Blue Sky Uranium Corp. (TSXV: BSK) (FSE: MAL2) (OTC: BKUCF) ("Blue Sky" or the "Company") announces that due to high investor demand, the Company has increased the private placement amount announced on November 21, 2022, from $1,000,000 to $1,800,000 consisting of 18 million units (the "Units") at $0.10 per Unit.
Each Unit will consist of one common share and one transferrable common share purchase warrant (a "Warrant"). Each Warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at $0.20 per share for two (2) years from the date of issue.
This financing is subject to regulatory approval and all securities to be issued pursuant to the financing are subject to a four-month hold period under applicable Canadian securities laws. Directors, officers and employees of the Company may participate in a portion of the financing. A commission may be paid on a portion of the financing. The proceeds of the financing will be used for exploration programs on the Company's projects in Argentina and for general working capital.
Blue Sky Uranium Corp. is a leader in uranium discovery in Argentina. The Company's objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low-cost producers, while respecting the environment, the communities, and the cultures in all the areas in which we work. Blue Sky has the exclusive right to properties in two provinces in Argentina. The Company's flagship Amarillo Grande Project was an in-house discovery of a new district that has the potential to be both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
ON BEHALF OF THE BOARD "Nikolaos Cacos"
______________________________________ Nikolaos Cacos, President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments the Company believes, expects or anticipates will or may occur in the future, including, without limitation, statements about the Company's plans for its mineral properties; the Company's business strategy, plans and outlooks; the future financial or operating performance of the Company; and future exploration and operating plans are forward-looking statements.
Blue Sky Uranium (TSXV:BSK,OTC:BKUCF, FSE:MAL2) is an advanced exploration company uniquely positioned with potential to become the first low-cost, uranium producer in Argentina, helping address a consistent, in-country demand and a forecast growing global supply deficit for uranium.
Since the reactivation of its nuclear energy program in 2006, Argentina has been growing its nuclear energy capacity as part of the government’s goal to diversify its power generation mix. With three nuclear plants currently in operation, Argentina has plans to construct two more nuclear power plants, giving rise to increasing domestic demand for uranium, a primary mineral used for nuclear reactors.
Argentina is not the only country undergoing a nuclear revival. Geopolitical events in recent years have caused governments to re-evaluate their energy security and sustainability goals to move away from fossil fuels and pursue alternative power sources, including nuclear energy.
Blue Sky Uranium’s flagship Amarillo Grande Project, in the Rio Negro province of Argentina, is a new uranium district with geological similarities to those in Kazakhstan, which hosts the world’s largest uranium deposits and produced 43 percent of the world’s uranium supply in 2022. Based on Blue Sky’s preliminary economic assessment, if the Ivana deposit were advanced to production it has the potential to rank amongst the lowest-cost producers of uranium on a global basis.
With Argentina’s anticipated demand for uranium expected to grow as it strengthens its nuclear energy program, the Amarillo Grande project has the potential to make Blue Sky a domestic supplier of uranium for the country. (For more insight on Blue Sky Uranium, watch these interviews with the company's president and CEO Nikolaos Cacos.)
The Amarillo Grande Project has a current NI 43-101 inferred resource estimate of 22.7 million pounds of uranium and 11.5 million pounds of vanadium (28 million tonnes averaging 0.037 percent U308 and 0.019 percent V2O5 at a 100 ppm uranium cut-off; ) with a positive preliminary economic assessment (Kuchling et al. 2019).
The company is a member of the Grosso Group, an organization that has operated in Argentina for over 27 years.
Blue Sky Uranium has an experienced management team with a successful track record of major discoveries in Argentina. Nikolaos Cacos brings more than 30 years of experience in executive management and advisory expertise in the mineral exploration industry and holds a bachelor’s degree in science and a master’s in international management. Guillermo Pensado, vice-president of exploration and development, is a geologist with 25 years of experience in the mineral exploration industry specializing in uranium.
Company Highlights
Blue Sky Uranium is an advanced exploration company uniquely positioned with potential to become the first low-cost, uranium producer in Argentina.
Argentina is on the path to increasing its nuclear energy capacity, creating a steady demand for uranium.
The company’s flagship project, Amarillo Grande, is a district-scale opportunity hosting the Ivana Deposit as well as multiple other targets
Ivana has a current NI 43-101 inferred resource estimate of 22.7 million pounds of uranium and 11.5 million pounds of vanadium (28.0 million tonnes averaging 0.037 percent U308 and 0.019 percent V2O5 at a 100 ppm uranium cut-off) and a positive preliminary economic assessment (PEA).
Blue Sky is led by an experienced management team with a successful track record of major discoveries in Argentina.
Key Project
Amarillo Grande Project
The 100-percent-owned Amarillo Grande Project consists of three major properties spread over 245,000 hectares: the Ivana property, the Anit property and the Santa Barbara property. Ivana has been the subject of the most recent exploration activity and now hosts an inferred current mineral resource estimate with a preliminary economic assessment, and multiple targets with potential for the discovery of additional resources.
Ivana Deposit Highlights:
Inferred resources and initial PEA: The deposit has an NI 43-101 inferred mineral resource estimate of 22.7 million pounds of uranium and 11.5 million pounds of vanadium (28.0 million tonnes averaging 0.037 percent U308 and 0.019 percent V2O5 at a 100 ppm uranium cut-off) and a positive PEA
Low-cost Production Potential of Uranium and Vanadium: Both metals give Blue Sky Uranium opportunities for potential future revenue, supplying the power market and steel market with the elements they need. The Ivana deposit is shallow (<25 meters depth) and hosted by loosely consolidated sand and gravel, allowing for low-cost production potential.
Comparable to Kazakhstan: The project occurs in a comparable geological setting to the giant uranium-producing districts in Kazakhstan and the Ivana deposit has similar characteristics to deposits found there.
Close Proximity to Valcheta City: The Amarillo Grande Project is roughly 25 kilometers north of the city, with access to a skilled workforce.
Existing Road, Rail and Power Access: Valcheta City gives the project access to Provincial Road #4 and National Road #23, with the national road leading to the ocean port in San Antonio Oeste. A railway runs parallel to National Road #23 and two high-power lines.
The on-going work program has a dual approach of advancing the Ivana deposit and exploring new deposits in the district, focused initially within 10 to 20 kilometers of the Ivana deposit. At Ivana, modelling of new drill data is underway to refine the deposit and potentially upgrade the resource category. Recent uranium/vanadium leach tests on a composite bulk sample resulted in uranium recovery of 96 percent and vanadium recovery of 35 percent. Exploration and drilling programs outside of Ivana continue to refine and advance targets.
Management Team and Consultants
Joseph Grosso - Chairman and Director
Joseph Grosso is the president and founder of Grosso Group Management and president and CEO of Golden Arrow Resources. He became one of the early pioneers of the mining sector in Argentina in 1993 when exploration and mining was opened to foreign investment and he was named Argentina’s Mining Man of the Year in 2005. His knowledge of Argentina was instrumental in attracting a premier team which led to the acquisition of key properties in Blue Sky Uranium. He has successfully formed strategic alliances and negotiated with mining industry majors such as Barrick, Teck, Newmont, Viceroy (now Yamana Gold) and Vale and SSR Mining, and government officials at all levels.
Nikolaos Cacos - President and CEO
Nikolaos Cacos brings over 30 years of executive-level management and advisory expertise in the mineral exploration industry. He has worked with Grosso Group since its inception and serves as a senior-level executive for all the member companies. Cacos' career includes administration, structuring, and strategic planning for public companies. He currently serves as an officer and director of a number of TSXV-listed companies. He holds a Master of International Management degree from Heidelberg, Germany and a Bachelor of Science degree from the University of British Columbia.
Darren Urquhart - CFO
Darren Urquhart is a chartered professional accountant with twenty years of experience working in public practice and industry. Urquhart operates his own public practice accounting firm offering chief financial officer and accounting services to TSX Venture Exchange-listed companies in Vancouver. He has also served as director for some of his corporate clients. He began his career working as an audit accountant with Grant Thornton LLP, then later worked as a senior tax accountant with Lohn Caulder Chartered Accountants. Urquhart obtained his chartered accountant designation in 2001 and is a member of the Chartered Professional Accountants of British Columbia. In 1995, Urquhart graduated from the University of British Columbia with a Bachelor of Applied Science in electrical engineering.
Guillermo Pensado - Vice-president of Exploration and Development
Guillermo Pensado is a professional economic geologist with more than 25 years of expertise in the mineral exploration industry - with particular emphasis on uranium. He holds extensive experience in exploration and economic project assessment in Argentina, Brazil, Chile, Peru, the US and Canada, mainly focused on uranium, precious metals, and copper deposits. In the last decade, Pensado has worked in the start-up of new projects and companies and has held positions from advisor to vice-president of exploration. Pensado is a certified professional geologist in the USA, a qualified person for NI-43-101 in Canada, and a professional geologist from the Argentine Professional Geological Council. Pensado holds a B.Sc. in geology from the University of La Plata, Argentina, and an M.Sc. in mineral exploration from Queen's University, Canada. He has been a member of the Society of Economic Geologists since 2000. In 2001, he was recognized with the David Money Medal Award from Queen's University for being the Top MinEx Student in the International Program. In 2016 and 2018, Pensado was recognized by the Argentina Mining International Conference for his professional career in the exploration industry.
David A. Terry - Director
Dr. David Terry is a professional economic geologist, former senior executive and corporate director with more than 30 years of international experience in the mineral resources sector. He has played key roles in the successful acquisition, exploration and development of many precious and base metal deposits, primarily in North and South America, and has expertise in advanced project evaluation, M&A, corporate finance, and design and execution of effective exploration programs. In the course of his career, Terry has held executive positions and directorships with several publicly listed and private mineral resource companies; he currently serves as a director of Blue Sky Uranium, Golden Arrow Resources, and Aftermath Silver. He has also worked with some senior mining companies including Boliden, Westmin Resources, Hemlo Gold Mines, Cominco and Gold Fields Mining. Terry holds a B.Sc. and Ph.D. in geology from Western University in Ontario and is a member of the Association of Professional Engineers and Geoscientists of British Columbia.
Jorge Berizzo - Independent Technical Advisor
Dr. Jorge Berizzo has over three decades of uranium exploration and production experience in Argentina, with a focus on Chubut. His roles ranged from senior exploration geologist to mine manager for the Argentinean National Atomic Energy Commission, as well as privately owned companies. His work has seen him explore a range of geological settings, and he is credited with a leading role in the discovery of the Cerro Condor and Cerro Solo uranium deposits in Chubut province, Argentina. Berizzo was instrumental in Blue Sky’s pioneering efforts to explore for uranium in Rio Negro, and in the identification and acquisition of the company’s portfolio of highly prospective properties.
Chuck Edwards - Independent Technical Advisor
Chuck Edwards is a professional engineer with over 50 years of experience in research and development, operations, government service, consulting and engineering management. He is now principal with Extractive Metallurgy Consulting in Saskatoon, Saskatchewan. Edwards specializes in uranium processing for both alkaline and acid leach plants. He was involved in the engineering design of all the current uranium facilities in Saskatchewan's Athabasca Basin and has worked on uranium projects on five continents. Recently, Edwards was a process engineering advisor at the Saskatchewan Research Council. He held various positions at Amec Foster Wheeler, Cameco, Energy, Mines and Resources Canada, Kilborn Western and Eldor Mines, Rabbit Lake, among others. Edwards has been a technical consultant to the International Atomic Energy Agency in Vienna, Austria since 1999, and served as president of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) from 2011 to 2012. He was awarded the AIME gold medal for Extractive Metallurgy Technology in 1987, the CMP Best Presentation Award in 1997 and 2007, CMP Mineral Processor of the Year in 2001, CIM Distinguished Lecturer in 2003, CIM Fellowship in 2004, CIM Life Member in 2011, and CIM Distinguished Service Medal in 2013.
Blue Sky Uranium Corp. (TSXV: BSK) (FSE: MAL2) (OTC: BKUCF) "Blue Sky" or the "Company") is pleased to announce that the Company has filed the NI 43-101 Technical Report (the "Report") supporting disclosure of the independent Preliminary Economic Assessment(" PEA") for the Ivana Deposit at the Company's 100% owned Amarillo Grande Uranium-Vanadium Project in Rio Negro Province Argentina as reported on February 22 nd 2024 .
The updated PEA incorporates a new mineral resource estimate, in which approximately 80% of the resources are now in the Indicated category. The PEA demonstrates robust economics from a surficial mining operation, entailing 11 years of uranium and vanadium production.
The Report, titled "Preliminary Economic Assessment Update for the Ivana Uranium-Vanadium Deposit, Amarillo Grande Project" with an effective date of December 31, 2023 , is available under the Company's profile on SEDAR+ at www.sedarplus.ca and will be posted to the Company's website www.blueskyuranium.com .
Qualified Persons
Dr. David Terry , Ph.D., P.Geo. is a Director of the Company and a Qualified Person as defined in National Instrument 43-101. The contents of this news release have been reviewed and approved by Dr. Terry.
Blue Sky Uranium Corp. is a leader in uranium discovery in Argentina . The Company's objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low-cost producers, while respecting the environment, the communities, and the cultures in all the areas in which we work. Blue Sky has the exclusive right to properties in two provinces in Argentina . The Company's flagship Amarillo Grande Project was an in-house discovery of a new district that has the potential to be both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
For additional details on the project and properties, please see the Company's website: www.blueskyuranium.com
ON BEHALF OF THE BOARD
"Nikolaos Cacos"
______________________________________
Nikolaos Cacos , President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.
Blue Sky Uranium (TSXV: BSK) (OTCQB: BKUCF) is pleased to announce that the company will be presenting at Red Cloud's Pre-PDAC 2024 Mining Showcase. We invite our shareholders and all interested parties to join us.
The annual conference will take place in-person at the Sheraton Centre Toronto Hotel February 29-March 1, 2024.
CEO Niko Cacos will be presenting on March 1st at 10:20 Eastern Standard time.
Blue Sky Uranium Corp. (TSXV: BSK) (FSE: MAL2) (OTCQB: BKUCF) is one of Argentina's best-positioned uranium & vanadium exploration companies with more than 4,000 km2 (400,000 ha) of prospective tenements. The Company's mission is to deliver exceptional returns to shareholders by acquiring, exploring, and advancing towards production of a portfolio of uranium-vanadium projects, with an emphasis on near-surface deposits with the potential for near-term low-cost production.
Blue Sky Uranium Corp. (TSXV: BSK) (FSE: MAL2) (OTC: BKUCF) "Blue Sky" or the "Company") is pleased to announce the results of a new Preliminary Economic Assessment(" PEA") for the Ivana Uranium-Vanadium deposit at the Company's 100% owned Amarillo Grande Project in Rio Negro Province Argentina . The updated PEA incorporates a new mineral resource estimate, in which approximately 80% of the resources are now in the Indicated category. The PEA demonstrates robust economics from a surficial mining operation, entailing 11 years of uranium and vanadium production:
PEA Highlights (All figures in US dollars)
After-tax NPV 8%: $227.7 million
After-tax IRR: 38.9%
After-tax Payback period: 1.9 years
Pre-production Capital Cost: $159.7 million , includes $35.4 million contingency
Life of mine ("LOM") Sustaining Capital Cost: $27.3 million , includes $5.4 million contingency
Average LOM Total Cash Cost net of credits: $23.29 /lb U 3 O 8
Average LOM All-In Sustaining Costs ("AISC") net of credits: $24.95 /lb U 3 O 8
PEA Key Assumptions & Inputs
Uranium price: $75 /lb U 3 O 8
Vanadium Price $7.5 /lb V 2 O 5
Years of Construction: 2
Years of Production: 11
Strip Ratio: 1.5:1 (waste/ore)
Dilution: 3%
Average Mining rate (waste + mill feed): 5.10 Mtpa
Processing throughput: 2.17 Mtpa
Process Plant Recoveries (Net), Uranium: 84.6%
Process Plant Recoveries (Net), Vanadium: 52.5%
Average Annual Production (LOM): 1.5 Mlbs/y U 3 O 8
LOM uranium production: 16.5 Mlbs U 3 O 8
" This PEA reaffirms that the Ivana deposit is a leading low-cost uranium-vanadium project. We believe that this resurgent uranium market has a strong long-term outlook and we are therefore preparing to complete a prefeasibility study for Ivana as soon as possible, " stated Nikolaos Cacos , Blue Sky President & CEO. " We will also continue our on-going exploration work to discover and delineate new uranium and vanadium resources throughout the remaining highly prospective district-scale Amarillo Grande project."
Additional detailed processing studies are underway to further de-risk and enhance the economics for development of the Ivana deposit. This technical work will be incorporated into the program to support a prefeasibility study ("PFS"), which the Company is preparing to commence in the coming months.
PEA Summary
A summary of key physical parameters and costs for the PEA are presented in Table 1 below. All figures are in US dollars. The Mineral Resource estimate included in the PEA is reported according to the classification criteria set out in the Canadian Institute of Mining, Metallurgy, and Petroleum Definition Standards for Mineral Resources and Reserves ("CIM Definition Standards").
Readers are cautioned that the PEA is preliminary in nature and is intended to provide an initial assessment of the project's economic potential and development options. The PEA mine schedule and economic assessment includes numerous assumptions and is based on both Indicated and Inferred mineral resources. Inferred resources are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the PEA results will be realized. Mineral resources are not mineral reserves and do not have demonstrated economic viability. Additional exploration will be required to potentially upgrade the classification of the inferred mineral resources to be considered in future advanced studies.
Table 1. PEA Summary Parameters
Unit
Physical Parameters
Total tonnes feed prep processed (LOM)
Mt
23.5
Head Grade (U 3 O 8 )
%
0.038 %
Head Grade (V 2 O 5 )
%
0.019 %
Annual Plant throughput
tpa
2,170,000
Recovery - Uranium (net)
%
84.6 %
Recovery - Vanadium (net)
%
52.5 %
Mine Life (Production)
years
11
Total Uranium (U 3 O 8 ) produced
Mlbs
16.5
Total Vanadium (V 2 O 5 ) produced
Mlbs
5.2
Average Annual U 3 O 8 production
Mlbs/yr
1.50
Operating Cost Parameters
Mining Cost (LOM avg)
$/t feed
$4.97
Processing Cost (LOM avg)
$/t feed
$8.52
Waste & Water Management
$/t feed
$0.09
G&A Cost (LOM avg)
$/t feed
$1.92
Total Operating Cost
$/t feed
$15.50
Pre-Production Capital Costs
Mine
$M
$18.79
Process Plant
$M
$96.25
Waste & Water Management
$M
$5.44
Other Infrastructure
$M
$3.83
Contingency
$M
$35.41
Total Pre-Development Capital
$M
$159.72
Sustaining Capital (LOM)
$M
$27.29
Total Capital (LOM)
$M
$187.01
Cost Summary
LOM U3O8 cost (net of V 2 O 5 credits)
$/lb
$23.29
LOM U3O8 cost (net of V 2 O 5 credits) with AISC
$/lb
$24.95
Supporting information for the Mineral Resource estimate and the PEA will be detailed in an independent technical report prepared in accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101") which will be filed on SEDAR+ under the Company's profile within 45 days of the date of this news release.
Mineral Resource Estimate
The effective date of the Mineral Resource estimate is October 14, 2023 . This updated resource estimate includes data from an additional 350 reverse circulation ("RC") drill holes (3,346 metres) completed up to March of 2022. The Mineral Resource estimate is presented in Table 2.
The Indicated and Inferred mineral resource estimation for the Ivana Project is summarized in Table 2. The base case cut-off grade of 100 ppm U. The addition of 350 RC drill holes decreased the drill hole spacing and 80% of the estimate is now classed as indicated mineral resources based on 2 holes within 100 m of a block. As far as the QPs are aware, there are no issues related to environmental, permitting, legal, title, taxation, sociopolitical or marketing which could materially impact the mineral resource,
Table 2. Estimate of Mineral Resource reported at 100 ppm Uranium Cut-off
Zone
Class
Tonnes (Mt)
Average Grade
Contained Metal
U (ppm)
U 3 0 8 (%)
V (ppm)
V 2 O 5 (%)
U 3 0 8 (Mlb)
V 2 O 5 (Mlb)
Upper
Indicated
2.0
122
0.014
110
0.020
0.6
0.9
Lower
Indicated
17.6
358
0.042
104
0.019
16.4
7.2
Total
Indicated
19.7
333
0.039
105
0.019
17.0
8.1
Upper
Inferred
1.4
167
0.020
170
0.030
0.6
0.9
Lower
Inferred
4.2
293
0.035
90
0.016
3.2
1.5
Total
Inferred
5.6
262
0.031
109
0.019
3.8
2.4
Notes to Table 1:
The effective date of the Mineral Resource is October 14, 2023. The QPs for the Mineral Resource estimate are Susan Lomas, P.Geo. of Lions Gate Geological Consulting (LGGC) and Dr. Bruce Davis FAusIMM.
CIM Definition Standards were used for Mineral Resource classification and in accordance with CIM MRMR Best Practice Guidelines. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.
Extreme High-grade samples were capped to lower grades (Upper U 1000 ppm, V 400 ppm, Lower U 3000 ppm, V 1000 ppm) and then restricted using an outlier strategy where Upper composites were limited to U 400 ppm and V 300 ppm over 100 m and Lower composites were limited to U 2000 ppm and V 600 ppm over 100 m
Mineral Resources were tabulated within a resource limiting pitshell using $US 75/lb U price, recovery of 84.6% U; open pit mining cost of $1.50/t mineralization mined; processing and G&A cost of $6.30/t processed; pit slope of 32°. Bulk density value of 2.1 g/cm 3 was used for mineralized material.
The resource was estimated within distinct zones of elevated uranium concentration occurring within the host sediments. Vanadium is associated with uranium and is estimated within the same zones. There is no indication that Vanadium occurs outside of the elevated uranium zones in the Ivana deposit area in sufficient concentrations to justify developing estimation domains focused on Vanadium.
Mine Plan
The Ivana operation will consist of surface mining operation delivering mill feed to a nearby processing plant or feed stockpiles. The annual mining rate will be approximately 5.1 Mtpa (13,000 tpd) consisting of waste material and mill feed. The average strip ratio is approximately 1.5:1.
Table 3 presents the potentially excavated tonnages. Mill feed may be delivered directly to the process plant or placed into stockpiles for blending purposes.
Table 3. Potentially Extractable Portion of the Mineral Resource
U 3 O 8
V 2 O 5
Waste stripped
34,756 kt
-
-
Strip Ratio
1.48
Mill Feed (diluted)
23,467 kt
0.038 %
0.019 %
Note: Assumes 3% dilution and 3% ore loss. Cut-off grade of 75 ppm U used to define potentially extractable portion of mineral resource.
The surface mine will be relatively shallow, with a maximum depth of 30 metres. The length of the mine will be approximately 3000 metres with widths ranging from 100 to 400 metres.
Mining will be done with a fleet of two (5 cubic metre) excavators, a front-end loader and seven 31-tonne articulated trucks along with a fleet of support equipment. The materials mined are unconsolidated gravels and sands and are free digging, therefore drilling and blasting will not be required.
Mine waste materials will be used for construction activities on site (e.g., construction of the surface tailings management facility (TMF), inpit cell divider berms, etc.). Waste materials not used in construction will be stockpiled outside of the footprint of the pit. Waste will be managed in the external stockpiles until it is used as in-pit backfill or for reclamation activities.
Processing & Recovery
Mined mill feed may be delivered directly to the processing plant or stockpiled. Stockpiles provide a surge capacity between the mining and processing, and enable blending, to manage the head grade of the process plant feed. Mill feed will then be processed in two stages. The net process recovery is 85% for uranium (derived from 89% leach feed preparation recovery and 95% subsequent alkaline leach circuit recovery); and 53% net for vanadium (derived from 89% leach feed preparation recovery and 59% subsequent alkaline leach circuit recovery). Recoveries were determined through the mineralogical, metallurgical and process engineering test work program completed by The Saskatchewan Research Council (SRC), as detailed in the BSK press release dated February 7 th , 2019.
Feed material will first be processed through the leach feed preparation plant, a semi-mobile screening and scrubbing facility located at the proposed mining site. The leach feed preparation plant will liberate fine material (100 um) and scrub away and recover fine uranium and vanadium mineral particles coating the large particles, into a leach feed slurry. The rejected coarse fraction (approx. 75% of the mill feed mass from which most of the original uranium and vanadium has been stripped) will be dewatered, and either stockpiled on surface (during the first three years of operations) or backhauled by the mine fleet for backfill into containment cells within mined out sections of the pit.
In the second process stage the slurry containing the fine fraction of the mineralized material will be pumped to the leach plant. An alkaline leach circuit (sodium carbonate and bicarbonate) will be used to dissolve uranium and vanadium from the leach feed minerals. No oxidant is required. Subsequently, uranium and vanadium will be separated by selective chemical precipitation, with uranium solids then calcined to U 3 O 8 or UO 3 and vanadium solids calcined to V 2 0 5 .
Tailings slurry from the alkaline leach circuit (approx. 25% of the mill feed mass and from which the majority of uranium and vanadium has been stripped) will initially be pumped to a surface TMF where it will settle and release water. This released water will be reclaimed and pumped to the water treatment circuit in the process plant where it will be further treated, resulting in solids that are pumped back to the TMF with the alkaline leach tailings. The final pH adjusted water will be returned to the process water tank for reuse. The TMF will be used for tailings management for the first three years of mill production.
The fine tailings will be pumped into containment cells in mined out sections of the pit after the surface TMF reaches design capacity (approximately Year 4 of mill production), for co-disposal with mine waste rock and coarse rejects. Long term storage of all waste material from mining operations will comply with all local and international regulations and requirements.
Infrastructure
The Ivana operation will take advantage of local infrastructure whenever possible. Employees will reside in local communities, most likely the town of Valcheta, approximately 25 km from the mine site. Grid power will be accessible to the project via the construction of a 30 km powerline. For the PEA it is assumed that process water will be supplied from on-site pumping wells. Ground water at the mine site is classified as non-potable for humans and animals but suitable for processing use. Future studies will further assess the local water resources.
Other site infrastructure will include maintenance shops, administration offices, a mine dry, diesel fuel storage, and warehouses.
Capital and Operating Costs
The life-of-mine capital and operating costs are summarized in Tables 4 and 5. The costs assume a fully owner-operated project. The closure and reclamation cost are estimated at $26.8 million and includes costs for site remediation and final backfilling of the remaining mine excavation. These costs are commensurate with a PEA level study and have an accuracy of +/- 35%.
Table 4. Capital Cost Summary
Area
Units
Pre-
Production
Sustaining
(LOM)
Total LOM
Mine
$M
18.8
11.3
30.1
Process Plant
$M
96.3
1.3
97.5
Waste & Water Management
$M
5.4
8.2
13.7
Other Infrastructure
$M
3.8
1.1
4.9
Contingency
$M
35.4
5.4
40.8
Total Capital
$M
159.7
27.3
187.0
Note: cost accuracy is commensurate with a PEA level study, with +/- 35% accuracy .
Table 5. Operating Cost Summary
Area
Units
Unit Cost
Total LOM
Mining Cost, incl coarse reject backhauling
$/t mat'l
2.09
116.6
Mining Cost, incl coarse rejects
$/t feed
4.97
116.6
Processing Cost
$/t feed
8.52
199.9
Waste & Water Management
$/t feed
0.09
2.2
G&A
$/t feed
1.92
45.0
Total Operating Cost
$/t feed
15.50
363.7
Project Economics and Sensitivities
The economic results of the PEA are summarized in Table 6 on both a before-tax and after-tax basis. For the PEA Base Case a long-term uranium price of $75 /lb U 3 O 8 and a vanadium price of $7.50 /lb V 2 O 5 were used. Sensitivity to various uranium prices are shown in Table 6 while the vanadium price is kept fixed.
Uranium provides approximately 97% of the project's revenue stream at the base case prices.
Table 6. Economics and Sensitivity
Uranium Price Sensitivity
Spot
Price - U 3 O 8
$/lb
$65.00
$75.00
$85.00
$105.00
Price - V 2 O 5
$/lb
$7.50
$7.50
$7.50
$7.50
Pre-Tax
NPV (0%)
$M
$ 481.3
$637.2
$ 793.1
$1,105.0
NPV (8%)
$M
$272.8
$371.8
$470.7
$ 668.7
IRR
%
41.4 %
50.4 %
58.8 %
74.2 %
After-Tax
NPV (0%)
$M
$304.9
$405.1
$ 505.2
$705.4
NPV (8%)
$M
$163.6
$227.7
$ 291.2
$ 418.3
IRR
%
31.7 %
38.9 %
45.3 %
57.0 %
Payback
years
2.3
1.9
1.7
1.3
Opportunities
Infill drilling at the Ivana deposit is expected to upgrade the mineral resource from the Inferred and indicated categories. It is estimated that an infill RC drilling program of approximately 3,000m in 180 holes will be required in order to further upgrade resources within the pit shell zone.
There is also potential to expand mine feed at Ivana, particularly to the west, where recent infill drilling returned low-uranium – rich-vanadium resources that may be potentially considered for mine-life extension during high-price scenario (see Blue Sky news release dated September 8, 2022 ). Furthermore, there is excellent exploration potential in the 30-40km surrounding areas of the Ivana deposit for considering a potential cluster of deposit with a central facility, and elsewhere on the Amarillo Grande Project concessions.
Additional improvements to the project economics are expected as more detailed engineering studies are undertaken and optimization studies are completed.
Future work on Ivana will include additional infill drilling to upgrade mineral resources, as well as advanced engineering studies that will incorporate the ongoing comprehensive environmental base line study and additional metallurgical and process test works, as well as mine design optimization, detailed permitting assessment, among other items required for the completion of a PFS.
A bout the Amarillo Grande Project
The Company's 100% owned Amarillo Grande Uranium-Vanadium Project in Rio Negro Province , Argentina is a new uranium district controlled by Blue Sky. The Project includes several major target areas over a regional trend, with uranium and vanadium mineralization in loosely consolidated sandstones and conglomerates, at or near surface. The area is flat-lying, semi-arid and accessible year-round, with nearby rail, power and port access.
The Ivana deposit is located in the southernmost of three target areas that comprise the Amarillo Grande Uranium-Vanadium project. Mineralization was first identified at Ivana after field follow-up of a 2010 regional high-resolution airborne radiometric and magnetic survey.
The Ivana deposit displays characteristics of both surficial-type and sandstone-type uranium-vanadium deposits. In plan view, the Ivana uranium-vanadium mineralization has a broad C-shaped pattern with some isolated outlying areas of peripheral mineralization. The uranium mineralization at Ivana is comprised of secondary uranium minerals which include carnotite, a coffinite-like mineral that has been called β-coffinite (beta-coffinite), as well as lesser tyuyamunite, leibigite, and an unidentified uranium-bearing mineral species.
Mineralization occurs within 25 m of surface in two stacked zones. The upper zone is comprised of predominantly carnotite mineralization, and the lower zone contains a mixture of mainly carnotite and β-coffinite mineralization. The two zones occur together through most of the deposit but there are localized areas where only one zone is present. The upper zone averages 2.7 m in thickness, with a maximum of 10 m , while the lower zone has a maximum of 20 m and has an average thickness of 6 m .
The Amarillo Grande project is believed to have district-scale potential for discovery of similar styles of mineralization.
QA/QC
The resource estimation was based on 838 RC drill holes, representing 10,968 metres of drilling with one metre samples. The drilling was completed in four phases starting in January 2017 and finishing in March 2022 . Only two holes were inclined; the remainder were vertical. Bedding and mineralized horizons are approximately horizontal so vertical samples are believed to represent true thickness. The QPs reviewed the QAQC program for the drilling samples and found the analytical results are within standard industry limits and the drill samples are appropriate for use in the mineral resource estimation.
Qualified Persons and NI 43-101 Disclosure
The results of the Company's drilling program were reviewed, verified (including sampling, analytical and test data) and compiled by the Company's geological staff under the supervision of David Terry, Ph.D., P.Geo. Dr. Terry is a Director of the Company and a Qualified Person ("QP") as defined in National Instrument 43-101.
A National Instrument 43-101 ("NI 43-101") Technical Report supporting the Mineral Resource Estimate and the Preliminary Economic Assessment will be filed on SEDAR+ within 45 days of this news release.
The Mineral Resource Estimate and associated information in this news release were prepared under the direction of Bruce Davis Ph.D., F.AusIMM, Consultant, and Susan Lomas , P.Geo., of Lions Gate Geological Consulting Inc. Both Dr. Davis and Ms. Lomas are independent Qualified Persons (QP's) as defined in NI 43-101.
The PEA and associated information in this news release were prepared under the direction of consultant Ken Kuchling , P.Eng., a mining engineer specializing in economic reviews and an independent Qualified Person as defined in NI 43-101.
Additional contributing independent Qualified Persons for the PEA are:
Blue Sky Uranium Corp. is a leader in uranium discovery in Argentina . The Company's objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low-cost producers, while respecting the environment, the communities, and the cultures in all the areas in which we work. Blue Sky has the exclusive right to properties in two provinces in Argentina . The Company's flagship Amarillo Grande Project was an in-house discovery of a new district that has the potential to be both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
For additional details on the project and properties, please see the Company's website: www.blueskyuranium.com
ON BEHALF OF THE BOARD
"Nikolaos Cacos"
______________________________________ Nikolaos Cacos , President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements. We advise U.S. investors that the SEC's mining guidelines strictly prohibit information of this type in documents filed with the SEC. U.S. investors are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on our properties.
/NOT FOR DISTRIBUTION TO THE UNITED STATES OR THROUGH U.S. NEWSWIRE SERVICES./
Blue Sky Uranium Corp. (TSXV: BSK) (FSE: MAL2) (OTC: BKUCF), ("Blue Sky" or the "Company") is pleased to announce it has closed the 2 nd and final tranche of the non-brokered private placement financing announced on September 26, 2023 and increased on October 4, 2023 consisting of 7,133,333 units (each, a " Unit ") in this tranche at a price of $0.075 per Unit for gross proceeds of $535,000 . In total, the Company issued 20,466,666 Units for total gross proceeds of $1,535,000 (the " Offering ").
Each Unit consists of one common share and one transferrable common share purchase warrant (a " Warrant "). Each Warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at $0.12 per share for three (3) years from the date of issue.
In this tranche, finders' fees of $32,371.50 were paid in cash on a portion of the private placement to parties at arm's length to the Company. In addition, 431,620 non-transferable finder's warrants were issued (the " Finder's Warrant "). Each Finder's Warrant entitles a finder to purchase one common share at a price of $0.075 per share for three years from the date of issue, expiring on October 13, 2026 . In total, cash finders' fees of $97,293 were paid and 1,297,240 Finders' Warrants were issued for the Offering.
There is an offering document relating to the Offering that has been amended to reflect the increase in size of the Offering, which can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.blueskyuranium.com .
The Company intends to use the proceeds of the Offering for exploration programs on the Company's projects in Argentina and for general working capital.
The Offering is subject to regulatory approval, including the approval of the TSX Venture Exchange.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the " 1933 Act ") or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the 1933 Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
Blue Sky Uranium Corp. is a leader in uranium discovery in Argentina . The Company's objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low-cost producers, while respecting the environment, the communities, and the cultures in all the areas in which we work. Blue Sky has the exclusive right to properties in two provinces in Argentina . The Company's flagship Amarillo Grande Project was an in-house discovery of a new district that has the potential to be both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
ON BEHALF OF THE BOARD
"Nikolaos Cacos"
______________________________________ Nikolaos Cacos , President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments the Company believes, expects or anticipates will or may occur in the future, including, without limitation, statements about the receipt of regulatory approval for the Offering, the Company's plans for the closing of the Offering, finder's fees on the Offering, the use of the proceeds from the Offering, the Company's plans for its mineral properties; the Company's business strategy, plans and outlooks; the future financial or operating performance of the Company; and future exploration and operating plans are forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the impact of COVID-19; risks and uncertainties related to the ability to obtain necessary approvals, including Exchange approval for the closing of the Offering, the ability to obtain, amend, or maintain licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining activities; and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements, unless required pursuant to applicable laws.
Blue Sky Uranium Corp. (TSXV: BSK) (FSE: MAL2) (OTC: BKUCF) ("Blue Sky" or the "Company") is issuing this correction to its news release earlier today announcing that due to high investor demand, it is increasing the private placement announced on September 26, 2023 to an aggregate of up to 20,466,667 units of the Company (each, a " Unit ") at a price of $0.075 per Unit for aggregate gross proceeds of up to $1,535,000 (the " Offering "). The Company intends to close the Offering in multiples tranches.
As announced earlier today, the Company has issued 13,333,333 Units at a subscription price of $0.075 per Unit for aggregate gross proceeds to the Company of $1,000,000 , which constitutes the first tranche of the Offering. The Company intends to close the final tranche of the Offering on or about October 18, 2023 . The Company announced the private placement by press release on September 26, 2023 .
Each Unit consists of one common share and one transferrable common share purchase warrant (a " Warrant "). Each Warrant will entitle the holder thereof to purchase one additional common share in the capital of the Company at $0.12 per share for three (3) years from the date of issue.
Finder's fees of $64,921.50 are payable in cash on a portion of the first tranche of the Offering to parties at arm's length to the Company. In addition, 865,620 non-transferable finder's warrants are being issued (the " Finder's Warrants ") under the first tranche of the Offering. Each Finder's Warrant entitles a finder to purchase one common share at a price of $0.075 per share for three (3) years from the date of issue, expiring on October 4, 2026 . Additional finder's fees may be paid to arm's length finders in connection with further tranches of the Offering.
There is an offering document relating to the Offering that has been amended to reflect the increase in size of the Offering, which can be accessed under the Company's profile at www.sedarplus.ca and on the Company's website at www.blueskyuranium.com . Prospective investors should read this offering document before making an investment decision.
The Company intends to use the proceeds of the Offering for exploration programs on the Company's projects in Argentina and for general working capital.
The Offering is subject to regulatory approval, including the approval of the TSX Venture Exchange.
The securities described herein have not been, and will not be, registered under the United States Securities Act of 1933, as amended (the " 1933 Act ") or any state securities laws, and accordingly, may not be offered or sold within the United States except in compliance with the registration requirements of the 1933 Act and applicable state securities requirements or pursuant to exemptions therefrom. This press release does not constitute an offer to sell or a solicitation to buy any securities in any jurisdiction.
Blue Sky Uranium Corp. is a leader in uranium discovery in Argentina . The Company's objective is to deliver exceptional returns to shareholders by rapidly advancing a portfolio of surficial uranium deposits into low-cost producers, while respecting the environment, the communities, and the cultures in all the areas in which we work. Blue Sky has the exclusive right to properties in two provinces in Argentina . The Company's flagship Amarillo Grande Project was an in-house discovery of a new district that has the potential to be both a leading domestic supplier of uranium to the growing Argentine market and a new international market supplier. The Company is a member of the Grosso Group, a resource management group that has pioneered exploration in Argentina since 1993.
ON BEHALF OF THE BOARD
"Nikolaos Cacos" _____________________________________ Nikolaos Cacos , President, CEO and Director
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. All statements, other than statements of historical fact, that address activities, events or developments the Company believes, expects or anticipates will or may occur in the future, including, without limitation, statements about the receipt of regulatory approval for the Offering, the Company's plans for the closing of the Offering, finder's fees on the Offering, the use of the proceeds from the Offering, the Company's plans for its mineral properties; the Company's business strategy, plans and outlooks; the future financial or operating performance of the Company; and future exploration and operating plans are forward-looking statements.
Forward-looking statements are subject to a number of risks and uncertainties that may cause the actual results of the Company to differ materially from those discussed in the forward-looking statements and, even if such actual results are realized or substantially realized, there can be no assurance that they will have the expected consequences to, or effects on, the Company. Factors that could cause actual results or events to differ materially from current expectations include, among other things: the impact of COVID-19; risks and uncertainties related to the ability to obtain necessary approvals, including Exchange approval for the closing of the Offering, the ability to obtain, amend, or maintain licenses, permits, or surface rights; risks associated with technical difficulties in connection with mining activities; and the possibility that future exploration, development or mining results will not be consistent with the Company's expectations. Actual results may differ materially from those currently anticipated in such statements. Readers are encouraged to refer to the Company's public disclosure documents for a more detailed discussion of factors that may impact expected future results. The Company undertakes no obligation to publicly update or revise any forward-looking statements, unless required pursuant to applicable laws.
After a stellar 2023, the question is whether uranium will continue to rise steadily or spike higher like it did in the last cycle.
Our journalists have reached out to the insiders to get you their best forecasts and tips on the best way to invest in uranium in 2024.
✓ Trends
✓ Forecasts
✓ Top Stocks
Table of Contents:
Uranium Price Update: Q1 2024 in Review
Justin Huhn: Uranium Price, Supply and Stocks in 2024 — Plus Cameco Analysis
Lobo Tiggre: Uranium Back on the Table, When Will Gold Stocks Move?
Gwen Preston: Gold Gearing Up for Next Move, Safest Bets in Uranium
Top 5 Canadian Uranium Stocks
A Sneak Peek At What The Insiders Are Saying
“We don't need any more catalysts. We've got a 30 million to 50 million pound supply deficit in the market probably for the next five years. That's what we're looking at. And that's what's going to move the price" — Justin Huhn, Uranium Insider
"To us (nuclear energy) was always the answer. And while everyone seems very pessimistic about everything, I think that perhaps we could be on the verge of a huge, major transformation where finally we do appreciate nuclear for the unbelievable technology that it is." — Adam Rozencwajg, Goehring & Rozencwajg
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unbiased news and education for investors. We deliver knowledgeable, carefully curated coverage of a variety
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The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.
Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.
“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.
These favorable fundamentals are expected to support uranium prices for the remainder of the year.
Finegold also noted that spot market activity highlights how sensitive the sector is to supply challenges.
“Spot market prices have also been a key talking point as volatility in pricing has increased dramatically in Q1 to both the upside and downside,” he explained. “It has brought to light just how thinly traded the spot market is, but interestingly term prices have only continued to rise, which is indicative that the long-term fundamentals remain intact.”
Sulfuric acid shortage impeding supply growth
The U3O8 spot price opened the year at US$91.71 and edged higher through January 22, when values hit a 17 year high of US$106.87. However, the near two decade record was short lived, and by month’s end uranium was around US$100.
Some of the price positivity early in the quarter came as Kazatomprom (LSE:KAP,OTC Pink:NATKY) warned that it was expecting to adjust its 2024 production guidance due to “challenges related to the availability of sulfuric acid.”
The state producer and major uranium player confirmed the reduction on February 1, underscoring the importance of sulfuric acid in its in-situ recovery method and describing its efforts to secure supply.
“Presently, the company is actively pursuing alternative sources for sulfuric acid procurement,” a press release states.
“Looking ahead in the medium term, the deficit is expected to alleviate as a result of the potential increase in sulphuric acid supply from local non-ferrous metals mining and smelting operations. The company also intends to enhance its in-house sulfuric acid production capacity by constructing a new plant.”
In 2023, Kazatomprom initiated the establishment of Taiqonyr Qyshqyl Zauyty to oversee the construction of a new sulfuric acid plant capable of producing 800,000 metric tons annually.
In the years ahead, the company is aiming to bolster its sulfuric acid production capacities through existing partnerships to achieve a consolidated production volume of approximately 1.5 million metric tons.
In the meantime, disruptions to Kazakh output will only grow the market deficit.
According to the World Nuclear Association, total global uranium production in 2022 only satiated 74 percent of global demand, a number that is likely to shrink as nuclear reactors in Asian countries begin coming online.
“Kazakhstan is the largest producer of uranium in the world — 44 percent. We like to think of Kazakhstan as the OPEC of uranium,” John Ciampaglia, CEO of Sprott Asset Management, said during a recent webinar.
Kazatomprom forecasts its adjusted uranium production for 2024 will range between 21,000 and 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis. While in line with the company’s 2023 output, the major had to forgo a production ramp up due to the sulfuric acid shortage and development issues.
Analysts and market watchers foresee the sulfuric acid shortage being a long-term price driver.
“The sulfuric acid issue in Kazakhstan is a systemic problem that we do not believe will go away any time soon,” said Finegold. “While the company is doing what they can to alleviate pressures on sulfuric acid supplies, we believe their ability to ramp up production will be hindered for several years before their third domestic plant comes online. As such, we do not see Kazakh uranium production increasing significantly over the next three to four years.”
COP28 nuclear commitment supporting demand
The U3O8 spot price spiked again in early February, reaching US$105 before another correction set in.
As Finegold explained, some of the retraction was the result of profit taking from short-term holders.
“Financial speculators looking to lock in profits towards March year ends played a role, but as we know these moves are achieved on very little volume, so the point remains that the long-term thesis remains unchanged,” he said.
Finegold went on to highlight the different investment perspectives within the market.
“Spot market participants trade on very different parameters and time horizons to one another,” he said. “A trader and a hedge fund, for example, act in a totally different manner to a utility who are long-term thinkers.”
Despite February's slight contraction, uranium prices have remained elevated above US$80.
Some of this long-term support is the result of a COP28 nuclear capacity declaration. At the organization's December meeting in Dubai, more than 20 countries signed a proclamation to triple nuclear capacity by 2050.
There are currently 440 operational nuclear reactors with an additional 13 slated to come online this year and another 47 expected to start electricity generation by 2030. For Finegold, this commitment to building and fortifying nuclear capacity has been uranium's most prevalent demand trend. “The demand side of the equation remains robust and growing at a time when the supply side has never been more fragile,” he commented.
Others also believe the COP28 commitment was a tipping point for the uranium market that spawned several announcements about mine restarts and project extensions.
“Governments around the world have acknowledged that they need to be more supportive, not just financially, but in terms of expediting new projects, expediting the environmental permitting processes for new uranium mines,” said Sprott’s Ciampaglia during the webinar. “And it's not just happening in one country — with the exception of one or two outliers in Europe, this is happening around the globe.”
Geopolitical risk and resource nationalism are price catalysts
Uranium prices continued to consolidate from mid-February through mid-March, but remained above US$84.
This positivity saw several uranium companies in the US, Canada and Australia announce plans to bring existing mines out of care and maintenance. In late November, uranium major Cameco (TSX:CCO,NYSE:CCJ) announced it was restarting operations at its McArthur River/Key Lake project in Saskatchewan after four years.
In January, the McClean Lake joint venture which is co-owned by Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada, reported plans to restart its McClean Lake project, also located in the Athabasca Basin of Saskatchewan.
South of the border, exploration company IsoEnergy (TSXV:ISO,OTCQX:ISENF) is gearing up to restart mining at its Tony M underground mine in Utah. “With the uranium spot price now trading around US$100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the U.S. that we believe can be restarted quickly with relatively low capital costs," IsoEnergy CEO and Director Phil Williams said in a February release.
Building North American capacity is especially important ahead of the global nuclear energy ramp up and the ongoing geopolitical tensions between Russia and the west. While nuclear power is used to provide nearly 20 percent of America's electricity, the nation produces a very small amount of the uranium it needs.
Instead, the country imports as much as 40.5 million pounds annually.
According to the US Energy Information Administration, 27 percent of imports come from ally nation Canada, while 25 percent of imports come from Kazakhstan and 11 percent originate in Uzbekistan — both considered allies of Russia.
Commenting on that topic, Finegold noted, “The ongoing talk around US sanctions remains the most significant geopolitical catalyst for the sector." He added, "While we do not believe sanctions could be enforced immediately, it will send a signal to the market that Russia will no longer be involved in the largest uranium market in the world and would inevitably have an impact on fuel cycle component prices.”
If sanctions do limit imports from Russian allies, Finegold expects these countries to form stronger ties to China.
“Outside of this, the relationship between Kazakhstan and China remains one to watch as the Chinese continue their nuclear rollout strategy and look to procure millions of Kazakh-produced pounds,” he added.
Uranium price outlook remains positive
After hitting a Q1 low of US$84.84 on March 18, uranium began to move positively, ending the three month session in the US$88 range. Commitments to nuclear capacity, the energy transition and stifled supply will continue to be the most prevalent market drivers heading into the second quarter and the rest of the year.
“We believe uranium prices will significantly outrun the recent US$107 highs from February in 2024, driven by a fundamental supply/demand imbalance,” said Finegold. “Producers will continue to cover production shortfalls, while utilities struggle to replenish inventory shortages.”
The Ocean Wall associate went on to note, “The inherent appetite of traders and financial speculators will continue to drive prices higher. These demand drivers are converging at a time when supply has never looked more fragile.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Justin Huhn: Uranium Price, Supply and Stocks in 2024 — Plus Cameco Analysis
All eyes were on uranium at the end of 2023 as the energy fuel soared through US$100 per pound.
But where is the market headed this year? Justin Huhn, founder and publisher of Uranium Insider, shared his thoughts in an extensive interview with the Investing News Network, emphasizing his continued bullishness.
Outlining current supply/demand dynamics, Huhn said that although 2023's sizeable deficit of about 40 million pounds will shrink a little in 2024, he sees a "very large" deficit persisting for a number of years.
Huhn sees this situation pushing prices for uranium much higher, although he didn't give an exact number.
"The price isn't going to make sense for anybody," he said. "We can arguably go up another US$20 — that will arguably incentivize every project in the world to be profitable. But the price is going to go far beyond that simply driven by the substantially larger amount of demand than we have for supply."
In terms of which stocks to focus on, Huhn said since December small- and mid-cap companies have been outperforming larger-cap companies — he's tracking that movement via the Sprott Junior Uranium Miners ETF (NASDAQ:URNJ), which holds a basket of small- and mid-cap uranium stocks, and sector major Cameco (TSX:CCO,NYSE:CCJ).
"The main theory around this is that as the story gets more popular due to its relative performance and it starts to attract more investment attention, you're going to attract more retail investors, and the retail investors largely go after the smaller companies because they believe that there's torque in those companies. And there is torque in those smaller companies," he explained during the conversation. "Unfortunately, when risk is off, that torque is to the downside. When it's on they can outperform by orders of magnitude."
Watch the interview above for Huhn's full thoughts on the topics discussed above, as well his analysis of Cameco's latest results, contracting in the uranium space and why the sector doesn't need any more catalysts.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Lobo Tiggre: Uranium Back on the Table, When Will Gold Stocks Move?
Speaking to the Investing News Network, Lobo Tiggre, CEO of IndependentSpeculator.com, shared his thoughts on uranium's recent price pullback and gold's new nominal all-time high.
"I'm putting uranium back on the table again. I'm actually as bullish again now on uranium as I am on gold for this year. I think both are going to do really well," he said at the Prospectors & Developers Association of Canada (PDAC) convention.
Watch the interview for more from Tiggre on uranium and gold. You can also click here for our PDAC playlist.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.
Gwen Preston: Gold Gearing Up for Next Move, Safest Bets in Uranium
Speaking to the Investing News Network, Gwen Preston of Resource Maven shared her thoughts on gold in 2024, noting that the yellow metal should work for investors from the middle of the year onward.
"I think the next move up in gold is going to require the rate cut — we've had the expectation of the rate cut built into the price, that's why we've gone up to new highs," she said at the Vancouver Resource Investment Conference (VRIC). "But we're still really in that sideways trend ... I think actually breaking through it will require the rate cut."
Looking over to uranium, Preston said that although the price has moved substantially in recent months, the commodity's supply/demand dynamics are such that it could "easily" jump to US$140 per pound overnight.
In terms of supply, uranium has become a seller's market. While companies are working to bring new mines online and restart idled production, the process won't be quick. She sees some relief coming from hedge funds that bought uranium at low prices and are now ready to sell, but emphasized that the volumes they'll be able to provide will be small.
There's also the east/west divide in the sector. Preston noted that the US Senate is likely to approve a ban on Russian uranium imports — and if that happens, Russia will probably preemptively cut off sales of the material to the US.
"There just isn't supply ... despite a few little setbacks that maybe create a trading range for a little while here to stabilize this huge price run that we've seen, I think (the price) will still go higher. I'm very confident that the price is going to end 2024 higher than the insane price that it began the year at. Because it's not actually insane. It's a valid representation of the lack of this essential commodity that the utilities need," she explained during the conversation.
In Preston's view, the safest uranium stocks right now are those with growing US production — those include Uranium Energy (NYSEAMERICAN:UEC), enCore Energy (TSXV:EU,NASDAQ:EU) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU).
Watch the interview above for more from Preston on gold and uranium. You can also click here for the Investing News Network's full VRIC playlist on YouTube.
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Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels is a client of the Investing News Network. This article is not paid-for content.
The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
The spot uranium price added 86.41 percent to its value in 2023 and started 2024 at US$90.98 per pound. By late January, prices for the energy commodity had rallied to a 17 year high of US$106.
However, as Q1 progressed, uranium saw some consolidation. By March 11, values had slipped below US$90 for the first time since late December. Even so, prices remain historically high, holding above US$85 as of April 10.
Uranium's sustained high values following years of underperformance underscore its positive supply and demand dynamics, which are improving as nuclear power becomes an important factor in the energy transition.
During an interview with the Investing News Network at the annual Prospectors & Developers Association of Canada convention in March, Scott Melbye of Uranium Energy (NYSEAMERICAN:UEC) and Uranium Royalty (TSX:URC,NASDAQ:UROY) expressed optimism about the current price trajectory for the energy fuel.
"There's nothing to keep uranium from going to US$150, US$200 in this environment," he said.
Below are the top uranium stocks on the TSX, TSXV and CSE by share price performance so far this year. All data was obtained on April 9, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Read on to learn what factors have been moving their share prices.
District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It's currently focused on its Viken property, which hosts a uranium-vanadium deposit.
Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world's largest in terms of uranium and vanadium mineral resources."
Shares of District spiked to a Q1 high of C$0.37 on March 11, shortly after the Swedish government announced plans to review a nation-wide ban on uranium mining and exploration that has been in place since 2018.
“We are very pleased with this official statement from the Swedish Government and believe it is a significant step towards lifting the current uranium mining moratorium in Sweden,” Garrett Ainsworth, CEO of District, said. “The Swedish Government has made its intentions clear by stating that ‘the current ban on uranium mining will be removed.’ District is ready for this transformational decision with our portfolio of properties in Sweden.”
Earlier in the quarter, the company completed the acquisition of the remaining four mineral licenses at Viken.
Canada-focused Greenridge Exploration is currently engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada. The Nut Lake asset spans 4,036 hectares, and the company says it is strategically positioned near the Angilak uranium deposit, which was recently acquired by Atha Energy (TSXV:SASK,OTCQB:SASKF) through a three way merger with Latitude Uranium and 92 Energy.
Nut Lake is a new property for Greenridge — on January 18, the company entered into an option agreement with three parties to acquire a 100 percent stake in the asset. Historic drilling at the polymetallic deposit has identified “significant” uranium mineralization, with intersections of up to 9 feet containing 0.69 percent of U3O8.
On March 28, the uranium explorer announced the addition of Sean Hillacre to its advisory team. Hillacre, who is the president and vice president of exploration at Standard Uranium (TSXV:STND,OTCQB:STTDF), has more than 10 years of experience as a geologist in Saskatchewan's Athabasca Basin. Some of that time was spent on the technical team at NexGen Energy (TSX:NXE,NYSE:NXE,ASX:NXG) advancing the Arrow uranium deposit toward production.
Shares of Greenridge trended higher through Q1, reaching a high of C$0.78 for the period on March 31.
Exploration company Myriad Uranium holds a significant interest in two promising uranium projects. At Wyoming's Copper Mountain uranium project, in which it possesses a 75 percent earnable interest, the company is aiming to tap into the “world-class” potential of the district. The state is the US’ top producer of uranium.
Myriad also has an 80 percent stake in uranium exploration licenses comprising 1,800 square kilometers in Niger's Tim Mersoï Basin, another jurisdiction that boasts world-class uranium deposits.
Shares of Myriad registered a Q1 high early in the period, hitting C$0.39 on January 21. The share price bump coincided with news that the company was welcoming “renowned geologist and the pre-eminent authority on Copper Mountain and its uranium endowment” Jim Davis, to its technical committee.
Commenting on the appointment, Myriad CEO Thomas Lamb said, “On October 31, 2023, we announced historic resource estimates and resource targets relating to Copper Mountain. These estimates and targets were the product of C$100 million in exploration and development spends by Union Pacific during the 1970s. Much of this work was led by Jim Davis, and we are delighted he is joining our Technical Committee.”
CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Athabasca Basin. The region is well known in the sector for its high-grade deposits, which helped birth the moniker "the Saudi Arabia of Uranium."
The company's five asset portfolio includes the West McArthur property, which is situated near sector major Cameco (TSX:CCO,NYSE:CCJ) and Orano Canada’s McArthur River mine. In 2018, Cameco signed on as a joint venture partner for CanAlaska's project and the company retains a 16.65 percent stake.
The uranium explorer made several announcements over the 90 day period, including the approval of a C$7.5 million exploration program at West McArthur. On February 28, the company reported high-grade intersections at the Pike zone at West McArthur. The discovery was made during the exploration firm's winter drill campaign.
The statement drill hole, WMA082-4, intersected 13.75 percent U3O8 equivalent (eU3O8) over 16.8 meters, including 40.3 percent eU3O8 over 4.7 meters and 13.54 percent eU3O8 over 2 meters. CanAlaska’s share price jumped from C$0.46 on February 27 to C$0.74 the day of the news, and marked a Q1 high of C$0.75 on March 7.
Premier American Uranium is focused on consolidating, exploring and developing uranium projects in the US. The company, which was spun out of Consolidated Uranium in late 2023, currently has four assets in two major uranium-producing jurisdictions: Wyoming's Great Divide Basin and Colorado's Uravan Mineral Belt.
On March 20, Premier announced plans to acquire American Future Fuel (OTCQB:AFFCF), which would give Premier access to the Cebolleta uranium project located within the Grants Mineral Belt of New Mexico.
The all-share deal will see the combined value of the merged companies sit at C$129 million.
“The announcement … marks a significant leap in our journey to strengthen our foothold in the US uranium market through opportunistic and strategic M&A,” said Tim Rotolo, chairman of Premier American Uranium. “By acquiring a key project, we’re not just enriching our portfolio; we’re also setting our roots in three principal uranium regions, paving the way for rapid growth.” Shares of Premier reached a quarterly high of C$3.09 on February 8.
Uranium is primarily used for the production of nuclear energy, a form of clean energy created in nuclear power plants. In fact, 99 percent of uranium is used for this purpose. As of 2022, there were 439 active nuclear reactors, as per the International Atomic Energy Agency. Last year, 8 percent of US power came from nuclear energy.
The commodity is also used in the defense industry as a component of nuclear weaponry, among other uses. However, there are safeguards in effect to keep this to a minimum. To create weapons-grade uranium, the material has to be enriched significantly — above 90 percent — to the point that to achieve just 5.6 kilograms of weapons-grade uranium, it would require 1 metric ton of uranium pre-enrichment.
Because of this necessity, uranium enrichment facilities are closely monitored under international agreements. Uranium used for nuclear power production only needs to be enriched to 5 percent; nuclear enrichment facilities need special licenses to enrich above that point for uses such as research at 20 percent enrichment.
The metal is also used in the medical field for applications such as transmission electron microscopy. Before uranium was discovered to be radioactive, it was used to impart a yellow color to ceramic glazes and glass.
Where is uranium found?
The country with the greatest uranium reserves by far is Australia — the island nation holds 28 percent of the world’s uranium reserves. Rounding out the top three are Kazakhstan with 15 percent and Canada with 9 percent.
Although Australia has the highest reserves, it holds uranium as a low priority and is only fourth overall for production. All its uranium output is exported, with none used for domestic nuclear energy production.
Kazakhstan is the world’s largest producer of the metal, with production of 21,227 metric tons in 2022. The country’s national uranium company, Kazatomprom, is the world’s largest producer.
Canada’s uranium reserves are found primarily in its Athabasca Basin, and the region is a top producer of the metal as well, although some of the major mines have been under care and maintenance in recent years.
Why should I buy uranium stocks?
Investors should always do their own due diligence when looking at any commodity so that they can decide whether it fits into their investment plans. With that being said, many experts are convinced that uranium has entered into a significant bull market, meaning that uranium stocks could be a good buy.
A slew of factors have led to this bull market. While the uranium industry spent the last decade or so in a downturn following the 2011 Fukushima nuclear disaster, discourse has been building around the metal's use as a source of clean energy, which is important for countries looking to reach climate goals. Nations are now prioritizing a mix of clean energies such as solar and wind energy alongside nuclear. Significantly, in August 2022, Japan announced it is looking into restarting its idled nuclear power plants and commissioning new ones.
Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. At this price level, uranium stocks remain highly undervalued.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.
Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.
“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.
These favorable fundamentals are expected to support uranium prices for the remainder of the year.
Finegold also noted that spot market activity highlights how sensitive the sector is to supply challenges.
“Spot market prices have also been a key talking point as volatility in pricing has increased dramatically in Q1 to both the upside and downside,” he explained. “It has brought to light just how thinly traded the spot market is, but interestingly term prices have only continued to rise, which is indicative that the long-term fundamentals remain intact.”
Sulfuric acid shortage impeding supply growth
The U3O8 spot price opened the year at US$91.71 and edged higher through January 22, when values hit a 17 year high of US$106.87. However, the near two decade record was short lived, and by month’s end uranium was around US$100.
Some of the price positivity early in the quarter came as Kazatomprom (LSE:KAP,OTC Pink:NATKY) warned that it was expecting to adjust its 2024 production guidance due to “challenges related to the availability of sulfuric acid.”
The state producer and major uranium player confirmed the reduction on February 1, underscoring the importance of sulfuric acid in its in-situ recovery method and describing its efforts to secure supply.
“Presently, the company is actively pursuing alternative sources for sulfuric acid procurement,” a press release states.
“Looking ahead in the medium term, the deficit is expected to alleviate as a result of the potential increase in sulphuric acid supply from local non-ferrous metals mining and smelting operations. The company also intends to enhance its in-house sulfuric acid production capacity by constructing a new plant.”
In 2023, Kazatomprom initiated the establishment of Taiqonyr Qyshqyl Zauyty to oversee the construction of a new sulfuric acid plant capable of producing 800,000 metric tons annually.
In the years ahead, the company is aiming to bolster its sulfuric acid production capacities through existing partnerships to achieve a consolidated production volume of approximately 1.5 million metric tons.
In the meantime, disruptions to Kazakh output will only grow the market deficit.
According to the World Nuclear Association, total global uranium production in 2022 only satiated 74 percent of global demand, a number that is likely to shrink as nuclear reactors in Asian countries begin coming online.
“Kazakhstan is the largest producer of uranium in the world — 44 percent. We like to think of Kazakhstan as the OPEC of uranium,” John Ciampaglia, CEO of Sprott Asset Management, said during a recent webinar.
Kazatomprom forecasts its adjusted uranium production for 2024 will range between 21,000 and 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis. While in line with the company’s 2023 output, the major had to forgo a production ramp up due to the sulfuric acid shortage and development issues.
Analysts and market watchers foresee the sulfuric acid shortage being a long-term price driver.
“The sulfuric acid issue in Kazakhstan is a systemic problem that we do not believe will go away any time soon,” said Finegold. “While the company is doing what they can to alleviate pressures on sulfuric acid supplies, we believe their ability to ramp up production will be hindered for several years before their third domestic plant comes online. As such, we do not see Kazakh uranium production increasing significantly over the next three to four years.”
COP28 nuclear commitment supporting demand
The U3O8 spot price spiked again in early February, reaching US$105 before another correction set in.
As Finegold explained, some of the retraction was the result of profit taking from short-term holders.
“Financial speculators looking to lock in profits towards March year ends played a role, but as we know these moves are achieved on very little volume, so the point remains that the long-term thesis remains unchanged,” he said.
Finegold went on to highlight the different investment perspectives within the market.
“Spot market participants trade on very different parameters and time horizons to one another,” he said. “A trader and a hedge fund, for example, act in a totally different manner to a utility who are long-term thinkers.”
Despite February's slight contraction, uranium prices have remained elevated above US$80.
Some of this long-term support is the result of a COP28 nuclear capacity declaration. At the organization's December meeting in Dubai, more than 20 countries signed a proclamation to triple nuclear capacity by 2050.
There are currently 440 operational nuclear reactors with an additional 13 slated to come online this year and another 47 expected to start electricity generation by 2030. For Finegold, this commitment to building and fortifying nuclear capacity has been uranium's most prevalent demand trend. “The demand side of the equation remains robust and growing at a time when the supply side has never been more fragile,” he commented.
Others also believe the COP28 commitment was a tipping point for the uranium market that spawned several announcements about mine restarts and project extensions.
“Governments around the world have acknowledged that they need to be more supportive, not just financially, but in terms of expediting new projects, expediting the environmental permitting processes for new uranium mines,” said Sprott’s Ciampaglia during the webinar. “And it's not just happening in one country — with the exception of one or two outliers in Europe, this is happening around the globe.”
Geopolitical risk and resource nationalism are price catalysts
Uranium prices continued to consolidate from mid-February through mid-March, but remained above US$84.
This positivity saw several uranium companies in the US, Canada and Australia announce plans to bring existing mines out of care and maintenance. In late November, uranium major Cameco (TSX:CCO,NYSE:CCJ) announced it was restarting operations at its McArthur River/Key Lake project in Saskatchewan after four years.
In January, the McClean Lake joint venture which is co-owned by Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada, reported plans to restart its McClean Lake project, also located in the Athabasca Basin of Saskatchewan.
South of the border, exploration company IsoEnergy (TSXV:ISO,OTCQX:ISENF) is gearing up to restart mining at its Tony M underground mine in Utah. “With the uranium spot price now trading around US$100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the U.S. that we believe can be restarted quickly with relatively low capital costs," IsoEnergy CEO and Director Phil Williams said in a February release.
Building North American capacity is especially important ahead of the global nuclear energy ramp up and the ongoing geopolitical tensions between Russia and the west. While nuclear power is used to provide nearly 20 percent of America's electricity, the nation produces a very small amount of the uranium it needs.
Instead, the country imports as much as 40.5 million pounds annually.
According to the US Energy Information Administration, 27 percent of imports come from ally nation Canada, while 25 percent of imports come from Kazakhstan and 11 percent originate in Uzbekistan — both considered allies of Russia.
Commenting on that topic, Finegold noted, “The ongoing talk around US sanctions remains the most significant geopolitical catalyst for the sector." He added, "While we do not believe sanctions could be enforced immediately, it will send a signal to the market that Russia will no longer be involved in the largest uranium market in the world and would inevitably have an impact on fuel cycle component prices.”
If sanctions do limit imports from Russian allies, Finegold expects these countries to form stronger ties to China.
“Outside of this, the relationship between Kazakhstan and China remains one to watch as the Chinese continue their nuclear rollout strategy and look to procure millions of Kazakh-produced pounds,” he added.
Uranium price outlook remains positive
After hitting a Q1 low of US$84.84 on March 18, uranium began to move positively, ending the three month session in the US$88 range. Commitments to nuclear capacity, the energy transition and stifled supply will continue to be the most prevalent market drivers heading into the second quarter and the rest of the year.
“We believe uranium prices will significantly outrun the recent US$107 highs from February in 2024, driven by a fundamental supply/demand imbalance,” said Finegold. “Producers will continue to cover production shortfalls, while utilities struggle to replenish inventory shortages.”
The Ocean Wall associate went on to note, “The inherent appetite of traders and financial speculators will continue to drive prices higher. These demand drivers are converging at a time when supply has never looked more fragile.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") is pleased to announce the appointment of John Paul Pressey and Elmer W. Dyke as new members of the Ur-Energy Board of Directors
Ur-Energy also announces the anticipated retirement of founding Director James M. Franklin and Director, and former President and CEO, W. William Boberg. Both will continue to serve the Board until the Company's Annual Meeting of Shareholders, June 6, 2024, though neither will stand for re-election at the Meeting. The Company is pleased that our new Board members will be able to benefit from this transition period prior to Dr. Franklin and Mr. Boberg's retirement from the Company.
Ur-Energy Chairman and CEO, John Cash, stated, "We are excited to welcome John Paul (JP) Pressey and Elmer Dyke as Directors on Ur-Energy's Board. Mr. Pressey has nearly 30 years of valuable audit and assurance experience from his career with PricewaterhouseCoopers, including 16 years as a partner. We are pleased that Mr. Pressey brings to our Board his wide-ranging experience having worked with numerous publicly traded companies, including international mining companies, while at PricewaterhouseCoopers. Mr. Dyke is widely known as a leader in the global nuclear community and brings 35 years' experience working in senior positions on issues such as the nuclear fuel cycle, nuclear non-proliferation and marketing of nuclear fuel. Welcome aboard JP and Elmer. We look forward to working with you to advance Ur-Energy's interests as the world is increasingly turning to nuclear power.
"Personally, and on behalf of the Company, I wish to thank Dr. Jim Franklin and Mr. Bill Boberg for their many years of unwavering service to Ur-Energy. While their contributions are too many to list, it is worth noting that Jim Franklin was a founding Director of Ur-Energy when he and original management of the Company recognized in the early 2000s the impending uranium supply gap. Jim's assessments were accurate, and the timely formation of Ur-Energy positioned us to grow the Company to our current ability to capitalize on a strong market for nuclear fuel. Bill Boberg contributed throughout the years serving as a Director and an executive of the Company, but he is perhaps best known for the acquisition of the Great Divide Basin assets in Wyoming, including the property which became our flagship producing mine, Lost Creek. Jim and Bill, thank you so much for your guidance over the years. Without your leadership, Ur-Energy simply would not be the strong company it has become."
John Paul Pressey had a nearly three-decade long career in the assurance practice at PricewaterhouseCoopers LLP, with 16 years as a partner. With a Bachelor of Commerce degree from the University of Alberta, Mr. Pressey is a Chartered Professional Accountant with extensive experience working with U.S. and Canadian publicly traded companies in the mining industry, and other industries including manufacturing, utilities, and alternative energy. His experience includes acquisitions and capital markets transactions, working with clients to identify and implement practical business solutions to accounting, audit and financial issues. Well-respected for his ethics and integrity, Mr. Pressey spent six years at PricewaterhouseCoopers as its Assurance Leader for British Columbia, overseeing all aspects of PricewaterhouseCoopers's assurance results and operations for that Province. Mr. Pressey has significant experience presenting to and working with boards of client companies and has facilitated sessions at the Institute for Corporate Directors.
Elmer Dyke is a recognized global leader in the commercial and government nuclear industry with over 35 years' experience. Mr. Dyke has a Bachelor of Arts Degree in International Political Economy from Davidson College and served as a U.S. Army Officer for thirteen years. Mr. Dyke's professional career includes a tenure with the U.S. Department of State during which he directed international security programs, including nuclear nonproliferation and high technology projects and was detailed to the Departments of Defense and Commerce. Mr. Dyke has worked within global firms NAC International and Booz Allen Hamilton where he served as an expert on nuclear nonproliferation, strategy and nuclear fuel cycle. More recently, Mr. Dyke filled senior executive roles at Centrus Energy Corporation, a global nuclear fuel supplier and technical services provider. At Centrus Energy and in prior executive roles, Mr. Dyke led strategic planning and business development, financial performance, and risk management for the businesses. Currently, Mr. Dyke leads New Horizons Nuclear Associates, LLC, a global nuclear consulting firm he formed in 2022. Mr. Dyke is intimately involved with the entire nuclear fuel cycle and has served terms on the board of directors of the World Nuclear Association and the U.S. Nuclear Industry Council.
About Ur-Energy Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. We have produced, packaged, and shipped approximately 2.8 million pounds U3O8 from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, the Company's second in situ recovery uranium facility in Wyoming and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur‑Energy is engaged in uranium recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.
FOR FURTHER INFORMATION, PLEASE CONTACT John W. Cash, Chairman, CEO & President 720-981-4588, ext. 303 John.Cash@Ur-Energy.com
Cautionary Note Regarding Forward-Looking Information This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., when the Company will receive all remaining regulatory authorizations for the Lost Creek expansion; the ability to progress the planned construction and buildout of Shirley Basin as currently projected; and what further growth of the Company is achieved and on what timing)and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "estimates," "intends," "anticipates," "does not anticipate," or "believes," or variations of the foregoing, or statements that certain actions, events or results "may," "could," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedarplus.ca and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.
Perth-based uranium development and exploration company Toro Energy Limited (ASX:TOE) (“Toro” or the “Company”) is pleased to advise its intention to demerge its portfolio of non-core assets including its nickel, gold and base metal assets in Western Australia, subject to all requisite approvals.
Highlights
Strategic review of asset portfolio to maximise shareholder value
Toro anticipates an in-specie distribution to existing shareholders
Lead manager for IPO of demerged company to be finalised soon
Toro to be solely focused on uranium development opportunities
The strategic decision to consider the demerger follows a detailed review of its asset base in light of the strong and impressive results delivered from the Lake Maitland Scoping Study and the implications for its broader flagship Wiluna Uranium Project (“Wiluna Uranium Project”).
The Lake Maitland Scoping Study produced attractive financial metrics demonstrating a stand-alone project highlighted by:
Pre tax NPV8 of A$610m, 41% IRR based on $70/lb U3O8 price, $0.70 AUD:USD
Modest capex of USD189m (including 20% contingency) with a 2.5 year payback
Low opex - Life of mine C1 costs of US$23.10/lb U3O8 and AISC US$28.02/lb U3O8
EBITDA of $1,768.6M for the life of the mine
A very significant increase in the value of Lake Maitland is an anticipated outcome of the soon to be completed update of the Lake Maitland Scoping Study,
Recent work continues to highlight strength of Uranium assets
Toro recently reported that planning was well advanced to commence a near-term drilling programme that would deliver potential ore to the pilot plant that is currently in design for the Wiluna project and that a refresh and update of the Lake Maitland Scoping Study (first completed in 2022) is currently underway to evaluate financial outcomes using the latest more favourable commodity pricing and exchange rare guidance.
In addition, the Company announced that improving uranium market dynamics have allowed Toro to lower the cut-off grade and expand the stated uranium (U3O8) and vanadium (V2O5) resources at the Lake Way and Centipede-Millipede deposits by up to 25% U3O8.
Given the Company’s strategic focus on the development and recent positive developments of the Wiluna Uranium Project, the value of its nickel, gold and base metal exploration assets is not currently reflected in Toro’s share price. The Board considers these assets should now logically sit in a separately listed vehicle specifically focused on progressing their exploration and development.
Management commentary
Toro’s Executive Chairman, Richard Homsany said:
“With the strong financial metrics highlighted by the Lake Maitland Uranium Scoping Study, and the expected transformational increase in NPV following a soon to be completed refresh, we believe it is the right time to consider demerging our non-core projects to allow Toro to focus solely on expediting the development of our globally significant uranium assets.
Toro believes a demerger and anticipated IPO of the demerged company provides a compelling opportunity to unlock the considerable underlying value of these highly prospective nickel, gold and base metals assets, while allowing Toro to aggressively pursue the development of its world-class Wiluna Uranium Project.
The considerable amount of work completed to date by our team has demonstrated that the Lake Maitland Deposit, which is part of the Wiluna Uranium Project, is viable as a stand- alone operation with incredibly attractive financial metrics. There is significant potential upside in combining the other deposits - Lake Way, Millipede and Centipede - with Lake Maitland thereby unlocking greater value for shareholders.”
NewCo strategy and proposed transaction
Toro believes an IPO of its demerged company (“NewCo”) creates a new exploration driven, energy and base metals business with a portfolio of valuable assets located in a Tier-1 mining jurisdiction.
Any demerger is expected to be conducted by way of an equal capital reduction in Toro and an in- specie distribution of its shares in NewCo to Toro shareholders in compliance with applicable ASX Listing Rules including Rule 11.4.1(a). Upon completion of any demerger, existing Toro shareholders will have a significant interest in NewCo, which is expected to attract strong investor interest. Toro shareholders are also expected to be afforded a priority offer as part of any IPO, with an intention to seek an ASX listing for NewCo.
Investors are cautioned that although the application for admission of NewCo to the official list of ASX is intended to occur after the implementation of any demerger, there can be no certainty as to the timing of when such application will be made or that any such application will be successful. Any application by NewCo to admission of the official list of ASX will be subject to satisfying the requirements of ASX. Investors are further cautioned that due to the early-stage nature of the intended demerger no information about the structure of the demerged entity is as yet concluded or available.
This article includes content from Toro Energy, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Nuclear energy is a critical component in the transition to net zero. There's a growing acknowledgment of the pivotal role nuclear power can play in meeting decarbonization objectives, thanks to its clean emissions profile, dependable baseload capabilities, and secure operation. Global electricity demand is set to grow 50 percent by 2040 and nuclear energy will play an integral role in meeting this demand. This is evident in the recently released World Energy Outlook 2023 published by the International Energy Agency (IEA) which highlighted the role that nuclear energy can play in making the journey towards net-zero faster, more secure, and more affordable.
According to the World Nuclear Association, there are currently 439 reactors operating globally. This capacity is increasing steadily with about 61 reactors under construction in 15 countries and a further 400 that are either ordered, planned or proposed. The IEA anticipates a substantial growth of over 43 percent in installed nuclear capacity from 2020 to 2050, reaching approximately 590 gigawatts of electrical output. This should drive demand for uranium over the coming decades.
UxC, a nuclear industry market data and analysis firm, estimates that annual uranium demand could soar by nearly 65 percent, surpassing 300 million pounds (Mlbs) U3O8 by 2030 from the current demand level of 197 Mlbs U3O8. Against this, the mine supply for 2024 is estimated to be around 155 Mlbs U3O8, implying a deficit of nearly 40 Mlbs. Further, substantial underinvestment in new mining projects has exacerbated an already constrained supply side, leading to prolonged strain in the years ahead.
As a result, spot uranium prices have seen a big jump. Uranium prices are now the highest since 2008 at over US$80/lb. Prices are expected to remain strong due to the ongoing tightness in the uranium supply/demand balance. As mentioned earlier, this tightness is likely to intensify over the next 24 months as demand continues to rise, new supply remains restricted, and inventories/stockpiles continue to diminish. The risks to the supply side far outweigh risks to the demand side given that more than 50 percent of global uranium production comes from countries with significant geopolitical risk.
This is where companies such as Skyharbour Resources (TSXV:SYH), with a presence in jurisdictions such as the Athabasca Basin in Canada, stand out for its geopolitical stability. The Athabasca Basin is the world’s most prolific uranium jurisdiction, boasting uranium grades averaging over ten to twenty times higher than those found elsewhere, with levels at 3.95 percent U3O8 in contrast to the global average of 0.15 percent.
Skyharbour Resources possesses a broad portfolio of uranium exploration projects within the Athabasca Basin and is strategically positioned to capitalize on the improving fundamentals of the uranium market. The company follows a dual strategy of mineral exploration at its core projects (Russell and Moore) while utilizing the prospect generator model to advance its secondary projects with strategic partners. Employing the prospect generator model provides advantages to Skyharbour as partner firms finance exploration and development activities, as well as making cash and stock payments directly to Skyharbour Resources as they earn in on the projects. The model allows Skyharbour to retain upside exposure through minority interests and royalties at the partner projects while limiting equity dilution and ensuring that partner companies fund the majority of exploration costs.
Skyharbour Resources has seven partner companies, including Orano Canada, Azincourt Energy, Valor Resources, Basin Uranium Corp, Medaro Mining, Tisdale Clean Energy, and North Shore Uranium. Skyharbour’s option agreements total over C$33 million in exploration expenditures, with more than C$27 million in stock being issued and over C$20 million in cash payments potentially coming into Skyharbour.
Company Highlights
Skyharbour Resources is a junior mining company with an extensive portfolio of uranium exploration projects in Canada’s Athabasca Basin. They comprise 29 uranium projects, 10 of which are drill-ready, totaling over 587,000 hectares.
The Athabasca Basin is the world’s most prolific uranium jurisdiction, boasting uranium grades averaging over 10-20 times higher than those found elsewhere.
The company employs a multi-faceted strategy of focused mineral exploration at its core projects (Russell and Moore) while utilizing the prospect generator model to advance its secondary projects with strategic partners.
The company’s co-flagship Moore project is an advanced-stage uranium exploration asset featuring high-grade uranium mineralization at the Maverick Zone. Previous drilling has returned results of 6 percent U3O8 over 5.9 meters, with a notable intercept of 20.8 percent U3O8 over 1.5 meters, at a vertical depth of 265 meters.
Adjacent to the Moore project is Skyharbour’s second core project, the Russell Lake uranium project, wherein Skyharbour has the option to acquire an initial 51 percent and up to 100 percent interest from Rio Tinto. The Russell Lake uranium project is a large, advanced-stage uranium exploration property totaling 73,294 hectares.
Skyharbour is fully funded for 15-20,000m of drilling in 2024 at its co-flagship Russell and Moore Projects
Management intends to continue building the prospect generator business by offering projects to partners who will fund the exploration and provide cash/stock to Skyharbour for an ownership interest in the projects; Skyharbour typically retains minority interests in the projects and equity holdings in the partners.
The increasing focus on nuclear energy by governments globally to achieve decarbonization goals bodes well for uranium prices. Skyharbour, with key uranium assets in a top mining jurisdiction, stands to benefit from this shift in the global energy mix.
Flagship Projects
The Moore Project
This project covers an area of 35,705 hectares, located in the eastern Athabasca Basin near existing infrastructure with known high-grade uranium mineralization and significant discovery potential. Skyharbour acquired the project from Denison Mines (TSX:DML), a large strategic shareholder of the company. The project can be easily accessed year-round via winter and ice roads, streamlining logistics and reducing expenses. During the summer months, a significant portion of the property remains accessible as well. The property has been the subject of extensive historic exploration with over $50 million in expenditures, and over 140,000 meters of diamond drilling completed historically.
Moore hosts high-grade uranium mineralization at the Maverick zones. Over the past few years, Skyharbour Resources has conducted diamond drilling programs, resulting in the intersection of high-grade uranium mineralization in numerous drill holes along the 4.7-kilometer-long Maverick structural corridor. Some of the high-grade intercepts include:
Hole ML-199 which intersected 20.8 percent U3O8 over 1.5 meters at 264 meters,
Hole ML-202 from the Maverick East Zone which intersected 9.12 percent U3O8 over 1.4 meters at 278 meters.
Hole ML20-09 which intersected 0.72 percent U3O8 over 17.5 meters from 271.5 meters to 289.0 meters, including 1 percent U3O8 over 10.0 meters represents the longest continuous drill intercept of uranium mineralization discovered to date at the project.
Drill hole ML-61 returned 4.03 percent eU3O8 over 10 meters;
Drill hole ML -55 encountered high-grade mineralization, returning 5.14 percent U3O8 over 6.2 meters
Drill hole ML -47 intersected 4.01 percent U3O8 over 4.7 meters
Merely 50 percent of the total 4.7-kilometer promising Maverick corridor has undergone systematic drilling, indicating significant discovery potential both along its length and within the underlying basement rocks at depth. Skyharbour has announced a 3,000-meter 2024 drill program which will include infill and expansion drilling at the high-grade Maverick Corridor as well as testing several regional targets including the Grid Nineteen target area.
Apart from the Maverick Zone, diamond drilling in various other target areas has encountered multiple conductors linked with notable structural disturbances, robust alteration, and anomalous concentrations of uranium and associated pathfinder elements.
Russell Lake Uranium Project
The Russell Lake project is a large, advanced-stage uranium exploration property spanning 73,294 hectares, strategically positioned between Cameco’s Key Lake and McArthur River projects. Skyharbour entered into an option agreement with Rio Tinto which gives it the right to acquire an initial 51 percent and up to 100 percent of the project. Skyharbour can earn an initial 51 percent by paying C$508,200 in cash, issuing 3,584,014 shares to Rio Tinto, and funding C$5,717,250 in exploration on the Russell Lake project, over three years. Skyharbour has a second option to earn an additional 19 percent interest for a total of 70 percent, and a further option to obtain the remaining 30 percent interest in the project.
The project is adjacent to Denison’s Wheeler River project and Skyharbour’s Moore uranium project. It is supported by excellent infrastructure in terms of highway access as well as high-voltage power lines. The project has undergone a significant amount of historical exploration which includes over 95,000 meters of drilling in over 220 drill holes. The exploration identified numerous prospective target areas and several high-grade uranium showings as well as drill hole intercepts.
The property hosts several noteworthy exploration targets, including the Grayling Zone, the M-Zone Extension target, the Little Man Lake target, the Christie Lake target, and the Fox Lake Trail target. Skyharbour completed a 19-hole drilling program totaling 9,595 meters in three phases in 2023. The initial drilling phase encompassed 3,662 meters across eight completed holes at the Grayling Zone, followed by a second phase involving four holes totaling 2,730 meters drilled at the Fox Lake Trail Zone. The third drilling phase involved 3,203 meters across seven holes targeting additional areas within the Grayling Zone.
Skyharbour is carrying out a 5,000-meter winter drilling program currently to follow up on the 2023 campaign and historical exploration work. The 2024 program will focus on Grayling East and Fork targets within the broader Grayling target area as well as the M-Zone Extension target.
Secondary Projects
Falcon Uranium Project
This project comprises 11 claims covering 42,908 hectares located approximately 50 km east of the Key Lake mine. Skyharbour Resources has entered into an option agreement with North Shore Uranium which provides North Shore with an earn-in option to acquire an initial 80 percent interest and up to a 100% interest in the Falcon Property. North Shore can acquire an initial 80 percent interest in the claims within three years by meeting combined commitments of C$5.3 million in cash, share issuance, and exploration expenditures. Additionally, there's an option to buy the remaining 20 percent for an extra C$10 million in cash and shares.
South Falcon East Uranium
This project comprises 16 claims covering 12,234 hectares located approximately 55 km east of the Key Lake mine. Skyharbour has optioned up to a 75 percent interest in a portion of the project to Tisdale Clean Energy. Tisdale will issue Skyharbour Resources 1,111,111 shares upfront, fund exploration expenditures totaling C$10.5 million, and pay Skyharbour Resources C$11.1 million in cash of which C$6.5 million can be settled for shares over a five-year earn-in. Skyharbour Resources will retain a minority interest in the South Falcon East.
East Preston
This project comprises 20,674 hectares located on the west side of the Athabasca Basin. In March 2017, Skyharbour Resources signed an option agreement with Azincourt Uranium (TSXV:AAZ) to option 70 percent of a portion of the East Preston project to Azincourt. Since then, Azincourt earned a majority interest in the project which currently stands at 85.8 percent. Skyharbour retains 9.5 percent ownership and Dixie Gold owns the remaining 4.7 percent.
Azincourt completed a 2023 drill program comprising 3,066 meters in 13 drill holes. A 1,500-meter drill program consisting of 5 drill holes is set to commence in 2024.
Preston
This project comprises 49,635 hectares strategically located near Fission’s Triple R deposit and NexGen’s Arrow deposit. In March 2017, Skyharbour Resources signed an option agreement with Orano (formerly AREVA) Resources Canada to option a majority stake in the Preston project. Orano has fulfilled its first earn-in option interest for 51 percent in the project. Following this, Orano has formed a joint venture (JV) with Skyharbour and Dixie Gold for the advancement of the project. Orano holds 51 percent interest, and the remaining is split evenly (24.5 percent each) between Skyharbour and Dixie Gold.
Hook Lake
This project comprises 16 claims covering 25,847 hectares on the east side of the Athabasca Basin. In February 2024, Valor completed an earn-in for 80 percent interest and formed a JV partnership with Skyharbour which retains the remaining 20 percent interest.
Yurchison Lake
This project consists of 13 claims totaling 57,407 hectares in the Wollaston Domain. In November 2021, Medaro signed an agreement to acquire an initial 70 percent interest by spending C$5 million on exploration, C$800,000 in cash payments, and C$3 million in Medaro shares over 3 years. Medaro may acquire the 30 percent interest, within 30 business days of earning the initial 70 percent interest, by issuing C$7.5 million of shares and a cash payment of $7.5 million to Skyharbour.
Mann Lake
This project is strategically located on the east side of the Athabasca basin, 25 km southwest of Cameco’s McArthur River Mine and 15 km northeast and along strike of Cameco's Millennium uranium deposit. In October 2021, Basin Uranium signed an earn-in option to acquire a 75 percent interest in the project. Basin will pay a combination of cash and stocks over three years comprising C$4.85 million in cash plus exploration expenditure and C$1.75 million worth of shares.
In addition to the projects being advanced by Skyharbour and its partners, the Company has an additional twenty 100% owned projects that they’re actively seeking to option out to potential new partners in the future to add to their growing prospect generator business. All in all, Skyharbour is very well positioned to benefit from an accelerating uranium bull market with increasing demand in the backdrop of a strained supply side.
Management Team
Jordan Trimble, B.Sc., CFA – President and CEO
With a background in entrepreneurship, Jordan Trimble has held various positions in the resource industry, focusing on management, corporate finance, strategy, shareholder communications, business development, and capital raising with multiple companies. Prior to his role at Skyharbour, he was the corporate development manager at Bayfield Ventures, a gold company with projects in Ontario. Bayfield Ventures was subsequently acquired by New Gold (TSX:NGD) in 2014. Throughout his career, Trimble has established and assisted in the management of numerous public and private enterprises. He has played a pivotal role in securing significant capital for mining companies, leveraging his extensive network of institutional and retail investors.
Jim Pettit – Chairman of the Board
Jim Pettit currently serves as a director on the boards of various public resource companies, drawing from over 30 years of experience in the industry. His expertise lies in finance, corporate governance, management and compliance, particularly in the early-stage development of both private and public enterprises. Over the past three decades, he has primarily focused on the resource sector. Previously, he served as chairman and CEO of Bayfield Ventures, which was acquired by New Gold in 2014.
David Cates - Director
David Cates currently serves as the president and CEO of Denison Mines (TSX:DML). Before assuming the role of president and CEO, Cates was the vice-president of finance, tax, and chief financial officer at Denison. In his capacity as CFO, he played a pivotal role in the company's mergers and acquisitions activities, including spearheading the acquisition of Rockgate Capital and International Enexco. Cates joined Denison in 2008, initially serving as director of taxation before he was appointed CFO. Prior to joining Denison, he held positions at Kinross Gold and PwC with a focus on the resource industry.
Joseph Gallucci - Director
Joseph Gallucci was previously a senior manager at a leading Canadian accounting firm. He possesses more than two decades of expertise in investment banking and equity research, specializing in mining, base metals, precious metals, and bulk commodities worldwide. He serves as a senior capital markets executive and corporate director. Presently, Gallucci is the managing director and head of investment banking at Laurentian Bank Securities, where he assumes responsibility for overseeing the entire investment banking practice.
Amanda Chow - Director
Amanda Chow is a chartered professional accountant (CPA, CMA) and holds a Bachelor of Business Administration degree from Simon Fraser University. Chow commenced her career with public companies in 1999.
Dave Billard – Head Consulting Geologist
Dave Billard is a geologist with over 35 years of experience in exploration and development, focusing on uranium, gold and base metals in western Canada and the western US. He served as chief operating officer, vice-president of exploration, and director for JNR Resources before its acquisition by Denison Mines. He played a crucial role in the discovery of JNR’s Maverick and Fraser Lakes B zones. Earlier in his career, he contributed to the discovery and development of several significant gold deposits in northern Saskatchewan. Prior to joining JNR, Billard worked as a geological consultant specializing in uranium exploration in the Athabasca Basin. He also spent over 12 years with Cameco Corporation.
Christine McKechnie – Senior Project Geologist
Christine McKechnie is a geologist with a specialization in uranium deposits, particularly those hosted in the basement and associated with unconformities in the Athabasca Basin and its vicinity. Throughout her career, she has worked with various companies such as Claude Resources, JNR Resources, CanAlaska Uranium and Cameco, engaging in gold and uranium exploration activities. She completed her B.Sc. (High Honors) in 2008 from the University of Saskatchewan and completed a M.Sc. thesis on the Fraser Lakes Zone B deposit at the Falcon Point project. She also received the 2015 CIM Barlow Medal for Best Geological Paper.
Sean Cross – Project Geologist
Sean Cross is a geologist primarily dedicated to uranium exploration, with supplementary expertise in VMS and orogenic gold deposits. Sean has been involved in various flagship projects, including Foran’s McIlvenna Bay Deposit and NexGen Energy’s Arrow Deposit. His expertise extends to greenfield uranium exploration south of the Athabasca, geological mapping with the Saskatchewan Geological Survey, and environmental and archaeological mitigation projects in British Columbia and Alberta.
Dylan Drummond – Project Geologist
Dylan Drummond is a geologist experienced in uranium and rare earth elements exploration. He has been involved in numerous prestigious projects, including NexGen Energy's prominent Arrow Deposit and Orano Canada's Cigar Lake project. Additionally, he has served in various capacities at Appia Energy Corp, ranging from on-site prospecting to supporting drill program supervision.
This profile was written in collaboration with Couloir Capital.
Carmanah Minerals (CSE:CARM) is a junior mining company focused on the acquisition and exploration of energy, critical elements and precious metals. The company is actively exploring its flagship Walker uranium project situated in the Athabasca Basin. The company also recently acquired Hare Hill, a rare earths project tied to both York Harbor's Bottom Brook property and the Baie Verte Brompton project.
Nuclear energy is expected to play an increasingly important role in the global clean energy and decarbonization efforts. The world’s nuclear power capacity has been steadily increasing for the past several years with roughly 60 reactors currently under construction. Although many of these reactors are planned within the Asia-Pacific region and Russia, other countries have made extensive plans to expand the capacity of their existing nuclear energy resources.
This re-emergence of nuclear energy has resulted in increased demand for uranium. Given the current lack of a sufficient primary supply, new discoveries and deposits are growing increasingly valuable in balancing the market.
The outlook for rare earth elements (REEs) is similar, as these critical minerals are essential for everything from batteries to solar panels and wind turbines. Unfortunately, even as demand continues to grow, the market for REEs is currently dominated by China.
Multiple countries have thus begun investing heavily in their own domestic REE supply, considerably increasing the investment potential for exploration and discovery.
With an experienced and heavily invested management team, Carmanah is incredibly well-positioned to leverage the increasingly expanding prospects for uranium and REE development and fulfill its core objective — supporting the transition to a cleaner, more sustainable future.
Company Highlights
Carmanah Minerals is a Canadian junior mining and exploration company focused on rare earth elements (REE) and uranium.
Their flagship project, Walker, is situated in the Athabasca Basin, one of the most uranium-rich regions in the world. Carmanah jointly operates the project with Marvel Discovery.
The Athabasca Basin currently accounts for roughly 13 percent of global uranium production, and deposits in the region are 20 times richer than the global average.
Carmanah also owns and operates a rare earths project in Newfoundland, positioned within a new mining district that is quickly gaining recognition for its REE deposits.
With nuclear power capacity rapidly increasing and the potential of nuclear energy to power decarbonization, demand for uranium is expected to spike over the next several years.
Uranium is also notable for its cost-competitiveness and capacity to produce near zero-carbon heat, giving it the potential to decarbonize many other sectors of the economy in addition to energy.
Carmanah's management team comprises mining industry leaders and experts. These individuals are heavily invested, collectively holding a 25-percent stake in the company.
Key Projects
Walker Claims
Located west of Wollaston Lake and south of Lake Athabasca, the Athabasca Basin spans roughly 100,000 square kilometers across Northern Saskatchewan and Alberta. The Athabasca Basin is best known as the world's leading source of high-grade uranium and currently supplies about 13 percent of the world's annual uranium production. These reserves are arguably most concentrated in the eastern-oriented Wollaston-Mudjatik Transition Zone (WMTZ), which hosts some of the highest-grade uranium mines in the world, including Cigar Lake, McArthur River and Wheeler Project.
Carmanah's Walker project is also situated within the zone and is directly tied to Cameco's properties, which run along the Key Lake Shear Zone and host 10 uranium showings with multiple exploration and magnetic survey (EM) targets. Carmanah jointly owns and operates the Walker Claims with Marvel Discovery (TSXV:MARV), with each company holding a 50-percent stake.
The Arrow Deposit, owned by NexGen Energy, lies along a similar structural corridor as the Marvel properties. The Arrow Deposit, which has undergone a positive feasibility study with robust economics, contains probable reserves of 239.6 million pounds (Mlbs) of triuranium octoxide (U3O8) at an average of 2.37 percent U3O8 and measured and indicated resources of 256.7 Mlbs at an average grade of 3.1 percent U3O8. The Arrow Deposit is the largest undeveloped uranium deposit in Canada.
Project Highlights:
Potential for High-grade Mineralization: The Carmanah-Marvel joint venture straddles several of the largest uranium mines in the world, including:
Cigar Lake, with roughly 221.6 Mlbs of uranium at 16.7 percent U3O8.
The Mcarthur River mine, with reserves of approximately 392 Mlbs of uranium at 6.91 percent U3O8.
Wheeler Project, which hosts 109 Mlbs of uranium in two deposits averaging 11.23 percent U3O8.
Considerable Investment: Carmana will fund $1.5 million in exploration expenditures, along with a payment of $400,000 in cash. Additionally, the company will issue 3.5 million shares and 3.5 million warrants over three years.
Extensive Pre-existing Infrastructure: The Athabasca Basin is one of the most active uranium mining districts in the world, allowing Carmanah and Marvel to considerably reduce their upfront capital investment.
Covering 1,564 claims totaling 39,100 hectares in central Newfoundland, Hare Hill Pluton is a rare earth element project directly contiguous to York Harbour Metals' (TSXV:YORK) recent Bottom Brook acquisition. It is also adjacent to Falcon Gold’s (TSXV:FG) and Marvel Discovery's Baie Verte Brompton projects.
Long overlooked for its potential, the Hare Hill granitic system is highly prospective for REE mineralization. A recent report by York Harbor Metals, for instance, returned total rare earth oxide grades (TREO) between 3.45 percent and 21.63 percent TREO. An analysis by Carmanah indicates the area is underlaid by the same peralkaline granite as York Harbor.
Project Highlights:
High-grade REE: The district in which Hare Hill Pluton is situated contains some of the highest-grade deposits of rare earths in Canada.
Pre-existing Infrastructure: As with Walker Claims, Carmanah benefits from infrastructure constructed within the region by other mining companies, allowing it to pursue exploration, discovery and eventual production at a significantly reduced capital cost.
Management Team
Fraser Rieche - CEO and Director
Fraser Rieche holds a BA in economics and boasts 25 years of expertise in international project management, logistics planning and corporate finance. He has collaborated with resource-based industries and global financial institutions to develop and finance projects in mining, alternative energy, oil and gas, fisheries and forestry. Additionally, Rieche serves as an independent director for Marvel Discovery.
Brian Crawford - CFO and Director
Brian Crawford holds a Bachelor of Commerce degree from the University of Toronto and brings extensive experience as a senior financial executive. He has held positions in both public and private companies and has served as a partner in a national firm of chartered professional accountants. Crawford is a founder and/or co-founder of several companies currently listed on the TSXV or the CSE. Crawford serves as a director, corporate secretary and/or CFO of multiple TSXV- or CSE-listed companies, including Colibri Resource, Searchlight Resources, CBLT and Tempus Capital.
Michelle Suzuki - Director
Michelle Suzuki has dedicated the past 25 years serving as an advisor, specializing in publishing and media relations. Her expertise lies in managing investor communication campaigns for Canada’s largest digital content providers. Throughout her career, she has worked with numerous C-Suite clients across North America, ranging from life sciences technology to mining companies.
In the Canadian markets, she is widely known for her experience in these fields working with many top CEOs, senior investor relations executives, investment broker-dealers and newsletter writers on digital syndication helping educate on the importance of mining and the future of the industry.
Jordan Smith - Director
Jordan Smith previously worked for Imperial Metals at the Mt. Polley mine site, situated 56 kilometers northeast of Williams Lake. He then joined New Gold as an underground maintenance technician at the New Afton mine, located 17 kilometers west of Kamloops. In 2012, he transitioned to the power generation industry and served as a facility manager for over seven years, overseeing all operations. Currently, Smith is involved in the hospitality sector as a principal of the Bow and Stern restaurant group in the Fraser Valley, British Columbia.
Karim Rayani – Strategic Advisor
For the past 18 years, Karim Rayani has been focused on financing both international and domestic mineral exploration and development. Currently, Rayani is a principal of R7 Capital Ventures, an investment family office firm with a diverse portfolio covering natural resources, energy, cleantech, renewables, and health-related ventures all with a focus on public venture capital. Prior to this, he worked independently as a management consultant and financier. Presently, he also serves as chief executive officer, director of Falcon Gold, chairman, chief executive officer, director of Power One Resources, chief executive officer, director of Latamark Resources, chief executive officer, director of Marvel Discovery, chairman, director of District 1 Exploration, and chief executive officer, director of Auvega Labs.
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