Kraken Energy (CSE: UUSA)(OTC: UUSAF) CEO Matthew Schwab on New Uranium Property Acquisition in Utah as Part of Hub-and-Spoke Mining Model in Western United States
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO — the very busy CEO of Kraken Energy — Mr. Matthew Schwab. Matthew, how are you today?
Matthew Schwab: Hey, Gerardo. I'm doing well, thanks. Thank you for having me again today.
Gerardo Del Real: Well, listen, I mentioned that you've been very busy. You just executed a binding letter agreement for the Harts Point Uranium Property in Utah.
You also completed, a week or so ago, a VTEM survey at the Apex Uranium Property.
And I want to start there because I read that as extremely bullish, and I’ve got to believe that the team is excited about the results of that survey.
Matthew Schwab: Absolutely, we are. It's been a long time waiting. We've been developing our understanding of the property over time since we acquired it early last year. But with this VTEM survey now, we're really seeing a clear understanding and its clear trend across the property, which really connects the historically producing mines on both sides of the property and shows a very nice trend of 14.5 km for potential mineralization.
On top of that, I'll just get right into the significance of the EM. At Apex and Lowboy, we see a very strong graphitic and sulfide-rich horizon that's associated closely with the uranium mineralization. We see that trend across the entire continuity of that 14.5 km trend as well.
And there's also some significance in other areas of the property that we didn't even know about before. So the targets just keep getting stronger. They're stacked on top of each other, and there's more of them than we thought of previously… so it's great to see across the board.
Gerardo Del Real: How’s the drill permitting coming along? Obviously, now that you're armed with this updated geological model and the geophysical data for targeting, you have to be itching to get drills turning there.
Matthew Schwab: Absolutely, we're still working alongside the US Forest Service progressing that permitting process as we go. We've received unofficial acceptance that the permit will be issued. It's going to be a little bit lengthier than we originally expected but we do expect some positive news in the coming months here.
Gerardo Del Real: Let's talk Harts Point, which they talk about San Juan County in southeast Utah as the US version of the Athabasca Basin. Tell me a bit about the binding letter of agreement to acquire up to a 75% interest in the property.
Matthew Schwab: Sure, like you said, this week, we executed that agreement to earn up to 75% in the fourth property being added to our portfolio of exploration programs. And it really fits perfectly with our current exploration criteria and has huge upside potential for the company.
Harts Point is very exciting because of that potential and the area's prolific past. It's situated right in the middle of the Colorado Plateau, which produced nearly 330 million pounds of uranium since the 1950s.
And from that production number, 80 million pounds were produced from the Lisbon Valley Anticline, which is only 30 km to the east of our property and 11 km to the west. Another 280,000 pounds was produced out of the valley bordering our property.
Production grade in Lisbon Valley ranged from 0.2% to 0.4% U3O8 and targeted the Chinle sandstone formation which is pretty important. So the Harts Point Anticline and the Lisbon Valley Anticline are geological analogs of each other. And we have three historic oil and gas wells on the property showing off-scale radio activity within that Chinle target formation at roughly half the depth of production that was at Lisbon Valley.
So beyond that, this project is fully permitted for drilling. It's entirely on BLM land so a very easy permitting process, and it's located only 60 km from the only operating conventional uranium mill in the United States.
Gerardo Del Real: I’ve got to believe you're on the M&A trail a bit because I noticed there was a quote from Garrett in the release mentioning how Kraken is always reviewing numerous uranium properties, specifically in the western US to acquire or option. Is that the case?
Matthew Schwab: Absolutely. It's an ongoing process. We're always looking at new opportunities, constantly evaluating new acquisitions, or staking opportunities because we really are focused on bringing together a larger portfolio of properties as we put in place this hub-and-spoke mining model.
Gerardo Del Real: Matthew, always a pleasure. Looking forward to having you back on. It sounds like you have a year full of news flow. Always thankful for your time.
Matthew Schwab: Absolutely. It was great talking again today, Gerardo.
Gerardo Del Real: Alright, chat again soon.
Matthew Schwab: Thanks.Click here to see more from Kraken Energy