Drill results from U3O8 Corp.’s (UWE-V, UTREF-o) Aricheng South uranium zone, in Guyana, have confirmed the continuity of mineralized shoots in the host structure.
The zone is still open along strike and at depth, leaving plenty of room for resource expansion.
Highlights from the most recent 2,200-metre, 10-hole program include 14.6 metres (true width) grading 0.106% U3O8,5.5 metres at 0.138% U3O8 and 6.6 metres of 0.125% U308.
With the current uncertainty in the capital markets, the company has decided to focus on expanding Aricheng South while still exploring other areas in the Roraima basin.
The company says the South zone is similar to Aurora Energy Resources’ (AXU-T, AUEGF-o) Michelin uranium deposit in Labrador because it’s basement-hosted and concentrated in mineralized shoots that are enclosed by albite alteration. Aricheng South extends 270 metres along strike and to a depth of 180 metres.
“Given its resource prospects, we will focus on expanding the overall size of the mineralized zone at Aricheng South by using wider-spaced drilling to add potential pounds of uranium in a cost-efficient manner,” said U3O8 Corp. president Richard Spencer in a statement.
The company wants to cut monthly spending by 40%, which will lower the burn rate enough so that current cash reserves of $12 million will last the company about 18 months.
Already, U3O8 Corp. owns two drills, reducing the cost of drill programs to about$67 per metre, about half the cost of hiring a contract driller. Owning the drills also allows the company flexibility in the amount of drilling it does.
U3O8 Corp. is expecting initial resource estimates for its Aricheng North and South deposits before the end of the year.
In September, the company reported a 5.5-metre drill intersection grading 1.01% U308 at Aricheng North.
Further drill results are expected in November for the North deposit, as well as Aricheng West.
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