Energy Metals’ Bigrlyi Progress Hinges on Uranium Market Rally and Regulatory Shifts

Exploration Highlights at Bigrlyi Joint Venture

Energy Metals Limited (ASX: EME) has delivered encouraging exploration results for the quarter ended 31 December 2024, with the Bigrlyi Joint Venture (BJV) project in the Northern Territory taking centre stage. The company received excellent chemical assay results that validated previous downhole gamma logging data, reinforcing confidence in the drilling program's accuracy. This confirmation has enabled Energy Metals to update its 3D geological models and commence a revised Mineral Resource Estimate (MRE) for the Bigrlyi deposit, a key asset characterised by high-grade uranium and valuable vanadium credits.

Alongside resource modelling, Energy Metals has initiated mining studies aimed at assessing the deposit's future extraction potential. These efforts are complemented by detailed planning for the 2025 exploration program, signalling a methodical approach to advancing the project towards development readiness.

Ngalia Regional Project Progress and Walbiri South Drilling

In parallel, the company completed reconnaissance reverse circulation (RC) drilling at the Walbiri South prospect, located approximately 50 kilometres east-southeast of Bigrlyi. Although no economic uranium intersections were encountered, the drilling confirmed the presence of key stratigraphic units known to host uranium mineralisation, including the B-Sandstone and Beta Shale formations. Anomalous uranium levels, up to five times background, alongside elevated vanadium and organic carbon, suggest that the geological environment remains prospective.

Energy Metals plans to expand reconnaissance drilling across the estimated 5-kilometre strike extent of Walbiri South in 2025, aiming to identify zones with stronger mineralisation signatures. This cautious yet optimistic approach reflects the company's commitment to thorough exploration before escalating investment.

Financial Position and Market Context

Financially, Energy Metals remains well-capitalised with approximately $9.97 million in cash and bank deposits at quarter-end, providing a solid foundation for ongoing exploration and project development activities. The company’s largest shareholder, China Uranium Development Company Limited, a subsidiary of the global nuclear giant CGN, holds a 66.45% stake, offering strategic market access and potential capital support.

The uranium market itself presents a cautiously optimistic backdrop. While spot prices softened from US$82 to US$73 per pound during the quarter, long-term prices have stabilised above US$80 per pound. Industry analysts widely anticipate a price rally in 2025, driven by over 20 countries expanding nuclear power capacity to meet decarbonisation goals. Vanadium prices also showed modest gains, enhancing the value proposition of Energy Metals’ vanadium credits.

Outlook and Strategic Positioning

Energy Metals’ methodical advancement of its Northern Territory projects, combined with its strong financial footing and strategic partnership with CGN, positions the company to capitalise on the anticipated uranium market upswing. The ongoing refinement of the Bigrlyi resource and the promising geological indicators at Walbiri South underscore a pipeline of exploration catalysts for 2025.

Meanwhile, the company continues to navigate regulatory and land access considerations, notably at its Macallan project, where negotiations with Traditional Owners and the Central Land Council are ongoing. In Western Australia, projects like Manyingee remain on hold due to the state’s uranium mining ban, but Energy Metals is monitoring market and political developments closely.