Impact: Positive
Stallion Uranium encountered anomalous radioactivity from the first hole (CF24-001) of the initial drill program on the Appaloosa target within its 100%-owned Coffer uranium project in the Southwestern Athabasca Basin. The interval averaged 358 cps over 4.2m incl. 1,322 cps over 0.3m with a peak of 1,540 cps in sandstones just above the unconformity. A second zone was identified 1.6m into the basement rocks and returned 145 cps over 4m with a peak of 262 cps. The unconformity was hit at 762.6m, shallower than expected, and at similar depths as the Shea Creek deposit 13km to the west. Highly prospective geology and alteration was also intersected as radioactivity was associated with hematite, chlorite and clay alteration with stockwork fracturing. Hole CF24-001 tested a conductor along the eastern edge of a gravity low as outlined by VTEM and TDEM surveys. The second hole, CF24-002, is now underway as a 700m step out to the east of hole CF24-001 and part of the 3,000m drill program at Appaloosa. Management is seeking a uranium discovery along this trend. We would expect 4-5 holes to be completed during this program with final assays to be reported in Summer 2024. In our view, this is a positive result for the initial hole of a maiden drill campaign. Between the structure, radioactivity, alteration and key geological units, Stallion believes it has identified a uranium bearing trend located just 13km east of the ~100M lbs Shea Creek deposit owned by Uranium Energy (NYSEAM:UEC, Not Rated) and Orano. Previous drilling by UEX and Orano at Shea Creek late in the last uranium cycle started to indicate the importance of EW faults crosscutting what is a NS trending series of deposits.
