Arkle Resources (AIM: ARK) expands Namibia uranium drilling after visual carnotite discovery

Arkle Resources plc (AIM: ARK) has expanded its maiden reverse-circulation drilling programme at the Erongo Uranium Project in Namibia after visually logging carnotite in three holes across two drill lines. The company had completed 52 holes totalling 1,017 metres by 17 July 2026, with the uranium-bearing mineral observed at downhole depths of between four and 15 metres. Arkle will now add step-out holes on the eastern paleochannel target, complete further testing of the western channel and bring forward five reconnaissance holes at its primary uraniferous leucogranite target. The shares traded around 0.75 pence, up approximately 3.45% during the session and close to their 52-week high, as investors responded to the first visible evidence from the company’s newly acquired Namibian portfolio. The central tension is whether the shallow mineral observations will translate into laboratory-confirmed uranium grades and continuity, or remain encouraging geological indications without sufficient economic significance.

The drilling is taking place entirely within Exclusive Prospecting Licence 8995, one of four Namibian licences introduced through Arkle’s acquisition of an 85% interest in Namibia Uranium Pty Ltd earlier in 2026.

No laboratory results have yet been received. Arkle has stated clearly that visual carnotite observations cannot be used as a substitute for uranium assays and that no conclusion can yet be drawn regarding grade, width or continuity.

That distinction is critical. The programme has produced enough geological encouragement for management to expand the campaign while the rig remains mobilised, but the investment case will be determined by analytical results expected to begin arriving in early September 2026.

Why has Arkle Resources expanded the drilling programme before receiving laboratory assays?

Arkle originally planned approximately 1,500 metres of reverse-circulation drilling to test shallow paleochannel targets identified through electromagnetic surveys, airborne radiometric information, surface mapping and historical exploration data.

The company has already completed more than two-thirds of that initial metreage. The holes were drilled along fence lines crossing the interpreted channel positions and continued until they reached the underlying basement rocks.

Most holes were only 10 to 20 metres deep, allowing Arkle to drill a large number of positions relatively quickly. This shallow architecture reduces the cost of testing channel geometry compared with a programme targeting mineralisation several hundred metres below the surface.

Management decided that continuing with the existing rig and field team would allow extra holes to be completed at a relatively low incremental cost. Mobilisation, site preparation, personnel and support equipment are already in place, meaning additional drilling can provide more geological information without repeating the full cost of starting another campaign.

The expansion includes step-out holes intended to test whether the eastern paleochannel continues along strike. Arkle has also completed an initial six-hole fence across the western paleochannel, approximately 15 kilometres west-southwest of the first drilling area.

The decision is commercially rational provided the extra work remains within the funded exploration budget. Extending a programme while contractors are already operating can generate better value than demobilising and returning several months later.

However, efficiency should not be mistaken for geological validation. The additional holes will strengthen the dataset, but only downhole spectrometry and laboratory analysis can determine whether the visible mineralisation carries sufficient uranium content to justify a larger programme.

What does visual carnotite in three shallow holes indicate about the Erongo uranium targets?

Carnotite is a secondary uranium mineral commonly associated with near-surface uranium deposits in arid environments. Its appearance in drill chips confirms that uranium-bearing minerals occur within the geological system being tested.

The observation is particularly relevant because carnotite is the principal ore mineral in several surficial uranium deposits across the region. Arkle’s paleochannel targets are being evaluated as potential analogues to uranium mineralisation associated with the nearby Trekkopje and Marenica deposits.

Finding carnotite in three holes across two separate fence lines provides more useful information than an isolated observation from one hole. It suggests mineralisation may occur across more than one position within the interpreted channel system.

The shallow depths of four to 15 metres could also be beneficial if later drilling defines a continuous mineralised body. Near-surface mineralisation can reduce waste removal, drilling costs and conceptual mining complexity compared with deeply buried deposits.

Nevertheless, visual mineral identification provides no reliable measurement of grade. A drill chip containing recognisable carnotite could produce a strong assay, a low-grade result or a narrow mineralised interval with little commercial scale.

The company has collected 1,016 one-metre samples under its quality-assurance and quality-control procedures. Selected intervals will be sent to Activation Laboratories in Windhoek after the downhole gamma-ray spectrometer work helps identify the sections most likely to contain uranium.

The September assays must answer three questions. They need to show how much uranium is present, how the mineralised intervals relate across neighbouring holes and whether the results justify closer drill spacing.

A strong outcome would involve repeatable mineralisation across several holes with grades and widths that support follow-up drilling. A weaker outcome would consist of scattered low-grade values without evidence of continuity.

How will downhole gamma-ray spectrometry improve Arkle’s assay and drilling decisions?

Arkle began downhole gamma-ray spectrometer surveys during the week of the announcement. The equipment measures natural radiation within the completed drill holes and helps identify intervals that may contain elevated uranium.

The process gives the geological team an additional dataset before laboratory assays are available. It can help distinguish intervals of interest from sections where visual inspection alone may not reveal mineralisation.

Arkle plans to combine the spectrometer readings with geological logs to decide which samples should be submitted for analysis. This approach concentrates assay expenditure on the intervals considered most relevant rather than analysing every metre indiscriminately.

Cost control matters because the company has collected more than 1,000 samples and continues to expand the programme. Laboratory charges, transport and quality-control samples can become meaningful components of an exploration budget.

Gamma readings are faster than laboratory assays, but they are not a final substitute for chemical analysis. Radiation can be affected by disequilibrium within uranium decay chains, geological conditions and the presence of other radioactive elements.

The spectrometer results will be most valuable as a targeting and prioritisation tool. Laboratory assays must still provide the reported uranium grades used in any future mineral resource estimate.

The combined approach should allow Arkle to design the eastern step-out holes with better information than was available at the start of the campaign. If gamma anomalies align with the visually observed carnotite and interpreted channel geometry, management will have a stronger basis for expanding drilling along strike.

Why is Arkle bringing forward the first drilling at the ULG target during the same campaign?

The Erongo portfolio contains two distinct exploration models. The current paleochannel programme targets shallow secondary uranium mineralisation, while the uraniferous leucogranite programme is examining primary uranium mineralisation associated with granite sheets.

Arkle recently completed trenching across a central-northern target measuring approximately one kilometre by 700 metres. The trenches exposed multiple stacked leucogranite sheets interlayered with metasedimentary rocks.

Five reconnaissance reverse-circulation holes have now been brought forward from the planned follow-up campaign. These holes will test the target below the surface and provide the first vertical geological control across the sequence.

This creates an efficient opportunity to test two different styles of uranium mineralisation during one field campaign. Success at either could support further investment, while evidence from both would provide broader strategic optionality.

The geological and economic characteristics could differ substantially. Paleochannel deposits may be shallow, laterally distributed and relatively low grade. Uraniferous leucogranite systems may require different drill spacing, processing assumptions and scale thresholds.

Bringing forward reconnaissance drilling does not mean Arkle has confirmed a deposit at the ULG target. Trench assays remain outstanding, and the first holes are intended to establish basic information about thickness, orientation and mineralisation at depth.

The larger ULG-focused drilling campaign planned for the third quarter remains subject to results from trench samples and the reconnaissance holes. Management should therefore retain flexibility rather than automatically spending the full follow-up budget if the first evidence is weak.

The advantage of the current approach is that Arkle should obtain an early comparison between its two principal uranium models. That evidence can help determine which target receives the greatest share of future capital.

How important is Arkle’s location beside established and development-stage uranium assets?

Arkle’s Namibian licences are located in the Erongo Region, one of the world’s most established uranium-producing districts. The portfolio lies near the operating Rössing mine and adjacent to the Trekkopje and Marenica uranium deposits.

Rössing is an active, long-life uranium operation whose current mine plan extends into the next decade. Its continued operation demonstrates that large-scale uranium mining, processing, transport and export infrastructure are established in the region.

Trekkopje is not currently a producing mine. Orano has kept the project under care and maintenance but is assessing whether improving market conditions justify a future restart.

The distinction matters because proximity to a large deposit does not establish that Arkle’s licences contain equivalent mineralisation. It does, however, confirm that the regional geological setting is capable of hosting major uranium systems.

Nearby infrastructure can become strategically relevant if a discovery eventually advances towards development. Roads, power, mining services, laboratories, experienced personnel and access to the coastal export corridor can reduce some of the challenges faced by projects in undeveloped districts.

Namibia also has an established uranium regulatory framework and became the world’s third-largest producer after record national output during 2025. The country hosts active mines, restarting operations and several advanced development projects.

This creates a competitive environment for capital, contractors and technical staff. Arkle’s location provides credibility, but its project must still compete with larger and more advanced Namibian uranium assets for investor attention.

The company’s small market value means even a modest discovery could become material to shareholders. The same scale also limits the capital Arkle can deploy without issuing additional shares or attracting a partner.

Can Arkle’s £1.7 million financing support the full 2026 Namibia programme?

Arkle raised £1.7 million before expenses in January through the issue of 425 million shares at 0.4 pence each. The financing accompanied the £2.032 million acquisition of an 85% interest in Namibia Uranium.

The budget included the initial £375,000 cash consideration, exploration expenditure, working capital and transaction costs. The planned programme covered geophysics, mapping and up to 4,000 metres of reverse-circulation drilling.

The present drilling update indicates that the company remains funded for its immediate work. Management described the additional holes as low-cost extensions within the existing financed campaign rather than the start of a new unfunded programme.

Arkle’s December 2025 accounts provide limited insight into the current cash position because they predate the placing and acquisition. At year-end, the company held €297,979 of cash, reported a €498,492 annual loss and had net current liabilities of approximately €508,000.

The auditors and directors identified going-concern uncertainty based on the year-end position, but the post-period financing materially changed the company’s liquidity profile. Arkle remains a pre-revenue explorer, meaning future programmes will ultimately require additional equity, partnership funding or asset-level transactions.

The company also retains deferred acquisition consideration. It must pay £242,000 by the end of 2026 and £195,000 by the end of 2027, subject to the detailed transaction terms.

A portion of those payments can be accelerated if Arkle publishes a compliant inferred mineral resource containing at least 20 million pounds of uranium oxide at a minimum grade of 120 parts per million.

That provision should not be treated as evidence that such a resource already exists or is expected from the current programme. It is a contractual milestone that would increase Arkle’s cash obligation if exploration succeeds.

The current financing appears sufficient to generate the next substantial technical dataset. A maiden resource, if eventually achievable, would require denser drilling and further expenditure beyond the present reconnaissance campaign.

Why has Arkle reduced its exposure to Stonepark while prioritising uranium in Namibia?

Arkle retains a minority interest in the Stonepark Zinc Project in Ireland, where Group Eleven Resources is completing a substantial exploration programme.

The company elected not to fund the current four-hole drilling phase because it is directing capital towards Namibia. Its Stonepark interest was expected to decline from 22.36% to approximately 21.38%, subject to the final programme costs.

This decision shows that management is attempting to concentrate limited cash on the asset it considers capable of delivering the strongest near-term catalysts.

Stonepark already contains a declared zinc-lead resource and remains strategically relevant. However, Arkle does not control the programme, and funding every joint-venture call would reduce the capital available for its majority-owned Namibian assets.

Allowing a modest dilution preserves some exposure while avoiding the immediate cash contribution. Arkle retains the option to participate in later drilling phases if it decides that maintaining its interest offers better value.

The approach also reveals the company’s strategic transformation. Arkle is no longer allocating capital evenly across uranium, zinc, lithium and its historical Irish exploration properties. Namibia has become the dominant operating priority.

That focus can improve execution and investor understanding. It also increases dependence on the Erongo programme. If the assays disappoint, the company may need to reassess whether to continue accelerating uranium expenditure or redirect resources to other parts of the portfolio.

How did Arkle Resources shares respond to the first drilling evidence from Namibia?

Arkle Resources shares traded around 0.75 pence following the announcement, approximately 3.45% above the previous reference price of 0.725 pence. Trading volume approached six million shares.

The company’s market capitalisation stood at approximately £11.9 million based on around 1.59 billion shares in issue. The stock was close to its 52-week high of 0.80 pence and substantially above the 52-week low of 0.225 pence.

The shares had risen by approximately 36% over one month, around 67% over six months and more than 170% over one year. The broader performance reflects the Namibia acquisition, financing, geophysical work and growing anticipation around the drilling programme rather than the 17 July update alone.

The relatively measured session gain appears appropriate given the stage of the evidence. Visual carnotite confirms uranium mineralisation but does not establish grade or resource potential.

The market is therefore recognising improved geological confidence without treating the programme as a discovery supported by assays.

The share-price performance also raises the expectations attached to September’s results. Arkle is trading near its yearly high before laboratory confirmation, meaning strong results may be needed to sustain further rerating.

Low grades, isolated intervals or delays could produce a more negative reaction because the market has already assigned value to the drilling narrative.

What evidence will show whether Arkle has identified a commercially relevant uranium system?

The first assay results expected in early September will be the next decisive milestone. They should provide uranium grades for the shallow intervals identified through geological logging and downhole spectrometry.

The most valuable evidence would be repeatable uranium values across several neighbouring holes and fence lines. Continuity along strike would be more important than one isolated high-grade sample.

Arkle will also need to show the thickness of mineralised intervals and how the mineralisation relates to the interpreted paleochannel geometry. Wider mineralisation at moderate grades could be more meaningful than narrow high-grade occurrences, depending on the eventual mining and processing model.

Results from the western target will indicate whether both channel systems warrant follow-up. The eastern step-out holes should reveal whether the mineralised zone extends beyond the initial drilling positions.

At the ULG target, reconnaissance drilling must establish whether the exposed leucogranite sheets continue at depth and carry uranium mineralisation. Trench and drill assays will determine whether a larger third-quarter campaign remains justified.

A strong programme could lead to closer-spaced drilling, an updated technical report and the beginning of resource-definition work. That stage would require additional capital and a more detailed understanding of metallurgy, recovery and potential operating costs.

The thesis would weaken if carnotite is associated with low or discontinuous uranium values, if spectrometer anomalies fail to align with assays or if the ULG holes do not confirm the surface interpretation.

Arkle has successfully moved its Namibia strategy from acquisition and geophysics into physical drilling. The next test is whether the September assays transform visual encouragement into quantitative evidence capable of supporting a larger exploration investment.

What are the key takeaways from Arkle Resources’ expanded Namibia uranium drilling?

• Arkle Resources completed 52 reverse-circulation holes totalling 1,017 metres at Exclusive Prospecting Licence 8995 by 17 July 2026.
• Carnotite was visually identified in three holes across two fence lines at depths of between four and 15 metres.
• Visual mineral observations confirm uranium-bearing material but cannot establish grade, width or commercial significance.
• Arkle has expanded the programme to include eastern paleochannel step-outs and additional work across the western target.
• Five reconnaissance holes at the primary uraniferous leucogranite target have been brought forward from the planned follow-up programme.
• Downhole gamma-ray spectrometry will help select samples for laboratory analysis and refine the position of additional drill holes.
• First laboratory assay results are expected in early September 2026, with further results anticipated throughout the second half.
• The programme is funded through the £1.7 million placing completed alongside Arkle’s acquisition of an 85% interest in Namibia Uranium.
• Arkle shares traded around 0.75 pence, close to their 52-week high, as the market responded cautiously to the visual evidence.
• The decisive proof will be repeatable laboratory-confirmed uranium grades and continuity capable of supporting follow-up resource-definition drilling.