Premier American Uranium (PUR) (OTC:PAUIF), a uranium exploration and development company, is accelerating its growth strategy following the completion of a mineral resource estimate (MRE) for its Cebolleta project in New Mexico. The company accomplished this milestone 12 months ahead of schedule, sending a strong positive message to shareholders as the uranium sector gains momentum.
"We believe the early achievement of this milestone positions PUR to fast-track, focusing efforts on resource expansion and priority target testing, rather than extensive confirmation work as previously anticipated," CEO Colin Healy said in an announcement.
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The Cebolleta project, located in the Grants Mineral Belt of New Mexico, now boasts 18.6 million pounds of uranium oxide equivalent (eU3O8) in indicated resources (6.6 million short tons at an average grade of 0.14%) and 4.9 million pounds of eU3O8 in inferred resources (2.6 million tons at a grade of 0.10%). This new estimate marks a significant improvement over the historic 2014 estimate, upgrading 80% of the previous inferred resources to the indicated category.
Ceboletta also has strong potential for resource expansion, as the project includes several promising areas – including the Willie P target (not included in MRE), unexplored extensions of existing mineralization and other untested zones. Notably, the Westwater Canyon Member, a key host rock for historic uranium mines in the Grants Mineral Belt (containing over 400 million pounds of uranium), remains largely unexplored on the Cebolleta property. The current mineral resources are situated within the shallower Jackpile sandstone.
"With several untested and underexplored targets at Cebolleta providing a clear path for resource growth, we are excited to initiate next steps well ahead of timelines previously expected by the market," the company's statement read.
The technical team is currently assessing future work programs and permitting requirements to build on the momentum gained. This strategic approach aims to solidify the company's foothold in the area that produced 37% of all historical US production.
With this presence in New Mexico, alongside projects in Wyoming and Colorado, the company has positioned itself as a strong contender in the domestic uranium market.
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