Indigo Encounters More than 160 Uranium Intercepts from Phase 1 Drilling on Shirley Basin Project, Wyoming

Rhea-AI Summary

Indigo Exploration (IXIXF) has announced significant results from its Phase 1 drilling program at the Shirley Basin uranium project in Wyoming. The company completed 48 holes, with over 90% encountering uranium intercepts. The program discovered 165 uranium intercepts with grades at or above 0.01% eU3O8 across 44 holes, typically showing 3-4 zones per hole.

The drilling campaign systematically explored a 1km x 1.3km area, with holes spaced approximately 160 meters apart and reaching depths of 53.3m. Forty holes encountered 133 intercepts ranging from 0.91-7.92m thick, averaging 1.6m, with 38 intercepts exceeding 1.8m thickness. The project is strategically located adjacent to Uranium Energy Corp's Shirley Basin project and Ur-Energy's Shirley Basin mine, which hosts an NI 43-101 Measured and Indicated Resource of 8.8 Mlb U3O8 grading 0.23%.

Positive

• 90% of drill holes encountered uranium intercepts
• 165 uranium intercepts discovered across 44 holes
• Multiple mineralized zones per hole (3-4 typically)
• Good lateral correlation between holes
• Property located adjacent to established uranium projects

Negative

• Relatively low grade mineralization (0.01% eU3O8)
• Phase 2 program still needs to be designed

Vancouver, British Columbia--(Newsfile Corp. - January 27, 2025) - Indigo Exploration Inc. (TSXV: IXI) (OTCQB: IXIXF) (FSE: INEN) (the "Company") is pleased to announce drill results from its Phase 1 48-hole drill program on its uranium project located in the past producing Shirley Basin of Wyoming. Greater than 90% of the holes encountered uranium intercepts. Indigo's 100% owned Hot Property covers a 5.75 km² (2.2 miles²) area of the Basin and has seen historic uranium exploration drilling completed between 1957 and 1981. The Project is located adjacent to Uranium Energy Corp.'s (UEC-NYSE) Shirley Basin project, Ur-Energy Inc.'s (URG-NYSE) Shirley Basin mine, and Nuclear Fuels Inc.'s (NF-CSE) Bobcat Uranium Project (Figure 1). Ur-Energy's Shirley Basin project hosts an NI 43-101 Measured and Indicated Resource of 8.8 Mlb U₃O₈ grading 0.23%¹ currently under construction² and only 1.8km from Indigo's property.

Indigo's Phase 1 drill campaign systematically explored a 1km x 1.3km area where 29 historic drill holes encountered 47 uranium intercepts with thicknesses of 0.91-3.66m (3-12 ft), averaging 1.6m (5.2 ft) thick, within the top 61m (200 ft). Average grade of mineralization in these 29 historic vertical holes was 0.089% eU3O8. Some of these historic holes went deeper, encountering uranium intercepts at 121.9-137.2m (400-450ft) depths.

Indigo's Phase 1 Drilling

Forty-four of the 48 vertical holes completed by Indigo encountered 165 intercepts of uranium mineralization with a grade at or over 0.01% eU3O8, typically having 3-4 zones per hole. Forty of 48 holes encountered 133 intercepts of uranium mineralization 0.91-7.92m (3-26 ft) thick, similarly averaging 1.6m (5.2 ft) thick with a grade estimate of at or over 0.01% eU3O8. Thirty-eight intercepts exceeded 1.8m (6 ft) thick. Indigo's holes were spaced roughly every 160 metres (525 ft) apart and typically only 53.3m (175 ft) deep, targeting the depths where the vast majority of historic intercepts occurred. There appears to be good lateral correlation of the multiple zones between holes.

Downhole gamma ray geophysical logging was employed to determine uranium intercepts and grade in this uranium roll front target area. Gamma ray signatures of the intercepts were characteristic of roll front "near interior" and "interface" peaks. Thicker and higher-grade areas of mineralization appear to favour multiple north-northeast south-southwest corridors and are open-ended in both directions. Deeper intercepts from historic drilling indicates additional uranium opportunities at depth on the property. The Phase 1 objective of a quick and low-cost test to verify uranium mineralization on the property was met with success. Company geologists will be working with this data for a more comprehensive interpretation and evaluation before a Phase 2 program is designed to target the nose of the roll fronts in the uranium-bearing stratigraphy on the property.

Figure 1: Shirley Basin Uranium Project Map

To view an enhanced version of this graphic, please visit:
https://images.newsfilecorp.com/files/3717/238508_3eeb8800a4925851_001full.jpg

¹ Updated Initial Assessment Technical Report Summary on Shirley Basin ISR Uranium Project, Carbon County Wyoming, USA dated March 4, 2024 and prepared by Western Water Consultants, Inc.
² Ur-Energy Announces Decision to Build Out Shirley Basin Mine: Press Release dated March 13, 2024

On Behalf of the Board of Directors, "Paul Cowley", President and CEO

For further information, please contact: Paul Cowley: (604) 340-7711 Website: www.indigoexploration.com

Bradley Parkes, P.Geo., VP Exploration and Director of Indigo Exploration Inc., is the Qualified Person as defined in
National Instrument 43-101, who has read and approved the technical content of this news release.

This news release includes certain forward-looking statements as well as management's objectives, strategies, beliefs and intentions. Forward looking statements are frequently identified by such words as "may", "will", "plan", "expect", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and we caution against placing undue reliance thereon. We assume no obligation to revise or update these forward-looking statements except as required by applicable law.

Neither the TSX Venture Exchange nor its Regulations Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accept responsibility for the adequacy or accuracy of this release.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/238508

FAQ

What were the key findings from Indigo's Phase 1 drilling at Shirley Basin?

Indigo's Phase 1 drilling discovered 165 uranium intercepts across 44 of 48 holes, with grades at or above 0.01% eU3O8. Over 90% of the holes encountered uranium mineralization, typically showing 3-4 zones per hole.

How does IXIXF's Shirley Basin property compare to neighboring projects?

The property is adjacent to Ur-Energy's Shirley Basin mine, which has an NI 43-101 resource of 8.8 Mlb U3O8 grading 0.23%, and is also near Uranium Energy Corp's Shirley Basin project and Nuclear Fuels' Bobcat Uranium Project.

What is the average thickness of uranium intercepts in IXIXF's Phase 1 drilling?

The uranium intercepts ranged from 0.91-7.92m thick, averaging 1.6m, with 38 intercepts exceeding 1.8m in thickness.

What are IXIXF's next steps for the Shirley Basin uranium project?

The company will analyze the Phase 1 data for a comprehensive interpretation before designing a Phase 2 program to target the nose of the roll fronts in the uranium-bearing stratigraphy.