ASX-listed Atomic Eagle has announced a 24% increase in total mineral resources at its Muntanga uranium project, in Zambia, following the completion of the company’s maiden drilling campaign at the project.

The company notes that total mineral resources increased by 11.4-million pounds to 58.8-million pounds of triuranium octoxide (U₃O₈) at 309 ppm, representing a 24% increase.

The company explains that maiden pit‑constrained mineral resource estimates (MRE) have been completed for Chisebuka, with an inferred MRE of 19.9-million tonnes at 220 ppm U₃O₈ for 9.7-million pounds; and for Muntanga East, with an inferred MRE of 3.1-million tonnes at 252 ppm U₃O₈ for 1.7-million pounds.

Atomic Eagle says its resource upgrade was delivered at a low cost, with a discovery cost of $0.05/lb relative to spot uranium price of $89/lb.

The company says it will begin the largest drill programme at the project in almost 20 years later this month, targeting resource growth in line with its exploration target of 40-million pounds to 100.5-million pounds U₃O₈ at 150 ppm to 350 ppm.

Atomic Eagle is well funded for aggressive exploration, with $19.2 million in cash.

“To deliver a 24% increase in total resources from our maiden drill programme – and to do so at a cost of just $0.05/lb – is a strong endorsement of our exploration approach and the potential scale of the uranium resources across our Muntanga project area.

“This resource upgrade is a great start to achieving the exploration target we announced for the project late last year,” says Atomic Eagle CEO Phil Hoskins.

He points out that the company aims to materially increase the mineral resource to underpin a significantly larger uranium mine in Zambia.

“We’re embarking on the largest drill programme for the project in almost 20 years later this month and we see clear scope for this programme to significantly expand the project’s resource inventory and unlock further value for shareholders.”

Upcoming drilling will focus on expanding newly defined resources at Chisebuka and testing additional priority targets across the project area including Namakande and Muntanga North.

The company says it believes the Muntanga project area remains materially under‑drilled relative to its scale, providing strong leverage to continue exploration success.