Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) has provided an update on the ongoing summer 2022 drill program at its flagship Davidson River project in Canada’s premier uranium district, the Athabasca Basin.
The Vancouver-based mineral resource exploration company also announced the closing of the first tranche of its ongoing brokered private placement for gross proceeds of $3.15 million.
On May 16, 2022, the firm began the fourth drill campaign on its flagship 25,886-hectare Davidson River project, which is expected to comprise 5,000 metres (m) in 13 drill holes, following-up on the most prospective basement structures and alteration zones intersected to date and testing new target areas along the four major exploration trends on the project. Several kilometres (km) of graphitic conductors remain to be tested at Davidson River, said the company.
In a statement, Standard Uranium CEO Jon Bey said: “The Davidson River drill program had a very successful start and our drill team from Base Drilling are meeting the expected drilling objectives. The first two dill holes on the Thunderbird trend have excited our geologists and we have decided to focus the majority of remaining holes on this trend.”
All completed drill holes have confirmed the existence of the conductor targets, intersecting stacked graphitic-sulphidic high-strain zones within basement rocks on the Thunderbird and Bronco trends. Notably, the first drill hole completed on the Thunderbird trend – DR-22-033A – intersected structurally controlled redox alteration fronts and graphite within semi-brittle structures from 162.1 to 167.5 meters (m), both important ‘pathfinder’ features to uranium mineralisation in the Athabasca Basin.
Meanwhile, Sean Hillacre, Vice President of Exploration, said: “The technical team and I are extremely pleased with how well drilling is going at Davidson River, and we are encouraged by the alteration and structure we’re seeing in our first couple of holes on the Thunderbird trend.”
“The strong redox fronts associated with graphitic structures are a common geological ‘pathfinder’ assemblages observed proximal to uranium mineralization in the Athasbasca Basin. We are excited to follow up drill down-dip and along strike of these altered structures.”
Drilling will continue through July and drill core samples will be sent to the Saskatchewan Research Council (SRC) Geoanalytical Lab in Saskatoon periodically as they are collected throughout the season, said the company.
Brokered private placement
Separately, the company said that it has closed the first tranche of its brokered private placement and sold 7.31 million units at a price of C$0.11 per unit and 18,065,846 flow-through (FT) units at a price of C$0.13 per FT unit for aggregate gross proceeds of C$3.15 million. The offering is being led by Red Cloud Securities Inc. on behalf of a syndicate of agents that includes Canaccord Genuity (TSX:CF, LSE:CF) Corp.
Each unit consists of one common share and one half of one common share purchase warrant. Each FT unit consists of one common share of the company issued as a “flow-through share” and one half of one warrant. Each whole warrant entitles the holder to purchase one common share of the company at a price of C$0.17 at any time on or before June 27, 2024.
The net proceeds raised from the offering will be used for the exploration of the company’s Davidson River project and for working capital purposes.
The second and final tranche of the offering is scheduled to close in mid-July.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
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