Alligator Energy Ltd (ASX:AGE)’s first drilling program at Samphire Uranium Project in South Australia has returned grades higher than expected from first-pass sonic drilling of the Blackbush deposit.
This marks the first time since 2012 that the project has been explored via drilling with the program designed to increase confidence in the high-grade portion of the Blackbush resource and obtain detailed geological and hydrogeological characteristics of the host sequence.
Results from Hole BBS21-001 include the best intersection of 9.5 metres at 2,353 parts per million (ppm) (0.24%) uranium octoxide (U3O8) above a cut-off of 250ppm U3O8. This includes an interval of 2.0 metres at 6,839 ppm (0.68%) U3O8.
The intersection was hosted in sequential layers of coarse to fine grained sands with minor clay zones directly overlying granite basement.
This geology is supportive of an in-situ recovery, where uranium octoxide will be dissolved in-ground and then extracted as a uranium-rich slurry.
Alligator Energy will use this new data to design and execute a re-estimation of the Blackbush resource.
Initial confirmation of commercial potential
“Alligator is pleased to announce these high-grade assay results, which provide the initial confirmation of the previous gamma derived mineralised zones within the Blackbush deposit,” Alligator Energy CEO Greg Hall said.
“The core has provided the first detailed geological information within the higher-grade portion of the deposit and confirms the opportunity to pursue this mineralisation for application to in-situ recovery (ISR) uranium production.”
So far core logging and multi-element analysis, including carbon analysis, have shown minimal organic derived material in the sand-hosted mineralised intersection.
Five more sonic core holes have been sampled and are progressing through laboratory analysis, while Alligator continues to accumulate mineralised core samples for Australian Nuclear Science and Technology Organisation (ANSTO) leach and extraction test-work.
Alligator will now continue to log and sample sonic cores, while also planning a rotary mud drilling program with downhole logging.
About Alligator Energy
Alligator Energy is a uranium and energy metals project development and exploration group.
The company’s leadership has notable uranium experience including achieving approval of WA’s first uranium mine (Toro Energy), discovery and PFS of the Husab Uranium Mine in Namibia (Extract Resources) and management roles with WMC Olympic Dam, ERA Ranger and Jabiluka Uranium.
Alligator is primarily exploring for uranium in West Arnhem, utilising modern exploration techniques.
The company has also formed a strategic relationship with Traxys North America LLC, the US arm of the global commodities trading group Traxys.