Alligator Energy Makes Significant Progress at Samphire Uranium Project

Cashed-up Alligator Energy Limited (ASX: AGE) has made significant progress in advancing the Samphire Uranium Project located near Whyalla, South Australia.

The company is focused on initiating an In-Situ Recovery (ISR) Field Recovery Trial (FRT) to assess the project’s viability.

FRT Plant Nears Completion and Regulatory Approvals Progress

Fabrication of the FRT processing plant in Adelaide is nearing completion. Modules are currently undergoing final testing (Factory Acceptance Testing) before transportation to Whyalla.

Alligator have responded to feedback received during the public and government consultation on the Retention Lease (RL) proposal for the FRT.

The company anticipates a decision on the RL within six to eight weeks. Following RL approval, a Program for Environmental Protection and Rehabilitation (PEPR) will be submitted.

Granting of the PEPR signifies the final regulatory hurdle before commencing FRT construction.

The company had $36.5 million of cash as of 31 December 2023.

Strong Resource Upgrade and Positive Scoping Study Results

Alligator completed resource infill drilling in October 2023, converting a significant portion of the Blackbush Mineral Resource from Inferred to Indicated classification.

This resulted in a 21% increase in the Indicated Mineral Resource to 12.9Mlbs U3O8 at an average grade of 754ppm.

An updated scoping study also confirmed the project’s potential with a 69% increase in post-tax Net Present Value (NPV8) to A$257 million and a reduction in payback period to 2.45 years.

Net project cashflow (post Capex and tax) saw an increase of 52% to A$467M.

A 20% step-up in the steady state annual production with only a minor 2% increase in capital expenditure forecast to A$131M.

A favourable average cash operating costs scenario of (C1) of A$22.94/lb U3O8 was revealed.

Exploration Activities Identify Potential Resource Extensions

Exploration drilling continues around the Blackbush deposit targeting extensions to the uranium roll-front system. Additionally, a ground gravity survey has commenced to identify potential extensions of the paleochannel system south of the known uranium deposits.

FRT Ready for Construction Upon Approvals

The successful completion and testing of key FRT processing modules demonstrate Alligator’s readiness to proceed with FRT construction upon receiving the necessary approvals.

The company remains committed to transparent communication with stakeholders regarding the FRT’s minimal environmental impact and its role in generating valuable data for future project development.

Positive Indications for Resource Expansion

Initial data from the resource extension drilling program suggests the potential for expanding the Blackbush mineralized envelope.

Detailed results and interpretations will be released to the market in the coming months. The ongoing gravity survey on the newly acquired EL 6350 tenement also holds promise for identifying extensions of the paleochannel system to the south.

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