Kraken Energy is building a portfolio of 5-10 uranium projects in tier one locations in the USA
Kraken Energy Corp. (CSE: UUSA | OTCQB: UUSAF) (“Kraken”) is focused on growing and advancing its portfolio of uranium properties in the United States. Kraken owns 4 uranium projects in Nevada and Utah. The concept is to develop a hub and spoke model with several uranium mines feeding a central mill.
Kraken’s 4 uranium projects in the USA are:
- Apex Uranium Property (100% owned) (Nevada)
- Garfield Hills Uranium Property (option to acquire 100%) (Nevada)
- Huber Hills Property (100% owned) (Nevada)
- Harts Point Uranium Property (option agreement to earn 75%) (Utah)
Note: Kraken’s Apex Uranium Property contains the Apex Uranium Mine, Nevada’s largest past-producing uranium mine. For details on the above first 3 Nevada projects you can read our past article here and on the newly acquired Utah project you can read our article here.
Kraken’s strategy to develop a new US domestic source of uranium
Kraken’s strategy is to rapidly assemble and develop a portfolio of 5-10 uranium projects in the USA, each with potential deposits of 10 to 50 million tonnes of uranium. Ideal targets are those projects with past producing uranium mines or a historical uranium resource and ideally valuable by-products. Projects need to be in Tier 1 mining jurisdictions and have access to infrastructure and year round access.
Thereafter the goal is to rapidly bring these properties to a Pre-Feasibility or Feasibility Stage and ultimately establish a sustainable ‘hub and spoke’ mining model. Kraken’s strategy is to focus on states in the US that have a strong uranium mining history where there is a willingness to get projects to production. So far Kraken’s projects are in Nevada and Utah, but they are also looking at Wyoming, Colorado, and New Mexico. Many of these regions have a history of uranium projects dating back to the 1950’s and 1960’s that have largely been forgotten.
Kraken’s vision to build a U.S-based uranium hub and spoke model to service domestic energy demand
Source: Kraken company presentation
Kraken’s latest news
As announced on July 5, 2023, Kraken has received permits to drill the Harts Point Uranium Property in Utah. Kraken state that the drilling
“is expected to begin in early July. Phase I of the drill program includes an initial 2,000 meters (m) of drilling to twin the three historical holes which span 5 kilometers (“km”) of strike that returned off-scale radioactivity from downhole probe readings.”
High radioactive readings are potentially a good indicator of uranium.
Kraken CEO, Matthew Schwab comments:
“The Harts Point Property is within a district that has had significant historical uranium production, and the Property itself contains three historic oil and gas drill holes across a 5 km strike that returned intervals of off-scale radioactivity within the same geologic unit that has been historically mined in the district. These attributes along with others represent exceptional exploration potential to discover a trend of high-grade uranium deposits located within a pro-mining jurisdiction.….”
As announced on June 6, 2023, Kraken reported geochemical assay results from its maiden drilling program at the Garfield Hills Uranium Property. The results were solid with Kraken stating:
“Of the 11 completed holes, 7 holes encountered shallow, flat lying uranium mineralization, highlighted by hole GH22-01 which intersected a broad 12.5 m interval of 0.036% U3O8 starting from a depth of 23.0 m, and hole GH23-04 which returned 7.0 m of 0.029% U3O8 from 17.5 m.”
The drill results were spread over an area of flat lying uranium mineralization covering 400m by 900m.
Also positive was that additional surface soil sampling along 4 km of strike returned high-grade chemical assay results of over 1.0% U3O8. This suggests it is possible that the uranium mineralization is spread over a much larger area and warrants further drilling.
Closing remarks
Kraken Energy is really ‘cracking along’. Kraken has now acquired 4 USA based uranium projects and intends to grow this to 5-10 projects with a goal to rebuild the US domestic uranium supply chain. Kraken’s strategy is a simple and cost effective way of building a potential significant future uranium production company. At the current pace, investors should not have to wait too long for more potentially good news on their progress. Drill results at the Harts Point Uranium Property will be eagerly awaited.
Kraken Energy trades with a market cap of C$15 million with C$6.5 million cash on hand as of July 2023.
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