Small uranium explorer, UraniumSA (USA) rose by as much as 96% at one point today after it said it has made an ‘unusual' uranium discovery near Whyalla, South Australia.
The price shot up to 30.5 cents during intraday trading – almost doubling the previous closing time of 15.5 cents.
Stocks in UraniumSA then eased back to close up by 68% or 10.5 cents at 26 cents.
UraniumSA said the discovery is favourable to in-situ leaching extraction of uranium and is in an area never previously explored for uranium.
"The sediment hosted uranium mineralisation is in a geological setting distinctly different to that of conventional sediment-hosted systems worldwide," managing director Russel Bluck said.
"The discovery remains open across and along strike," he said.
"We are not aware of any similar in-situ leachable deposits in similar geological settings anywhere in the world."
The discovery is located on the Mallaquana tenement, south of the deep water coastal post of Whyalla in South Australia.
Bluck said early indications suggested the eventual boundaries of the discovery, which is at depths of only 45-60 metres – could be exceptionally large as the two main discovery holes are a kilometre apart.
