Chief Executive Officer (CEO) and Executive Chairman of Canadian company U92 Energy Corp., Adam Clode.
GEORGETOWN, Guyana--Chief Executive Officer (CEO) and executive chairman of Canadian company U92 Energy Corp., Adam Clode has disclosed that the company secured contracts for two drilling rigs, both of which are in-country, for uranium exploration at its Region Seven project.
Clode made those comments during an interview published on Tuesday, October 20, by Resource Talks, hosted by Antonio Atanasov. He explained that one rig, contracted through Major Drilling, is ready to be mobilised from Aris Mining’s Toroparu Gold Project, located approximately 40 kilometres northeast of U92’s project site.
The second rig, contracted through Orbit Drilling, is currently working at G Mining Ventures (GMIN) Oko West Gold project and is expected to become available early next year, after completing its existing programme towards the end of 2026.
“The rigs that are contracted are both in country. One is ready to go and the other one finishing a portion of work before that could come across,” Clode said.
Canadian firm secures two drill rigs for uranium exploration
However, the equipment will only be mobilised once the company receives the necessary permitting approval.
Clode’s comments come amid a review by the Environmental Assessment Board (EAB) of Guyana’s Environmental Protection Agency’s (EPA) decision to exempt the exploration project from an Environmental Impact Assessment (EIA). The review was triggered by appeals filed by seven organisations and over 50 citizens including former Executive Director of EPA Dr. Vincent Adams, challenging EPA’s decision.
During the interview, Clode explained that the company had decided not to bring the first rig onto the site while it awaits the necessary approval. He added that the contract provides for the rig to be mobilised once permitting approval is secured, with no standby costs being incurred while it remains idle.
“So, we have paid a significant deposit. That deposit is refundable if the work wasn’t to proceed, but at this point in time, there’s not a stand-down cost because they haven’t mobilized any workforce,” he said.
However, he noted that U92 would not want to leave the rig waiting indefinitely, adding that any prolonged delay could eventually require commercial discussions with the contractor.
Despite the permitting uncertainty, he maintained that the company could still meet its target of delivering an updated Mineral Resource Estimate (MRE) in the third quarter of 2027. “I believe it’s still reasonable. You know, we could bring additional drill on site. We could have two drills turning. I do believe that that’s still reasonable in terms of an updated MRE,” he said.
The project area spans approximately 92.2 square kilometres and carries a historical resource estimate of 20.6 million pounds of uranium. The planned resource update is expected to assess how much of the estimated resource remains within potential open-pit mining constraints.
Clode said U92 would consider an outcome exceeding 30 million pounds of uranium a success, provided it supports a mine life of more than 10 years at an annual production rate exceeding three million pounds.
He further disclosed the company’s ambitious target of approximately 50 million pounds, stating, “What we would love to get to is closer to 50 million and 5 million pound per annum, all pit constrained.”
U92 Energy owns the Kurupung Uranium Project through its wholly owned subsidiary, LIA (Guyana) Inc.
EPA in a notice on August 26 announced that it exempted the exploration project from an EIA. The agency’s approval cleared U92 to conduct soil sampling and approximately 5,000 metres of diamond drilling from about 30 drill platforms. The approved activities also include limited access-track works, rehabilitation of approximately 12 kilometres of an existing access road, a temporary exploration camp and secure drill-core storage.
However, the appeals have effectively put a pause on the proposed activities until the EAB makes its decision.
EPA Executive Director, Kemraj Parsram confirmed that exploration activities cannot proceed until the EAB decides whether to uphold or overturn the agency’s decision. “The EAB will review and determine if to agree or disagree with our decision… nothing moves forward until the EAB makes its decision,” Parsram had told Kaieteur News.
U92 Energy acquired the project early this year through the acquisition of LIA Industries Pte. Ltd., a Singaporean firm that owns LIA (Guyana). This publication reported that LIA (Guyana) Inc., was incorporated in Guyana on 20th March, 2023, and holds exclusive rights to occupy and explore the property under two Prospecting Licences (PLs) issued by the Guyana Geology & Mines Commission (GGMC) on 19th April, 2024.
The licences permit exploration for uranium, other radioactive minerals, and rare-earth elements for three years, ending 18th April, 2027, with an option to extend for up to two additional one-year periods through 18th April, 2029. ~Kaieteur News~
