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Premier American Uranium (PUR) provided a drilling update for the on-going drilling campaign at the wholly-owned Cyclone ISR Uranium Project, located in Wyoming. In the midst of a 37 hole campaign (~17,500 ft), 19 drill holes have been completed with several holes intersecting mineralized intervals consistent with the grades and thickness included in last year's NI43-101 Technical Report. Given progress to date, we maintain our C$3.00 per share target which equates to upside of +76% from the most recent close.
As released on August 27, drill results from 19 (representing 9,125 ft) of the 37 (~17,500 ft) planned drill holes were released. The drilling area was exclusively on the Rim Target (North Block), representing the Northwest target area of the Cyclone project. The drilling program at Rim is expected to be completed in the late fall. Drilling will then reconvene next summer at the Osborne Draw (East Block) target.
Historic drilling at Rim was limited to a campaign conducted between 2007-2008 by a previous operator. The highlight drill holes as released yesterday are located between 10 ft-75 ft from the historic drill hole collars. The highlights include:
6.5 ft grading 0.066% eU3O8 (GT of 0.43) in Hole CR24-033 (from 253.5 ft down hole)
8.5 ft grading 0.028% eU3O8 (GT of 0.24) in Hole CR24-036 (from 196.5 ft down hole)
6.0 ft grading 0.033% eU3O8 (GT of 0.20) In Hole CR24-037 (from 248.5 ft down hole)
The drilling program confirmed the presence of uranium mineralization at depths and locations as suggested from the historic drilling campaign. Moreover, the initial drill results included numerous drill holes which intersected mineralization intervals consistent with the grades and thicknesses included in last year's NI43-101 Technical Report which highlighted an exploration target between 7.9M-12.6M lbs at an average grade of 0.06% eU3O8. The highlight grades are consistent with other Wyoming based ISR projects which are currently in production, on the cusp of production or being developed.
Of the 19 completed drill holes from Rim, 6 holes intersecting mineralization while 5 holes encountered very weak (less than 0.02% eU3O8) mineralization. A further 6 holes either encountered alteration typical of sandstone-hosted uranium deposits while 2 holes failed to encounter any mineralization or alteration. Ultimately, 8 of the drill holes were designed to explore for the regional redox boundary to the east of the reported historical mineralization, and 3 intersected alteration characteristic of a redox interface. The additional 18 drill holes from Rim are expected to be completed by October.
Combined at Rim and Osborne, the company expects to drill-test via a staged program totaling approximately ~71 holes or ~49,700 ft. This program will span the 2024 and 2025 drilling seasons. The majority of the drilling on the Osborne Draw Target is expected to occur during the 2025 drilling season, spread over July to October.
Factoring corporate adjustments and using a per lb valuation for both Cyclone and Cebolleta, we derive a C$4.98 per share valuation. Applying a 0.60x NAV multiple, we maintain our C$3.00 per share, 12-month price objective. This equates to upside of +76% from the most recent close. Shares of Premier American Uranium currently trade at a P/NAV of 0.34x.
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