Although the price of U3O8 has maintained its steady ascent, U3O8 (UWE-V, UTREF-O) — the company — watched its share price plummet 25% in one day recently, on the news that it intersected uranium in the first two holes drilled on its Permit A property in Guyana’s interior.
U3O8’s best results include a 10.5-metre intersection grading 0.091% U3O8 and 7.5 metres grading 0.13% U3O8.
The company’s stock fell $1.20 to $3.60 on trading volume of 1.5 million shares on the news.
At the time, the U3O8 spot price was US$120 per lb.
“We are pleased with the results of the first two confirmation holes, they clearly confirm economic concentrations of uranium are present in the basement rocks in Permit A,” said U3O8 president and CEO Allan Ibbitson in a statement.
The first two holes twinned holes drilled by Cogema, a subsidiary of Areva (ARVCF-O), located along the Aricheng North anomaly, which has a 1,400-metre strike length. Cogema explored for uranium in Guyana between 1979 and 1984, but there are no known records of Cogema’s results.
U3O8 plans to drill 12,000 metres this year, with first-phase drilling consisting of 16 holes over 2,400 metres to depths of between 130 and 350 metres. In addition to Aricheng North, the drilling will also focus on the Aricheng West and South areas, which are three of 43 radioactive anomalies discovered in an airborne radiometric survey done last year.
All three targets are about 12 km east of the Roraima basin, which could represent the roots of unconformity-related mineralization. Rock and chip samples collected from these areas graded up to 0.91% U3O8.
The company has a second property adjacent to Permit A, called Permit B, for a total of 13,000 sq. km. of land.
Ibbitson said the results suggest that uranium concentrations will also be found in Permit B, in the basement of the Roraima basin.
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