Snow Lake Energy begins phase 2 drilling at uranium project

Published 16/04/2025, 17:10
Snow Lake Energy begins phase 2 drilling at uranium project

WINNIPEG, Manitoba - Snow Lake Resources Ltd., also known as Snow Lake Energy (NASDAQ:LITM), has commenced the Phase 2 drill program at its Engo Valley Uranium Project in Namibia. The $43.6 million market cap company, which specializes in uranium exploration and development, has reported that drill crews are already on site with the initial holes of the program completed. According to InvestingPro data, the company maintains a strong liquidity position with more cash than debt on its balance sheet.

The program is set to include up to 7,500 meters of reverse circulation and diamond drilling. The objective is to establish a drill database robust enough to facilitate the calculation of a maiden uranium mineral resource estimate, expected to be completed in the second half of 2025. This estimate will adhere to the standards of SK-1300.

Snow Lake’s CEO, Frank Wheatley, stated, "Our objectives for Phase 2 are simple - to complete sufficient drilling to allow us to calculate a maiden resource estimate at Engo Valley during the second half of 2025." He also emphasized the importance of new uranium sources to meet the increasing global demand driven by the expansion of nuclear energy production.

The Phase 2 drill program is primarily focused on two target areas within the project, known as the Main Uranium Occurrence (MUO) and the D1 target area. Additional targets identified by a 2024 radon cup survey outside these main focus areas will also be tested, with downhole radiometrics performed on each drill hole.

Snow Lake Energy, listed on the Nasdaq under the ticker LITM, is a Canadian mineral exploration company with a portfolio that includes two uranium projects in Namibia and Saskatchewan, and two hard rock lithium projects in Manitoba. The company’s stock has shown significant momentum, posting a 73.7% return over the past six months, despite currently trading below its InvestingPro Fair Value. With a beta of 0.57, the stock demonstrates lower volatility compared to the broader market. InvestingPro analysis reveals 8 additional key insights about LITM’s financial health and market position.

This news is based on a press release statement and the company has cautioned that the statements regarding future events are forward-looking and subject to risks, uncertainties, and assumptions. Snow Lake Resources has not provided an update on the progress of the drill program beyond what is contained in the press release.

In other recent news, Snow Lake Resources Ltd., also known as Snow Lake Energy, has announced its investment of approximately A$5.8 million in Global Uranium and Enrichment Limited (GUE), acquiring a 19.99% interest. This investment is part of GUE’s A$10 million equity raise, which aims to fund the acquisition of the Pine Ridge Uranium Project in Wyoming. Snow Lake has also entered into a joint venture with GUE, with both companies holding a 50% stake in the Pine Ridge project. This collaboration is poised to benefit from a new Executive Order prioritizing uranium as a critical mineral, which could expedite the permitting process and increase access to federal financing for the project. Snow Lake’s CEO, Frank Wheatley, expressed optimism about the potential impact of this policy on the Pine Ridge project. Additionally, the company is involved in other clean energy mineral projects, including uranium and lithium ventures. These developments signify Snow Lake’s strategic moves to strengthen its position in the uranium exploration sector. Meanwhile, Nova Minerals Ltd. has disclosed its interim financial results for the second half of 2024, providing investors with insights into the company’s financial health and operational outcomes.

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