Global Uranium and Enrichment reports a successful maiden drilling program at its Maybell Uranium Project, confirming high-grade uranium continuity, alongside a strategic sale of its Enmore Gold Project to Koonenberry Gold.
- Completion of maiden drill program at Maybell with thick, high-grade uranium intercepts
- Maybell JORC-compliant Mineral Resource Estimate expected by Q1 2025
- Binding agreement executed for sale of Enmore Gold Project, receiving 35 million KNB shares
- Tallahassee Uranium Project resource upgraded to 52.2 million pounds U3O8
- Athabasca exploration permit renewed; no activity during quarter
Strong Drilling Results at Maybell Uranium Project
Global Uranium and Enrichment Limited (ASX: GUE) has delivered a robust quarter ending 31 December 2024, highlighted by the completion of its maiden drilling program at the Maybell Uranium Project in Colorado, USA. The program comprised 25 holes totaling 3,200 metres and yielded shallow, thick, and consistently high-grade uranium mineralisation that exceeded initial expectations. Notable intercepts included 4.3 metres at 0.361% U3O8 and 4.6 metres at 0.300% U3O8, with several zones demonstrating grades above 0.5% U3O8 over significant widths.
This drilling success confirms the continuity and quality of uranium mineralisation at Maybell, reinforcing the project's potential for resource growth and development. The company is now integrating both historic and new drilling data to develop a 3D geological model that will underpin the maiden JORC-compliant Mineral Resource Estimate, anticipated in the first quarter of 2025. This model will also guide future drilling campaigns aimed at expanding mineralisation along strike and at depth.
Resource Upgrade and Scoping Study Progress at Tallahassee
Meanwhile, at the Tallahassee Uranium Project in Colorado, Global Uranium reported an upgraded JORC (2012) Mineral Resource Estimate for the Hansen deposit, increasing the total resource to 52.2 million pounds of U3O8 at a 250 ppm cut-off grade. This represents a 5% increase over previous estimates and reflects the company's increased ownership stakes across key deposits in the district, including 100% interests in Taylor, Boyer, and High Park, and 51% in Hansen and Picnic Tree.
The company continues to advance a scoping study for Tallahassee, expected to be completed in early 2025, which will assess the project's development potential and economics. This study is a critical step toward unlocking value from the substantial resource base in a prolific uranium district.
Strategic Divestment of Enmore Gold Project
In a strategic portfolio move, Global Uranium executed a binding sale agreement with Koonenberry Gold Ltd (ASX: KNB) for the Enmore Gold Project in New South Wales, Australia. The transaction, completed in November 2024 following shareholder approval, involved the receipt of 35 million fully paid ordinary shares in KNB, currently valued at approximately AUD 840,000.
This divestment underscores Global Uranium's focus on its core uranium assets while maintaining exposure to gold through its equity stake in Koonenberry. The move is expected to provide low-risk participation in the development of Enmore and Koonenberry's broader portfolio.
Athabasca Portfolio and Rattler Project Update
Global Uranium's Athabasca Basin portfolio in Saskatchewan, Canada, remains strategically positioned with 74 granted mineral claims covering over 55,000 hectares in the world's premier high-grade uranium district. The company successfully renewed its exploration permit allowing up to 40 drill holes through March 2026, although no exploration activities were conducted during the quarter.
Similarly, the Rattler Uranium Project in Utah, USA, which includes historic uranium mines and is proximal to the only operating conventional uranium mill in the US, saw no exploration activity this quarter. The project is notable for its high vanadium assay results from prior sampling, adding potential value beyond uranium.
Financial Position and Outlook
At quarter-end, Global Uranium held cash reserves of approximately AUD 638,000 and investments valued at around AUD 906,000. Subsequent to the quarter, the company successfully raised AUD 1.8 million through a placement of approximately 29 million shares at AUD 0.062 each, bolstering its financial capacity to advance exploration and development activities.
Exploration and evaluation expenditure for the quarter totaled AUD 1.5 million, reflecting ongoing drilling, scoping studies, and consulting services. The company confirmed that it expects lower exploration expenditure in coming quarters following the completion of major drilling programs.
Global Uranium's strategic focus on advancing high-grade uranium assets in prolific districts, combined with prudent portfolio management and a strengthened balance sheet, positions it well to capitalize on the evolving uranium market dynamics.
Bottom Line?
With Maybell's maiden resource estimate imminent and strategic assets realigned, Global Uranium is poised for a pivotal growth phase in 2025.
Questions in the middle?
- How will the upcoming Maybell JORC resource estimate impact Global Uranium's valuation and development plans?
- What are the key findings expected from the Tallahassee Scoping Study, and how might they influence project financing?
- How will Global Uranium leverage its equity stake in Koonenberry Gold to benefit from the Enmore Gold Project's progress?