Although the price of U3O8 has maintained a steady ascent, U3O8 (UWE-V) the company watched its share price plummet 25% today despite news of intersecting uranium in the first two holes drilled on its Permit A property in Guyanas interior.
U3O8s best results include a 10.5-metre intersection grading 0.091% U3O8 and 7.5 metres grading 0.13% U3O8.
The companys stock fell $1.20 on a volume of 1.5 million shares, finishing the day at $3.60.
In New York, the U3O8 spot price is US$120 per lb.
“We are pleased with the results of the first two confirmation holes, they clearly confirm economic concentrations of uranium are present in the basement rocks in Permit A, said U3O8 president and CEO Allan Ibbitson in a statement.
The first two holes were twins of holes drilled by Cogema, a subsidiary of Areva (ARVCF-O), located along the Aricheng North anomaly, which has a 1,400-metre strike length. Cogema explored for uranium in Guyana between 1979 and 1984 but there are no known records of Cogemas results.
U3O8 plans to drill 12,000 metres this year, with Phase I consisting of 16 holes in total over 2,400-metres to depths of 130 to 350 metres. In addition to Aricheng North, the drilling will also focus on the Aricheng West and South areas, which are three of 43 radioactive anomalies discovered in an airborne radiometric survey done last year.
All three targets are about 12 km east of the Roraima basin, which the company says could represent the roots of unconformity-related mineralization. Rock and chip samples collected from these areas graded up to 0.91% U3O8.
The company has a second property adjacent to Permit A, called Permit B, for a total of 13,000 sq. km. of land.
Ibbitson said the results suggest that uranium concentrations will also be found within the basement of the Roraima basin located within Permit B.
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