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WINNIPEG - Snow Lake Resources Ltd. (NASDAQ:LITM), a $36.77 million market cap mineral exploration company whose stock has surged over 21% in the past week, announced Friday that drilling will commence at its Pine Ridge uranium project in Wyoming during the week of July 21, as part of its strategy to develop uranium resources that could support U.S. energy security objectives. According to InvestingPro analysis, the company maintains a healthy balance sheet with more cash than debt, though it’s currently experiencing rapid cash burn.
The company plans to undertake approximately 38,000 meters (125,000 feet) of drilling at Pine Ridge, a 50/50 joint venture with Global Uranium and Enrichment Limited. The project is located in Wyoming’s Powder River Basin, approximately 15 kilometers from Cameco’s Smith Ranch Mill. With a current ratio of 2.69, Snow Lake’s liquid assets comfortably exceed its short-term obligations, providing financial flexibility for its ambitious drilling program.
Simultaneously, Snow Lake continues its Phase 2 drilling program at the Engo Valley uranium project in Namibia, which will consist of up to 7,500 meters of combined reverse circulation and diamond drilling. To date, 21 infill reverse circulation holes have been completed in the Main Uranium Occurrence area, with additional drilling in other target zones.
"The U.S. needs more uranium mines in order to achieve its policy objectives of national and energy security. We are of the firm belief that our Pine Ridge uranium project in Wyoming holds the potential to become one of those new uranium mines," said Frank Wheatley, CEO of Snow Lake, in the press release.
Both drilling programs aim to produce maiden resource estimates before the end of 2025, according to the company.
Snow Lake cited recent U.S. Administration executive orders designed to accelerate nuclear energy deployment and reinvigorate the nuclear industrial base, including uranium mining, as potential catalysts for its projects.
The company has selected Single Drilling to execute the Pine Ridge drilling program, citing the contractor’s previous experience at the site. Hawkins CBM Logging will provide geophysical support for the program.
Snow Lake Resources operates as a Canadian mineral exploration company with a portfolio focused on critical minerals and clean energy projects. Trading at $4.70 per share, the stock appears slightly undervalued based on InvestingPro Fair Value analysis. For investors seeking deeper insights, InvestingPro offers 8 additional key tips about Snow Lake Resources, along with comprehensive financial metrics and expert analysis.
In other recent news, Snow Lake Energy reported positive initial results from its Phase 2 drill program at the Engo Valley Uranium Project in Namibia, with notable mineralized intersections found. The company plans to complete a maiden uranium mineral resource estimate for Engo Valley by the end of 2025, contingent on the progress of the Phase 2 drill program. Additionally, Snow Lake Energy announced a strategic investment in GTi Energy to support the development of the Lo Herma uranium project in Wyoming, with the investment allowing Snow Lake to appoint a member to GTi Energy’s Board of Directors. Snow Lake Energy also formed a new nuclear reactor development company in partnership with Exodys Energy, focusing on small modular reactor technology. Furthermore, Snow Lake made a strategic investment in Commerce Resources Corp to advance the Ashram Rare Earths Project in Quebec, aiming to establish secure domestic sources of critical minerals. The company also announced a 1-for-13 reverse stock split of its common shares to meet Nasdaq’s minimum bid price requirement. This corporate action will consolidate 13 existing shares into one new share, reducing the number of outstanding shares. These developments reflect Snow Lake Energy’s ongoing strategic initiatives in the critical minerals and nuclear energy sectors.
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