Bonanza uranium hit grows high-grade find for this leveraged $30m junior

Canadian uranium explorer 92 Energy (92E) has made a major breakthrough in its bid to grow the rich Gemini discovery, hitting bonanza-grade mineralisation in its latest drilling program.

The high grade result of up to 6 per cent eU₃O₈ is considered a game-changer. Not only is it 65m away from the known mineralisation , it also demonstrates that this large system has the potential to host extremely high grades throughout.

This means the mineralisation at the Gemini discovery, which sits in Canada’s world-class Athabasca Basin, has now been identified over an area of 490m by 240m area and remains open.

Given the rapidly growing size of the discovery and the company’s market capitalisation of just $30m, it is little wonder that Managing Director Siobhan Lancaster describes 92 as being “in the investor sweetspot”.

“These latest results show we are creating substantial shareholder value,” Ms Lancaster said. “Gemini is a significant, shallow discovery in the world-class uranium province of the Athabasca Basin.

“The value of our discovery is made even greater when viewed against the strong demand outlook for North American uranium due to growing use of nuclear power and the push to diversify supply away from Russia.”

The latest drilling has also highlighted huge potential to grow Gemini to the north, with holes 280m away intersecting highly anomalous uranium mineralisation up to 0.6m of 0.1% eU3O8 associated with intense hydrothermal alteration and structural disruption

And drilling 450m and 1km north of the Gemini Discovery has encountered wide zones of hydrothermal alteration and brecciation, further highlighting the scope for ongoing expansion of this rich find.

“It is clear that we have an important discovery and a huge opportunity at Gemini,” Ms Lancaster said.

“These latest results demonstrate the excellent potential for Gemini to host a deposit with genuine scale and high grades.

“They extend the Gemini Uranium Discovery by another 65m along strike, taking the footprint to at least 250m x 240m and it remains open to the north.

“We are particularly encouraged by drilling 280m north of the Gemini mineralised zone, where we have intersected radioactivity and strong alteration, reminiscent of the discovery drillhole at Gemini.

“It is also important to remember that Gemini sits in a prospective 2.8km-long trend which hosts several promising targets that are viewed by the Company to be structural analogues to the discovery area.

“Given the high-grade mineralisation, and the open nature of the discovery, we have immediately started planning a follow-up drilling program.

“This will be aimed at continuing to grow the Gemini discovery and testing highly promising targets nearby to ensure we maximise our ability to unlock the full value of this rapidly growing asset in a timely manner”.

This article was developed in collaboration with 92 Energy, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.