Kraken Energy Abandons Apex Drill Program, Receives Permits For Harts Point
Kraken Energy (CSE: UUSA) is abandoning an ongoing drill program at its Apex property in Nevada, following the receipt of exploration permits for the Harts Point Uranium property in southern Utah and less than favorable results from the current program.
The Apex program, which was scheduled to amount to 2,200 metres of planned drilling across 24 holes, has been halted after 873.5 metres were drilled in aggregate across three holes. All holes are said to have failed to hit bedrock, and were abandoned at depths of about 300 metres.
The company had expected to hit basement at depths between 50 to 150 metres in these drilling areas, based on VTEM data Kraken collected last year. The failure to hit basement resulted in the pause on drilling and the decision to reevaluate targeting for the property. Certain targets west of the Apex Mine, the largest historical uranium mine in Nevada, are said to still contain merit in terms of potential exploration.
“Regarding Apex, we anticipate resuming drilling there once the property is fully permitted, including the US Forest Service portions. While we are encouraged by the continued exploration at Apex, we believe that we can run our drill program more effectively and efficiently once we have the property fully permitted,” commented Kraken CEO Matthew Schwab.
Harts Point Exploration
On a more positive note, approval has been granted for further drill testing at the Harts Point property in Utah, which is found in the center of the Colorado Plateau. A revised exploration permit will enable the company to drill test the property from two pad locations across 5 kilometres of strike.
Exploration is targeting the uranium bearing Chinle Formation. Three historical oil and gas wells on the property are said to have returned off-scale radioactivity within the formation. Historic drilling identifies that radioactivity was detected in thicknesses between 2.1 and 3.7 metres at depths from 390 to 417 metres within the Chinle Formation host rock.
The formation notably has been the target of mining in the region, with historic mines located just 11 kilometres to the west seeing 280,000 pounds of U3O8 pulled out of the ground at a grade of 0.3%. The Lisbon Valley Anticline, found 31 kilometres to the east, meanwhile produced 80 million pounds of U3o* at 0.34%.
Harts Point, following the results of Apex, is said to be the “immediate focus” for Kraken in 2024.
Kraken Energy last traded at $0.23 on the CSE.
Information for this story was found via Sedar and the sources mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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