Cosa Resources – Winter Drilling Has Commenced At Darby Project, With Murphy Lake North To Follow

The KE Report Feb 3, 2026

Summary

Cosa Resources has begun ~2,500m of winter drilling at its Darby uranium project in the Athabasca Basin, a 70/30 JV with Denison Mines.

Four priority targets came out of relogging historic core, chasing sandstone-alteration signatures near graphitic basement faults.

Murphy Lake North drilling (~1,200m) follows in March, filling a 1,200m gap along the Cyclone trend from 2025.

Targets sit at 500-650m depth near Cigar Lake; management argues Cosa tight share structure could amplify a discovery re-rate.

The CEO argues winter drilling has just kicked off at the Darby project (a JV with Denison) and frames it as the most advanced walk-up drill campaign Cosa has ever mounted, with about 4,000 metres planned this season and four near-miss targets (Delta, Charlie, Gamma, plus a fourth) sitting next to Cameco's Cigar Lake ground.
Cosa plans to drill Darby first this winter, then move the rig to Murphy Lake North in Q1 2026, with results expected in the spring and larger summer programs slated for both projects.
He calls 2026 'probably our most exciting year to date,' citing a treasury of just under C$10 million to keep the drill bit turning through the year and several catalysts lined up.
He highlights Cosa's tight share structure — Denison owns just under 20 percent and the management team controls roughly 20 percent — and argues that a discovery should therefore drive an outsized share-price reaction, similar to ISO Energy's move in 2018.
The Darby program is targeting follow-ups to historical holes that returned anomalous sandstone uranium (>4 ppm versus a 0.2-0.5 ppm basin background), which the speakers describe as very rare in the Athabasca basin.

Top takeaway His central thesis is that 2026 could be Cosa's breakout year — both Darby and Murphy Lake North are now at the same maturity with walk-up targets, spring assays are coming, and a C$10M treasury funds continuous drilling.
He argues that a 70 percent interest in a major Athabasca basin discovery would still be transformative ('cartwheels in the aisles'), since Cameco itself does not own 100 percent of Cigar Lake or MacArthur River.
He frames Cosa as 'pre-discovery, even though there's a lot of smoke' and stresses that the biggest catalyst for the stock is keeping the drill bit turning as much as possible through the year.
He warns the industry needs new high-grade discoveries now to replace production from Cigar Lake, which he expects to wrap up in the 2030s.

Top takeaway He argues Darby gives Cosa a 'huge head start' over a typical exploration project — historical drilling already shows about one-in-five holes with weak mineralization on multiple trends (Delta, Charlie, Gamma, with Bravo and Hotel for later), with anomalous >4 ppm uranium in sandstone against a 0.2-0.5 ppm basin background.
He points to Hurricane as proof of concept — that deposit was hit with only a 40-metre step-out from a near-miss hole — and says Cosa is applying the same playbook at Darby, stepping out only tens of metres from historical near-misses.
He flags a roughly 1,200-metre drill gap on the Cyclone trend at Murphy Lake North, calling it much larger than the high-grade portion of Hurricane (~125 m) or Denison's Phoenix deposit (~250 m).
He describes strong sandstone alteration at Murphy Lake North — a roughly 75-metre interval of broken-up, hydrothermally altered rock — intersected over two kilometres of strike length in the first-pass program.
He plans to test for a possible parallel trend to Cyclone, with a priority target about 100 metres south of an existing hole that hit strongly graphitic and pyroretic basement rock more than 100 metres below the unconformity.