High grade uranium in the US
Last week on Thursday, our US uranium Investment, Global Uranium and Enrichment (GUE) reported high-grade uranium drill results from the first two holes at its Maybell Uranium Project in Colorado.
These are high grade, chunky hits that are coming at a time when the uranium spot price remains elevated at ~US$79/lb.
Highlight intercepts included:
17m at 0.166% U3O8 (1,660 ppm) from 81m depth in hole MB-009, and 9.9m at 0.067% U3O8 (666 ppm) from 71.9m in MB-018A.
As well as:
Thick lower grade zones were also intersected, such as 30.3m at 0.015% U3O8 (150 ppm) from 283.8m in MB-009.
The rest of the drill results are shown below:
GUE says the high-grade shallow hits and thick lower grade zones intersected validate the company’s exploration model and confirm the strong potential at Maybell, which is a “recognised uranium district with historical production of 5.3m lbs U3O8.”
Converting the exploration target to a maiden resource estimate is a key milestone for advancing the project.
Below are the proposed drill locations for the Maybell Uranium Project:
How does this affect our GUE Investment Memo?
Objective #3: Drill at least two projects
GUE has a portfolio of US based uranium assets at different levels of maturity (3 projects across Colorado and Utah) it also has ground in the Athabasca Basin (6 projects), Canada, a prolific uranium region. We want to see GUE drill at least two of these projects. Drilling is what will ultimately build value and scale in its assets.
GUE is delivering high grade drill results at this project in Colorado, ideally leading to a resource at the project, we hope this ultimately enhances GUE’s valuation on a “pounds in the ground” basis.
What’s Next for GUE?
Upon completing the current drill program, GUE plans to prepare a maiden mineral resource estimate for Maybell.
Depending on the resource size and economics, next steps could potentially include additional drilling in 2025 and a scoping study to evaluate development options.
Beyond that, a Scoping Study is due at GUE’s advanced ~50Mlb JORC resource in another part of Colorado this quarter.
