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.