Kraken Energy (UUSA.C) has confirmed its drill rig has started the initial 1,000 meter drill program on its Harts Point uranium project in Utah. The initial program will focus on historical oil wells which came up empty, but where off-scale radioactivity was registered at a depth of approximately 400 meters over intervals of 2-4 meters.

The Harts Point Anticline is analogous to the Lisbon valley Anticline nearby (located about 30 kilometers to the east), and that uranium district hosted 17 uranium mines and has documented total production of approximately 80 million pounds of uranium between 1948 and 1988 at a average grade of 0.34%. On the Western side of Harts point, there are some smaller mines as well, which produced a total of 280,000 pounds of uranium at an average grade of 0.3% U3O8.

Drilling should be fast and we could see drill results by the end of this month or early April. We would also expect the company to release the scintillometer results after testing the hole and if the results from the historical oil wells are somewhat representative we hope to see more off-scale radioactivity levels (or at least close to the higher end of the scale).

Disclosure: The author has no position in Kraken but will likely initiate a long position in the near future. Kraken is not a sponsor of the website but could become one in the near future. Please read the disclaimer.

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