GUE to drill large uranium project in May
Today, our North American uranium Investment Global Uranium and Enrichment (ASX: GUE) announced it will start drilling its large US uranium JORC resource in May of this year to enable a scoping study to be completed in Q3 2024.
A scoping study will tell us more about the potential economics of the Tallahassee project at a time when the US is desperate to secure more domestic uranium production.
The uranium spot price remains strongly elevated:
The 10 hole, 2300m program is designed to replicate previous work at the project which has a Mineral Resource of 49.8m pounds at a grade of 540ppm.
With a scoping study in hand - we think GUE will ultimately be better placed to seek out financing for further project development works.
GUE has the following projects in North America:
- The Tallahassee project in the US - GUE’s most advanced asset with an existing JORC resource of ~49.8m lb of uranium.
- The Athabasca projects in Canada - Six different exploration assets in the Athabasca basin where some of the world’s highest-grade discoveries have been made/developed.
- The Rattler project in the US - Exploration project in Utah, ~85km away from the only operating conventional uranium processing plant in the USA.
- The Maybell project in the US - a previously operating mine that has produced ~5.3mlbs of uranium in the past. The project has an exploration target of ~4.3 to 13.3m lbs of uranium.
We’re also keen to hear more about its Maybell project in the coming months - drill permits have been lodged for a 40-hole (4,600m) drill program to test for extensions to the previously operating parts of its Maybell project.
The primary objective for the drill program will be to try and convert the exploration target into a maiden JORC resource for the project.
We touched on the exploration potential for the project in a previous Quick Take which you can see here: GUE announces exploration target for US uranium project
GUE expects to be drilling at Maybell in July, after its planned drill program at its more advanced Tallahassee uranium project.
GUE’s Maybell project was previously a producing mine that stopped operating in the 1980’s primarily because uranium prices were too low.
That uranium price environment has certainly changed of late - so we’re hoping that drilling at Maybell can hit the upper bounds of the exploration target for the project of ~4.3 to 13.3mlbs of uranium.
What’s next for GUE?
- Drilling at Tallahassee project (advanced stage JORC resource) 🔄 (May)
- Drilling at Maybell project 🔄 (July)
- Scoping Study at Tallahassee project 🔄(Q3 2024)
