Alligator Energy Ltd (ASX:AGE) has released an initial higher-grade mineral resource estimate (MRE) targeting In-Situ Recovery (ISR) for Blackbush Deposit of the Samphire Uranium Project near Whyalla in South Australia.
The combined inferred and indicated ISR mineral resource is 14.8 million pounds of uranium (U3O8) at a 250 parts per million (ppm) cut-off grade from 10 million tonnes at 666 ppm U3O8.
Alligator undertook additional drilling of 50 holes and validation work to update the initial JORC MRE aimed at lifting the cut-off grade to focus on a potential ISR resource.
Plan view of the location/area of the inferred and indicated mineral resource of the Blackbush Deposit
Higher grade means higher confidence
The MRE was prepared by AMC Consultants (Perth) using previous owner UraniumSA Ltd's historical drilling data, along with data acquired through Alligator’s rotary-mud and sonic drilling campaigns in late 2021/early 2022.
Comparisons were made of the uranium metal content estimated at various cut-off grades in UraniumSA’s 2013 MRE for Blackbush within the ISR-amenable Kanaka Beds only, which identified a favourable 25% increase in metal content.
With the updated MRE of 666 ppm U3O8 average grade, Blackbush is now on par with several existing and previously operating ISR projects in Australia and in the United States.
Focus on high-quality resource
Alligaor CEO Greg Hall said: “This updated initial mineral resource estimate on the Blackbush Deposit, at a potentially ISR mineable cut-off grade, is an improvement on the historical resource based on a 250 ppm cut-off grade and Kanaka bed mineralisation only.
“AGE has not included mineralisation in lithologies we believe are not amenable to ISR and have included only Kanaka Beds with known hydrogeological properties in which updated leach tests are being completed.
"When undertaking a scoping study, it is important to focus on a high-quality resource that we believe can be economically extracted.
“Alligator is positioning itself as a uranium developer with projects that compare favourably on technical characteristics, which it believes creates more value for shareholders.
"With around 50 drill holes lifting 6 million pounds into the indicated category, we are about to commence a further program of 100 holes in the Blackbush Deposit, which will extend from early October through until next year where we expect to add to this initial mineral resource.”
Extension drilling next
Alligator will begin its next drilling program of 100 infill and extensional holes at Blackbush in early October 2022.
The aim is to target further conversion of the MRE from inferred to the indicated category as well as to follow up on extensions of the known high-grade zones, where mineralisation is not closed off and to test areas where historical data outside the MRE flags the potential for additional accumulations of uranium mineralisation.
With the work on the updated MRE now completed, a scoping study will be conducted and delivered in early-to-mid fourth quarter of 2022.
Areas targeted for mineral resource upgrade infill drilling and extension at Blackbush
Development work
Leach and extraction test work on the Blackbush core by the Australian Nuclear Science and Technology Organisation (ANSTO) is well advanced and is expected to be completed in mid-to-late September. Preliminary results have been encouraging.
AGE has also secured Daishsat Geodetic Surveyors to undertake a high-resolution ground gravity survey commencing on September 7, 2022, at Blackbush and its surrounds to map the host palaeochannel in detail.
This will help Alligator plan its 2023 district-scale exploration drilling program which is expected to focus on exploring the palaeochannel system located 5 kilometres south of Blackbush towards the Plumbush area.
Alligator has initiated discussions with the pastoral landowner regarding access for follow-up work at Plumbush, which is also hosted within the Samphire palaeochannel within the Kanaka Beds.
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