Indigo has acquired 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 km2area, 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 (UEC-NYSE) Shirley Basin project, Ur-Energy Inc.’s (URG-NYSE) Shirley Basin mine, and Nuclear Fuels Inc.’s (NF-CSE) Bobcat Uranium Project. Ur-Energy’s Shirley Basin project hosts an NI 43-101 Measured and Indicated Resource of 8.8 Mlb U3O8 grading 0.23%1 and is currently under construction2.
“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 results, is an exciting new development for the Company.” commented Paul Cowley, President & CEO of Indigo Exploration.
The Shirley Basin of Wyoming
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.
Figure 1: Shirley Basin Uranium Project Map
Hot Property
The Hot Property is strategically located just 800m 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 1.83m of 1.1% U3O8 at a depth of 43.0m and a second hole (H6-Zeb-44) encountered 3.35m of 0.28% U3O8 at a depth of 26.8m. Of the 202 holes, approximately 46% intercepted shallow uranium mineralization. Depth to mineralization ranges from 3m to 130m but average 46m 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.
The Company’s 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.
“The resurgence in the uranium market fundamentals coupled with the bipartisan support in the US to secure domestic sources of uranium, positions the Company on the forefront to benefit from these compounding trends,” commented Indigo’s President & CEO, Paul Cowley. “We are excited to be a part of the evolving Shirley Basin camp.”
In-situ Recovery of Uranium in Wyoming
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.
1 Updated Initial Assessment Technical Report Summary on Shirley Basin ISR Uranium Project, Carbon County Wyoming, USA dated March 4, 2024 and prepared by Western Water Consultants, Inc.
2 Ur-Energy Announces Decision to Build Out Shirley Basin Mine: Press Release dated March 13, 2024
Terms of Transaction
The Company has signed a purchase agreement with a private vendor pursuant to which it acquires a 100% interest in a private limited liability Arizona company which holds the Hot claims located in the Shirley Basin of Wyoming. Pursuant to the agreement, the Company, with the payment of an aggregate of CDN$20,000 and issuance of 200,000 shares in the Company will own 100% interest, without any NSR royalty.