Update – Appia Energy (CNSX:API, FRA:A0I, OTCMKTS:APAAF) Drills 72.9 Meters Of 0.012% U3O8 At Loranger
Appia Energy (CNSX:API, FRA:A0I, OTCMKTS:APAAF)
We apologize for the delay of this update.
In speaking with James Sykes, we believe that several positive takeaways should be taken from the results.
Firstly, Appia was able to hit uranium mineralization on 6 out of 7 drill holes, with two out of two exploration areas proving to host uranium mineralization. This is unheard of in the Athabasca Basin. To compare, IsoEnergy (TSXV:ISO) drilled 0.2 meters of 143 ppm U (0.017% U3O8) at 240 meters depth on its 27th drill hole on the property. ISO currently has a market cap of C$39.8 M.
Secondly, the cumulative widths of intersected uranium are a good sign that Appia is onto something. This is important because we believe its not grades that lead the way to large deposits, but the widths of intersections. We have seen many scenarios where companies have hit plus 1% U3O8 in less than one meter intersections that have lead to nowhere. And we have also seen 0.01% U3O8 over ten meters that lead to major discoveries.
Thirdly, the uranium mineralization occurs as uraninite (UO2) or as uranium in a mineral that is very easily and readily dissolved to release uranium in fluids. Compare this to uranium that is bound into a crystal lattice like the mineral monazite. This is an important detail because in order to release uranium from monazite, there needs to be very strong chemical fluids. Thus, a structure or alteration system will have a very difficult time releasing uranium from monazite.
If a major structure ripped through the RCV Trend, it would have no trouble remobilizing the uranium and concentrating it in a different location. These areas of concentration are what you see in high-grade uranium deposits.
In the end, there are a lot of positive takeaways from Appia’s inaugural drill program. It has shown that there is a possibility of hydrothermal fluid alteration systems comparable to those hosting high-grade uranium deposits. The problem with the RCV Trend is not so much grade, but simply the fact that the right structure did not pass through the area.
Currently, a gravity survey only covers 5 kilometers of the RCV Trend in strike, the trend continues for another 23 kilometers to the south-western end of the property. This is enormous exploration potential. Appia also has other trends that yield equally as exciting potential.
The company still has C$1.2-1.4 M in the treasury and plans on drilling again in June or July. There are four other targets the company has its sights on, and all the smoke is there for something big.