Global Uranium and Enrichment (ASX:GUE) is gearing up for a 4,600m July 2024 drilling program at its wholly owned Maybell Uranium Project in Colorado, US.
The $26.52 million market capitalisation company has submitted permit applications with the requisite authorities to undertake drilling, which is being designed to confirm historic intercepts in unmined areas.
Drilling is also expected to evaluate extensions to known ‘high-grade’ mineralisation to support the conversion of the current exploration target to a JORC compliant resource estimate, as well as assess the potential of deeper zones of mineralisation.
Managing Director Andrew Ferrier says Maybell is an ‘important’ part of the company’s US uranium exploration strategy given the resurgence in uranium prices, coupled with its initial assessment of ‘strong’ potential for more discoveries.
“Maybell is an established historic uranium district that ceased operations due to low uranium prices in the 1980s. The current resurgence in uranium prices, combined with our initial assessment that there is strong potential for more discoveries in the area, makes Maybell an important part of our US uranium exploration strategy.
We see our 100% ownership of Maybell as an exciting opportunity, and we look forward to getting our drilling program underway and reporting the results to shareholders later in the year as we work toward a significant JORC compliant resource estimate.”
In December 2023, Global Uranium established an exploration target range at Maybell of 4.3 to 13.3 million pounds triuranium octoxide (U3O8) at a grade range of 587 to 1,137 parts per million U3O8 after an ‘extensive’ data review.
However, the target was limited to around historic pits, incorporating only a small portion of the entire project.
Maybell sits at the southern end of the Sand Wash Basin between the towns of Maybell and Lay in Moffat County. The project has historically produced 5.3 million pounds U3O8 between 1954 to 1964 and 1976 to 1981.
Global Uranium and Enrichment holds ‘strong’ strategic positions in North America’s most prolific uranium districts, the Tallahassee Creek District in Colorado, and Canada’s Athabasca Basin which currently supply about 20% of the world’s uranium.
According to Trading Economics, uranium is currently trading at US$106 per pound as of 5 February 2024, and touts the nuclear energy metal to be trading at US$108 per pound by the end of the current quarter.
As of 30 December 2023, the company had $1.178 million cash and cash equivalents at hand, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Global Uranium and Enrichment