Atomic Eagle Ltd (ASX:AEU, FRA:6QZ0) has delivered a substantial resource upgrade at its flagship Muntanga Uranium Project in Zambia, alongside confirming key development parameters and launching the largest drilling campaign at the project in nearly two decades.
In its March 2026 quarterly report, the company reported a 24% increase in total Mineral Resources at Muntanga, lifting the inventory by 11.4 million pounds (Mlbs) to 58.8Mlbs triuranium octoxide (U₃O₈) at 309 parts per million (ppm).
The upgrade follows the incorporation of maiden pit-constrained resource estimates at the Chisebuka and Muntanga East deposits, both of which are expected to support future production growth.
Mineral Resource Estimate for the Muntanga Uranium Project, including Chisebuka and Muntanga East
Resource growth driven by new deposits
Key additions to the resource base included:
- Chisebuka: 19.9 million tonnes (Mt) at 220ppm for 9.7Mlbs U₃O₈ (Inferred)
- Muntanga East: 3.1Mt at 252ppm for 1.7Mlbs U₃O₈ (Inferred)
Chisebuka MRE outline within Grade x Thickness contour
The broader Muntanga project now hosts a combined resource of 86.2Mt, including 40.0Mlbs in Measured and Indicated categories and 18.8Mlbs in Inferred.
Muntanga MRE outline within Grade x Thickness contour
Management noted the resource growth was achieved at a discovery cost of just US$0.05 per pound, well below the current uranium spot price of around US$86/lb.
Location of Chisebuka and Muntanga East Resources within the Muntanga Project Licence Area
Feasibility study validated
During the quarter, Atomic Eagle also secured independent validation of its March 2025 feasibility study for Muntanga, clearing the way for ASX-compliant disclosure.
Engineering firm PRODEO Consulting confirmed the study’s production targets, cost assumptions and financial outcomes, finding no fatal technical flaws and that the feasibility study provides a credible and technically viable basis for the project.
Key parameters from the study include:
- Average annual production of ~2.2Mlbs U₃O₈
- Life-of-mine of around 12 years
- Heap leach processing with recoveries exceeding 90%
- Low-strip open pit mining with conventional processing
The company also declared a maiden probable ore reserve of 28.0Mlbs U₃O₈, underpinning the project’s development pathway.
March 2025 Feasibility Study – Key Operating and Financial Parameters
Drilling ramps up
Atomic Eagle has now commenced the largest drilling program at Muntanga in almost 20 years, targeting further resource growth across six priority areas.
Preparations during the quarter included securing drilling contracts and fuel supplies to support early-stage operations, with initial work focused on expanding shallow, near-surface mineralisation.
Diesel fuel storage tanks at Muntanga camp (57,000 litre capacity)
Strong cash position supports next phase
The company ended the quarter with $16.3 million in cash, positioning it to fund ongoing exploration and development activities.
Exploration spending totalled $408,000 during the period, with overall net operating cash outflows of $2.8 million.
With a growing resource base, validated development plan and drilling under way, Atomic Eagle is now advancing Muntanga toward its next phase of project optimisation and potential development.