The 92 Energy Ltd (ASX: 92E) share price is surging on Friday after the company provided an update for its inaugural drilling program at the Gemini Project.
92 Energy is an Australian uranium exploration company searching for high-grade uranium in the Athabasca Basin, Saskatchewan, Canada. The company successfully listed on the ASX on 15 April, closing at 28.5 cents on the day.
At the time of writing, shares in the uranium explorer are up 43.55%, trading at 45 cents. Let's take a closer look at the news out today.
Image source: Getty Images
92 Energy share price jumps on radioactivity intersection
92 Energy announced that its Drill Hole GEM-004 intersected a 5.3-metre interval of elevated radioactivity from 229.9 metres to 235.2 metres.
According to the company, the 5.3m interval averages 760 cps [counts per second]. It includes a 0.7m sub-interval of stronger radioactivity (>1,000 cps) from 234.3m to 235.0m that averages 1,500 cps.
"The elevated radioactivity is associated with a broad zone of moderate to strong clay, hematite and quartz alteration from 216m to 255m, all of which are commonly associated with uranium mineralisation at unconformity-related uranium deposits in the Athabasca Basin," 92 Energy said.
Looking ahead, the company has paused its summer drilling program to allow for the collection and interpretation of drilling data.
The company said it expected the geochemical assay results within approximately 4 weeks. This could serve as a near-term catalyst for the 92 Energy share price.
In addition, the company will use this time to bolster radiometric safety protocols in anticipation of additional drilling within the area.
Uranium sector is booming
The uranium sector is surging with ASX-listed players such as Paladin Energy Ltd (ASX: PDN) and Deep Yellow Limited (ASX: DYL) rallying 50% and 34% in the past week.
This is off the back of uranium prices pushing to 6-year highs US$34.25/lb, according to Cameco.
The booming sector could be another factor driving the jump in the 92 Energy share price on Friday.
