Homeland Uranium Corp. (HLU:TSX.V) released initial results from its 2025 phase one bedrock mapping program for its flagship Coyote Basin uranium project in northwestern Colorado, and they confirm the presence of anomalous radioactivity, reported HoldCo Markets in an Aug. 18 research note.
"The phase one bedrock mapping data serve to further derisk the project while also establishing a framework for the highly anticipated phase two drilling program," HoldCo Markets wrote.
100% Uplift Implied
HoldCo noted that it maintained its CA$0.64 per share 12-month price objective on the Canadian uranium explorer. In comparison, at the time of the investment firm's report, Homeland Uranium was trading at about CA$0.32, at attractive valuation multiples when compared to peers.
From CA$0.32 per share, the return to target is 100%.
Homeland has 101.38 million shares outstanding and a CA$31.8 million (CA$31.8M) market cap.
Historical Findings Confirmed
During the late 1970s, Western Mining Co., a previous project operator of Coyote Basin, identified, through exploration work, four stratigraphic horizons with variable radioactivity, noted HoldCo. Homeland Uranium's bedrock mapping confirmed that these horizons, all of them members of the Fort Union formation, are present and where they are. The highest radioactivity level detected was along the northern end of Horizon 2, which remains open for further strike extension to the north.
"Specifically, the mapping program confirmed that anomalous radioactivity persists within beds along intermittent outcrop exposures of mapped horizons along strike for approximately 14 kilometers (14 km)," HoldCo wrote.
In outcrop, the highest level of radioactivity detected was 400 counts per second (400 cps), occurring in the area of historical drill hole CB-106, at the south end of the mapped extent of Horizon 1. Homeland believes the area to the south of this outcrop could host additional strike extensions of the four horizons.
Confirmatory Drilling Planned
The next step at 18,404-acre Coyote Basin, explained HoldCo, is a phase two confirmation drill program, which Homeland will start, likely this fall, once its notice of intent permit application is approved at the federal and state levels. (Currently, the application is under review.) The campaign will comprise 36 holes over 6,000 meters of inaugural rotary drilling. The objective is to confirm the historical uranium and vanadium resource then convert it into an NI 43-101-compliant mineral resource estimate, expected in H1/26.
"The phase two confirmation drilling program will be a pivotal event in derisking of the project," wrote HoldCo.
The historical resource that Western Mining estimated, as reported by Energy Metals Corp. in 2006, is 8,850,000 tons of 0.2% U3O8 and 0.1% V2O5, for 35,400,000 pounds (35.4 Mlb) of U3O8 and 17.7 Mlb of V2O5. It resulted from results of 24 holes drilled by Western Mining, 21 of which hit mineralization. This resource makes the Coyote Basin uranium deposit one of the largest in the Four Corners region.
Also during the upcoming drill campaign, Homeland will drill test the Open Gulch area that, according to Western Mining, hosts the bulk of the historical Coyote Basin uranium resource.
Currently, geochemical results are pending of the 89 collected and submitted rock samples from Coyote Basin.
"The historic resource at Coyote Basin, coupled with the aggressive 2025 drilling plans, make Homeland Uranium a compelling investment from a risk-reward standpoint," wrote HoldCo.
Results From Red Wash
Homeland carried out mapping and prospecting at its Red Wash project, too, also in northwestern Colorado, but kept it to just the western part of the property. Prospecting confirmed the presence of a continuous, weakly radioactive (up to 109 cps) horizon. Five rock samples were collected and sent to analysis, results of which are not available yet.
Next summer, Homeland will do follow-up mapping and prospecting at this project to identify potential future drill targets.
What is to Like
HoldCo wrote that it likes the geological potential of Coyote Basin, including the resource size, the impending resource upgrade and further resource upside potential both downdip and along strike. The location of Coyote Basin and Red Wash, about 435 km away from the only three fully licensed conventional uranium mills in the U.S. is ideal as each, White Mesa, Sweetwater and Shootaring Canyon, is on standby or has ample excess capacity.
HoldCo also likes Homeland Uranium's fundamentals, including the CA$11M on the balance sheet as well as the outstanding management and board members and their track record in terms of exploration, development, finance and capital markets.
On the Horizon
Upcoming catalysts for Homeland include receipt of the permit to drill; the large-scale drill program to follow, likely in the fall; then completion of an NI 43-101-compliant mineral resource estimate, due in H1/26.
"In a part of the U.S. where the need for uranium resources is becoming increasingly apparent, the Homeland Uranium story is worth telling and watching for," HoldCo wrote. "The near-term drivers will be material, and news flow will begin in short order."
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