Indigo Acquires Uranium Claims in Shirley Basin, Wyoming

Rhea-AI Summary

Indigo Exploration has secured a 100% interest in the Hot Property, a promising uranium project in Wyoming's Shirley Basin. This acquisition includes 71 unpatented mineral claims spanning 5.75 km². Historical exploration dating back to the 1960s revealed significant uranium deposits, with some drill holes indicating high-grade uranium near the surface. The project is strategically located near other major uranium developers like Uranium Energy Corp., Ur-Energy, and Nuclear Fuels Inc. The acquisition terms include a payment of CDN$20,000 and 200,000 shares of Indigo, pending TSX Venture Exchange approval. The company aims to start drilling by early fall 2024, capitalizing on the current favorable uranium market trends and the resurgence of domestic uranium production in the U.S.

Positive

• Acquisition of 100% interest in the Hot Property, a prospective uranium project.
• Located near significant uranium producers and developers in Shirley Basin.
• Historical drill results show high-grade uranium intercepts.
• Strategically beneficial acquisition amid favorable uranium market conditions.
• Minimal upfront cost: CDN$20,000 and 200,000 shares.

Negative

• Initial verification and infill drill program required.
• Multiple drilling campaigns needed to justify a mineral resource.

Vancouver, British Columbia--(Newsfile Corp. - July 9, 2024) - Indigo Exploration Inc. (TSXV: IXI) (OTCQB: IXIXF) (FSE: INEN) (the "Company") is pleased to announce that it has entered into an agreement to acquire a 100% interest in the Hot Property, a highly prospective uranium project located in the past producing Shirley Basin of Wyoming. The Hot Property, which is comprised of 71 unpatented mineral claims covering a 5.75 km²area, has seen extensive historical exploration dating back to the 1960's with over 200 holes drilled including near-surface intercepts of 1.83 metres of 1.1% U₃O₈ at a depth of 43.0 metres and 3.35 metres of 0.28% U₃O₈ at a depth of 26.8 metres. The Project is located adjacent to Uranium Energy Corp.'s (UEC-NYSE) Shirley Basin project, Ur-Energy Inc.'s (URG-NYSE) Shirley Basin mine, and Nuclear Fuels Inc.'s (NF-CSE) Bobcat Uranium Project. Ur-Energy's Shirley Basin project hosts an NI 43-101 Measured and Indicated Resource of 8.8 Mlb U₃O₈ grading 0.23%¹ and is currently under construction².

"Gaining 100% interest in a project of this calibre, located in a key uranium district next to past production and some of the preeminent US-focused uranium producers and developers, and with extensive historical drill results, is an exciting new development for the Company." commented Paul Cowley, President & CEO of Indigo Exploration.

The Shirley Basin of Wyoming
Wyoming represents the largest uranium producing state and contains the greatest uranium ore reserves within the United States. The Shirley Basin located 40 miles southwest of Casper, Wyoming, produced over 51 million pounds of U₃O₈ from 1960 to 1992 at an average grade of 0.22% U₃O₈. The Shirley Basin mines closed not for a lack of resource but due to economic factors following the Three Mile Island accident (1979). The importance and relevance of the Shirley Basin today is reflected in production resurgence with Ur-Energy's production plans.

Figure 1: Shirley Basin Uranium Project Map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3717/215930_9e445f6db4d979dc_001full.jpg

Hot Property
The Hot Property is strategically located just 800m east (0.5 mile) of an historic production area and 1.8km (1.1 miles) from Ur-Energy's uranium resource. Indigo uncovered 202 drill logs from public records from holes drilled in the 1960's on ground now covered by the Hot Property. One intercept (H1-Zeb-44) encountered 1.83m of 1.1% U₃O₈ at a depth of 43.0m and a second hole (H6-Zeb-44) encountered 3.35m of 0.28% U₃O₈ at a depth of 26.8m. Of the 202 holes, approximately 46% intercepted shallow uranium mineralization. Depth to mineralization ranges from 3m to 130m but average 46m deep in Eocene-aged Wind River Formation, the uranium host unit in the Shirley Basin. The Hot Property is particularly promising as one third of the mineralized holes on the property have two or more uranium intercepts.

The Company's geologists are compiling historic data in order to design an initial verification and infill drill program that can be submitted for permitting this summer, for drilling projected to start in early fall 2024. Multiple campaigns of drilling will likely be needed to justify a NI 43-101 mineral resource. Numerous existing trails criss-cross the Hot Property which would provide easy access and minimal surface disturbance for the RC drill programs.

"The resurgence in the uranium market fundamentals coupled with the bipartisan support in the US to secure domestic sources of uranium, positions the Company on the forefront to benefit from these compounding trends," commented Indigo's President & CEO, Paul Cowley. "We are excited to be a part of the evolving Shirley Basin camp."

In-situ Recovery of Uranium in Wyoming
Underground and open pit mining methods as well as in-situ recovery (ISR) were employed in production operations in the Shirley Basin. Since the 1990's all uranium mining in Wyoming uses the ISR process, a solution mining method that leaving the ore where it is in the ground and recovers uranium through a system of drill holes by dissolving and pumping the pregnant solution to the surface where the uranium can be recovered. Consequently, there is little surface disturbance, and no tailings or waste rock generated. Lower Capex and Opex from this approach see uranium grades at ISR operations as low as 0.04% U₃O₈.

¹ Updated Initial Assessment Technical Report Summary on Shirley Basin ISR Uranium Project, Carbon County Wyoming, USA dated March 4, 2024 and prepared by Western Water Consultants, Inc.
² Ur-Energy Announces Decision to Build Out Shirley Basin Mine: Press Release dated March 13, 2024

Terms of Transaction
The Company has signed a purchase agreement with a private vendor pursuant to which it acquires a 100% interest in a private limited liability Arizona company which holds the Hot claims located in the Shirley Basin of Wyoming. Pursuant to the agreement, the Company will pay an aggregate of CDN$20,000 and make share issuance of 200,000 shares in the Company to earn 100% interest, without any NSR royalty. The agreement remains subject to the approval of the TSX Venture Exchange.

On Behalf of the Board of Directors,

"Paul Cowley", President and CEO

For further information, please contact: Paul Cowley: (604) 340-7711 Website: www.indigoexploration.com

Bradley Parkes, P.Geo., VP Exploration and Director of Indigo Exploration Inc., is the Qualified Person as defined in
National Instrument 43-101, who has read and approved the technical content of this news release.

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/215930

FAQ

What is the significance of Indigo Exploration's acquisition of the Hot Property in Wyoming?

Indigo Exploration's acquisition of the Hot Property enhances its portfolio with a highly prospective uranium project in a strategic location, near other major uranium developments.

What are the acquisition terms for Indigo Exploration's Hot Property?

Indigo Exploration will pay CDN$20,000 and issue 200,000 shares to acquire a 100% interest in the Hot Property, pending TSX Venture Exchange approval.

What historical exploration data exists for the Hot Property in Shirley Basin?

Historical exploration from the 1960s includes over 200 drill holes, with significant uranium intercepts, such as 1.83m of 1.1% U3O8 at 43.0m depth.

When does Indigo Exploration plan to start drilling on the Hot Property?

Indigo Exploration plans to start drilling on the Hot Property by early fall 2024.

How does the Hot Property acquisition position Indigo Exploration in the uranium market?

The acquisition positions Indigo Exploration advantageously to benefit from current market trends and U.S. bipartisan support for securing domestic uranium sources.