IsoEnergy: Athabasca Drilling at the Dorado JV Confirms Uranium Discovery

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IsoEnergy (ISO) announced that its inaugural drill program at the joint venture Dorado project, located in the Athabasca Basin is off to an encouraging start. Initial drilling at the highly prospective Q48 target intersected uranium mineralization in two holes, with downhole gamma probe readings reaching as high as 79,500 counts per second (CPS). These initial drill holes have confirmed the zone as a significant uranium bearing structure. We maintain our C$17.95 per share price objective which equates to upside of 96% from the most recent close. Shares of IsoEnergy currently trade at 0.51x discount to NAV.

DRILLING IN THE ATHABASCA BASIN OFF TO A GREAT START

Initial drill holes PG25-04 and PG25-05 at the Q48 target intersected a steeply dipping, north-south trending mineralized structure at vertical depths of 60m and 20m below the unconformity, respectively. Located in the southern portion of the Dorado Project, both drill holes intersected uranium mineralization, thus confirming the zone as a significant uranium-bearing structure. Radioactivity readings from downhole probe measurements averaged 11,050 cps over 3.7m with a maximum of 74,800 in PG25-04 and 27,750 over 2.3m with a maximum of 79,800 in PG25-05. Mineralization is hosted within strongly clay-altered basement rocks — these are considered key indicators for a uranium-bearing hydrothermal system consistent with known Athabasca-style deposits.

Specifically, drill hole PG25-04 targeted the Q48 conductor which is located approximately 800m northwest of previous IsoEnergy drilling in 2022. The drill hole was collared with a dip of -60 degrees and encountered Athabasca sandstone to a depth of 321m. Clay altered granitic gneiss and pegmatites were drilled to 393m then garnet-rich pelitic gneiss, with local pyrite and graphite, was drilled to the completion depth of 489m. Hole PG25-05 was collared using the same azimuth as PG25-04 and intercepted the radioactive structure approximately 40m up-dip of that hole. The hole encountered the unconformity at 309m, clay altered granitic gneiss and pegmatites to 371m, then garnet-rich pelitic gneiss, locally with pyrite and graphite, to the completion depth of 498m. The central mineralized structure was hosted in a sheared / brecciated reddish-brown altered granitic gneiss and returned an average of 75,660 cps over 0.4m.

DORADO DRILL CAMPAIGN JUST GETTING STARTED

A third follow-up hole is underway to further track the mineralized structure along the Q48 conductive corridor to the northeast. Over the course of 2025, approximately 5,400m in 18 drill holes are planned for. Encompassing over 98,000 hectares, Dorado is the flagship 50/50 JV project with Purepoint Uranium (PTU), the operator. Recall that the JV was only established this past January, with a C$5.0M budget for 2025 exploration.

Exploration this year will focus on various high-priority target zones defined by graphitic conductors that wrap around a central granitic dome. A unified approach will integrate and re-evaluate all historical geophysical work and drill hole geology across the properties.

CONCLUSION & VALUATION

Though Dorado’s current value is marginal within the greater IsoEnergy portfolio, we note that Dorado is located along the renowned Larocque conductive corridor which is home to IsoEnergy’s Hurricane deposit which hosts 48.6M lbs grading 34.5% U3O8 in the Indicated category. Dorado is located in close proximity to Hurricane, the Q48 target sits just south-east of the Hurricane deposit. We maintain our 1.0x target NAV multiple which leads to a price objective of C$17.95. This implies 96% upside from the most recent close. Shares currently trade at 0.51x discount to NAV.