Nov 21, 2024

Alligator Energy Hits 1.3m @ 1.94% U3O8 at Samphire Project, South Australia

Introduction:

Alligator Energy (ASX: AGE) (Market Cap: $163M | Last Close: $0.042 | Cash: $23M ) has reported notable uranium mineralization from its resource and extension drilling program at the Samphire Uranium Project near Whyalla, South Australia, highlighted by 1.3 meters at 1.94% U3O8 from 62.6m.

Drill Results:

1.3m @ 1.94% U3O8 from 62.6m (GT 25,208) [BBRM24-304]
1.1m @ 0.44% U3O8 from 62.94m (GT 4,832) [BBRM24-278]
2.4m @ 0.20% U3O8 from 56.7m (GT 4,675) [BBRM24-338]
1.1m @ 0.36% U3O8 from 58.59m (GT 3,996) [BBRM24-321]
1.7m @ 0.23% U3O8 from 63.1m (GT 3,934) [BBRM24-282]‍
0.8m @ 0.45% U3O8 from 65.03m (GT 3,604) [BBRM24-283]

Project Overview:

The Samphire Uranium Project is located near Whyalla in South Australia. The project area includes the Blackbush deposit, where recent drilling has focused on extending mineralization west and south of the Blackbush West resource. The project benefits from its location in a Tier 1 mining jurisdiction with good infrastructure access.

The current drilling program has extended uranium mineralization by a cumulative 500m of strike length outside the known Blackbush West Mineral Resource Envelope. The project's geological setting is characterized by roll-front uranium deposits within paleochannels.

Program Details:

The recent drilling program comprised 61 holes for 5,158m from mid-July to mid-November 2024. Drilling focused on extending mineralization west and south of Blackbush West, as well as converting inferred resources to indicated category. The program has refined understanding of the host paleochannel boundary and identified a broader presence of uranium-bearing Kanaka Bed sands than previously interpreted.

Understanding These Results:

The reported intersections represent significant extensions beyond the current resource envelope, particularly in the western and southern areas of Blackbush West. High-grade intercepts, such as 1.3m @ 1.94% U3O8, indicate the potential for localized zones of very high-grade mineralization within the broader deposit.

Grade-thickness (GT) values are used to assess the economic potential of roll-front uranium deposits, with higher GT values generally indicating more favourable mineralization. The highest GT value reported was 25,208 from BBRM24-304, which is considered exceptional for this style of deposit.

Management Commentary:

Greg Hall, CEO of Alligator Energy, stated:

“We are excited to see Blackbush deposit mineralisation extending well outside the current mineral resource envelope. The experienced roll-front mapping capabilities within our Samphire geological team continue to extend uranium mineralisation and are narrowing the search for other potentially economic roll front structures as we step-out further from the known resource at Blackbush.”

Next Steps & Catalysts:

Alligator Energy plans to complete an update of the JORC Resource Estimate in Q1 2025, incorporating results from January to mid-April drilling. This update will target both resource expansion and category conversion from inferred to indicated.

The company has engaged a drilling contractor for sustained exploration and resource drilling throughout the 2025 calendar year. Drilling is set to resume in early Q1 2025, focusing on priority target areas identified from the 2024 program.

Commodity Outlook:

Uranium continues to see strong fundamentals driven by increasing global demand for nuclear energy as a low-carbon power source. Australia, as a stable mining jurisdiction with significant uranium resources, is well-positioned to benefit from potential growth in the uranium market.

Conclusion:

The latest results from Samphire demonstrate significant potential to expand the current resource base and improve confidence in the existing resource. With mineralization remaining open in multiple directions and high-grade intercepts encountered, the project continues to show characteristics of a substantial uranium system with growth potential.

Sources:

AGE Drill Results Announcement

Additional Figures:

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Nov 7, 2024