GUE outlines 38,000m drill program at its US uranium project.

Our Investment Global Uranium and Enrichment (ASX: GUE) just detailed its first drill program for its newly acquired uranium project in Wyoming, USA.

GUE just closed the acquisition of the Pine Ridge project, which sits ~15km away from Cameco’s Smith Ranch asset.

Smith Ranch is where the USA’s biggest permitted ISR uranium processing facility is located.

GUE’s project sits across ~37,387 acres, and has the potential to host a uranium resource, bigger than the one at Cameco’s project…

GUE owns the asset 50-50 with its Joint Venture partner - NASDAQ listed Snowlake Resources.

Snowlake is also GUE’s biggest shareholder (holding 19.99% of GUE).

Yesterday, GUE announced that it would be kicking off a 38,000m drill program on this project in July.

In yesterday’s announcement GUE said that contractor selection was underway and permit approvals were expected in June…

For this first round of drilling, GUE will be targeting the areas in red across its project:

What we want to see from GUE’s first drilling program?

The main thing we want to see is GUE confirming that the project has as big an exploration target to the one that was announced when GUE first acquired the project.

GUE’s project had a 24.4M to 51.3M lb exploration target. When GUE announced the acquisition on the 12th of March.

By late April, GUE expanded the prospective strike across the project from ~225km to ~435km by staking more ground in the area.

So the prospective area almost doubled…

We think that additional ground could mean GUE’s exploration target is actually a lot bigger than the 24.4 to 51.3m lb number announced in March.

Here are the before and after images in a handy GIF format - keep watching to see the image magically change before your eyes:

With some drilling on the expanded project area we think there is a good chance GUE can define a JORC resource or at the very least an exploration target way above the upper end of its current exploration target.

That would put GUE’s project on par with the assets owned by the majors in this part of the US.

Cameco’s project ~15km away only has a 36.2m lb resource.

Here is how GUE’s project ranks versus Cameco’s:

(Source)

Ultimately, the size of the resource GUE can define will be what gives its project value in the market and to other corporates who are monitoring this part of the US.

Check out our 8 key reasons why we like GUE’s new project where we detail one of the active regional peers who has been buying up assets in this part of the world…

Read the reasons here: GUE’s new US uranium project: 8 things we like about it.

What’s next for GUE?

🔄 Drilling & exploration plans for Pine Ridge

We want to see gue get permitting in order and start mobilising to site.

GUE said in yesterday’s announcement that the 38,000m drill program would start in July.

🔄 Enrichment Technology (GUE owns 21.9% of private company Ubaryon)

A few weeks ago now, GUE’s enrichment Investment signed a non-binding deal with the second biggest producer of enriched uranium in the world - Urenco.

Urenco is the biggest non-Russian/Chinese enriched uranium supplier in the world.

Urenco is BIG, and we think the ideal partner to help GUE’s enrichment tech investment further progress the technology.

We want to see the deal with Urenco be converted from a non-binding agreement into a binding agreement.

Check out our note on that deal with Urenco here: Second largest uranium enricher in the world Urenco agrees terms for investment into GUE’s enrichment tech

Here are the key milestones we are tracking for GUE’s enrichment tech investment:

🔄 Secure strategic/commercial partner for uranium enrichment technology

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

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

🔄 Regulatory approvals

🔄 Maiden JORC Resource at Maybell, Colorado, USA (coming months)

GUE has a number of other North American uranium exploration & development assets.

One of those is Maybell - located in Colorado, USA.

GUE completed a drill program on that project in October last year and is now in the resource definition phase.

Depending on the resource size and economics, next steps could potentially include additional drilling in 2025 and a scoping study to evaluate development options.