Company – Infini Resources
Ticker – ASX:I88
Sector – Uranium / Lithium
Initial Investment Thesis – https://phoenixglobalinvestments.com.au/infini-resources-asxi88/
“Some Of The Highest Uranium Soil Grades Returned Globally”
Infini Resources (I88) have just announced remarkable soil sample results from their maiden fieldwork campaign, which reaffirms the presence of highly anomalous uranium at their Talus prospect.
17 soil samples returned >11,192 (>1.1792%) U3O8,which exceeds the ALS Canada soils limit of detection (LOD), so the actual grades of these samples may be significantly higher.
These samples have been re-sent for another analysis using the U-XRF10 protocol for ore grades with an LOD up to 15% U3O8.
More importantly, 52% of all soil samples returned >1,000 ppm U3O8 demonstrating the consistency of the anomaly across such a large area, potentially indicating a large uranium body of scale.
To put into context the significance of these results, the average uranium background reading in soils is only between 1 to 8 ppm U3O8 1
Moreover, there are operating uranium mines with significantly lower grades then these soil samples, such as Paladin who have the Langer Heinrich mine in Namibia producing at grades of 415ppm.
Additionally, it is incredibly rare to see such a large area of consistent high-grade uranium soil samples at surface, which then also coincide with a 3.2km radiometric corridor.
The soil sampling so far has only covered 400m of the 3.2km radiometric corridor so the high-grade uranium anomalies may continue in the East & West directions.
If the soil samples continue to return “ore-grade” results along the anomaly, it is increasingly likely a high-grade deposit of significant scale is a possibility.
It is important to note that the Talus prospect has never been effectively drill tested and I88 are the first company to systemically explore this ground with modern technology and exploration techniques.
Infini’s CEO, Charles Armstrong has stated “These first pass soils are nothing short of outstanding and represent some of the highest uranium soil grades returned globally.”
Figure 1 – The Talus Uranium Prospect depicting the location of the incredibly high-grade soil samples. Note: surface geochemistry is highly coincidental with the large existing anomalous radiometric corridor.
Not Even Cameco’s Key Lake Uranium Deposit Had Soil Samples of This Grade
A radiometric anomaly was discovered close to the north shoreline of Seahorse Lake by Uranerz in the early 1970’s.
Soil samples of the anomalous area assayed up to a maximum of ~10,000 ppm (1%) U3O8.2
The soil anomaly found and analysed was discovered above the Gaertner ore body (800m long, 10 to 40m wide and 50m thick) making up what is now known as Cameco’s Key Lake Deposits producing a total of 209.8 million pounds of uranium with an average grade of 2.32% from 1983 to 2002.3
Another Vector in Pb Isotope and Multi-Element Soil Geochemistry
I88 have also stated that they are using Pb-isotope analysis to vector in on any undiscovered uranium deposits, so far with positive indications. This strategy has been proven a useful pathfinder to finding buried sediment hosted unconformity-related U deposits in the past.
For example, McArthur Lake, which is the world’s highest-grade unconformity-related U deposit (Saskatchewan, Canada) and boasts 255 million pounds at 17.33% U3O8, reported soil assays over their Zone 4 ore body which had the highest proportion of samples with elevated U and low 207Pb/206Pb ratios, the latter indicative of radiogenic Pb from a high-U source, which coupled with other geochemical exploration strategies assisted in the world class discovery. 4
Biogeochemical Results 125 Times Greater Than Average
The Portland Creek project tenement presents a challenging terrain that it is covered in overburden and vegetation. As such, I88 also undertook biogeochemical testing to increase their exploration data set.
Biogeochemical prospecting entails the collection and analysis of plant materials in order to detect the presence of anomalous concentrations of uranium in the subsurface.
Two anomalies were defined with anomaly one at Talus measuring 630m x 150m long in a north-south orientation with a peak value of 50.12 ppm U3O8.
Anomaly two at T3 is 140m long running in a north-west south-east direction with a peak value of 2.3 ppm U3O8.
Putting these results into context, the average background reading in biogeochemical samples is only ~0.4 ppm U3O8, so the results of anomaly one at Talus are 125 times higher than this.
Rock Sample Results
Due the nature of Portland Creek having extensive surface cover, the team did not expect to encounter mineralised rock samples due to the lack of outcrops available.
Nonetheless, one large ~5m sized sheared and altered pink granite boulder returned a peak assay result of 650 ppm U3O8.
This is important because rocks are less susceptible to outside influences and add confidence that the geochemical anomaly in diverse surficial media, is from a potential underlying uranium body. 5
All 7 Vectoring Tools Coincide With Each Other
Of the seven geochemical vectoring tools used to assist in identifying potential uranium deposits, I88 have established that all seven are in alignment with each other.
Coincident? We think not.
| ✔ | Lake Sediments Samples | Highly anomalous and widespread uranium geochemistry from lake sediments extending over 6-7km |
| ✔ | Soil Samples | Some of the highest reported soil sample uranium grades globally & consistent across ~235m x 100m |
| ✔ | Biogeochemical | High-grade soils are proximal to highly anomalous biogeochemical (125 times background) |
| ✔ | Rock Samples | High-grade soils are proximal to highly anomalous boulder rock samples |
| ✔ | Radiometric Corridor | All results are sitting parallel to a ~3.2km long radiometric corridor. |
| ✔ | Radon Gas Surveys | Geochemical anomalies in proximity to historic radon gas survey |
| ✔ | Pb Isotope Ratios | Pb isotope and multi-element analysis results suggestive of high-grade unconformity style uranium deposit under Talus prospect, with results similar to Gemini, Cigar and McArthur Lake in the Athabasca Basin. |
What Do These Results Actually Mean?
I88 CEO, Charles Armstrong: “Suggests we may be very close to making a discovery here at Portland Creek…We might be onto something of significant scale”
Despite these samples being some of the highest reported grades globally, fieldwork samples alone do not always result in an economic discovery.
Through geochemical analysis, which geologists use to discover and unravel the chemical compounds that make of the earth, I88 have demonstrated some of the most compelling geochemical anomalies which in their own right are extraordinary, however collectively create a data suite which increases the confidence and probability that a significant underlying uranium orebody is in close proximity.
These results will provide the team a greater understanding of the geology and assist in identifying drill targets, increasing the likely hood of a discovery.
Atha Energy Corp (AUD ~$200M MC), which recently undertook a three-way merger which included ASX:92E as a result of their recent GMZ uranium discovery, illustrates the exact exploration thesis I88 are following in the below image:
Figure 2 – Atha Energy Presentation Leveraging Modern Technology 7
Portland Creek Results Comparable To High-Grade Unconformity Style Uranium Deposits Such as GMZ, Cigar Lake & McArthur Lake
In our opinion, Portland’s Creeks geochemical results are suggestive of a high-grade unconformity style uranium deposit such as GMZ, Cigar Lake and McArthur Lake in the Athabasca Basin.
These unconformity style deposits of the Athabasca Basin are some of the largest and highest grades in the world. 8
Cigar Lake, one of the world’s top uranium mines, with grades 100 times higher than average, is known as a hallmark for unconformity-related uranium mineralization and boasts 176.6 million pounds of U3O8 at an average grade of 14.48% U3O8. 9
These deposits are characterized by mineralization developed along the contact between younger sandstone cover and underlying crystalline basement rocks. 10
The challenge however is that mineralization can be up to ~400m into the underlying basement rocks.
However, tier one unconformity uranium deposits do have primary and pathfinder surface expressions, which can be identified through geophysics & geochemical analysis such as those being seen at Portland Creek. 11
How Do These Results Rank Amongst Peers?
The recent surface sample assay results significantly exceed almost all uranium explorers globally. We actually struggled to find any comparable peers with a collective of geochemical results similar to I88.
GMZ, discovered in 2022 by 92 Energy (ASX:92E), which is being touted as the best uranium discovery in the last decade, highlights just how significant I88s results are in comparison.
Not only is I88’s results greater in all sample types, some results are up to 30 times of those found at GMZ.
| Infini Resources (ASX:I88) | 92 Energy (ASX:92E)
(Pre-Merger) |
|
| Project | Portland Creek – Talus T1 Prospect | Gemini – GMZ Prospect |
| Market Cap | ~$9.5M (pre announcement) | ~$70M |
| Location | Newfoundland, Canada | Athabasca Basin, Canada |
| Lake geochemical results |
|
|
| Soil / Muskeg samples |
|
|
| Rock Sample |
|
|
| Drill Results | N/A – No drilling complete | ➢ 43.0m @ 0.62% (6,190 ppm) U3O8 ➢ 5.0m of 1.47% (14,685 ppm) U3O8 ➢ 34.5m @ 0.32% (3,200 ppm) U3O8 |
| JORC Resource | N/A – No resource | N/A – No resource |
A Clear Pathway for I88 Share Price Accretion
I88 has the benefit of a direct peer comparison in 92E who have trail blazed a pathway of exploration success, with their GMZ discovery.
Not only does 92E’s GMZ discovery offer a clear parallel for share price accretion at certain milestones, geologically it is also a high-grade unconformity style uranium deposit and we can draw a direct timeline for shareholder value.
| Market Cap Stages | I88 | 92E |
| Project | Portland Creek | Gemini Project |
| IPO | ~$12M | ~$12M |
| After fieldworks | ~$24M | ~$24M |
| Commencement of maiden drilling | N/A – Not commenced | ~$24M |
| Confirmation of ‘Elevated Radioactivity’ intersected | N/A – Not commenced | ~$52M |
| After discovery drill hole results | N/A – Not commenced | ~$92M (discovery drill hole 5.5m @ 0.12% U3O8) from 232m |
92E discovery drill hole (Drill hole number 4 which intersected 5.5m @ 0.12% U3O8) resulted in a ~7-8 times increase of the market cap valuation over several months.
This demonstrates significant upside potential for I88. The caveat however is that I88’s fieldwork results are unprecedented, so in our opinion the share price accretion could significantly outperform its peers, such as 92E.
Non-Executive Director, Dr Andrew Wilde Has Been a part of Several World Class Uranium Discoveries
I88 Non-Executive Director, Dr Wilde is a genuine industry heavy weight who has a long track record of uranium success dating back to the 1980’s, including:
- Technical Director & exploration geologist in discovery of 92 Energy’s GMZ uranium deposit (Saskatchewan)
- Chief geologist at Deep Yellow leading to the discovery of the Barking Gecko & Iguana uranium deposits
- Personally hired by John Borschoff to be Paladin’s chief geologist
Dr Wilde joined the Infini board largely driven by the prospects of the Portland Creek project. As such, we have extracted some of the key points Dr Wilde raised during a recent interview, when asked about the Portland Creek project: 12
“From my time at BHP, I learned that big deposits tend to have very large expressions or halos”
“Surface indications at GMZ were actually somewhat similar, in that what attracted my interest to the area (Portland Creek) was the presence of elevated levels of uranium in lakes”
“They (GMZ) also found very high levels of uranium, in what they call Muskeg (bog). Sampling of these Muskeg areas had revealed Uranium contents in the hundreds of ppm, and those sorts of levels are economic”
“So, I think it’s an exact parallel (GMZ) with what we have in Newfoundland at Portland Creek, with the main difference is that the levels of uranium and the extent of the anomalous uranium at Portland Creek is very much higher, we’re talking 6-7km, which is several times greater than what we saw at GMZ”
“Portland Creeks enormous lake sediment anomaly, extending over 6-7km, with extraordinary levels of uranium…The uranium has to come from somewhere”
Charles Armstrong (CEO) Executing at Every Step & Aligned With Shareholders
Charles Armstrong, a geologist with experience across a range of commodities, has held exploration geologist roles with some of the world’s largest mining companies including BHP Billiton and Northern Star Resources.
Charles led the exploration programs for Firefly Resources Ltd before the company was taken over by Spartan Resources Ltd (ASX: SPR) (formerly Gascoyne Resources Ltd) and led the discovery of the Yidby West gold deposits for Surefire Resources NL (ASX: SRN).
With respect to Portland Creek, what we find more interesting is that Charles was consulting to the Company for several months leading up to the IPO and generated the Portland Creek uranium project by identifying highly anomalous and broad uranium stream sediment geochemistry at Portland Creek relative to all Eastern Canadian data sets.
We have also been impressed with Charles’ the speed at which he has successfully executed the exploration strategy at Portland Creek, having only listed in January 2024, the company is nearly in a position to drill highly prospective targets, which offers a significant value proposition for shareholders.
Whilst all of our interactions with Charles have highlighted his default setting is 100% commitment to I88 success, it is important that any executive in a position of power has incentives which are aligned with shareholders.
CEO Performance Rights:
Near Term Share Price Catalysts
- Re-assaying of soils which exceeded the ALS Canda LOD
- Processing and interpretation of UAV magnetic survey – Any structural controls identified in this survey which underly or are in proximity to these geochemical results will be very telling
- Phase 2 surface geochemical sampling programs to extend and increase the number of existing anomalies so that the company knows where to start and stop drill lines
- Commencement of maiden diamond drilling following the definition of multiple geochemical targets that are coincident with both structure and radiometric anomalism
References
1. Yi, I. (n.d.). TECHNICAL REPORTS SERIES No. 284 Geochemical Exploration for Uranium. Retrieved June 30, 2024, from https://inis.iaea.org/collection/NCLCollectionStore/_Public/34/065/34065168.pdf
2. Traction Uranium Analytical Results from Key Lake South “Black Soil” Sample Confirm High Grade Uranium Mineralization Found In Near-Surface Overburden. (n.d.). Retrieved July 1, 2024, from https://webfiles.thecse.com/TRAC_NR_9.pdf?wLm1lFzGo3H.EjM73MGLmKZ5r3ifTlfJ
3. Traction Uranium Analytical Results from Key Lake South “Black Soil” Sample Confirm High Grade Uranium Mineralization Found In Near-Surface Overburden. (n.d.). Retrieved July 1, 2024, from https://webfiles.thecse.com/TRAC_NR_9.pdf?wLm1lFzGo3H.EjM73MGLmKZ5r3ifTlfJ
4. Beyer, S. R., Kyser, K., Kotzer, T. G., Ansdell, K., & Quirt, D. (2021). Exploration geochemistry of surficial media over the high-grade McArthur River uranium deposit, Saskatchewan, Canada. Canadian Mineralogist, 59(5), 913–945. https://doi.org/10.3749/canmin.2000081
5. Steve R. Beyer, Kurt Kyser, Tom G. Kotzer, Kevin Ansdell, David Quirt; Exploration geochemistry of surficial media over the high-grade McArthur River uranium deposit, Saskatchewan, Canada. The Canadian Mineralogist 2021;; 59 (5): 913–945. doi: https://doi.org/10.3749/canmin.2000081
6. Yi, I. (n.d.). TECHNICAL REPORTS SERIES No. 284 Geochemical Exploration for Uranium. Retrieved June 30, 2024, from https://inis.iaea.org/collection/NCLCollectionStore/_Public/34/065/34065168.pdf
7. Atha Energy Corp 1 July, 2024. Sourced from: https://wcsecure.weblink.com.au/pdf/92E/02751703.pdf
8. Geology of Uranium Deposits – World Nuclear Association. (n.d.). World-Nuclear.org. Retrieved June 30, 2024, from https://world-nuclear.org/information-library/nuclear-fuel-cycle/uranium-resources/geology-of-uranium-deposits#:~:text=Unconformity%2Drelated%20deposits%20constitute%20about
9. Cigar Lake – Canada – Uranium Operations – Businesses – Cameco. (n.d.). Www.cameco.com. https://www.cameco.com/businesses/uranium-operations/canada/cigar-lake
10. Uranium Unconformity Deposits | Geology for Investors. (2021, May 14). Www.geologyforinvestors.com. https://www.geologyforinvestors.com/uranium-unconformity-deposits
11. Jefferson, C., Thomas, D., Gandhi, S., Ramaekers, P., Delaney, G., Brisbin, D., Cutts, C., Quirt, D., Portella, P., & Olson, R. (n.d.). UNCONFORMITY-ASSOCIATED URANIUM DEPOSITS OF THE ATHABASCA BASIN, SASKATCHEWAN AND ALBERTA. https://i2massociates.com/downloads/JeffersonUnconformity.pdf
12. Phoenix Global Investments (2024). Hear from Uranium Expert and Infini Resources NED, Dr Andy Wilde. https://x.com/_phoenixglobal/status/1759849612490297737