Here’s why the Alligator Energy (ASX:AGE) share price was snapping higher today

Shares in Alligator Energy Ltd (ASX: AGE) are on the move today following a positive company announcement to the ASX.

At one point, the uranium miner’s shares surged 15% to an intraday high of 11 cents before retracing during midday trade.

Currently, Alligator shares are 1.04% lower at 9.5 cents.

“Exceptional high-grade uranium results”

Investors were bidding up the Alligator Energy share price this morning after the company reported “exceptional high-grade uranium results” from the Samphire Uranium Project in South Australia.

According to the company’s release, Alligator Energy advised it has received strong results from resource infill drilling, a downhole prompt fission neutron (PFN) logging program, and further sonic core results.

The company noted a rotary mud (infill) drilling program in the Blackbush deposit has concluded ahead of schedule. All holes were successfully logged with PFN, three-arm caliper, resistivity, neutron porosity, and natural gamma.

Some of the results included:

• Hole 021 at 3.44 metres at 0.854% pU3O8 from a depth of 56.88 metres;
• Hole 026 at 4 metres at 0.706% pU3O8 from a depth of 63 metres;
• Hole 020 at 4,24 metres at 0.414% pU3O8 from a depth of 61.23 metres; and
• Hole 034 at 4.35 metres at 0.313% pU3O8 from a depth of 69.10 metres.

In addition, Alligator Energy highlighted results from three sonic cored holes with U3O8 and GT highlights. There are as follows:

• Hole 002 at 6.60 metres at 0.204% U3O8 from a depth of 65 metres;
• Hole 003 at 4.32 metres at 0.165% U3O8 from a depth of 72.45 metres; and
• Hole 004 at 8.00 metres at 0.134% U3O8 from a depth of 62 metres.

The company noted that there is still another 10 holes that are awaiting further results.

Management commentary

Alligator Energy CEO Greg Hall commented:

These exceptional PFN and further assay results are expanding the known high-grade area within the Blackbush deposit. The visual inspection of core, combined with the downhole geophysical data from PFN holes, is showing that Blackbush mineralisation is hosted in lithologies with permeability amenable to ISR, and with an apparent consistency of mineralisation that Alligator believes bodes well for our planned resource confidence update and Scoping Study.

… These results combined with the ongoing correlations with historical information are aimed to achieve our objective of increasing confidence levels in our Blackbush JORC resource.

About the Alligator Energy share price

Over the last 12 months, the Alligator Energy share price has gained an astonishing 464% for investors. This has been on the back of a significant uptick in uranium futures which has almost doubled in a year.

Based on today’s price, Alligator Energy commands a market capitalisation of roughly $309 million.

The post Here’s why the Alligator Energy (ASX:AGE) share price was snapping higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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