The Haranga Resources Ltd (ASX: HAR) share price is catching the eye of investors on Wednesday.
In early trade, the ASX uranium stock was up as much as 73% to a new 52-week high of 26 cents.
The uranium explorer's shares have pulled back a touch since then but remain up 33% to 20 cents currently.
Why is this ASX uranium stock rocketing?
Investors have been buying the company's shares this morning after it announced the maiden global mineral resource estimate for the Saraya uranium deposit. This project, which is located in Eastern Senegal, covers a total area of 1,650km.
According to the release, the mineral resource estimate (MRE) at its first prospect yielded a maiden inferred mineral resource of 16Mlbs of eU3O8 (7,300 tonnes) at a grade of 587ppm with a 250ppm cut-off.
It is important to note that this resource covers only 0.2km2 of its permit area. As a result, management notes that a significant exploration upside exists, with at least six additional uranium radiometric and coincident geochemical uranium anomalies identified.
Several of the regional anomalies defined to date are significantly larger than the footprint of the Saraya resource mineralisation. For example, the Diobi prospect is five times larger than the Saraya deposit.
On the back of this news, the company has quickly raised $2.86 million through a placement to sophisticated, professional and institutional investors. These funds were raised at a very generous discount of 11 cents per new share.
The ASX uranium stock's managing director, Peter Batten, commented
We are grateful for the level of support received from existing and new shareholders. Funds raised will enable us to commence drilling activities at our Saraya uranium project in Senegal and expand on what is a significant maiden JORC mineral resource at the project, as well as continue other exploration works within the project area which spans 1,650km2.