Vancouver, Canada-based Nuclear Fuels (CSE:NF) has discovered two new zones of uranium mineralisation in Wyoming’s Powder River Basin, home to some of the world’s largest uranium deposits.
The explorer, which has a market capitalisation of C$36.2 million ($40.2 million), uncovered the new zones of roll front-hosted uranium mineralisation at its Kaycee In-Situ Recovery (ISR) Uranium Project.
Drilling at the new Outpost and Trail Dust Zones returned a top hit of 6.5 feet @ 0.082% uranium from 767 feet, for a total hole grade thickness of 0.532.
Nuclear Fuels says this is the best result so far from regional exploration at the Kaycee Project and potentially ISR-recoverable uranium mineralisation with a grade thickness of greater than 0.20 is considered suitable for inclusion in a potential wellfield.
The Powder River Basin has a long history of in-situ uranium production and has been known as the backbone of Wyoming production since the 1970s. The region hosts the majority of ISR projects in the state.
In October 2024, Nuclear Fuels shifted its focus to testing regional targets that have not been previously extensively explored for uranium mineralisation.
The targets were generated following the evaluation of over 500 oil and gas logs, with an initial focus on an area located about 8 miles to the east of the Saddle Zone, and about 6 miles to the west of Energy Fuels’ (NYSE:UUUU) Nichols Ranch ISR uranium mine, which is currently being prepared for restart in mid-2025.
CEO Greg Huffman says the discoveries, aided by the team’s deepening understanding of the geology and mineralisation, highlight the strong potential of the area for further exploration and will serve as a launching point for the 2025 drill program.
Follow-up drilling is planned for May. The initial focus will be to follow up on the new discoveries at the Outpost and Trail Dust Zones to better define their orientation and geometry.
This year’s drill program will also test other high-priority regional targets.
Meanwhile, Nuclear Fuels has been added to Sprott Junior Uranium Miners ETF – the only pure-play exchange-traded fund focused on small uranium miners.
Sprott believes a new uranium bull market is likely underway as demand outstrips supply, nations seek energy security and prices have the potential to increase.
Various countries have committed to tripling global nuclear energy capacity by 2050 to reach net-zero goals.
The Kaycee Project comprises 55 square miles of mineral rights over a 35-mile mineralised trend hosting 430 miles of identified roll fronts.
Nuclear Fuels says Kaycee is believed to be the only project in the Powder River Basin where all three known historically productive sandstone formations – Wasatch, Fort Union, and Lance – are mineralised and potentially accessible for ISR extraction.
ISR involves dissolving the minerals within the ore while it is still in the ground and then pumping the solution to the surface for recovery.
Write to Angela East at Mining.com.au
Images: Nuclear Fuels
