• 92 Energy recently made a uranium discovery called GMZ near the surface in the Athabasca Basin, with promising initial drill results including 42m at 0.61% U308.
• The company plans further exploration and drilling at GMZ, targeting potential additional zones along a 1.8km trend to the north.
• 92E also has a second project called Tower, 10km from Cigar Lake, where they are doing a small drill program to test the potential for unconformity-style high-grade uranium mineralization.
• The company believes the uranium market is set to enter a new bull cycle driven by rising demand for nuclear as a source of reliable low-carbon baseload power.
• 92E's management has extensive previous success exploring for uranium in Athabasca Basin during the last commodity boom.

Targeting 2nd Major Discovery After Recent High-Grade Uranium Hit

Perth-based mineral exploration company 92 Energy (92E) is set to undertake further drilling at its Gemini project in Canada's Athabasca Basin after intersecting significant high-grade uranium mineralization from recent drilling at the newly discovered GMZ zone.

Speaking in an exclusive interview, 92E Managing Director Siobhan Lancaster said the company would conduct additional work at GMZ seeking to outline further mineralization along a 1.8km trend to the north of the discovery hole.

“Our next-door neighbours are correct in saying that sometimes you're better off to have a slightly lower grade and be in those basement hosted rocks than to be in the sandstone, and certainly the economics can be a lot better".

The company claims the GMZ structure has strong economic potential despite grades below the extreme highs found in some Athabasca unconformity deposits, owing to the shallow, bulk-mineable geometry.

Promising First Pass Drilling

Initial drill testing at GMZ in May intersected a 42m zone grading 0.61% U308 from 309m downhole, including a very high-grade interval of 6m at 2% U308 from 330m. This near-surface uranium intercept sits within basement rocks beneath the Athabasca Basin sandstone in a geological setting known as basement-hosted mineralization. Lancaster suggested such basement-hosted systems can often form large-scale bulk mining operations, avoiding the technical challenges of unconformity deposits like Cigar Lake.

"There's a difference here between the unconformity-related deposits and the basement-hosted deposits," she explained. "The unconformity hosted deposits tend to be deeper and therefore the type of mining that is required is underground mining - of course, underground mining is always more expensive than open pit."

She also highlighted the favourable characteristics of the basement lithologies.

"The second thing is the competence of the rocks. For example Cigar Lake, they have to freeze all around the mineralized zone to mine it and that’s a very expensive process. These are engineering issues that don’t need to be contended with in basement rocks."

As a result, Lancaster emphasized basement-hosted systems can demonstrate economic viability at grades below the extraordinary highs occasionally seen around the unconformity: She pointed to historical basement-hosted mines like Rabbit Lake, which produced 40Mlb of U308 at just 0.3% grade, as an analogue for GMZ.

Systematic Targeting Along Structure

92 Energy considers the GMZ mineralization open along strike and down dip, with minimal testing of these extensions by the small initial drill campaign.

Lancaster outlined a systematic approach to unlocking the full potential of the discovery through additional drilling targeting extensions of the structure. This includes planned ground and airborne electromagnetic (EM) geophysical surveys designed to trace the conductive signature of the mineralization along the interpreted 1.8km corridor to the north.

Previous Exploration Success

92 Energy’s exploration team and board combine decades of Athabasca Basin uranium expertise with involvement in multiple previous discoveries in the region.

Technical Director Kane Christopher, credited with having “sniffed out uranium from anywhere” in his early career, was part of the 135Mlb Triple R discovery for Fission Uranium in Patterson Lake.

Chairman Steve Blower, former VP of Exploration for Cameco, oversaw the initial discovery drilling of the massive Cigar Lake uranium deposit.

The company is leveraging this extensive knowledge of basin geology and uranium targeting to systematically explore its portfolio of projects. The GMZ discovery resulted from methodical exploration and application of specialized techniques using geochemistry and geophysics to pinpoint virgin targets.

Tapping the Rising Uranium Market

Lancaster also positioned 92E’s exploration efforts within a strengthening outlook for nuclear power and anticipation of a rising uranium price cycle. She pointed to the growing recognition of nuclear's role in energy security and clean baseload electricity to support intermittent renewables.

"There's certainly a lot of interest around that uranium market and really how nuclear can provide that solution for 24/7 base load energy, which is carbon-free and I would argue the best source of energy around," she stated.

The recent spike in European energy prices provides a real-world example of the demand for reliable always-on electricity capacity as countries move away from hydrocarbons without fully viable large-scale alternatives. Lancaster suggested this could drive a resurgence of nuclear plant construction to fill the gap.

While events of the past year have increased wider interest in uranium sector stocks, she acknowledged 92E's share price remains strongly correlated with fluctuating sentiment in the broader natural resources sector and has yet to truly reflect progress at its exploration projects alone. However, within a booming uranium investment climate, she anticipates greater recognition of successful uranium exploration drilling results.

The consensus industry outlook supports this positive demand-side view, with simulator price rises widely anticipated over coming years as the market shifts into structural deficit due to the restart of inactive reactors and limited availability of new mine supply.

Advancing a Second High-Grade Target

In addition to ongoing work at GMZ, Lancaster outlined drilling underway at the Tower project just 10km west of the world’s highest-grade uranium mine, Cigar Lake, operated by Cameco. She labelled Tower “elephant country” for major deposits and analogized geophysical signatures to those at Cigar Lake.

Four to five exploratory drill holes will test below the Athabasca sandstone unconformity for the exceptionally high uranium grades often associated with basement-rooted fault structures in this specific eastern Athabasca region proximal to the Saskatchewan-Alberta provincial border.

"It's enough to dip our toes in and test some of our theories and hopefully we get the same success rates [as Gemini]," Lancaster commented regarding the limited initial Tower drilling.

She highlighted such Tier-1 exploration plays for world-class deposits as central to the investment case for 92E within a strengthening uranium market.

The Investment Thesis for 92 Energy

• High-grade uranium discovery at GMZ demonstrates exploration success in first-pass drilling with minimal follow-up to date
• Basement-hosted setting means potential to outline shallow open-pittable resource at attractive economics
• Nearby infrastructure and competent mining conditions enhance project fundamentals
• Systematic approach to target extensions of GMZ mineralization along 1.8km corridor could multiply the scale
• Planned geophysics and drilling programs to unlock further value
• Strategic entry point with expectation of re-rating as GMZ resource grows amid rising uranium price outlook
• Experienced team leveraging decades of Athabasca Basin uranium discovery experience
• Exposure to tier-one exploration upside in Canada’s premier uranium district
• Potential anomalies on the newly staked ground at the Tower project require drill testing given the proximity to world’s richest uranium mine

92 Energy offers investors exposure to expanding high-grade uranium discovery potential at its Gemini project, complemented by tier-one exploration upside surrounding Canada's premier Athabasca Basin uranium mining district. Systematic exploration and mobilization of decades of specialized technical experience in the region provides a solid platform to capitalize on an increasingly bullish uranium sector outlook.