Indigo Exploration receives OK to close Hot acquisition
Indigo Exploration receives OK to close Hot acquisition
2024-08-15 16:53 ET - News Release
Mr. Paul Cowley reports
INDIGO REPORTS TRANSACTION CLOSING ON HOT URANIUM PROJECT, WYOMING
Further to Indigo Exploration Inc.'s news release dated July 9, 2024, it has received TSX Venture Exchange (TSX-V) approval for and completed the acquisition of a 100-per-cent interest in the Hot property, a highly prospective uranium project located in the past-producing Shirley basin of Wyoming, comprising 71 unpatented mineral claims covering a 5.75-square-kilometre area (the acquisition).
The Hot property claims have seen extensive historical exploration dating back to the 1960s with over 200 holes drilled including near-surface intercepts of 1.83 metres of 1.1 per cent U3O8 at a depth of 43.0 metres and 3.35 metres of 0.28 per cent U3O8 at a depth of 26.8 metres. The project is located adjacent to Uranium Energy Corp.'s Shirley basin project, Ur-Energy Inc.'s Shirley basin mine, and Nuclear Fuels Inc.'s Bobcat uranium project. Ur-Energy's Shirley basin project hosts a National Instrument 43-101 measured and indicated resource of 8.8 million pounds U3O8 grading 0.23 per cent and is currently under construction.
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, Wyo., produced over 51 million pounds of U3O8 from 1960 to 1992 at an average grade of 0.22 per cent U3O8. The Shirley basin mines closed not for a lack of resource but due to lower uranium prices. The importance and relevance of the Shirley basin today is reflected in production resurgence with Ur-Energy's production plans.
Hot property
The Hot property is strategically located just 800 metres east (0.5 mile) of an historic production area and 1.8 kilometres (1.1 miles) from Ur-Energy's uranium resource. Indigo uncovered 202 drill logs from public records from holes drilled in the 1950s on ground now covered by the Hot property. One intercept (H1-Zeb-44) encountered 1.83 m of 1.1 per cent U3O8 at a depth of 43.0 m and a second hole (H6-Zeb-44) encountered 3.35 m of 0.28 per cent U3O8 at a depth of 26.8 m. Of the 202 holes, approximately 46 per cent intercepted shallow uranium mineralization. Depth to mineralization ranges from three m to 130 m but average 46 m 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 have designed an initial 50-hole reverse circulation drill program and has submitted a notice of intent permit application to the BLM (Bureau of Land Management) for permitting of the RC (reverse circulation) drill program.
Terms of transaction
Pursuant to the acquisition, the company has acquired a 100-per-cent interest in a private limited liability Arizona company which holds the property claims. The company has paid an aggregate of $20,000 and made a share issuance of 200,000 shares of the company to earn the 100-per-cent interest, without any NSR (net smelter return) royalty. In addition to the acquisition costs, the company will assume the annual landholding costs for the property, which will amount to $14,200 (U.S.) before Sept. 1, 2024. The transaction closed on Aug. 14, 2024.
We seek Safe Harbor.