Neo Energy Metals plc had its South African subsidiary, Desert Star Uranium (Pty) Ltd, receive formal notification from the Department of Mineral and Petroleum Resources, Northern Cape Region, that its application for a mining right in respect of the Henkries Node has been accepted for processing and evaluation. The application was made in terms of Section 22 of the Mineral and Petroleum Resources Development Act, 2002 (Act 28 of 2002), as amended, and the associated Environmental Authorisation in terms of the National Environmental Management Act, 1998 (Act 107 of 1998). The application covers the following farms in the Administrative District of Namaqualand, Northern Cape Province: Portion of the Remainder of Steinkopf No.22; Portion of the Remainder of Goodhouse No.23; Wolftoen No.48; Remainder and Portion 1 of Heiorigas No.49; Remainder, Portions 1 and 2 of Koisabes No.47; and Remainder and Portion 1 of Kabib No.50.
The application is in respect of the following minerals: antimony, cobalt, copper, kieselguhr, lead, molybdenum, nickel, tin, uranium and zinc, consistent with the known polymetallic character of Henkries. Uranium is the primary target mineral. The DMPR notification, dated 17 April 2026, confirms that the application has been accepted and will be processed and evaluated.
In terms of the Act, the Minister or his delegate is required to make a decision within 300 days from the date of acceptance. Acceptance of the application does not of itself confer the right to commence mining activities. As a condition of the acceptance, Desert Star is required, within 60 days, to submit documentation confirming its Black Economic Empowerment shareholding structure, in compliance with the minimum 30% BEE shareholding requirement applicable to new mining rights under the Act.
Desert Star is also required to lodge a notice of intent to apply for a Water Use Licence with the Department of Water and Sanitation. The Company confirms that both requirements are in hand. The Henkries Uranium Project, to be known as The Henkries Node, is a near-surface, palaeochannel-hosted uranium deposit in the Northern Cape Province.
Mineralisation occurs in unconsolidated sands from surface to a maximum depth of eight metres, requiring no drilling or blasting. JORC-compliant resources total 4.7Mlb of uranium at an average grade of 399ppm, with 25 kilometres of identified palaeochannel remaining undrilled on the licence. The process route – conventional acid leach to yellowcake – has been proven through an Anglo American pilot plant that processed more than 200 test pits at a cost of over $30 million.
A 2024 Feasibility Study indicates annual production of approximately 580,000 pounds of uranium at a cash cost of approximately $33 per pound, with an NPV (8%) of $60 million and an IRR in excess of 25% at $85 per pound. Total initial capital requirement is approximately $65 million. The project remains economic at uranium prices as low as $45-50 per pound.
A mining right application has been accepted by the DMPR Northern Cape.
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