Marenica Energy (ASX: MEY) has attracted some investor attention of late with shares rallying to an intra-day high of A$0.025 yesterday, a 92% increase over the $0.013 closing price last Wednesday 30 May.
The sudden increase prompted the ASX to issue a price and volume query.
The ASX also noted an increase in the volume of securities traded during the period, with 3.4 million shares changing hands between the close of trade on 30 May and the close of trade yesterday.
Marenica responded saying it is not aware of any material information that has not been disclosed to the market, which may explain the sudden investor interest.
The company has been on an upwards share trajectory in recent weeks, spiking 127% to its intra-day high of $0.025 yesterday, up from the low of $0.11 just two weeks earlier.
In early May Marenica closed its fully underwritten $3.2 million rights issue to fund activities, including the assessment of whether screening, de-sliming, gravity separation, magnetic separation and/or flotation can be applied to upgrade the yield from the Marenica uranium deposit.
Detailed mineralogical testwork conducted as part of a technical review of the project showed the Marenica deposit could be open to processing using techniques not typically used in the recovery of uranium.
Mineralisation at Marenica has been found to have a number of distinctive characteristics, which could be conducive to conventional metallurgical processes used extensively in other industries.
If these techniques can be applied successfully to ore from Marenica, the uranium concentration will be significantly improved, reducing the amount of material to be treated and lowering the capital and operating costs.
It is located about 90 kilometres northeast of Swakopmund in Namibia, and hosts a JORC Resource of 276 million tonnes at 94 parts per million for 57 million pounds of contained uranium.
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