Madison Metals has decided to enter into a legally binding agreement with an arm’s length vendor to purchase 90% direct interest in Mining License 86A and Exclusive Prospecting License 8905 with 10% free carry in favor of the vendor.
The renowned Erongo Uranium Province of Namibia, Africa, is home to ML86A and EPL-8905. Namibia is the second-largest producer of uranium in the world and has the fifth-largest total uranium resource.
With this Transaction, Madison is continuing to expand its land holdings around producing uranium mines in Erongo. The acquisition of these licenses is a core part of our strategy to build a regional-scale portfolio focused on the highly prospective uranium province. It also increases exposure to uranium for the Company and its shareholders.
Duane Parnham, Executive Chairman and Chief Executive Officer, Madison Metals Inc.
The Rössing (ML28) and Husab (ML171) mines are both within trucking distance of Madison’s substantial land holdings. Intending to enhance its existing mineable uranium resources by extending currently known uranium zones and making new discoveries, Madison consolidated its various land holdings in the region earlier this year under the property names Madison North and Madison West.
A 427 km2 contiguous land package with a high potential for leucogranite-hosted uranium mineralization has been generated by connecting the Madison North and Madison West projects through the acquisition of ML86A and EPL-8905.
ML86A and EPL-8905
Together, ML86A and EPL-8905 make up a contiguous land package of 7.86 km2 that is just 51 km to the east-northeast of Swakopmund and just southwest of the active Rössing Mine. The two properties include anomalous potential radiometric signatures that can be linked to Madison's ML121 and EPL-7011.
The geological and structural setting of ML86A and EPL-8905 is strikingly similar to that of the Rössing deposit, with the concentration of uranium-anomalous granites occurring at the Khan-Rössing and/or Khan-Arandis boundary within the northeast-trending deformation corridor of the Welwitschia magnetic lineament.
As a result, leucogranite-hosted uranium mineralization has significant potential in ML86A and EPL-8905.
Due diligence is being done by Madison, which anticipates closing the deal in the first few months of 2023. At that time, more information will be made available.