Resource Upgrade Raises Stakes but Economic Viability Still Unproven

Resource Growth and Maiden Estimates

Atomic Eagle Limited (ASX: AEU) has announced a 24% uplift in total uranium Mineral Resources at its flagship Muntanga Uranium Project in Zambia, following the completion of its maiden drilling campaign. The total resource now stands at 58.8 million pounds of U3O8 at an average grade of 309 ppm, representing an increase of 11.4 million pounds.

This upgrade includes maiden pit-constrained Mineral Resource Estimates (MRE) for two key deposits: Chisebuka, with an inferred resource of 9.7 million pounds at 220 ppm, and Muntanga East, with 1.7 million pounds at 252 ppm. These additions bolster the project’s inventory and highlight the potential scale of uranium mineralisation across the licence area.

Cost-Efficient Discovery and Strategic Outlook

Remarkably, the resource expansion was achieved at a discovery cost of just US$0.05 per pound of uranium, a fraction of the current spot price near US$89 per pound. This low-cost success underscores the effectiveness of Atomic Eagle’s exploration strategy and the prospectivity of the Muntanga Project.

Chief Executive Officer Phil Hoskins emphasised the significance of this result, noting it as a strong endorsement of their approach and a solid foundation for reaching the Exploration Target of 40 to 100.5 million pounds of U3O8 announced late last year. The company is preparing to launch the largest drilling program at Muntanga in almost two decades, aiming to further expand the resource base and unlock additional shareholder value.

Geological Context and Methodology

The Muntanga Project is situated within the Karoo Supergroup sedimentary basin in southern Zambia, a region known for sandstone-hosted uranium deposits. The mineralisation occurs primarily within the Escarpment Grit Formation, with uranium precipitated under reducing conditions in sandstones and siltstones. The recent drilling focused on infill and extension of known deposits, employing a combination of open-hole percussion and diamond core drilling, with uranium grades primarily determined by calibrated downhole gamma logging.

Independent specialists Snowden Optiro assisted in resource estimation, applying rigorous geostatistical methods and economic constraints to define optimised pit shells. The Mineral Resources have been classified as Inferred, reflecting confidence in geological continuity and grade estimation, but are not yet Ore Reserves and do not guarantee economic viability.

Environmental and Funding Position

Atomic Eagle is advancing environmental and social impact assessments aligned with international standards, including resettlement action plans where necessary. The company’s strong cash position of $19.2 million as of December 2025 provides a solid financial platform to support the upcoming exploration activities and project development milestones.

With excellent infrastructure nearby, including sealed road access to key towns and export routes, the Muntanga Project is well positioned to capitalise on growing uranium demand.