Madison Metals Inc. has provided an update on its corporate activities, which continue to be influenced by favourable uranium market conditions.
With initial funds now being realised from the company’s forward sales agreement, Madison has the additional capital to further its main objective of advancing its flagship uranium assets in Namibia.
To achieve this objective and create a sustainable presence in Namibia, Madison has established a fully integrated field geological office infrastructure, complemented by full-time staffing. This strategic move bolsters Madison’s operational capabilities and reaffirms its commitment to advancing exploration, drilling, and development activities in the country.
Commencement of Reverse Circulation Drilling at Area 3 North and South
With all necessary staffing and permits now secured, the company is preparing for an upcoming reverse circulation (RC) drilling campaign focused on both Area 3 North and South, situated within Exclusive Prospecting Licences 8531 (EPL-8531), in which Madison owns an undivided 85% interest. This drilling programme is designed to identify additional mineralisation in both Area 3 North and South, as both areas are open in all directions.
The 4800-m RC drilling program will include deeper holes, as the historical holes stopped at 120 m, in-fill holes at tighter spacing and some step-out holes. The depths of the boreholes will vary from 60 to 240 m. Calibrated gamma probe-derived, equivalent uranium results will be announced at regular intervals throughout the programme and will guide drill hole collar placement. The in-fill holes are important as the drill spacing of the historical holes in Area 3 South did not allow for that mineralisation to be included in the SRK historical resource. This drill programme marks an exciting step forward in the potential expansion of the resource at Area 3. In addition, Madison is investigating the acquisition of additional historical drilling data related to EPL-8531.
SRK Consulting’s Upgraded Technical Report
Concurrent with the drilling campaign, Madison has entered into a contractual agreement with SRK Consulting to upgrade the historical SRK technical report, originally dated November 2015. The technical report upgrade will involve the inclusion of the new data from this drilling campaign, as well as the application of updated economic parameters to refine the new overall resource estimation. The scope of this updated technical report will focus on the assessment of Area 3 North and South.
“Reflecting on market dynamics, it is worth noting that in November 2015, the spot price of uranium stood at approximately US$36 per lb. This price point persisted until September 2021 when the spot market began an upward trajectory, driven primarily by supply-demand, reaching its current price of US$69 per lb,” said Duane Parnham, Executive Chairman and CEO of Madison Metals. “This notable shift in spot prices has significantly improved the economic viability of mining Namibian uranium deposits, making it a more attractive proposition for our ongoing endeavours. We believe Madison is well-positioned to capitalise on these favourable market conditions as we continue to advance our uranium projects in Namibia.”
Parnham continued, “We are not just scratching the surface. We are drilling deep into unparalleled uranium opportunities with SRK Consulting on board and leveraging decades of sector expertise in Namibia to unlock the full potential of our assets. As for our forward sales agreement, let’s be clear: this isn’t just capital, it is rocket fuel for our growth trajectory. We are not giving away the store to power our future. We are strategically accelerating, fully aligned with shareholder value.”
By: Loyce Zemeyi