Pegasus Resources Inc. (TSX-V:PEGA) has commenced a geological mapping and sampling project at its Energy Sands uranium project in Utah to define targets for a drill program later this year.
The company’s CEO Chris Timmins recently joined Proactive’s Steve Darling to talk about the milestone and the opportunities this project presents for the company as the US shores up a domestic supply chain for uranium.
Proactive: Work is underway at the Energy Sands uranium project in Utah. Can you provide an overview of this project and what work has been done on the project in the past?
Timmins: This is an exciting project. What we have here is a past-producing property, so we know there is uranium on the property from this past production that was done back in the 1950s.
I understand there are crews on the project right now.
They have started here, and they are going to map this project. They’re also going to look at all the historical tailings and where the formations come to the surface and go under the surface. When they’re done, we’re going to have a really good understanding of this project.
We’re going to take that knowledge to figure out when and where we want to drill on this project. We’re going to take this data they’re compiling right now and we’re going to apply for drilling permits which usually take anywhere from 30 to 45 days to be approved.
Being in Utah, we’re pretty confident that getting permits shouldn’t be an issue. They’re very mining-friendly and, of course, we’re in an area that’s already established for uranium.
Can you talk about the opportunity having this particular project in Utah in the United States, given recent statements from the US government about how important a project like this can be for a domestic supply of uranium?
With the Department of Defense coming out and saying they want to get back to refining and supplying uranium, we see a really great opportunity here.
There are two mills currently in Utah that are licensed and a third one is being built six miles up the road from us. We’re in the right state. Utah is just really the place to be especially with all these mills in the area and they’re going to be looking to supply their feedstock.
Lastly, this is a fairly quick mapping program, right?
We’re planning on 15 to 16 days. That will give our team a chance to really cover the property and we’ll know what we have here by the end of this program.
Quotes have been edited for style and clarity.