GUE to start drilling US uranium project in three weeks
Our Investment Global Uranium and Enrichment (ASX: GUE) now has a firm date for when drilling will start at its newly acquired uranium project in Wyoming, USA.
The contractors are now officially engaged and drilling is expected to start on the 21st of July.
GUE expects to drill ~38,000m with its 2025 exploration program - aimed primarily to try and better define its project's exploration target.
GUE’s Pine Ridge project sits ~15km away from Cameco’s Smith Ranch asset - the USA’s biggest permitted ISR uranium processing facility.
The Pine Ridge Project is a 50-50 Joint Venture with NASDAQ listed Snowlake Resources.
Snowlake is also GUE’s biggest shareholder (holding 19.99% of GUE).
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…
(key word is potential, there is still a lot of drilling and money that needs to go into the project before GUE gets there - and there is no guarantee)
GUE’s project currently has a 24.4M to 51.3M lb exploration target - compared to Cameco’s project which has a 36.2m lb resource.
(Source)
The main thing we want to see is GUE confirming that the project has as big an exploration target as the one that was announced when GUE first acquired the project.
GUE’s resource could actually be even bigger…
After acquiring the project, GUE expanded the project area 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:
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 secure permits.
Drilling is expected to start on the 21st of July.
🔄 Enrichment Technology (GUE owns 21.9% of private company Ubaryon)
A few weeks ago, 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.
Read 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)
