C29 Metals wins Kazakhstani uranium drill run green tick, Kazatomprom talks mature

Microcap C29 Metals (ASX:C29) appears to be making an eye-catching relationship work to its favour – that with Kazakhstani uranium producer Kazatomprom.

For those not part of the uranium-watcher clan, Kazatomprom is a globally significant uranium producer based in Kazakhstan and significantly Russian-backed.

Its production issues earlier this year (not long after the US happened to ban Russian uranium) was a key catalyst that saw uranium prices soar out the gate as 2024 got underway.

Unfortunately, that rally wouldn’t last. At any rate, back to C29 Metals.

Specifically, C29 Metals has been granted a ‘category 2 environmental permit’ by the Kazakh resources department which ultimately greenlights drilling at the company’s Ulytau uranium project.

The timing is fortuitous. At the same time, C29 Metals is close to concluding mature discussions with Kazatomprom subsidiary Volkov Geology for assaying services following its upcoming drill run.

(That drill run, currently, depends on rig availability.)

Back in late October, C29 Metals inked an MOU with Volkov. That MOU is now close to being a binding commercial agreement. The latter is the geotechnical division of Kazatomprom – giving C29 exposure to unparalleled local knowledge (and, presumably, datasets.)

But progress could be slow trickling into 2025.

“As this initial program will be short in nature the drilling will see several key strategic holes drilled to test and verify the mineralisation in a small area of the Ulytau tenement,” the company wrote on Thursday.

“With final design of the initial drilling program at an advanced stage it is now planned to extend the initial diamond drill holes to a depth of ~500m.”

C29 chief Shannon Green, between the lines, commented on the low administrative burden explorers face in the country.

“Obtaining this permit so quickly after receiving official notification that all regulatory requirements for the issue of the drill permit had been met once again demonstrates the positive operating environment in Kazakhstan.”

C29 last traded at 0.9cps.

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