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Friday, Feb 14, 2025
Mugglehead Investment Magazine
Alternative investment news based in Vancouver, B.C.

Copper

Indigo Exploration picks up Hot Property uranium project in Wyoming for cash and shares

Hot Property is 71 unpatented mineral claims over 5.75 square kilometers with historical exploration since the 1960’s

Indigo Exploration picks up Hot Property uranium project in Wyoming for cash and shares
Image from Artyom Korshunov via Unsplash.

Indigo Exploration Inc. (TSXV: IXI) (OTCQB: IXIXF) (FSE: INEN) has acquired the Hot Property, a uranium project in the Shirley Basin of Wyoming.

Announced on Tuesday, the company signed a purchase agreement with a private vendor to acquire a private limited liability Arizona company that holds the Hot claims. Under the agreement, the company will pay an aggregate of CDN$20,000 and issue 200,000 shares, without any NSR royalty.

Hot Property is 71 unpatented mineral claims over 5.75 square kilometers with historical exploration since the 1960’s with over 200 holes, including near surface interceptions of 1.83 meters of 1.1 per cent U308 at 43 meters and 3.35 meters of 0.28 U308 at 26.8 meters depth. The company announced the deal on Tuesday.

The project is close to Uranium Energy Corp.’s (NYSE: UEC) Shirley Basin project, Nuclear Fuels Inc.’s (CSE: NF) Bobcat Uranium Project, and Ur-Energy‘s (TSX: URE) (NYSE: URG) Shirley Basin project, which hosts a Measured and Indicated Resource of 8.8 Mlb U3O8 grading 0.23 per cent.

Wyoming leads as the largest uranium-producing state and holds the greatest uranium ore reserves in the United States. Located 40 miles southwest of Casper, Wyoming, the Shirley Basin produced over 51 million pounds of U3O8 from 1960 to 1992.

The Shirley Basin mines closed because of economic factors following the Three Mile Island accident in 1979.

The Hot Property sits 800 meters east of a historic production area and 1.8 km from Ur-Energy’s uranium resource.

Read more: U.S. Gold to present at New York’s Current Trends in Mining Finance Conference

Read more: U.S. Gold secures US$4.9 million to advance Wyoming copper-gold asset

Indigo found 202 drill logs from public records

Indigo uncovered 202 drill logs from public records for holes drilled in the 1960s on ground now covered by the Hot Property. One intercept encountered 1.83 meters of 1.1 per cent U3O8 at a depth of 43.0 meters, and a second hole encountered 3.35 meters of 0.28 per cent U3O8 at a depth of 26.8 meters.

Of the 202 holes, approximately 46 per cent intercepted shallow uranium mineralization. Depth to mineralization ranges from 3 to 130 meters, with an average depth of 46 meters in the Eocene-aged Wind River Formation, the uranium host unit in the Shirley Basin. The Hot Property is particularly promising because one-third of the mineralized holes on the property have two or more uranium intercepts.

Company geologists are compiling historic data to design an initial verification and infill drill program for submission this summer, with drilling projected to start in early fall 2024. Multiple drilling campaigns will likely be needed to justify an NI 43-101 mineral resource. Numerous existing trails criss-cross the Hot Property, providing easy access and minimal surface disturbance for the RC drill programs.

In the Shirley Basin, production operations employed underground and open pit mining methods as well as in-situ recovery (ISR).

Since the 1990s, all uranium mining in Wyoming has used the ISR process. This solution mining method leaves the ore in the ground and recovers uranium through a system of drill holes by dissolving the ore and pumping the pregnant solution to the surface.  After which, the uranium can be recovered.

Consequently, this method results in little surface disturbance and generates no tailings or waste rock. The lower capital and operational expenses approach will allow uranium grades at ISR operations to be as low as 0.04 per cent U3O8.

Shirley Basin Uranium claims map. Image via Indigo Exploration.

Wyoming holds many multi-metallic treasures

Wyoming boasts a rich multimetallic bounty, including significant deposits of uranium, gold, and copper. Uranium production, particularly in the Shirley Basin, has been a cornerstone of Wyoming’s mining industry, utilizing modern in-situ recovery methods to minimize environmental impact.

Gold exploration and production have also been prominent, with US Gold Corp (NASDAQ: USAU) holding significant gold assets in the state.  These include the advanced-stage CK Gold project near Cheyenne. Also, rare earth elements responsible for production in many modern technologies have been discovered in Wyoming. Specifically, Rare Element Resources (OTCQB: REEMF) owns the Bear Lodge Critical Rare Earth Project in Northeastern Wyoming.

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U.S. Gold Corp. is a sponsor of Mugglehead news coverage

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