QX Resources Raises $2.3M to Advance High-Grade Madaba Uranium Project

Strategic Acquisition in Tanzania

QX Resources Limited (ASX, QXR) has announced the acquisition of a 100% interest in the Madaba Uranium Project, located in the Luwegu Basin of southern Tanzania. The purchase price is approximately A$800,000 in cash, a modest outlay for a project that the company believes could mirror the nearby world-class Nyota Uranium Deposit, which boasts a resource of 125 million pounds of contained uranium oxide at a grade of 300 parts per million.

The Madaba Project covers 613 square kilometres and has a rich history of exploration dating back to the late 1970s and early 1980s, with German company Uranerzbergbau GmbH conducting initial airborne radiometric surveys and drilling. More recent reinterpretations of this data have identified over a dozen high-priority uranium targets, many of which have returned impressive historical drill results.

Compelling Historical Data

Historical drilling at Madaba has revealed multiple uranium intercepts with grades well above typical cut-offs, including standout results such as 3 meters at 1,082 ppm U3O8 and 7 meters at 693 ppm U3O8 near surface. Fifty-six of 126 holes drilled historically intersected mineralisation exceeding 150 ppm U3O8 over at least 1 meter, indicating significant potential for stacked uranium seams that could form substantial mineralised zones.

Surface radiometric anomalies and trench sampling have also highlighted near-surface mineralisation, with some trenches returning uranium grades exceeding 1% U3O8. These findings suggest that the project hosts both shallow oxidised uranium deposits and deeper primary mineralisation, presenting multiple exploration targets.

Capital Raising to Accelerate Exploration

To fund the acquisition and subsequent exploration activities, QX Resources is undertaking a capital raising of approximately $2.3 million. This includes a $1.5 million placement at 0.4 cents per share, with participation from company directors, and a fully underwritten non-renounceable rights issue expected to raise an additional $818,000. The funds will support low-cost exploration programs such as detailed radiometric surveys, trenching, and drilling to refine and expand uranium targets.

Strengthening the Board with Uranium Expertise

Adding to the project's momentum, QX Resources has appointed Russell Bradford as a non-executive director. Bradford brings over 35 years of mining experience, including significant uranium project development in Africa. Notably, he was previously General Manager of Project Development for Mantra Resources, the company behind the Nyota Uranium Deposit, which was acquired by Uranium One in a $1.2 billion transaction.

His expertise is expected to be instrumental in advancing Madaba, leveraging his deep knowledge of the regional geology and uranium market dynamics.

Geopolitical and Market Context

The acquisition comes at a time when Tanzania is actively developing its uranium sector, including a recent collaboration with Russia’s Rosatom to construct a $400 million uranium processing plant at Nyota, targeting annual production of up to 3,000 tonnes of yellowcake. This regional development underscores the strategic importance of uranium in Tanzania and offers a supportive backdrop for QX Resources’ ambitions at Madaba.

While the project remains at an early exploration stage with no formal resource yet defined, the combination of historical data, geological analogies, and strong local government support positions Madaba as a compelling opportunity in the uranium exploration space.