Resource Upgrade Raises Questions on Feasibility and Production Scale at Samphire
Alligator Energy has announced a significant upgrade to its Blackbush Deposit uranium resource, increasing the Indicated Mineral Resource by 10% following a successful 2024 drilling campaign. This enhancement strengthens the Samphire Project’s feasibility outlook and supports plans for higher production rates.
- Indicated Mineral Resource increased 10% to 14.2 million pounds U3O8 at 786 ppm
- Total Mineral Resource Estimate rose 3% to 18.0 million pounds U3O8 at 676 ppm
- Resource upgrade supports potential production rate increase beyond 1.2 million pounds per annum
- Advanced geophysical data and revised modelling improve resource confidence and integrity
- Future drilling planned at Blackbush extensions and Plumbush prospect, pending approvals
Resource Upgrade Highlights
Alligator Energy (ASX: AGE) has delivered a noteworthy update to its Mineral Resource Estimate (MRE) for the Blackbush Deposit, part of the Samphire Project in South Australia. The 2024 drilling campaign has successfully increased the Indicated Resource by 10%, now standing at 14.2 million pounds of U3O8 at an average grade of 786 ppm. This marks a remarkable 135% growth in the Indicated category since drilling commenced in 2022.
The total MRE has also seen a modest 3% uplift to 18.0 million pounds at 676 ppm U3O8, reflecting both the addition of new mineralisation outside previous envelopes and refined geological modelling. Notably, 78% of the total metal content is now classified as Indicated, enhancing the resource’s readiness for detailed wellfield design and supporting a potential increase in production rates beyond the current 1.2 million pounds per annum target.
Technical Advances and Modelling Refinements
The updated MRE incorporates extensive reprocessing and reinterpretation of downhole geophysical data, including Prompt Fission Neutron (PFN) and gamma sonde measurements. A key methodological change was raising the PFN tool’s lower detection limit from 250 ppm to 500 ppm U3O8 to improve grade estimate reliability, particularly in lower-grade zones. This adjustment, combined with a more nuanced bulk density model informed by borehole magnetic resonance data, has increased the precision and integrity of the resource estimate.
AMC Consultants prepared the MRE in accordance with the JORC Code, applying dynamic anisotropy and ordinary kriging techniques to model the complex paleochannel-hosted uranium mineralisation. The deposit extends approximately 2.7 km along strike, with mineralisation widths averaging 300 m and depths around 60 to 80 m below surface. The resource classification reflects confidence in geological continuity, data quality, and grade distribution, assuming in situ recovery (ISR) mining methods.
Strategic Implications and Next Steps
CEO Greg Hall emphasised that the resource upgrade aligns with the company’s transition from scoping to definitive feasibility studies, underpinning wellfield design and potential production scale-up. The enhanced Indicated Resource provides a stronger foundation for mining lease applications and operational planning.
Looking ahead, Alligator Energy plans to focus its 2025 drilling program on extensions to the Blackbush Deposit and the nearby Plumbush Prospect. These efforts aim to convert additional Inferred resources to Indicated and explore new mineralisation zones, subject to access and heritage approvals. A field recovery trial is also scheduled, which will further validate metallurgical assumptions and ISR amenability.
Overall, the updated MRE represents a significant step forward for the Samphire Project, reinforcing its potential as a robust uranium development asset in South Australia’s emerging energy minerals landscape.
Bottom Line?
Alligator Energy’s resource upgrade at Blackbush sets the stage for a pivotal feasibility phase and potential production growth.
Questions in the middle?
- How will the revised PFN detection limits affect resource confidence in marginal grade zones?
- What timelines and regulatory hurdles remain before the planned field recovery trial and expanded drilling can proceed?
- To what extent could the increased Indicated Resource translate into higher production rates and improved project economics?
