Nov 13, 2024

Piche Resources Hits 7.86m @ 2,266 ppm eU3O8 at Ashburton Project, Western Australia

Introduction:

Piche Resources Limited (ASX: PR2) (Market Cap: $9M | Last Close: $0.12) has reported significant uranium intercepts from its recently completed drilling program at the Ashburton uranium project in Western Australia, highlighted by 7.86m @ 2,266 ppm eU3O8 from 105.42m.

Drill Results:

7.86m @ 2,266 ppm eU3O8 from 105.42m (including 3.62m @ 3,763 ppm eU3O8 from 105.76m) [ADD006]
1.32m @ 792 ppm eU3O8 from 86.52m [ADD006]
3.22m @ 617 ppm eU3O8 from 116.58m [ADD006]
3.33m @ 1,394 ppm eU3O8 from 132.38m [ADD006]
39.28m @ 553 ppm eU3O8 from 124.12m (including multiple high-grade zones) [ADD003]‍
6.98m @ 1,617 ppm eU3O8 from 101.84m [ARC001]

Project Overview:

The Ashburton uranium project is located approximately 140km west-southwest of Newman in the Pilbara region of Western Australia. Piche holds three tenements across approximately 122km2 in the area, which hosts potential for uranium exploration.

The project area hosts unconformity-related uranium mineralisation, a style that constitutes approximately 20% of Australia's total uranium resources and about one-third of the western world's uranium resources. Mineralisation occurs along the Lower Proterozoic Wyloo Group/Mid Proterozoic Bresnahan Group contact.

Program Details:

The drilling program involved the completion of 19 holes, with a combined total of 3,082.8 metres (1,776 meters of reverse circulation and 1,306.8 meters of diamond drilling). The campaign met all objectives, confirming historical results, testing a revised structural model for mineralisation, and identifying opportunities for expanding the known mineralisation. Preliminary structural analyses suggest that mineralisation may be controlled by northwest-oriented faults.

Understanding These Results:

The drill results indicate relatively flat lying uranium mineralisation above, below and along the unconformity between the mid Proterozoic sandstones, conglomerates and the lower Proterozoic basement complex. Additionally, steeply dipping zones of uranium mineralisation were identified beneath the unconformity, highlighting promising targets for future exploration.

The mineralisation appears continuous along strike, with one intersection showing widths exceeding 39 meters. The presence of mineralisation at the unconformity, within the overlying sandstone, and the underlying basement complex provides strong evidence to significantly expand the mineralised zone.

Management Commentary:

Stephen Mann, Managing Director of Piche Resources:

"The results from this programme have far exceeded expectations. Initially, we set out to confirm the results of previous exploration activities and test a new hypothesis on the structural controls. We have not only confirmed extensive mineralisation but also identified multiple horizons and significantly broadened the potential for expanding the uranium envelope. The diamond drilling has validated our hypothesis of a northwest structural control on mineralisation, though further drilling is needed to fully assess the significance of this. We are excited by the results so far and look forward to advancing the project further."

Next Steps & Catalysts:

With the drilling program now complete, Piche plans to update its geological model for Angelo A and B prospects and review how these results relate to the broader Ashburton tenement package.

This review will include the Atlantis prospect, 50 km SE of Angelo, which historically returned intersections of 5.5m at 6,200ppm and 2.2m at 7,400ppm U3O8. These results were not followed up in the 1980's due to low uranium prices, but Piche intends to explore this area in the near future given the current favourable uranium market.

Commodity Outlook:

The uranium market has seen a significant price increase, with current prices around $77.00 per lb compared to historical lows of $12.00 per lb. This favourable pricing environment is driving renewed interest in uranium exploration and development projects, particularly in established mining jurisdictions like Western Australia.

Conclusion:

The latest results from Piche Resources' Ashburton project demonstrate potential to expand the known uranium mineralisation. With multiple high-grade intersections and evidence of a large mineralised system extending to depth, the project shows characteristics of a growing uranium deposit. Upcoming geological modelling and further exploration activities will be key catalysts as the company works to advance the Ashburton project.

Sources:

PR2 Drill Results Announcement

Additional Figures:

Australia

ASX

Uranium

Nov 13, 2024