mulga Rock uranium project – one of only four in WA to have received state ministerial approval to progress the mining of uranium.

The Ponton uranium project consists of the Double 8 deposit, which has an inferred resource of 26Mt for 17.2Mlb @ 300ppm uranium oxide (U3O8), using a 200ppm cutoff.

It’s been historically drill-tested for defined relatively shallow (50-70m deep) palaeochannel sand hosted uranium mineralisation amenable to in-situ metal recovery (ISR).

The Ponton uranium project and nearby Mulga Rock U3O8 deposit. Source: MHC

MHC says its 100% interest in Ponton gives it exposure to significant accretive value potential with any future potential change of Australian and WA government policy.

“There has been increased interest in the uranium market and a recent lift in both spot and long-term uranium prices. In addition to this increased interest since the Australian Government announced the trilateral AUKUS pact for the Indo-Pacific region for the country to receive nuclear-powered submarines,” MHC says.

If ministerial approval for exploration is granted, MHC has four exploration targets already identified with the potential to provide additional resources – extensions to the Double 8 resource, Stallion South, Highway South and Ponton itself.

 

This article was developed in collaboration with Manhattan Corp, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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