The vanadium price has put in a very strong performance lately, and Western Uranium (WUC.C) is trying to capitalize on this. The company has signed a binding Letter of Intent to acquire the Graysill vanadium project from Pacific Gold & Royalty.
The project is located in western Colorado where it produced approximately 52,000 pounds of uranium as a by-product, as well as 1.5 million pounds of vanadium, recovered from ore with an average grade of 2.41%.
A relatively recent NI43 compliant technical report mentions a historical resource estimate of 20 million pounds of vanadium (at a grade of 2.5%) and approximately 600,000 pounds of uranium. Using ‘millions of pounds of vanadium’ sounds impressive but the resource is actually pretty small. You only need 365,000 tonnes at 2.5% vanadium to reach the 20 million pounds and we doubt a small resource like this one will be viable. But of course, this is just the starting point, and we’re looking forward to learn more about Western Uranium’s plans to expand the resource until it reaches a certain ‘critical mass’.