Mustang Energy Launches 2,000m Drill Program at High-Grade Surprise Creek Uranium Project
Mustang Energy has initiated a significant 2,000-metre diamond drilling campaign at the Surprise Creek Uranium-Copper Project in Canada’s Athabasca Basin, aiming to extend previously identified high-grade uranium mineralisation.
- Mustang Energy starts 2,000m diamond drilling at Surprise Creek
- Previous drilling intersected 2.1m at 4.37% uranium oxide from 57m depth
- Mustang can earn up to 80% interest by spending CND$3 million and meeting conditions
- Thunderbird Resources retains a 20% stake and is free-carried through drilling
- Project located in world-class Athabasca Basin uranium district
Drilling Commences at a Promising Uranium-Copper Project
Thunderbird Resources’ joint venture partner Mustang Energy Corporation has kicked off a 2,000-metre diamond core drilling program at the Surprise Creek Uranium-Copper Project, situated in Canada’s renowned Athabasca Basin. This region is globally recognised for hosting some of the highest-grade uranium deposits, making any exploration success here particularly noteworthy.
The current drilling campaign is designed to follow up on earlier promising results, including a standout intercept of 2.1 metres grading 4.37% uranium oxide (U3O8) from a shallow depth of 57 metres. Surface sampling by Thunderbird had also returned assays as high as 7.98% U3O8, underscoring the potential richness of the mineralisation along a strike length of approximately 500 metres.
Strategic JV Structure and Financial Implications
Under the joint venture agreement, Mustang can earn an initial 51% interest in the project by spending CND$1 million on exploration. To increase its stake to 80%, Mustang must meet further conditions including additional exploration expenditure of CND$2 million, cash and share payments to Thunderbird, and assigning a 2% net smelter return royalty to Thunderbird. This structure leaves Thunderbird with a retained 20% interest while being free-carried through the current and subsequent drilling programs, positioning it to benefit from any future discoveries without immediate capital outlay.
Thunderbird’s Executive Chairman, Mike Haynes, highlighted the strategic value of the project, noting the exceptional grades and the improving investor sentiment towards uranium. He emphasised that the Athabasca Basin’s uranium deposits are among the most valuable globally due to their high grades, and that the ongoing drilling could unlock significant upside for both partners.
Looking Ahead, Exploration and Market Context
The timing of this drilling program is notable as the uranium sector experiences renewed interest amid global energy transitions and supply concerns. Should Mustang’s drilling confirm extensions of the high-grade mineralisation, it could materially enhance the project’s valuation and attract further investment attention.
While no new assay results have been released yet, the market will be watching closely for updates as drilling progresses. The forward-looking statements caution that exploration carries inherent risks, but the combination of high-grade intercepts and a prime location in the Athabasca Basin makes Surprise Creek a compelling project to follow.
Bottom Line?
As Mustang drills deeper into Surprise Creek, investors await results that could reshape Thunderbird’s uranium prospects.
Questions in the middle?
- Will Mustang’s drilling confirm extensions of the high-grade uranium mineralisation?
- How will the evolving uranium market dynamics impact the project’s valuation?
- What are the timelines for receiving and reporting assay results from this drilling program?
