6th Shaw and Partners Uranium Conference, Sep 2024 – Alligator Energy (AGE)

Summary

Greg Halland, CEO of Alligator Energy, provides an update on the company's Sfire uranium project in South Australia, which will use ISR (In-Situ Recovery) mining. He outlines the project's progress, including resource expansion, upcoming field recovery trials, and stakeholder engagement. Halland highlights the potential for scaling up production and mentions a recent uranium discovery at the Big Lake project. Challenges, such as the need for water treatment due to saline conditions, are addressed, with trials set to begin in early 2025. Halland expresses optimism about the project's future and its contribution to uranium production in Australia.

Takeaways

• 🔧 Alligator Energy is advancing the Samphire Uranium Project in South Australia, which will use in-situ recovery (ISR) mining similar to the Honeymoon project.
• 📈 The company has expanded its resource footprint with a current resource of just under 20 million pounds of uranium, considered an economically viable starting point.
• 🛠️ Field recovery trials are set to begin in early 2025 to test chemical recoveries and the project's feasibility.
• 💰 Alligator Energy has strong financials, with $131 million in capital for the project, and an NPV based on $75 uranium prices with an all-in sustaining cost in the low to mid-30s per pound.
• 🧑‍🔧 The team is led by Andrea Marrell Smith, COO, who brings extensive ISR experience from Heathgate Resources, and they've recruited a skilled team to ensure effective project execution.
• 🌍 The project benefits from a favorable location, close to the town of Whyalla, with easy access to power, water, and a regional workforce.
• 🔬 The company has completed extensive geophysical and hydrogeological work, focusing on shallow and highly permeable sand layers for uranium recovery.
• 📅 Alligator expects construction of the field recovery trial to run from February to May 2025, with results expected shortly after, feeding into their feasibility study and mining lease application.
• 🌊 Water salinity is a key challenge, and they plan to reduce groundwater salinity from 40,000 salts to 12,000–15,000 salts for efficient uranium recovery using salt-tolerant resins.
• 🔍 A recent discovery at their Big Lake Uranium Project showed promising results, with plans for further drilling and expansion in 2025 to assess the uranium potential in the area.

Q & A

What is the main project that Alligator Energy is currently developing?

Alligator Energy is developing the Sfire Uranium Project located in South Australia, which will be an ISR (In-Situ Recovery) operation.

What are the key characteristics of the Sfire Uranium Project compared to other similar projects like Honeymoon?

The Sfire Uranium Project shares characteristics with the Honeymoon project, such as being an ISR operation. It involves shallow, compacted sands with high permeability and porosity, which are essential for uranium recovery.

What is the status of Alligator Energy's field recovery trial for the Sfire project?

Alligator Energy is preparing for intensive field recovery trials for the Sfire project. The pilot plant has been fully fabricated and is waiting for final approvals to begin trials in early 2025.

How does Alligator Energy plan to handle the high salinity of groundwater at the Sfire project site?

Alligator Energy plans to reduce the salinity of the groundwater from 40,000 salts down to about 12,000 to 15,000 salts, which is sufficient for salt-tolerant resins to work effectively in uranium recovery. This will help optimize the ISR process without needing to treat the water to potable levels.

What is the expected timeline for the Sfire project to move from trials to production?

The field recovery trials are expected to take place from February to May 2025. After that, Alligator Energy anticipates applying for mining lease approvals by late 2025, with potential construction starting in 2028 and production by 2029.

What recent discovery did Alligator Energy make at the Big Lake Uranium Project?

Alligator Energy made a recent discovery at the Big Lake Uranium Project, finding up to 20 meters of permeable sands with consistent uranium grades. This discovery confirmed the presence of the right paleochannel systems for further exploration.

How does Alligator Energy plan to expand its Black Bush deposit at the Sfire project?

Alligator Energy is currently drilling in the southern and eastern areas of the Black Bush deposit and expects to release an updated resource estimate in December 2023 or January 2024. They are also exploring new channels within their tenement for potential resource expansion.

What is the significance of Alligator Energy’s location near the town of Woomera?

The proximity to Woomera, just 20 km from the Sfire project, is advantageous because it provides access to local labor, existing infrastructure, and a short distance for transporting resources, reducing the need for extensive power and water line installations.

What kind of team has Alligator Energy assembled to ensure the success of the Sfire project?

Alligator Energy has recruited a team with extensive ISR production experience, including Andrea Morel as Chief Operating Officer, who has over 17 years of experience with Heathgate Resources. They have also hired experts in geology, hydrogeology, environmental management, and chemistry to support the project.

How will the field recovery trial contribute to the overall feasibility study for the Sfire project?

The field recovery trial will test the chemistry of uranium extraction, helping to refine the ISR process, optimize the use of IX columns, and gather crucial data for the full feasibility study. The results will guide the final design of wellfields and the plant layout for future production.

Outlines

00:00

🎤 Introduction to Greg Halland and Alligator Energy's Sfire Project

Greg Halland, CEO of Alligator Energy, is introduced as he discusses the company's progress with the Sfire project in South Australia. He touches on similarities with Honeymoon, another ISR uranium project, and shares plans for intensive field trials to assess recovery before bringing the project to market. Halland also mentions an operational update and thanks Andrew for the opportunity to present, while apologizing for some delays.

05:01

🌍 Overview of Alligator Energy's Project and Resource Development

Greg elaborates on Alligator Energy’s progress, highlighting the field recovery trial for the Sfire project and their expansion efforts. He outlines the company's liquidity position, shares issuance, and its journey from past acquisitions and expansions. The main Sfire project consists of two deposits—Plum Bush and Black Bush—located in South Australia. Greg emphasizes their regional proximity to essential infrastructure, which aids the development, and provides insights into their resource base, which includes a 20 million pound JORC-compliant uranium resource.

10:03

📊 Scoping Study and ISR Mining Process for Sfire Project

Greg discusses the technical aspects of the ISR (In-Situ Recovery) mining process for the Sfire project. He highlights the shallow depth and high permeability of the sands where uranium deposits lie, the preparation of the pilot plant, and the extensive testing conducted to optimize recovery. The December 2023 scoping study shows favorable economics, with a 1.2 million pound per year production target and a low all-in sustaining cost. He also introduces key team members, including experienced professionals from previous uranium projects like Four Mile and Beverly, bringing invaluable expertise to Alligator Energy’s development plans.

15:04

🛠 Fabrication and Field Recovery Trial Preparation

Greg describes the field recovery trial for the Sfire project, mentioning that it will involve a series of rings to test the chemistry and recovery dynamics. He explains that all necessary equipment, such as tanks, skids, and pumps, is already fabricated and awaiting final approvals. The field recovery trial will be a crucial step in refining the design of the production rings and overall recovery processes, with a focus on testing salinity and the efficiency of uranium extraction. The trial will help shape the full feasibility study and will be conducted through 2025, feeding data into future operational plans.

⏳ Project Timeline and Stakeholder Engagement

Greg outlines the projected timeline for the Sfire project, with the field recovery trial starting in early 2025. The data from this trial will inform the feasibility study and mining lease application, with full production expected by 2028-2029. He also emphasizes the importance of stakeholder engagement, particularly with local communities, and the need for regulatory approvals, which have caused delays. The company is taking a meticulous approach to ensure environmental and cultural considerations are met.

📈 Big Lake Discovery and Future Drilling Plans

Greg shifts focus to Alligator Energy's Big Lake uranium discovery in the Cooper Basin. The first drilling program revealed promising results, with thick panel sands showing consistent uranium grades. The company plans to conduct more intensive drilling using rotary mud drilling techniques to further evaluate the potential. Stakeholder engagement is also a key aspect here, particularly with local Indigenous groups, and additional drilling is expected to commence in 2025 after more clearances are secured.

🚧 Next Steps and Regulatory Challenges for Sfire Project

Greg details the upcoming steps for the Sfire project, including the construction of the field recovery trial, which will test wellfield design and chemical parameters for uranium recovery. He acknowledges challenges related to obtaining regulatory approvals, particularly around the environmental impact of high-salinity groundwater, but remains optimistic about securing these soon. The team plans to carry out full feasibility and wellfield design work after the trial, with final approvals anticipated by 2028.

👥 Final Remarks and Q&A on Salinity Challenges

In the final segment, Greg responds to a technical question about managing saline groundwater for uranium recovery. He explains that while the high-salinity water leaches uranium effectively, treatment is needed to ensure that salt doesn't interfere with the extraction process. The ongoing field recovery trials are expected to refine these processes, with results available a few weeks into the trials in 2025. Greg closes by thanking Andrew and the audience, signaling excitement for the upcoming project developments.

Keywords

💡Alligator Energy

Alligator Energy is a company involved in uranium mining and exploration. The video focuses on its efforts to develop uranium projects, specifically in South Australia, such as the Samphire Uranium Project. It plays a central role in the discussion, representing a company in the pre-production phase with significant exploration and field trials planned.

💡Samphire Uranium Project

The Samphire Uranium Project is a key project being developed by Alligator Energy in South Australia. It aims to produce uranium using in-situ recovery (ISR) methods, similar to other projects like Honeymoon and Beverly. The project is significant for its potential contribution to the uranium supply, and its location near the Woomera area offers infrastructure advantages.

💡In-Situ Recovery (ISR)

In-Situ Recovery (ISR) is a method of uranium extraction that involves circulating a solution through an ore deposit to dissolve uranium and then pumping it to the surface for recovery. The video mentions ISR as the planned extraction method for the Samphire project, highlighting its advantages, such as lower capital expenditure compared to traditional mining. It is emphasized for being suitable for the permeability and porosity of the Samphire deposit.

💡Field Recovery Trial

A field recovery trial is a pilot phase to test the efficiency and feasibility of uranium extraction using ISR techniques. Alligator Energy plans to conduct field recovery trials at the Samphire project to determine chemical recovery rates and optimize operational parameters. This trial phase is crucial for assessing the viability of ISR in this region and is planned for early 2025.

💡Uranium Resource Expansion

Uranium resource expansion refers to efforts to increase the estimated reserves of uranium at the Samphire project. The video describes how Alligator Energy is expanding exploration at the Black Bush and Plumbush deposits, which are part of the Samphire Project, to increase their inferred and indicated uranium resources. The expansion is essential for achieving a larger production scale and improving project economics.

💡Stakeholder Engagement

Stakeholder engagement involves actively communicating with local communities, government authorities, and investors to gain support for the project. Alligator Energy emphasizes its ongoing efforts to engage with stakeholders, particularly as the project moves towards feasibility studies and mining lease approvals. This engagement is crucial to ensure regulatory compliance and to maintain good relationships with the local workforce and indigenous communities.

💡Indigenous Clearances

Indigenous clearances are permissions required from local indigenous groups before any drilling or mining activity can begin on their lands. Alligator Energy has secured clearances for geophysical surveys and is negotiating for additional permissions to conduct drilling at the Plumbush site. Respecting cultural heritage and gaining these clearances is a critical part of the project's progression.

💡Pilot Plant

A pilot plant is a smaller, pre-production version of the processing plant designed to test the uranium extraction process on a smaller scale. Alligator Energy has already fabricated the pilot plant for the Samphire project, which will be used in the upcoming field recovery trial. The pilot plant aims to assess the chemistry involved in the uranium recovery process and test different system components, such as IX (ion exchange) columns.

💡Scoping Study

A scoping study is a preliminary evaluation of the technical and economic viability of a mining project. Alligator Energy's scoping study for the Samphire Uranium Project provides estimates for production rates, capital expenditures, and project profitability at different uranium price points. The study shows that the project has economic potential with a capital expenditure of $131 million and production costs in the low $30s per pound, which is competitive for ISR projects.

💡Hydrogeology

Hydrogeology is the study of the distribution and movement of groundwater in the soil and rocks of the Earth's crust, often relevant to ISR operations. In the video, hydrogeology is a critical aspect of the Samphire project, particularly because the ISR process involves injecting and extracting solutions in a controlled manner. Alligator Energy has conducted extensive hydrogeological testing to ensure proper management of groundwater and minimize environmental impacts.

Highlights

Alligator Energy is advancing the Samphire Uranium Project in South Australia, with two key deposits, Black Bush and Plumbush.

The company is planning intensive field trials in 2025 to test uranium recovery and chemistry flow using in-situ recovery (ISR) mining.

Alligator Energy has a JORC-compliant uranium resource of 20 million pounds, considered an economic starting point with potential for expansion.

The Samphire Project benefits from proximity to infrastructure, with only a 25-km distance to power and water lines, and a regional workforce nearby.

Alligator Energy's pilot plant for the field trial has been fully fabricated and is ready to be deployed once the final approvals are secured.

Scoping study results from December 2023 suggest a production rate of 1.2 million pounds per annum, with a capital cost of AUD 131 million and favorable NPV at uranium prices of USD 75/lb.

The company is planning to expand the Black Bush resource with new drilling in historical areas where promising uranium intersections have been found.

Alligator Energy anticipates a two-year period for regulatory approvals, meaning mining lease approvals are likely by 2026, with production starting around 2029.

The company is focused on stakeholder engagement, particularly with local and indigenous communities, ensuring transparent and collaborative project development.

The field recovery trial, set to begin in early 2025, will involve testing the chemistry of ISR rings over four to six weeks to determine efficiency and recovery rates.

Greg Halland, CEO of Alligator Energy, emphasized the importance of managing groundwater salinity in the Samphire project, similar to challenges faced by other ISR operations in the region.

The pilot plant will test uranium leaching in high-salinity water, reducing salinity from 40,000 to 12-15,000 ppm to optimize resin efficiency.

The field trials will inform the full feasibility study and future mining design, feeding into the broader commercial plans for the Samphire project.

Alligator Energy has expanded its project footprint, covering a larger area of paleo-channels, with significant potential for further uranium discoveries.

The company has also made a new uranium discovery at its Big Lake project in northern South Australia, with promising results from initial drilling.

Transcripts

bring Greg Halland from alligator energy

um Greg um is the CEO managing director

uh alligator energy is not yet in

production they are um developing a

project in South Australia called the

sfire project um and you just heard from

from Duncan all around Honeymoon and

boss um sire has some of the same sort

of characteristics as as honeymoon it's

going to be an ISR operation and uh

Greg's going to be doing some uh pretty

intensive field Trials of the recoveries

before bringing this project to Market

but Greg over to you if you wouldn't

mind sharing your screen if you got some

slides and um look forward to hearing

the update on

aligator thank you very much Andrew and

I apologize to sha and partners for my

delay inadvertently as it was but uh

thank you for rearranging and also

apologize to your listeners who are

online um look thank you for the

opportunity to talk uh I'm assuming you

can share the uh I see the screen okay

that should be good um alligator energy

is advancing at sfire Iran project uh in

to a uh a field recovery trial I'll talk

about that we are doing expansion to the

resource I'll talk a bit about that

we've got a very good put footprint for

a potential future resource we've got

good scoping economics and we're well

cached up uh along with that we have

made a recent discovery at a big lake

Iranian project in the north of South

Australia which I'll mention briefly

through this

presentation um in terms of where we are

we have a lot of liquidity a lot of

shares on issue because one of the

players that have come through the the

doldrum days from the late

2010s through to where we are now but we

have been on a good path in terms of

acquisition of projects expansion of

projects but also some uh some

expiration success and uh we uh we're

progressing that well I'll talk about

the team a little bit as we get into the

project uh going forward our main

project The Sire running project

comprises two deposits one deposit one

Prospect we'll call it because it's not

currently Jo compliant

plum bush and and Black Bush that's in

the the Wala area of South Australia you

can see the location of H gou Dam that

that um Duncan was just talking about

the Beverly 4 Mile complex up here and

our big lake project in the coopa Basin

to the north and uh a closer view of the

Wala Town 20 km South our main black bsh

deposit uh we have an a paral full of

partial agreement over the black push

deposit through the production uh we're

negotiating to get onto the ground for

plum bush drilling we have already been

on there for geophysics with the paral

so we're continuing that discussions a

full ntma for indigenous clearances and

cultural heritage clearances we've done

three of them for our drilling so far

through this

area the beauty of the

project is it's 20 km from a regional

center which is a Workforce Source but

along with that we don't have to build

extensive power lines and water lines 25

km power line water line we have a local

Workforce we've already got local

employees we have a regional um basis

there a yard and an office in the town

of w that we can work from with a 20

minute to 30 minute drive out to the

site we have just under 20 million pound

draw compliant resource which you would

have seen from many of the presentations

is an economic starting project many

projects such as Beverly uh such as the

original boss project they all started

with around this level of resource and

expanded it from there the beauty of a

low capital process like ISR is you can

start with an economic project and

expand it as you work and as you get in

production we have really done a lot of

work on making sure we've got an

expandable exploration Target going

forward and I'll talk briefly about that

and show that the scoping study in

December 23 is uh has got 30 to 35% uh

contingency in it even though it's only

131 million capital and that's a real

example of the jurisdiction location

adjacent to Wala um good payback going

with that our pilot plant is fully

fabricated and already in our yard up at

wer awaiting the final approvals to get

onto the site and construct and I'll

talk about that we're doing a massive

amount of work in uh in stakeholder

engagement we've been doing it so far

we're now putting a bit more horsepower

into this team as we move from through a

a field recovery trial into feasibility

and then into mining lease approvals

late next

year most people are familiar with the

ISR mining process and the the the

system we have is a layer of compacted

Sands only 80 M deep so it's quite

shallow uh they're very permeable

they're very porous we've taken a big

series of 14 to 15 cores out of this

ground done all the V scale testing we

required to really get the first initial

parameters for the project and that

helped us do the scoping study and that

helped us design the the fuel recovery

trial plant with three rings planned to

operate to really up not just the the

pregnant liquor solution qualities that

are going to come out test the the Aro

plant um lowering the salinity of the

water not to pable level but just to a

solinity where the ex columns work well

bringing that up and through the ex

plant and into a clean uit solution so

that's the test work we're going to be

doing the scoping study that we uh

updated in December 23 with an increased

production rate of 1.2 million pounds

perom uh3 million capex as I mentioned a

good npv at $75 uranium price and all in

sustaining in the in the low to

mid-30s and so we think this is a

realistic level one thing I will mention

here is the team that we have on board

with Andrea marel and Smith is our chief

operating officer who's been well

probably a total of 17 years with

heathgate resources that run the Four

Mile and Beverly complex as she was

instrumental in discovering forar bring

it through into wellfield production and

so she has now recruited a full ISR

production experience team under her

with a principal geologist senior Hydro

geologist who are the the mining

Engineers of this method of mining as

you would have heard before and we have

a project manager for the field trial we

have an environmental manager recruiting

a full full-time engagement manager now

and a principal chemist who's operated

also through the plant system at um he

at

Beverly so we have a realistic approach

to what we believe the costs and timing

will be here we know it's not quick and

I agree with Duncan new production will

come on but it will be slower than

anticipated we have been slower than

anticipated

already so we've got a good level of

scoping study we've got an expanded

footprint which I'll talk about and

we're we're also now looking to expand

our Black Bush deposit so this is the uh

Black Bush resources that stands the the

blue is inferred the red or pink is

indicated we have lift this already once

we're now exploring some of these

historical intersections out to the east

these were all drilled by uranium SAS up

to about

2010 all of them are above cutoff grade

so we're really looking at where the rle

fronts move into these and we've already

found some extensions to these not all

of these will become R fronts as most

people know you can have areas of

uranium which don't link together in

production level but certainly there's

plenty of smoke out there we have

extended to the West we put some

information out from our drilling

earlier this year and we're now drilling

down to the South here so we'll have an

updated resource out in December January

on the Black Bush

deposit we expanded our footprint this

is the paleo channels at 80 to 90 M

depth that lie underneath our tenaments

this is the Black Bull deposit it's

really about 7 to 8% of the known

channels when we did our expiration

target range over here 14 to 75 million

pound target range on top of what we

have at Black Bush we only allowed for

those channels in this top part which

have mineralization in them which is

really only about 35 to 40% none of the

other channels had any drilling so we

really have been conservative in that

estimate we know that plum bush will

come into resource category we've seen

the continuity we need to close up the

spacing this was interesting there were

high grade and reasonable grade hits of

uranium to the south in this tenement

that we acquired off Stellar resources

and as we did the ground gravity and

picked up the channels lo and behold

they're pretty well all sitting in the

channels which is expected so we really

have due to the contrasting nature of

our sediment sitting on top of the

granites the sourcer uranium we have

enough contrast to do Paleo Channel

mapping using ground gravity and with a

drilling work intensely around black

Force we've matched that up to where the

channels actually are got a good scoping

study and expandable resource The Next

Step was to spend the cash that we've

raised on a field recovery TR trial so

the plants fabricated I'll talk about

that in a moment the field recovery

trial is intended to be a series of

rings three of them operating for a

period of four to 6 weeks each they are

smaller than plann production Rings

because we're not trying to test the

permeability porosity we know that well

we're trying to test the chemistry so we

want to see with 10 m radius Rings how

the chemistry flows up how the the preg

solution picks up and how it curves down

because that tells you how many um

future rings are going to need in

wellfields for production for required

production going forward we operate

through the plant to one ring we use the

Aro plant to to lower the salinity in

the field then circulate within that

bring the pregnant solution back into

the IX columns and load them uh unload

them into clean Ood and into tanks and

then we run a second one then we run a

third one and they're in spread about a

kilometer around the main Black Bush

resource which is through here

the the um fabrication of the pilot

plant was in fact we slowed it down a

little in the early part of the year

because the approvals processed to get

the retention lease approved took longer

and we have that fully fabricated we

have the wellhouse we have the pumps

tanks skids everything we need all

Container eyes and up on site in our

yard in Wala that sits there the layout

is simple but we have to operate it like

a small uranium L uh it has to have a

clean dirty side uh we have to operate

this such that we're testing uh putting

procedures in place that the

Department's comfortable with and that

we're running a a process right through

from uranium coming up in the preg

solution into the ex ex columns coming

through the exx columns and into the El

tanks here we don't need to take this

volume right through in calide uranium

uh that sort of portion of the plant is

generally more standardized you have to

tailor it a little bit but it's

generally more standardized uh we can

take Drums of this liquid to ansto and

create the 1 kgam samples multiple

samples we'll need for converter

accounts for them to test the product

and make sure it's viable to go through

their

converters and we have to have this at a

pretty shm looking plant this will be

visible we will be bringing visitors out

every week we'll bring investors here

we'll bring potential future customers a

lot of people from OA while there's been

a lot of visitors to our side already

from the OA Council and surrounding area

we'll bring a lot more out during the

running of this so timeline for this um

and we have had since we put in the the

full response document in March we've

had three uh requests for information

from the Department requesting

additional information to do with the

operation of the plant uh in particular

the hydrogeology and uh and this is a

new area there hasn't been this style of

mining in this area it's a it's a hypine

groundwater at 40,000 salts how we work

that and how we handled it and make sure

that we don't add to the to the

groundwater and distract from the

groundwater how it naturally attenuates

is a very important point that they've

been focusing on now that's been well

proven in uh in existing minds but we

have to model that and then show how

we're going to prove that model and then

show we're going to show how we're going

to track the monitoring in the years

after that to show that we're matching

the attenuation model so groundwater

returns to its original state so that's

been the key request for information the

last lot of those was in June we

provided that information July August

had some meetings now they have

everything they need we understand but

um I will suggest that we would

anticipate the approval in the coming

month or so uh such that we can be

getting the operating plan approved and

be on the ground but it has slipped

substantially from when we were hoping

to have this underway to be now in the

first part of 2025 we'll be constructing

operating the uh field recovery trial

through from around February to

May so the steps Beyond this we really

need to get this underway this feeds in

all the operating parameters uh into the

feasibility study that we need to

undertake we'll be going out for

expressions of interest for groups to

run that feasibility study while we have

a good level of horsepower in our team

uh that will give the right oversight

going forward but we do need uh some

horsepower on groups that are familiar

with liquid tank pump type plants and to

use them to help do the feasibility

study we need the full field design um

world field design and the plant design

to to go into the mining lease

application which is logically going to

be the second half of next

year it will be two years to get this m

approved at least through a mining lease

application and that's because South

Australia while it's approved five

Uranian mines all of which are operating

they still will take that 2-year period

to make sure this is approved in the

appropriate Manner and has all the right

public uh opportunity to review so we

are not anticip ating to be constructing

on the ground before 2028 and then

commissioning production through 29 is

the likely outcome now we haven't been

definitive and put that into a timeline

in these presentations very often

because these things do take longer as

Duncan well

said a quick snapshot of our big lake

Discovery this is the area where we are

up on the Cooper Basin the same

settlements that host the the honeymoon

Beverly Four Mile projects extend right

over the C Basin the nber formation the

air formation followed underneath by

Cretaceous Winton and we have those in

this area we picked up these tenaments

quite early on with this one we acquired

from two geologist who put this scenario

together and in our first drilling that

we undertook this year it took a couple

years to get the agreement for the with

indigenous people uh that the

yander araka people had not done uranium

agreement before so we wanted to make

sure that they were very familiar what

we're doing it was delayed a bit by Co

then getting their people together to go

through it but nonetheless we have that

in place we've done the clearances we

need we did this first Drilling and we

discovered 20 M of

um of panel Sands thicknesses up to 20 M

of P Tel Sands with consistent grades

through them and if you look at a grade

tonnage thickness here it it is getting

towards a level of cut off of sandfire

in our first drilling program which is

quite impressive now they are like

grades at

but we can drill plenty of places at

sandfire and hit low grades so this

means we're in the right chemistry we're

in the right pale Channel systems which

we tried to depict from from uh public

seismic data and and now we're going to

be drilling to depict them more so our

next steps here are to do some rotary

mud drilling rather than air core

drilling get the right probes pfn tools

and things down them in a second

drilling program as well as expand this

footprint around this area to the south

in particular and and it's helped us

determine there might be two or three

other depicted areas which we want to

drill as well so we'll do a combination

of rotary mud and aircore drilling to do

take this project forward we're doing an

additional clearance with did the YY

people in late October early November

and be drilling in March next

year we do a massive amount of

stakeholder engagement work we are

expanding our work in this area I I want

cannot emphasize this enough for new

mining operations in particular that are

starting up while there's a familiarity

with resources industry in the Wala Port

Augusta region there's a lot of

generations there that have not much to

do with resources so we still do a lot

of work with uh with that engagement and

we'll go wider with the mining lease

approval so I think uh Andrew I'm happy

to leave that there and have any

comments or questions from you yeah

terrific thank you Greg that's that's a

really good overview I gu maybe a

technical question Around The Sire BOS

you did mention that um it's got quite

saline groundwater conditions and we

heard from Duncan with the honeymoon

project that that that was an issue

historically with that that mine and um

you know part of what they had to do was

put in a new water treatment plan to get

essentially potable water is that is

that an issue that you are contemplating

sandfire and you know do you have to

treat the water extensively for this to

be through recoveries to work yeah we

need to do the same thing so essentially

uh we'll take our water from 40,000

salts down about 12 to 15,000 salts so

not pable and and you need to get it to

a level where the the um salt tolerant

resins work effectively and so you've

got an efficiency through thex columns

the the uranium itself leeches even from

that hypersaline water with the right

luxian and we've tested that well ano's

tested that now behalf with the cause

and we know that we'll get the uh The

leeching Happening even in the high

Salon water but it's really to make sure

you don't have salt loading up the

resins in preference to uranium U and

the the key thing about that balance of

how much do you lowerer the cinity

versus how many EX columns do you need

it's a capital versus operating cost

question so we've done enough test work

at a bench scale to say this is what we

think three ex Columns of this size for

this pilot trial and that will tell us

then okay now we're going to need two

more ex columns or we're going to need

to lower the cylind a little more um but

between 12 to th 12 to ,000 salts to

kick off with and and uh make sure that

that that field or the Rings you're

operating at that cinity level prior to

St ing the the circulation of the fluids

so so that is part of the test work yes

yeah great and I guess that's what the

field recovery trials are going to um

yep help you understand and uh so that

so I think you told us that they're

kicking off now in February next year

they'll run till May um when do you

think we'll first sort of get the

results from those trials well the

everything in an ISR plant is either in

inline analysis or we have a

containerized laboratory on site so once

we get the first running of this uh the

ring the first ring running and we get

the the the AR plant um preconditioning

the ground get the fluids going get that

ring running there we know within a

month six weeks after that our initial

results okay great well we look forward

toh to those results Greg I guess we're

all you know exciting new potential

project in the Australian context and um

you know those field recovery trials

will be something I'm sure the investor

base will be watching extremely closely

so thank you so much for giving us the

update today and uh look forward to

following your progress thank you very

much Andrew and thanks to everyone bye

great