Moab Faces Funding Crunch Amid Resource Upgrade and New Zambia Project Buy
Moab Minerals has upgraded its Manyoni uranium project resource estimate by 25%, enhancing its uranium inventory and advancing plans for low-cost mining. The company also expanded its portfolio with a new copper-gold acquisition in Zambia, signaling a strategic diversification.
- Manyoni uranium resource upgraded to JORC 2012 with 27.19M lbs U3O8
- 25% increase in contained uranium compared to historical estimates
- Potential for low-cost strip mining due to shallow mineralisation
- Acquisition of Sassare copper-gold project in Zambia post-quarter
- Funding secured via placement and loan facility with European Lithium Ltd
Resource Upgrade Elevates Manyoni Project
Moab Minerals Limited (ASX, MOM) has announced a significant upgrade to its Manyoni uranium project in Tanzania, with a new Mineral Resource Estimate (MRE) now compliant with the JORC 2012 standard. The updated resource totals 27.19 million pounds of uranium oxide (U3O8) at an average grade of 136 parts per million, representing a 25% increase over the previous historical estimate. This upgrade, prepared by Snowden Optiro, reflects the results of a comprehensive drilling campaign completed in 2024.
The Manyoni project’s mineralisation occurs within a flat-lying palaeochannel system with less than three metres of overburden, suggesting the potential for low-cost strip mining. Notably, the Area A mineralisation lies 16 kilometres north of the previously reported Area C1 deposit, indicating a continuation of the uranium-bearing system and offering opportunities for resource expansion.
Strategic Acquisition Diversifies Portfolio
Shortly after the quarter ended, Moab announced the acquisition of the Sassare copper-gold project in Zambia through the purchase of Imbas Mining Pty Ltd, which holds rights to 80% of the project. This move marks a strategic diversification beyond uranium into base and precious metals, potentially broadening Moab’s exposure to different commodity markets and reducing project risk.
The Sassare project is poised for an initial exploration program involving geological mapping, soil geochemistry, and rock chip sampling, subject to funding. This groundwork will help prioritise drill targets and integrate historical data, setting the stage for future resource development.
Funding and Forward Plans
Moab’s recent capital raising included a placement of 141 million shares and a $500,000 loan facility from European Lithium Ltd, providing essential funding for ongoing exploration and corporate activities. Despite these injections, the company currently holds approximately half a quarter’s worth of funding based on current expenditure rates, underscoring the need for further capital raising to support its expanded project portfolio.
Looking ahead, Moab plans to advance metallurgical testwork on Manyoni core samples at ANSTO in Australia to identify optimal processing methods. Following this, a scoping study and potentially a pre-feasibility study are expected in the first half of 2026. The discovery of stacked palaeochannel mineralisation in Area A also opens the door for resource expansion through additional drilling.
Meanwhile, Moab has relinquished its REX uranium-vanadium project in Colorado and the Octavo tenement in Tanzania, focusing resources on its core assets. The Highline copper-cobalt project in Nevada remains under review with no recent exploration activity.
Balancing Growth with Financial Discipline
Moab’s quarterly cash flow report reveals a cautious financial posture, with operating and investing activities consuming cash but offset by financing proceeds. Payments to related parties, including director fees, are disclosed transparently. The company’s ability to continue as a going concern hinges on successful capital raising, particularly to fund the new Zambia acquisition and ongoing Manyoni development.
Overall, Moab Minerals is navigating a pivotal phase, leveraging a resource upgrade to enhance project value while branching into new commodities. The coming months will be critical as metallurgical results, scoping studies, and exploration programs unfold, shaping the company’s trajectory in the competitive uranium and base metals sectors.
Bottom Line?
Moab’s resource upgrade and Zambia acquisition set the stage for growth, but funding and execution risks remain key watchpoints.
Questions in the middle?
- How will metallurgical testwork outcomes influence Manyoni’s processing strategy and economics?
- What is the timeline and funding plan for advancing the Sassare copper-gold project?
- Can Moab secure sufficient capital to sustain exploration and development beyond the next quarter?