Figure 1. Plan map highlighting current Phase III Summer 2022 drill holes at Davidson River
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VANCOUVER, British Columbia, June 27, 2022 (GLOBE NEWSWIRE) -- Standard Uranium Ltd. (“Standard Uranium” or the “Company”) (TSX-V: STND) (OTCQB: STTDF) (Frankfurt: FWB:9SU) is pleased to provide updates on the ongoing summer 2022 drill program at its flagship Davidson River Project (“Davidson River”) in Canada’s premier uranium district, the Athabasca Basin. The Company is also pleased to announce the closing of the first tranche of its ongoing brokered private placement for gross proceeds of $3.15 million.
Key Focus Points:
Davidson River drilling commenced on May 16th, with 2,672 metres completed to date
Redox fronts and metasomatic alteration zones associated with shallow graphitic structures intersected in first Thunderbird drill hole
Focus of drill program shifting to Thunderbird based on results from initial two holes
Brokered private placement first tranche closed for $3.15M
Davidson River – Summer 2022 Drill Program Update
On May 16th, the Company began the fourth drill campaign on its flagship 25,886 hectare Davidson River Project. The drill program is expected to comprise approximately 5,000 metres in 13 drill holes, following-up on the most prospective basement structures and alteration zones intersected to date and testing new target areas along the four major exploration trends on the Project (Figure 1). Several kilometres of graphitic conductors remain to be tested at Davidson River.
Jon Bey, CEO and Chair of the Company commented: “The Davidson River drill program had a very successful start and our drill team from Base Drilling are meeting the expected drilling objectives. The first two dill holes on the Thunderbird trend have excited our geologists and we have decided to focus the majority of remaining holes on this trend.”
Figure 1. Plan map highlighting current Phase III Summer 2022 drill holes at Davidson River.
All completed drill holes have confirmed the existence of the conductor targets, intersecting stacked graphitic-sulphidic high-strain zones within basement rocks on the Thunderbird (Figure 2) and Bronco trends. Notably, the first drill hole completed on the Thunderbird trend – DR-22-033A – intersected structurally controlled redox alteration fronts and graphite within semi-brittle structures from 162.1 to 167.5 m (Figure 2A & B), both important ‘pathfinder’ features to uranium mineralisation in the Basin.
Figure 2. A) The first Thunderbird drill hole on the Davidson River project, DR-22-033A, showing strong structurally controlled hematite-limonite alteration (redox fronts); 163.5m. B) Strong “worm-rock” textured hematite-limonite alteration overprinting graphitic shear planes; DR-22-033A; 163.6m.
Sean Hillacre, Vice President of Exploration, commented: “The technical team and I are extremely pleased with how well drilling is going at Davidson River, and we are encouraged by the alteration and structure we’re seeing in our first couple of holes on the Thunderbird trend. The strong redox fronts associated with graphitic structures are a common geological ‘pathfinder’ assemblages observed proximal to uranium mineralization in the Athasbasca Basin. We are excited to follow up drill down-dip and along strike of these altered structures. We look forward to continuing the program and incorporating our new observations into our drill targeting strategy as we continue to progress the summer program.”
Drilling will continue through July and drill core samples will be sent to the Saskatchewan Research Council (“SRC”) Geoanalytical Laboratory in Saskatoon periodically as they are collected throughout the season.
The scientific and technical information contained in this news release, including the sampling, analytical and test data underlying the technical information contained in this news release, has been reviewed, verified, and approved by Sean Hillacre, P.Geo., VP Exploration of the Company and a “qualified person” as defined in NI 43-101.
Update on Brokered Private Placement
The Company is pleased to announce that it has closed the first tranche of the brokered private placement announced by the Company on June 6, 2022 (the “Offering”). Under the first tranche, the Company sold 7,306,900 units (each, a “Unit”) at a price of C$0.11 per Unit and 18,065,846 flow-through units (each, a “FT Unit”, and collectively with the Units, the “Offered Securities”) at a price of C$0.13 per FT Unit for aggregate gross proceeds of C$3,152,318.98. The Offering is being led by Red Cloud Securities Inc. on behalf of a syndicate of agents that includes Canaccord Genuity Corp. (collectively, the “Agents”).
Each Unit consists of one common share of the Company (each a “Unit Share”) and one half of one common share purchase warrant (each whole warrant, a “Warrant”). Each FT Unit consists of one common share of the Company issued as a “flow-through share” within the meaning of the Income Tax Act (Canada) (each, a “FT Share”) and one half of one Warrant. Each whole Warrant entitles the holder to purchase one common share of the Company (each, a “Warrant Share”) at a price of C$0.17 at any time on or before June 27, 2024.
The net proceeds raised from the Offering will be used for the exploration of the Company’s Davidson River Project and for working capital purposes. Proceeds from the sale of FT Units will be used to incur “Canadian exploration expenses” as defined in subsection 66.1(6) of the Income Tax Act and “flow through mining expenditures” as defined in subsection 127(9) of the Income Tax Act (“Qualifying Expenditures”). Such proceeds will be renounced to the subscribers with an effective date not later than December 31, 2022, in the aggregate amount of not less than the total amount of gross proceeds raised from the issue of FT Units.
The second and final tranche of the Offering is scheduled to close in mid-July. Closing of the second tranche of the Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange. All securities issued in the first tranche of the Offering are subject to a statutory hold period until October 28, 2022.
Pursuant to the closing of the first tranche of the Offering, the Agents received total cash commissions of C$189,139.14 and were issued 1,522,364 broker warrants, with each broker warrant entitling the Agent to purchase one Unit at a price of C$0.11 until June 27, 2024.
About Standard Uranium (TSX-V: STND)
We find the fuel to power a clean energy future
Standard Uranium is a mineral resource exploration company based in Vancouver, British Columbia. Since its establishment, Standard Uranium has focused on the identification and development of prospective exploration stage uranium projects in the world-class Athabasca Basin in Saskatchewan, Canada.
Standard Uranium’s Davidson River Project, in the southwest part of the Athabasca Basin, Saskatchewan, comprises 21 mineral claims over 25,886 hectares. Davidson River is highly prospective for basement hosted uranium deposits yet remains relatively untested by drilling despite its location along trend from recent high-grade uranium discoveries. A copy of the NI 43-101 technical report titled “Updated Technical Report on the Davidson River Property, Northwest Saskatchewan, Canada” with an effective date of March 16, 2020, that summarizes the exploration on Davidson River is available for review under Standard Uranium’s SEDAR profile (www.sedar.com).
Standard Uranium's Sun Dog project, in the northwest part of the Athabasca Basin, Saskatchewan, comprises 6 mineral claims over 15,770 hectares. The Sun Dog project is highly prospective for basement and unconformity hosted uranium deposits yet remains largely untested by sufficient drilling despite its location proximal to uranium discoveries in the area.
For further information contact:
Jon Bey, Chief Executive Officer, and Chairman
550 Denman Street, Suite 200
Vancouver, BC V6G 3H1
Tel: 1 (306) 850-6699
Cautionary Statement Regarding Forward-Looking Statements
This news release contains “forward-looking statements” or “forward-looking information” (collectively, “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, are forward-looking statements and are based on expectations, estimates and projections as of the date of this news release. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, identified by words or phrases such as “expects”, “is expected”, “anticipates”, “believes”, “plans”, “projects”, “estimates”, “assumes”, “intends”, “strategy”, “goals”, “objectives”, “forecasts”, “budget”, “schedule”, “potential”, “possible” or variations thereof or stating that certain actions, events, conditions or results “may”, “could”, “would”, “should”, “might” or “will” be taken, occur or be achieved, or the negative of any of these terms and similar expressions) are not statements of historical fact and may be forward-looking statements.
Forward-looking statements include, but are not limited to, statements regarding: the timing and content of upcoming work programs; geological interpretations; timing of results from the Company’s drill programs; and estimates of market conditions.
Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors that could cause actual events or results to differ from those expressed or implied by forward-looking statements contained herein. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Certain important factors that could cause actual results, performance or achievements to differ materially from those in the forward-looking statements include, among others: general economic conditions in Canada and globally; industry conditions; governmental regulation of the mining industry, including environmental regulation; geological, technical and drilling problems; unanticipated operating events; competition for and/or inability to retain drilling rigs and other services; the availability of capital on acceptable terms; the need to obtain required approvals from regulatory authorities; stock market volatility; volatility in market prices for commodities; liabilities inherent in the mining industry; the development of the COVID-19 global pandemic; changes in tax laws and incentive programs relating to the mining industry. This list is not exhaustive of the factors that may affect the Company’s forward-looking statements. There may be other factors that could cause actual events or results to differ from those expressed or implied by forward-looking statements contained herein. See the section entitled “Risk and Uncertainties” in the Company’s management discussion and analysis for the fiscal year ended April 30, 2021, dated August 19, 2021 for additional risk factors that could cause actual events or results to differ from those expressed or implied by forward-looking statements contained herein.
Forward-looking statements are necessarily based upon a number of factors and assumptions that, if untrue, could cause actual events or results to differ from those expressed or implied by forward-looking statements contained herein. Forward-looking statements are based upon a number of estimates and assumptions that, while considered reasonable by the Company at this time, are inherently subject to significant business, economic and competitive uncertainties and contingencies that may cause the Company’s actual financial results, performance, or achievements to be materially different from those expressed or implied herein. Some of the material factors or assumptions used to develop forward-looking statements include, without limitation: the future price of uranium; anticipated costs and the Company’s ability to raise additional capital if and when necessary; volatility in the market price of the Company’s securities; future sales of the Company’s securities; the Company’s ability to carry on exploration and development activities; the success of exploration, development and operations activities; the timing and results of drilling programs; the discovery of mineral resources on the Company’s mineral properties; the costs of operating and exploration expenditures; the Company’s ability to identify, complete and successfully integrate acquisitions; the Company’s ability to operate in a safe, efficient and effective manner; health, safety and environmental risks; the presence of laws and regulations that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); uncertainties related to title to mineral properties; assessments by taxation authorities; fluctuations in general macroeconomic conditions.
The forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Any forward-looking statements and the assumptions made with respect thereto are made as of the date of this news release and, accordingly, are subject to change after such date. The Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the TSX-V) accepts responsibility for the adequacy or accuracy of this release.