92 Energy (ASX:92E) share price rockets 43% on uranium discovery

The uranium company is having a great day.

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The 92 Energy Ltd (ASX: 92E) share price has rocketed more than 43% in today session.

Shares in the uranium player have surged ahead after releasing a promising announcement earlier today.

Let’s take a look at why investors are pushing the 92 Energy share price higher today.

92 Energy share price soars on uranium discovery

Shares in 92 Energy have soared after announcing the discovery of a new zone of uranium.

The company released an announcement earlier today, noting new zones of uranium mineralisation at its Gemini Project.

92 Energy identified the zones from chemical assays of samples from a drill hole (GEM-004).

Mineralisation of 0.12% uranium oxide was intersected at 5.5 metres, including 1 metre at 0.28% uranium oxide.

The highest-grade assay within this sub-interval returned 0.36% uranium oxide at 0.5 metres.

92 Energy managing director Siobhan Lancaster noted;

To identify 5.5m of 0.12% U3O8 on the fourth drill hole of our inaugural drilling program is an extraordinary result for 92 Energy. The success of this program is testament to our technically-driven strategy and the world-class exploration team that designed and delivered this program.

Importantly, the company’s management also noted that the drill assays showed similarities to other early holes at major Athabasca Basin uranium discoveries.

92 Energy noted that follow up drilling to determine the extent of mineralisation is due to begin in the Canadian winter.

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92 Energy is an Australian uranium exploration company with its main interest in the Athabasca Basin, Saskatchewan, Canada.

The uranium player has a 100% interest in its 28 mineral claims in the Athabasca Basin, which lie in its five projects; Gemini, Tower, Clover, Powerline Creek and Cypress River.

92 Energy’s Gemini project lies southeast of the McArthur River uranium mine, which is one of the largest uranium deposits in the world.

92 Energy listed on the ASX on 15 April after successfully raising $7 million at 20 cents per share.

Since its IPO, shares in the uranium player have soared more than 400%.

In addition to today’s news, the 92 Energy share price has also been fuelled by surging uranium spot prices.

At the time of writing, shares in the uranium player are trading 23% higher for the day.

The 92 Energy share price was up more than 43% earlier after hitting an intra-day and record high of $1.15.

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Motley Fool contributor Nikhil Gangaram 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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