Indigo Exploration acquires uranium claims in Wyoming
Indigo Exploration Inc. [TSXV-IXI; OTCQB-IXIXF; FSE-INEN] has entered into an agreement to acquire a 100% interest in the Hot Property, a highly prospective uranium project located in the past producing Shirley Basin of Wyoming.
The Hot Property, which is comprised of 71 unpatented mineral claims covering a 5.75 km2 area, has seen extensive historical exploration dating back to the 1960’s with over 200 holes drilled including near-surface intercepts of 1.83 metres of 1.1% U3O8 at a depth of 43.0 metres and 3.35 metres of 0.28% U3O8 at a depth of 26.8 metres.
The Project is located adjacent to Uranium Energy Corp.’s [NYSE-UEC] Shirley Basin project, Ur-Energy Inc.’s [NYSE-URG] Shirley Basin mine, and Nuclear Fuels Inc.’s [CSE-NF] Bobcat Uranium Project. Ur-Energy Shirley Basin project hosts an NI 43-101 Measured and Indicated Resource of 8.8 Mlb U3O8 grading 0.23% and is currently under construction.
“Gaining 100% interest in a project of this calibre, located in a key uranium district next to past production and some of the preeminent US-focused uranium producers and developers, and with extensive historical drill result”, is an exciting new development for the company.” commented Paul Cowley, President and CEO of Indigo Exploration.
Wyoming represents the largest uranium producing state and contains the greatest uranium ore reserves within the United States. The Shirley Basin located 40 miles southwest of Casper, Wyoming, produced over 51 million pounds of U3O8 from 1960 to 1992 at an average grade of 0.22% U3O8. The Shirley Basin mines closed not for a lack of resource but due to economic factors following the Three Mile Island accident (1979). The importance and relevance of the Shirley Basin today is reflected in production resurgence with Ur-Energy’s production plans.
The Hot Property is strategically located just 800 metres east (0.5 mile) of an historic production area and 1.8km (1.1 miles) from Ur-Energy’s uranium resource. Indigo uncovered 202 drill logs from public records from holes drilled in the 1960’s on ground now covered by the Hot Property.
One intercept (H1-Zeb-44) encountered 1.83 metres of 1.1% U3O8 at a depth of 43.0 metres and a second hole (H6-Zeb-44) encountered 3.35 metres of 0.28% U3O8 at a depth of 26.8 metres. Of the 202 holes, approximately 46% intercepted shallow uranium mineralization. Depth to mineralization ranges from 3-130 metres but average 46 metres deep in Eocene-aged Wind River Formation, the uranium host unit in the Shirley Basin. The Hot Property is particularly promising as one third of the mineralized holes on the property have two or more uranium intercepts.
Company geologists are compiling historic data in order to design an initial verification and infill drill program that can be submitted for permitting this summer, for drilling projected to start in early fall 2024. Multiple campaigns of drilling will likely be needed to justify a NI 43-101 mineral resource. Numerous existing trails criss-cross the Hot Property which would provide easy access and minimal surface disturbance for the RC drill programs.
Underground and open pit mining methods as well as in-situ recovery (ISR) were employed in production operations in the Shirley Basin. Since the 1990’s all uranium mining in Wyoming uses the ISR process, a solution mining method that leaving the ore where it is in the ground and recovers uranium through a system of drill holes by dissolving and pumping the pregnant solution to the surface where the uranium can be recovered. Consequently, there is little surface disturbance, and no tailings or waste rock generated. Lower Capex and Opex from this approach see uranium grades at ISR operations as low as 0.04% U3O8.
The company signed a purchase agreement with a private vendor to acquire a 100% interest in a private limited liability Arizona company which holds the Hot claims. Under the agreement, the company will pay an aggregate of CDN$20,000 and make share issuance of 200,000 shares in the company to earn 100% interest, without any NSR royalty. The agreement remains subject to the approval of the TSX Venture Exchange.