Premier American Uranium Inc. announced the issuance of a second Part 3 drilling permit (the “Permit”) for its Cebolleta Uranium Project in Cibola County, New Mexico, USA (the “Project”). The New Mexico Mining and Minerals Division (“MMD”) issued the permit, which allows the exploration of the Project for additional uranium by drilling up to 25 boreholes using 25 drill pad surface areas.
Location of the Cebolleta Project and Known Uranium Deposits. Image Credit: Premier American Uranium
In addition to marking a major turning point in the project's progress and development, this new permit shows how well PUR's technical team handles the permitting procedure and collaborates with regulatory bodies.
The permit application, submitted in March 2024, was designed to support additional confirmation drilling expected to be necessary for validating historic drilling on the project, enabling its inclusion in an initial Mineral Resource Estimate (MRE).
Based on the successful confirmation drilling in 2023, PUR finished the MRE ahead of schedule in June 2024, obviating the need for much of the additional confirmation drilling considered in this permit application.
With more drilling flexibility and discretion, PUR anticipates significant cost savings over its initial confirmation drilling budget estimate under this permit. Now that the permit has been obtained, PUR is considering drilling up to five technical confirmation holes in Area 3 and is looking into modifying both the current Part 3 permit for resource expansion drilling issued in 2023 and this new permit.
To support amending the permit for expansion drilling, the PUR technical team conducted extensive archaeological and biological clearance studies at the project last fall and is now ready to initiate the amendment process.
The following are PUR's objectives for the Cebolleta Project in 2025:
- Continuation of current biological, archaeological, and cultural research in support of an application for a Part 4 permit (which permits more flexible and robust drilling)
- Use the recently issued Part 3 permit to carry out drill work
- Update the Cebolleta MRE
- Materially de-risk the Project by completing a Preliminary Economic Assessment (PEA) targeted for summer 2025
The receipt of this Permit underscores the diligence and expertise of our team in navigating the permitting process efficiently and effectively. With multiple milestones achieved ahead of schedule at Cebolleta, we are now positioned to rapidly advance and de-risk the Project in 2025.
Colin Healey, Chief Executive Officer, Premier American Uranium
Healey commented, “We will aim to initiate certain technical drilling, as recommended in the NI 43-101 technical report on the Project, as well as potential resource expansion drilling (partly contingent on permit amendment), all in preparation for targeted delivery of an updated MRE and PEA this year. “
By leveraging a strategic and cost-conscious approach, we aim to deliver maximum value for our stakeholders, already materializing with the delivery of the MRE in June 2024, well ahead of plan and significantly reducing expected drilling costs and paving a path to establishing preliminary economics much earlier than we anticipated. We look forward to providing further updates on our plans as they are finalized.
Colin Healey, Chief Executive Officer, Premier American Uranium
The Project, acquired in 2024, has been a pillar of PUR's portfolio. The uranium mineralization at the project extends northward by the Jackpile-Paguate trend of uranium deposits, one of the world's largest sandstone-hosted uranium endowments.
Geologists from the US Department of Energy and the New Mexico Bureau of Geology and Mineral Resources reported that the mines in the Laguna mining district collectively produced over 100 million pounds of U3O8 from the Jackpile-Paguate trend between 1951 and 1983.2.
Though the extent of mineralization is not entirely defined, the northern continuation of the Jackpile-Paguate trend of uranium deposits onto the southern portion of the Project property is well established. It represents several significant potential areas for exploration and growth.