Alligator Energy Ltd (ASX:AGE) has opened higher on uncovering its highest-grade uranium to date thanks to resource drilling at the Samphire Uranium Project’s Blackbush deposit in South Australia.
The rotary mud drilling campaign is now complete, intersecting multiple, interpreted roll fronts that extend some 200 metres from Samphire’s indicated resource boundary.
Some of the highlights include:
- 1.04 metres at 2.02% (20,200 parts per million (ppm)) uranium (pU3O8) from 70.4 metres, including 0.5 metres at 3.54% from 70.6 metres;
- 2.12 metres at 0.64% (6,400 ppm) from 60 metres;
- 1.94 metres at 0.85% (8,500 ppm) from 59.8 metres;
- 1.72 metres at 0.89% (8,900 ppm) from 59.2 metres; and
- 1.42 metres at 0.71% (7,145 ppm) from 66.4 metres.
Investors have greeted the news with AGE shares rising up to 13.65% to A$0.05 in early trading.
What now?
Alligator hopes to upgrade some of its inferred uranium resource to the higher-confidence indicated category, which will support its upcoming scoping study (expected before year’s end).
This means the study can use a higher-category resource to underpin most of its proposed in-situ recovery (ISR) mining schedule.
As such, much of the recent drill program focused on the Blackbush West indicated resource, designed to increase and enhance the continuity already seen.
Thirty-five holes were completed testing the target sequence and further drilling is expected early in the new year.
Simultaneously, Alligator has received draft results from the ANSTO uranium leach and recovery test-work.
The explorer is preparing its final report for release but notes the results have been on-par with its expectations.
Extending the resource west
Speaking to the latest uranium hits at Samphire, Alligator CEO Greg Hall said: “The mineralisation continuity and exceptional grades found around Blackbush West have been exciting to see and have continued to buoy our positive view of this project.
“The high-grade zones encountered appear to be extending the resource to the west in an area with little historical drilling.
“With the resource update now underway, along with the commencement of populating the scoping study models, we are looking forward to releasing results on these, along with the ANSTO test-work when finalised.”