Samphire Uranium Project Targets 42% IRR with Trial Production Underway

Samphire Project Moves Closer to Production

Alligator Energy is advancing its Samphire Uranium Project in South Australia into a critical phase with the imminent start of a Field Recovery Trial (FRT). This trial is designed to simulate commercial in situ recovery (ISR) uranium production, a method that extracts uranium without traditional mining, reducing environmental impact and costs. The FRT will provide essential data to optimise the upcoming Bankable Feasibility Study (BFS) and support mining lease applications.

The project benefits from its location in South Australia, a globally recognised uranium jurisdiction with a proven approvals process and strong regional infrastructure. Situated just 20 kilometres from Whyalla, a steelmaking hub, Samphire enjoys access to skilled labour and local engineering services, underpinning its development prospects.

Strong Economics Underpin Confidence

Alligator Energy’s updated scoping study highlights compelling economics for the initial stage of production. With a capital expenditure of A$131 million and all-in sustaining costs around A$47.58 per pound of uranium, the project targets a post-tax internal rate of return (IRR) of 42% and a net present value (NPV) of A$257 million, assuming a uranium price of US$75 per pound. The payback period is estimated at just 2.45 years, signalling a financially attractive venture for investors.

Construction of the pilot plant has been completed on time and under budget, with final commissioning underway. The FRT will generate recovery data critical to de-risking the project technically and economically, paving the way for commercial production targeted for 2030/31.

Exploration Upside and Resource Growth

Beyond trial production, Alligator Energy is actively pursuing resource growth at Samphire. The Blackbush deposit currently holds an 18 million pound uranium resource, with exploration targets suggesting potential to add between 14 and 75 million pounds through extensions and new drilling at Blackbush and Plumbush. The regional paleochannel system remains largely untested, offering significant upside potential.

Complementing Samphire, the Big Lake Project has delivered promising early results, including thick intervals of anomalous uranium mineralisation. This discovery, in a province previously unexplored for uranium, could unlock a new uranium province in Australia, further enhancing Alligator Energy’s growth prospects.

Experienced Team and Clear Milestones

Led by CEO Dr Andrea Marsland-Smith, who brings over two decades of ISR uranium development experience, Alligator Energy is focused on delivering the Samphire project on time and budget. The company has outlined a clear timeline of milestones, including FRT results expected within months, BFS completion, and mining lease approvals. These catalysts are anticipated to drive near-term value uplift for shareholders.

With strong stakeholder relations, a supportive jurisdiction, and a strategic approach to derisking and resource expansion, Alligator Energy is positioning itself as a key player in Australia’s uranium sector as global demand for clean energy metals grows.