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WINNIPEG - Snow Lake Energy (NASDAQ:LITM), a $24.35 million market cap mining company with a strong balance sheet showing more cash than debt, announced Wednesday it has received positive initial results from the first segment of its Phase 2 drill program at the Engo Valley Uranium Project in Namibia. According to InvestingPro analysis, the company appears undervalued based on its Fair Value assessment.
The company completed 31 reverse circulation drill holes totaling 2,719 meters, with eight holes returning mineralized intersections greater than 100 ppm eU3O8, ranging from 1 to 20 meters in width. While the drilling results show promise, InvestingPro data reveals the company’s stock has faced significant challenges, declining over 65% in the past year.
Notable findings include a mineralized intersection of 997 ppm eU3O8 over a 7-meter interval in drill hole ERCH025 and 296 ppm eU3O8 over a 1.2-meter interval in ERCH026, both associated with shale.
The diamond drilling segment of the Phase 2 program is scheduled to begin this week, with 19 diamond drill holes planned for the MUO area and 8 for the D1 area. The entire Phase 2 program is designed to include up to 7,500 meters of combined reverse circulation and diamond drilling.
"Initial results from the RC portion of the drilling program have produced good intercepts of uranium mineralization," said Frank Wheatley, CEO of Snow Lake Energy, in the press release.
Samples from each drill hole have been sent for chemical assays, with results pending. The company cautioned that it uses eU3O8 calculations as preliminary indications for chemical grades that require confirmation through assays.
Snow Lake Energy aims to complete a maiden uranium mineral resource estimate for Engo Valley before the end of 2025, contingent on the Phase 2 drill program continuing as planned and timely receipt of assay results.
Namibia is currently the world’s third-largest uranium producer. Investors anticipating Snow Lake’s next moves should note that the company’s next earnings report is scheduled for June 24, 2025. For deeper insights into Snow Lake’s financial health and additional investment metrics, explore InvestingPro, which offers 8 more exclusive tips about the company’s performance and prospects.
In other recent news, Snow Lake Resources Ltd., operating as Snow Lake Energy, has announced several strategic developments. The company has formed a new nuclear reactor company in partnership with Exodys Energy, focusing on small modular reactor technology. This move is part of Snow Lake’s broader diversification strategy, which includes recent uranium acquisitions and investments in Global Uranium and Enrichment Limited. Additionally, Snow Lake has made a significant investment in Commerce Resources Corp to support the Ashram Rare Earths Project in Quebec, contributing C$1.1 million as part of a C$2.2 million financing effort. This project is recognized as North America’s largest undeveloped Rare Earths Project, crucial for securing domestic sources of critical minerals.
In another development, Snow Lake declared a 1-for-13 reverse stock split to meet Nasdaq’s minimum bid price requirement, reducing the number of outstanding shares significantly. The company is also expanding into blockchain and clean energy sectors, aligning its investments with global electrification trends and AI-driven energy demand. Furthermore, Snow Lake has commenced Phase 2 drilling at its Engo Valley Uranium Project in Namibia, aiming to calculate a maiden uranium mineral resource estimate by the second half of 2025. These initiatives reflect Snow Lake’s commitment to diversifying its portfolio and strengthening its position in the energy sector.
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