GUE gets key permit, drilling next

We’ve been waiting for this…

This morning, our North American uranium Investment, Global Uranium and Enrichment (ASX: GUE) announced that it has received a key permit for exploration drilling at one of its Colorado, USA uranium projects.

The Maybell project is a historically producing project - it previously produced 5.3Mlbs at an average grade of 1300ppm.

As a result we are looking forward to hopefully seeing some thick high grade hits in the upcoming 40 hole program at Maybell - ideally enabling GUE to hit the upper bounds of its previously announced exploration target of 4.3 to 13.3Mlbs of uranium.

Historical grades and intercepts at the Maybell project are high, with one hit of 7.3m at 2,200ppm (parts per million) uranium - so we’re looking for similar results.

Drilling will start in early August with the following proposed drill holes (yellow dots):

(Source)

Drilling is designed to support a JORC resource and will also test the potential for deeper zones of mineralisation.

A strong JORC resource here could further underpin GUE’s valuation - the company already has A ~50Mlb JORC resource (also in Colorado) and today’s permit news comes hot on the heels of a very promising update regarding the company’s investment in enrichment tech:

Uranium enrichment technology achieves 3x “separation factor” in enrichment process

We’re pleased with how GUE is progressing this year in a strong uranium price environment and we are eager to see what drilling can turn up at the Maybell project.

What’s next for GUE?

Drilling at Tallahassee project (advanced JORC resource) 🔄

Drilling is ongoing at the Tallahassee project (~50Mlb JORC Resource), with GUE currently 6 holes into their 10 hole drill program.

Results from the drill program will then be incorporated into the Scoping Study which will be completed in Q3 2024.

Drilling at Maybell project in the US 🔲

Drilling is expected to commence at this brownfields uranium project in August 2024, where GUE has an exploration target of 4.3 - 13.3Mlbs.

Historical grades and intercepts at this project are high and we think large enough to warrant a significant drill program (one hit was 7.3m at 2,200ppm).

GUE is planning for a 40 hole program at Maybell.

Good hits from this project shape as a potential catalyst for GUE and may catch the market off guard, if positive.

Further updates on uranium enrichment technology (Ubaryon) 🔄

At the fundamental level we want to see Ubaryon de-risk its enrichment technology both operationally and from a regulatory perspective:

🔄 Further validation and extend the enrichment performance (show how well it works)

🔲 Achieve continuous operation at bench scale (scale up process)

🔲 Regulatory approvals

At the same time we are hoping Ubaryon is successful in getting funding either from the Australian Federal government grant or through the US$700M program made available by the US Department Of Energy (DOE) .