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Snow Lake Energy Announces Positive Preliminary Results from Drill Program at the Engo Valley Uranium Project
LITMSnow Lake Resources .(LITM) Newsfile·2024-11-14 12:30

Company Updates - Snow Lake Energy announces positive preliminary results from the first eight reverse circulation drill holes at the Engo Valley Uranium Project in Namibia, with five of the eight holes returning intersections above 100 ppm eU3O8 [1][2] - The company has initiated a winter drill program at the Snow Lake Lithium Project, which has a projected base-case pre-tax NPV of USD1.7billion[2]−DrillholeERCH002showedamineralisedintersectionof355ppmeU3O8overa12−meterinterval,includinga3−meterintervalat684ppmeU3O8,whiledrillholeERCH007showedamineralisedintersectionof137ppmeU3O8overa20−meterinterval[2]−Thefirstphasedrillprogramaimstoconfirmhistoricalmineralizationidentifiedinsandstonesandconglomeratesthroughtwinningofhistoricaldrillholes,withfiveoftheeightdrillholesintersectinguraniummineralizationobservableascarnotiteinthedrillchips[3]−MineralizationwasconfirmedusingadownholegammaspectrometerprobebyTerraTecNamibia,anindependentgeophysicsconsultantspecializinginuraniumexploration[4]−Samplingwasundertakenoneachmeterinterval,withsamplesfromthefirsttwodrillholessubmittedtoALSforwetchemicalanalysis[5]−SnowLakeuseseU3O8calculationsasapreliminaryindicationforchemicalgrades,consideringreadingsbelow50ppmasbackgroundradioactivity[6]IndustryInsights−Nuclearenergyishighlightedasaclean,zero−carbon,scalable,andlow−costenergysourcewithgreatergeneratingcapacityperlandfootprintcomparedtootherfuelsources[7]−Uraniumisprimarilyusedtoproducefuelfornuclearpowerplants,withglobalelectricitydemandestimatedtogrowbyapproximately501.7 billion [2] - Drill hole ERCH002 showed a mineralised intersection of 355 ppm eU3O8 over a 12-meter interval, including a 3-meter interval at 684 ppm eU3O8, while drill hole ERCH007 showed a mineralised intersection of 137 ppm eU3O8 over a 20-meter interval [2] - The first phase drill program aims to confirm historical mineralization identified in sandstones and conglomerates through twinning of historical drill holes, with five of the eight drill holes intersecting uranium mineralization observable as carnotite in the drill chips [3] - Mineralization was confirmed using a downhole gamma spectrometer probe by TerraTec Namibia, an independent geophysics consultant specializing in uranium exploration [4] - Sampling was undertaken on each meter interval, with samples from the first two drill holes submitted to ALS for wet chemical analysis [5] - Snow Lake uses eU3O8 calculations as a preliminary indication for chemical grades, considering readings below 50 ppm as background radioactivity [6] Industry Insights - Nuclear energy is highlighted as a clean, zero-carbon, scalable, and low-cost energy source with greater generating capacity per land footprint compared to other fuel sources [7] - Uranium is primarily used to produce fuel for nuclear power plants, with global electricity demand estimated to grow by approximately 50% by 2040, driven by data centers supporting AI, cloud storage, and social media [7] - Major technology companies like Google, Microsoft, and Amazon are investing in nuclear energy to power their AI ambitions, with Amazon recently investing 500 million in nuclear energy [7] - Current uranium supply is insufficient to meet forecasted demand over the next decade, necessitating the development of new primary uranium sources [7] - Namibia is the world's third-largest producer of uranium, accounting for 11% of global production in 2022, with ongoing developments in uranium mining projects such as Deep Yellow Limited's Tumas Uranium Project and Bannerman Energy Ltd.'s Etango Uranium Project [8] Company Overview - Snow Lake Resources Ltd, operating as Snow Lake Energy, is a Canadian clean energy exploration company listed on NASDAQ (LITM), with a portfolio of two uranium projects and two hard rock lithium projects [10] - The company's projects include the Black Lake Uranium Project in Saskatchewan, the Engo Valley Uranium Project in Namibia, the Shatford Lake Project in Manitoba, and the Snow Lake Lithium Project in Northern Manitoba [10] - Snow Lake is currently focused on advancing the exploration of its uranium projects to support the clean energy transition, while exploration activities on its lithium projects remain limited due to the current depressed lithium market [11]