Neu Horizon Uranium has identified a uranium exploration target extending more than two kilometres at its Storvallflon prospect in central Sweden and is preparing a 4,000-metre diamond drilling programme for the first quarter of 2027.
The target forms part of the company’s Krokom Black Shale Uranium Project and was identified through integrated geophysical surveys, surface geochemistry and geological modelling. The results indicate a large conductive structure that could extend beneath the surface within a deformed geological sequence.
The project has no declared mineral resource, uranium reserve or published economic assessment. Drilling will provide the first direct modern investigation of the interpreted structure and test whether the geological evidence supports further development.
Geophysical Surveys Identify Extensive Conductive Structure
Neu Horizon combined five exploration methods: airborne electromagnetic surveys, drone-based magnetic measurements, ground radiometric investigations, radon-gas sampling and rock-chip geochemistry.
The airborne electromagnetic programme used SkyTEM technology, with survey lines spaced approximately 150 metres apart. The combined datasets identified coincident anomalies associated with a conductive structure extending more than two kilometres.
Ground spectrometer measurements commonly exceeded 500 ppm uranium equivalent, with selected readings reaching approximately 1,800 ppm. These were the strongest surface radiometric responses recorded during the company’s 2026 surveys of Swedish shale-hosted prospects.
Laboratory analysis of 36 rock-chip samples by ALS laboratories returned significantly lower uranium oxide concentrations, ranging from 4 ppm to 243 ppm U₃O₈, with an average of 67 ppm U₃O₈. Eight samples exceeded 100 ppm U₃O₈.
The difference reflects the distinction between radiometric estimates and direct laboratory measurements. Neu Horizon believes weathering, oxidation and groundwater movement may have depleted uranium in exposed rocks, although higher grades at depth have not been established.
Geological Modelling Points to Subsurface Mineralisation
Three-dimensional inversion modelling of electromagnetic data suggests that the conductive black-shale sequence could form an antiform, an upward-arching structure created by geological deformation. Under this interpretation, the exposed surface represents the crest of a folded sequence that may continue underground along both sides.
The company is investigating whether deformation and associated fluid movement concentrated uranium within the sedimentary rocks of Sweden’s Caledonian geological belt.
Its geological model references the historical Ronneburg uranium district in Germany, where structural processes were associated with uranium grades exceeding 900 ppm U₃O₈. However, Ronneburg is only a geological analogue and does not establish comparable mineralisation at Storvallflon. The depth, grade, thickness and continuity of any uranium-bearing zones remain unknown.
4,000 Metres of Drilling Planned for 2027
The proposed drilling campaign will test the conductive structure through east-west drilling sections, with drill fences planned at approximately 200-metre intervals. The programme will investigate the geometry of the black-shale formations, uranium concentrations below the weathered surface and the relationship between mineralisation and geological deformation.
Final drill locations remain subject to further geological interpretation, permitting and approval of the proposed work programme by the Swedish Mining Inspectorate. The first-quarter 2027 schedule therefore remains a company target.
Sweden’s Regulatory Changes Reopen Uranium Exploration
Neu Horizon’s exploration activities follow the repeal of Sweden’s uranium extraction prohibition, which had been introduced in 2018.
Uranium regained its status as a concession mineral under Swedish mining legislation, allowing companies to apply for exploration permits and mining concessions subject to environmental and other legal requirements.
Further amendments took effect, removing the specific municipal veto previously applicable to uranium extraction under the nuclear-facility approval framework. Local authorities and communities retain roles under other planning and environmental procedures. Sweden is also reviewing municipal influence over concession decisions involving alum shale, with a government review scheduled to report by February 2027.
Exploration Funding and Swedish Portfolio
Neu Horizon reported approximately A$8.6 million (€5.4 million) in cash, which it considers sufficient to fund the 4,000-metre drilling programme and broader Swedish exploration commitments over the following two years. The funding reduces the immediate requirement for additional equity financing but does not cover the potential costs of developing a commercial uranium mine.
Listed on the Australian Securities Exchange in July 2026, Neu Horizon holds five Swedish exploration projects covering more than 110,000 hectares. It also has approximately 35,000 hectares of exploration interests along the northern margin of Canada’s Athabasca Basin.
The company expects to release further results from its Swedish exploration programme, including assessments of additional Krokom prospects and an airborne electromagnetic survey covering approximately 3,397 line kilometres.
Black-Shale Processing and Environmental Requirements
The commercial potential of Storvallflon will depend on uranium grades, mineralisation continuity and the ability to recover the metal economically. Black-shale deposits can contain relatively low uranium concentrations, potentially requiring substantial mining and processing volumes.
Processing may involve chemical treatment, reagent management and control of associated elements and residues. Sulphide minerals and organic material in black shale can also complicate water management and waste treatment.
Further technical studies would need to establish uranium recovery rates, processing methods, energy requirements and environmental management procedures. Particular attention will be required to uranium mobility in surface water and groundwater, an issue identified by Sweden’s Environmental Protection Agency in relation to disturbed rock and mining activities. Neu Horizon has not announced a resource estimate, production target, construction budget or uranium offtake agreement for Storvallflon. The planned drilling campaign will determine whether the two-kilometre geological target contains mineralisation suitable for further exploration and eventual resource definition.
