The Cobra project has an estimated mineral resource of 15.6 million tonnes grading 260 parts per million, corresponding to approximately 9 million pounds of uranium oxide. Star Minerals has the option of increasing its interest to 85% through further investment in exploration. The Australian company has also committed to pay Madison Metals an initial sum of USD 500,000 in shares and cash, followed by a series of staged investments to progressively gain a greater stake in the project. This collaboration enables Star Minerals to strengthen its portfolio in a region already recognized for its mineral resources, notably in the vicinity of the Rossing and Langer Heinrich mines.
Renewed global interest in uranium
Uranium is once again attracting attention on the world stage, particularly following technological advances in nuclear power, now seen as a cleaner and safer source of energy. Despite misgivings following the Fukushima accident in 2011, new-generation reactors and small modular reactors are providing innovative solutions. This trend was confirmed at the Abu Dhabi COP, where some twenty countries announced their intention to triple the world’s nuclear energy capacity by 2050.
This resurgence in nuclear power is expected to drive up demand for uranium, pushing prices to levels not seen since 2007. In January 2024, uranium broke the US$100/lb barrier.The Cobra project thus represents a strategic opportunity for Namibia to strengthen its mining sector, which will account for 14.4% of the country’s GDP in 2023, with more than half of exports linked to raw materials, notably uranium and diamonds.
