Categories: Mining Stocks
Topics: Uranium Stocks

Securing Gains in the 2023 Uranium Space

Kraken Energy Corp. (CSE: UUSA)(OTC: UUSAF) — currently trading around C$0.30 per share — is advancing three brownfield uranium exploration projects in Nevada with the longer-term aim of building out an eventual hub-and-spoke mining model in the area. 

Kraken Energy is led by CEO Matthew Schwab who is a former senior exploration geologist for C$2.4B NexGen Energy Ltd. where he was instrumental in the discovery of the world-class Arrow uranium deposit in 2014. He’s joined by chairman Garrett Ainsworth who also brings a wealth of experience with majors having served as VP Exploration with NexGen. 

Kraken Energy is focused on boots-on-the-ground exploration at its portfolio of Nevada-based uranium properties as part of the ongoing revitalization of America’s once dominant uranium production sector. Here’s a quick breakdown:  

Apex Uranium Project, Nevada (100%-owned): Located 280 km east of Reno, Nevada, the flagship Apex project spans 3,900 hectares and includes the Apex Uranium Mine — Nevada’s largest past-producing uranium mine. The Apex Mine produced 50% of the historical uranium output for the state of Nevada; ~106,000 lbs at an average grade of 0.25% U₃O₈. 

Garfield Hills Uranium Project, Nevada (Option to Acquire 100%): Located in Mineral County, Nevada, the Garfield Hills project spans 1,268 hectares and includes a historical open pit mine. Kraken is wrapping up a Phase-1, 2,500 meter drill program at the project; management believes results received to-date are an early indicator of a potential new high-grade uranium system.  

Huber Hills Uranium Project, Nevada (100%-owned): Located in Elko County, Nevada, the newly-staked Garfield Hills project spans 1,044 hectares and encompass the historical Race Track open pit mine, once Elko County’s largest uranium producer at ~10,000 lbs at an average grade of 0.24% U₃O₈. The team hopes to have the drills turning at the project later this year. 

As noted, the Apex project is the flagship. The company recently completed a soil sampling program there to evaluate the surface extension of mineralization and the correlation of uranium with gold, silver, nickel, and copper. 

A total of 987 samples were collected over an area of approximately 1 km by 0.6 km with 91 samples returning results of 50 ppm U₃O₈ or greater plus anomalous precious and base metals values.  

Kraken Energy CEO Matthew Schwab — whom you’re about to hear from directly in our exclusive interview — commented via press release:  

“We are very pleased that our sampling program has confirmed elevated uranium values along with anomalous gold, silver, nickel and copper. These assays also correlate very well with the results from last year’s UAV airborne radiometric survey. The use of airborne radiometrics and soil sampling for drill targeting will allow us to accelerate and streamline our process as we prioritize targets ahead of an inaugural drill program at the Apex Property.”

The company reports a strong correlation between the airborne radiometrics and the soil sample assay results at Apex.

Kraken Energy, Apex UAV Radiometric Survey; red outlines highlight areas of strong radioactive response exposed on surface.

Next steps at Apex include plans this summer to conduct additional soil sampling surveys focused over the anomalies discovered via the 2022 airborne UAV surveys. The drill permitting process is also underway with plans to potentially have drills turning at Apex this calendar year.

At Garfield Hills, the Kraken team intends to map out a Phase-2 drilling program as an immediate follow up to Phase-1, which is just now wrapping up with assays due soon. And finally, at Huber Hills, the intent is to get the drills turning there this year as well. 

Kraken’s focus on past-producing “brownfield” uranium properties in Nevada has the potential to significantly speed up the development process toward production as compared to greenfield projects where permitting and exploration essentially start from zero. 

All three of Kraken Energy’s projects benefit from excellent road access, infrastructure, and existing past mines, which lends well to the company’s strategy of fostering a hub-and-spoke mining model in Nevada as part of the revitalization of America’s domestic uranium mining sector. 

The Kraken team is also continually on the lookout for additional accretive uranium property acquisitions to add to its already robust property portfolio. And with over C$8 million in the treasury, the company is well-funded to carry out its near-term exploration and acquisition objectives.

Our own Gerardo Del Real of Junior Resource Monthly caught up with Kraken Energy CEO Matthew Schwab to get the skinny on what’s happening now and what’s happening next at the company’s portfolio of brownfield uranium exploration assets in Nevada. Please enjoy!

For more information on Vancouver-based Kraken Energy, be sure to contact the company’s IR department at 604-908-1695 or via email at info@krakenenergycorp.com.

Mike Fagan
Editor, Resource Stock Digest