The combined indicated and inferred resource for the proposed in-situ recovery development is now 14.8 million pounds grading 666 parts per million, based on a 250ppm cut-off, focused only on the ISR suitable targets such as the Kanaka Beds, which are about 80m below the surface.

 

Alligator says its work has delivered a higher-grade, higher confidence resource compared with the original work completed by previous owner UraniumSA, with Blackbush described as now being on par with other ISR developments in Australia and the USA, including Boss Energy's Honeymoon restart project, also in SA.

 

Its next step will be to drill 100 new infill and extensional holes to help boost resources in areas where the deposit is still open and shift more mineralisation into the indicated category. 

 

Alligator CEO Greg Hall said updated leach tests are being completed, and will inform the scoping study.

 

He said the new resources was an "excellent platform" for the study, which is due next quarter.

 

A field ISR trial is being considered for 2023, pending approvals.

 

UraniumSA ran some promising early numbers on a Blackbush ISR development in 2011 and looked at a 600tpa operation with production cost around US$25/lb.

 

A ground gravity crew has also been booked to examine the area around the Samphire paleochannel system south of Blackbush towards the Plumbush area, where there was an historical resource of 13.9Mlb at 292ppm.  

 

Alligator had around A$27 million at the start of the quarter. 

 

Alligator shares were off 7% this morning to 7.3c, amid a broader market sell-off. At current levels it is capitalised at $241 million.

 

It has traded at 3.7-11.5c over the past year.