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Clarification Announcement
C29 Metals Limited (ASX:C29) (C29, or the Company) released an announcement to ASX on 24 July 2024 titled “License Applications Lodged around Ulytau Uranium Project” (Announcement). Following discussions with the ASX, the Company retracts the information in respect of the foreign estimates and foreign exploration results included in the Announcement.
The foreign exploration results were previously disclosed pursuant to Question 36 of the ASX “Mining Reporting Rules for Entities: Frequently ASX Questions” (FAQ 36). The concession provided by FAQ 36 only applies to the initial announcement of an acquisition agreement and in any related communications. Thereafter, if any reference is made to the foreign exploration results in an announcement, ASX will regard an entity as reporting those results for the first time and it will have to do so in accordance with Chapter 5 of the Listing Rules and the JORC Code 2012. Accordingly, the Company retracts the information in respect to foreign exploration results included in the Announcement.
The foreign estimates are not reported in accordance with the JORC code 2012. A competent person has not done sufficient work to classify the foreign estimates as a mineral resource estimate in accordance with the JORC Code 2012. It is uncertain that following evaluation and/or further exploration work that the foreign estimate will be able to be reported as a mineral resource in accordance with the JORC Code 2012. Accordingly, the Company retracts the information in respect to foreign estimates included in the Announcement.
This announcement has been authorised by the Board of C29 Metals Limited.
Click here for the full ASX Release
This article includes content from C29 Metals Limited, 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.
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C29 Metals
Investor Insight
A high-grade uranium explorer looking to grow its strategic footprint in southern Kazakhstan, C29 Metals is well-positioned to take advantage of a rapidly expanding uranium market and provide significant shareholder value.
Overview
C29 Metals (ASX:C29) is a Perth, Australia-based uranium mineral exploration company with assets in Kazakhstan. The company’s recently acquired flagship asset, the Ulytau uranium project, represents a “transformative acquisition” that places C29 Metals in a strategic position to leverage a rapidly growing global uranium market and Kazakhstan’s rich uranium resource and established mining infrastructure.
The Ulytau project is located near Lake Balkhash in South Kazakhstan and situated 15 km south of the Bota-Burum mine, one of the largest uranium deposits mined in the former Soviet Union.
Kazakhstan is considered a top mining country for the following reasons:
- It has a well-developed transportation infrastructure and abundant energy resources, ensuring a stable power supply for mining operations.
- It was ranked 25th by the World Bank for” ease of doing business.”
- As the world’s top uranium producer, Kazakhstan represents 43 percent of the global market.
- It is the lowest-cost producer, globally.
- It holds 12 percent of the world’s uranium resources.
Kazakhstan’s strategic location in Central Asia also provides easy access to major markets in Europe, China and Russia, and the flagship Ulytau uranium project is located 3.5 hours from the country’s largest city of Almaty.
The local village of Aksuyek has a population of ~700 people and will support C29 Metals’ exploration efforts in the near-to-mid-term, providing a base of operations and support services.
The uranium market is expected to grow over the next 10 years, with the World Nuclear Association projecting a 28 percent increase in uranium demand from 2023 to 2030. As electricity demand potentially increases by about 50 percent by 2040, there is significant opportunity for increasing the global nuclear energy capacity, especially as the world continues to pursue its clean energy agenda and a low-carbon economy.
Company Highlights
- Focused on uranium exploration in the top uranium-producing jurisdiction of Kazakhstan, with a newly granted tenement and new license applications in progress (252 sq km) and strong community support from local neighboring village members.
- Flagship Asset: The Ulytau project, located in southern Kazakhstan, 15 km south of Bota-Burum, one of the largest Soviet-era uranium mines in the heart of one of the world’s most prolific uranium-producing regions.
- Experienced Leadership: Seasoned board and management team led by Shannon Green, an executive with over 25 years of experience.
- Positive Market Outlook: Demand for uranium is expected to increase by 28 percent by 2030, and 51 percent by 2040.
Key Projects
Ulytau Uranium Project
Figure 2 – Ulytau project location in relation to other Kazakhstan Uranium mines.
The Ulytau Project is located in the Almaty Region of Southern Kazakhstan, approximately 15 km southwest of the Bota-Burum mine, which is one of the largest uranium deposits mined in the former Soviet Union.
Exploration for uranium has been carried out in the area since 1953. Uranium production at the Bota-Burum mine, next to the village of Aksuyek, commenced in 1956 and continued until 1991. Total mined reserves of Bota-Burum are quoted at 20,000 tonnes of uranium (44 million pounds).
C29 Metals has lodged two (2) new license applications with the Ministry of Natural Resources. The licenses are designed to cover ~18 km of additional prospective strike.
The Southern application, the largest of the two (2) applications, was granted on the 1 August 2024 and is contiguous with the Ulytau license area and sits immediately to the South and East of the Ulytau Uranium project tenement boundaries. The Southern application area is ~213 km2. The Northen tenements licence was granted on September 3, 2024.
The Southern tenement is interpreted as having a similar mineralised trend to that of the existing Ulytau Project area (refer to ASX announcement “License Applications Lodged around Ulytau Uranium Project” dated 24 July 2024 and the further clarification on 25 July 2024).
The Northern tenements, meanwhile, sits to the north of the Ulytau uranium project tenement and immediately north of the historic Bota Burum uranium mine. The Northern licence application area is ~39 sq km.
C29 Metals is commencing exploration work at Ulytau, following receipt of a category 4 exploration approval on August 7, 2024, which will include geophysical, field mapping and soil sampling programs.
Figure 3 – The interpreted mineralised Uranium trend with the newly granted southern license and northern application
Local Community Support
The company has held two community consultation days at the local community of Aksuyek, with a population of about 700 people, located roughly 20 km from the Ulytau project area. The community of Aksuyek have shown their strong support for the company’s planned exploration programs. Aksuyek will provide a base of operations for the work programs and can provide many of the required support services to the company.
A social support agreement was signed on July 9, 2024, with the district government providing the framework for the company to assist the village of Aksuyek with projects aligned to the social development of the community. This very important agreement demonstrates the commitment by both parties to work together to ensure mutually beneficial outcomes are sustainably delivered into the future.
Board and Management
Shannon Green - Managing Director
Shannon Green is an experienced mining executive and company director with over 25 years of corporate, resource development and mining operations experience. With extensive experience working in Africa and Australia, Green has managed significant projects, from greenfields exploration through feasibility through construction, into operation. He has held senior leadership roles within Australia in uranium development, as well as iron ore and gold mining operations.
David Lees - Non-executive Chairman
David Lees has over 20 years’ experience in the Australian financial services industry. He started as a stockbroker and subsequently moved into investment and funds management, providing him with extensive experience in capital markets with a diverse skill set covering investment management, business development and corporate governance. He holds a Bachelor of Economics from Murdoch University and a post graduate diploma in Applied Finance and Investment.
Jamie Myers - Non-executive Director
Jamie Myers has over 15 years in equities dealing and corporate advisory experience. He is experienced in leading transactions, including pre-IPOs, IPOs and secondary market equity raising across small and mid-cap companies. He is also the founder and managing director of boutique advisory firm Molo Capital.
Ailsa Osborne - CFO and Company Secretary
Ailsa Osborne has more than 20 years of experience as a financial professional, including more than 15 years in the resource industry in Australia and internationally. Ms Osborne has held CFO and company secretary roles with a number of ASX-listed companies. She has held senior finance roles in several listed companies operating in Australia and internationally, including in South America, Indonesia and Africa.
Drilling at Cheechoo Intersects 12.08 g/t Au Over 20.3 Metres
VAL-D’OR, QUÉBEC–(Marketwired – March 29, 2016) – Golden Valley Mines Ltd. (“Golden Valley” or the “Company”) (TSX VENTURE:GZZ) announces partial results of gold assays from diamond drillhole #52 on the Cheechoo gold property (“Cheechoo gold project”). The information that follows has been prepared by partner and program operator Sirios Resources Inc. (TSX VENTURE:SOI) and has not been independently verified by Golden Valley:
“Following observations of visible gold indicating potentially a significant gold zone in this drill hole, Sirios geologists extracted a series of drill core samples for priority assay. It shows, between 120 m and 140.3 m, a section grading 12.08 g/t Au over 20.3 metres including 48.38 g/t over 4.4 metres (uncut grades, true width unknown). The gold mineralization is distributed in both meta-sedimentary rocks and the tonalite, thus overlapping the contact of these two lithologies. Gold is associated with the presence of numerous folded millimetric veinlets of quartz-feldspar. Only the section between 113.5 m and 147 m was assayed to date in this drill hole, results are detailed in the table below.
PARTIAL ASSAYS RESULTS OF DRILL HOLE CH-16-52
NAD 83 UTM Coordinates: 438831E 5830227N; Azimuth: 300°; Dip: -50°
From (m) | To (m) | Interval (m)* | Au (g/t) ms | Au (g/t) Cut *** | ||||||
120.0 | 140.3 | 20.3 | **12.08 | 8.22 | ||||||
incl. | 122.7 | 123.7 | 1.0 | **14.35 | ||||||
and | 133.2 | 137.6 | 4.4 | **48.38 | 30.53 | |||||
incl. | 133.2 | 135.5 | 2.3 | **83.35 | 50.00 | |||||
and | 136.5 | 137.6 | 1.1 | **14.95 | ||||||
* Interval along the hole. True width not known. | ||||||||||
** Visible gold. | ||||||||||
*** Maximum gold grade cut at 50 g/t. | ||||||||||
ms: Gold grade obtained by fire assay with metallic sieve of a 1 kg sample. |
The winter 2016 diamond drilling program, started in mid-January, was finished last week with the completion of drill hole #56. Twenty six drill holes (#31 to 56) were completed for a total of 4,179 metres. Assays are completed for drill holes Ext#22, 32, 33, 34, 36 and 37 while re-assays for quality controls are underway for drill holes #31 and 35. Shallow, less than 80 meters deep, drill holes #34, 36 and 37 yielded only anomalous gold grades. Samples from drill holes #38 to 56 will be assayed in following weeks. Only partial results are known and published to date for drill holes #40 and #52 with this press release and the one of March 7th.
A map showing the locations of drill holes is available at the following link: https://sirios.com/files/CarteZoomin2016-03-24.jpg as well as a photo of drill hole #52 at the following link: https://sirios.com/files/CH52-120-141.jpg
MAIN ASSAYS RESULTS OF DRILL HOLES #22Ext. 32 AND 33
DDH CH-16- | Azimuth ° | Dip ° | NAD83 UTM Coordinates | From (m) | To (m) | Interval (m) * | Au (g/t) | |||||||
22Ext | 254 | -41 | 438500E / 5830171N | 209.0 | 210.0 | 1.0 | 16.32 | |||||||
224.4 | 245.4 | **21.0 | 0.88 | |||||||||||
incl. 240.5 | 245.4 | **4.9 | 1.75 | |||||||||||
32 | 300 | -50 | 438516E / 5830178N | 15.5 | 17.0 | 1.5 | 4.42 | |||||||
52.6 | 53.9 | 1.3 | 2.06 | |||||||||||
86.7 | 87.7 | 1.0 | 2.26 | |||||||||||
122.8 | 123.8 | ms**1.0 | 9.11 | |||||||||||
150.0 | 152.1 | 2.1 | 1.24 | |||||||||||
33 | 300 | -50 | 438429E / 5830333N | 9.3 | 16.8 | 7.5 | 0.68 | |||||||
41.9 | 42.9 | 1.0 | 2.66 | |||||||||||
* Interval along the hole. True width not known. | ||||||||||||||
** Visible gold. | ||||||||||||||
ms: Gold grade obtained by fire assay with metallic sieve of a 1 kg sample. |
Assay quality control
NQ-caliber drill cores of current campaign were sawed in half, with one half sent to a commercial laboratory for analysis and other half retained for future reference. A strict QA/QC program was followed by integrating blanks and certified reference materials to the drill core samples, all of which were prepared by IOS Services Géoscientifiques inc. of Chicoutimi, and assayed for gold by fire assay and atomic absorption finish (AA24) by the ALS Minerals laboratories in Val d’Or, Quebec. Samples grading more than 3 g/t were re-assayed by fire assay with gravimetric finish. (GRA22). Samples with visible gold were assayed by pyro-analysis with metallic sieve (SCR24) from a sample of about 1 kg.
For the section from 113.5 m to 147.0 m of drill hole #52, twenty-seven samples, of approximately 1 kg each, representing 33.5 m of drill core, were assayed via rush priority for gold by fire assay with metallic sieve (SCR24) by ALS Minerals in Val-d’Or, Quebec.”
Mr. Dominique Doucet, P. Eng., President of Sirios Resources Inc., is the Qualified Person pursuant to National Instrument 43-101, who prepared and is responsible for the technical information reported herein and has approved this written disclosure, including verification of the data disclosed, the sampling, and the analytical and QA-QC data underlying the technical information.
Golden Valley currently owns a 55% interest in the Cheechoo gold project, with Sirios owning the remaining 45% interest. Under the terms of a revised JV agreement, Sirios may acquire Golden Valley’s remaining 55% interest subject to the following general conditions:
- Sirios must spend an aggregate $4,200,000 in exploration expenditures prior to June 13, 2016 (of which $3,172,213 has been indicated as spent as of January 31, 2016, leaving approximately $1,027,787 remaining);
- Sirios issued 9.9% of its share capital to Golden Valley as of December 31, 2013 (2,898,374 shares, currently representing approximately 4% of Sirios); and
- Sirios must make a payment to Golden Valley of $500,000 (cash or equivalent in SOI shares) prior to June 13, 2016 (notwithstanding the foregoing, Sirios shall have the obligation to pay in cash that portion of the $500,000 which would result in Golden Valley becoming an insider of Sirios).
As additional consideration for the grant of the Option and in order for Sirios to acquire Golden Valley’s remaining 55% interest in the Cheechoo gold project, Sirios has granted to Golden Valley a royalty (the “Royalty”) equal to 4% of the net returns from all mineral products mined or removed from the Cheechoo gold project. Notwithstanding the foregoing, the royalty relevant to gold mineral products mined or removed from the Cheechoo gold prospect (the “Gold Portion”) may be reduced as follows depending on the market price of Gold at the time of the payment of the Gold Portion:
- If the price of Gold is less than $3,000 per ounce and higher than $2,400 per ounce, a 3.5% royalty on the Gold Portion shall be payable to Golden Valley;
- If the price of Gold is less than $2,400 per ounce and higher than $1,200 per ounce, a 3% royalty on the Gold Portion shall be payable to Golden Valley; and
- If the price of Gold is less than $1,200 per ounce, a 2.5% royalty on the Gold Portion shall be payable to Golden Valley.
About Golden Valley Mines Ltd.: The Company typically tests initial grassroots targets while owning a 100% interest therein and then seeks partners to continue exploration funding. This allows the Company to carry on its generative programs and systematic exploration efforts at other majority-owned grassroots projects. The Company (together with its various subsidiaries) holds property interests in projects in Canada (Saskatchewan, Ontario and Québec).
Forward Looking Statements:
This news release contains certain statements that may be deemed “forward-looking statements. Forward looking statements are statements that are not historical facts and are generally, but not always, identified by the words “expects”, “plans”, “anticipates”, “believes”, “intends”, “estimates”, “projects”, “potential” and similar expressions, or that events or conditions “will”, “would”, “may”, “could” or “should” occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or realities may differ materially from those in forward looking statements. Forward looking statements are based on the beliefs, estimates and opinions of the Company’s management on the date the statements are made. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Government Approvals for Advanced-Stage Activities Received, Whilst On-Ground Exploration Activities Commence at Mt Douglas Project, NT
Orpheus Uranium Limited (ASX: ORP) (Orpheus or the Company) is pleased to announce that on-ground exploration activities have commenced within the Company’s Mt Douglas Project in the Northern Territory (see Figure 1 & Figure 2).
Highlights
- Geological reconnaissance and sampling have commenced at Mount Douglas (NT) targeting unconformity-style uranium mineralisation similar to other uranium deposits in the Pine Creek Orogen.
- Initial focus on airborne and surface radiometric anomalies coincident with structures.
- Localised gravity survey to be completed in collaboration with the NTGS/Geoscience Australia’s regional gravity survey planned for commencement in 2024.
- Approval received from the Northern Territory Government for a Mining Management Plan (MMP) allowing Orpheus to undertake advance-stage exploration activities at Mt Douglas.
The exploration program will “ground truth” extensive anomalies within the project defined from historical airborne and surface radiometric surveys (see Figure 3). The program will include geological mapping and systematic rock chip sampling to identify zones of potential primary uranium mineralisation.
To date, observed outcropping minerology confirms uranium occurs in primary ore minerals that are mobilised (see Figure 4). As such, uranium mineralisation appears to be structurally controlled similar to unconformity style deposits, including those found in the nearby Rum Jungle Uranium Field, the site of Australia’s first large-scale uranium mine. This will provide targets for immediate drill testing.
Complementing on-ground field activities, Orpheus has collaborated with the Northern Territory Geological Survey (NTGS) to undertake a locally (500m) spaced helicopter-supported ground gravity survey over the project area. The survey will be run simultaneously with the regionally spaced Pine Creek ground gravity survey being conducted by the NTGS and targeted for completion by the end of the calendar year.
Results of the gravity survey will be combined with historic magnetic and radiometric datasets to refine target areas of interest. The primary output of this work will assist in identifying locally derived alteration zones that are associated with regional structures with potential to control uranium deposit formation.
The results of these preliminary programs will continue to develop an understanding of the geological setting of the project area. This will ultimately guide advanced-stage activities including trenching and/or drilling for which Orpheus’ has recently received government approval to undertake within nominated areas associated with these preliminary activities.
Commenting on the exploration program, Orpheus Chief Executive Officer Clint Dubieniecki commented:
“We are excited to commence on-ground activities within the Mt Douglas project. The project was acquired by Orpheus on the basis that the geology and historical radiometric data shows all the hallmarks of a large and high-grade unconformity-style uranium district, similar to the Rum Jungle (Pine Creek) or Ranger (Alligator Rivers) deposits. This work represents an important first step in delineating key structures and defining surface uranium mineralisation that will be prioritsed for drilling.”
Figure 1: Location map of uranium assets owned by Orpheus located in South Australia and Northern Territory (not to scale).
Figure 2: Mount Douglas Project
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This article includes content from Orpheus Uranium, 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.
Company Activity Update
GTI Energy Limited (ASX: GTR) (GTI or Company) is pleased to advise that the final phase of its 2024 drilling campaign will commence in late October to drill and construct 3 hydrogeologic and water monitoring wells. Following completion of this work, GTI will be in a position to update the Mineral Resource Estimate and Exploration Target for Lo Herma by year end as planned. A decision will then be made on commencing a Scoping Study to demonstrate the economic potential of the project.
HIGHLIGHTS
- Lo Herma drilling for construction of groundwater monitoring wells to commence by late October
- Lo Herma Mineral Resource Estimate and Exploration Target updates on track for late Q4 2024
- Green Mountain drilling permit conditions satisfied
- UEC pays US$175m for Rio Tinto’s Great Divide Basin & Green Mountain assets
GREEN MOUNTAIN PROJECT: DRILLING PERMIT
As previously disclosed on 21 February 2024, the GTI technical team finalised the maiden drill plan at Green Mountain, selecting 16 drill holes for permitting. The drill program is designed to test the validity of the historical Kerr McGee drill hole maps, as well as the interpreted 12 Miles (~19kms) of mineralised regions as determined from the airborne geophysical survey completed during late 2023. All surveys and drilling permit approval conditions have been met and a reclamation bond amount has now been determined by Wyoming’s DEQ & the United States Bureau of Land Management (BLM). The Company will make a final decision regarding timing of drilling at Green Mountain in due course.
UEC ACQUIRES RIO TINTO’S GREEN MOUNTAIN AND GREAT DIVIDE BASIN ASSETS1
NYSE American-listed Uranium Energy Corp (UEC), the largest uranium company in the US, announced on September 23rd that it will acquire all of Rio Tinto's Wyoming assets. The assets include the Sweetwater uranium plant and a portfolio of mining projects, in the Great Divide Basin and at Green Mountain, for US$175 million.
UEC President and CEO Amir Adnani said that, with the acquisition, UEC was building on its transformative purchase of Uranium One Americas in 2021, which expanded its holdings in Wyoming’s Great Divide basin. “We recognised early on that there are meaningful development synergies with the Rio Tinto assets, particularly the Sweetwater plant,” said Mr Adnani. UEC stated that the Rio acquisition will establish UEC’s third hub-and-spoke production platform [in addition to its Texas and Wyoming, Powder River Basin operations] and bolster UEC’s resources by circa 175 million pounds, about half of which UEC considers to be amenable to in-situ recovery (ISR) mining.
UEC said it plans to prioritise ISR-amenable resources for development and near-term production, while conventional resources will provide flexibility for future production growth. UEC stated that the 3,000 t/d Sweetwater plant, which has a licensed capacity of 4.1 million pounds a year, can be adapted for recovery of uranium from loaded resins produced by ISR operations. This would potentially provide UEC with production flexibility for both ISR and conventional mining.
GTI Director & CEO Bruce Lane commented, “we are excited that UEC has acquired these assets from Rio with a plan to build their third ‘hub-and-spoke’ ISR production centre at the Sweetwater mill site. We remain convinced that uranium resources in the Great Divide Basin and Green Mountain district have real potential to be developed in a similar fashion to those in Texas and the nearby Powder River Basin production district. UR Energy’s producing Lost Creek ISR plant and Shirley Basin ISR satellite mine development demonstrate the viability of ‘hub-and-spoke’ production strategies within the district”
FIGURE 1. GTI AND UEC GREAT DIVIDE BASIN/GREEN MOUNTAIN PROJECT LOCATIONS
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This article includes content from GTI 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.
When Will Uranium Prices Go Up? (Updated 2024)
Uranium is an important fuel source for the nuclear energy industry, but many investors were shaken out of the market after many years of low uranium prices. With the rebound in 2024, many wonder if the commodity will once again reach its peak.
Driven by rising demand and massive supply disruptions, uranium prices shot up in 2007 from US$72 per pound at the start of the year to an all-time high of US$136.22 by early June. However, uranium prices didn’t last long above US$100 per pound, and the market value of the energy fuel was in the doldrums for more than a decade.
Prices began to climb again in 2021, and picked up speed in 2023. This rally led the uranium spot price to hit a major milestone in January 2024 when it broke through the US$100 per pound level for the first time in 17 years.
This most recent rally was sparked by a confluence of global and market events, including the Russia-Ukraine war and uranium supply challenges related to conversion and enrichment.
The drive for nuclear energy to be a part of the fight to combat climate change is also having an oversized impact on the uranium price outlook as governments look to nuclear as a carbon-free energy source. Even Sweden is considering lifting its ban on uranium mining in an effort to support growth in it own nuclear power industry, for which it currently imports nuclear fuel.
"Sweden currently uses 2.4 million pounds U3O8 annually in its three nuclear power plants and has committed to building two additional nuclear reactors by 2035," World Nuclear News reported.
Although prices have since pulled back to the US$78 to US$80 range as of mid-September, there are notable signals that the market may be in for plenty of upside to the uranium price forecast in the years ahead.
For many years, the uranium market's back-and-forth struggle to move out of a rather entrenched trough had investors asking, "When will uranium prices go up?" Now that they have, the questions that remain are whether they are up enough to spur uranium mining activity and whether or not they have further to go.
Before we try to answer those questions, we'll have a look at what's moved the uranium spot price in the past, including the energy metal's supply and demand dynamics.
How have uranium prices traded historically?
As briefly outlined above, uranium has experienced a wide price range this past century — while its highest level was nearly US$140, the lowest U3O8 spot price came in at just US$7.
In 2003, the price of uranium began an upward trend as demand for nuclear power rose alongside the world's need for energy, especially in growth economies such as China and India. These increasing energy demands came at the same time as significant supply-side disruptions. For example, in 2006, Cameco's massive Cigar Lake mine in Saskatchewan flooded, stalling production for several years at one of the largest uranium deposits in the world.
The inability to move this uranium ore to market was a huge setback for the uranium industry, and translated into explosive price growth for the metal in 2007. However, those impressive gains were soon undone by the 2008 economic crisis, which sent uranium on a downward spiral, slipping below the key US$50 level in early 2009 and to the US$40 range in 2010, as is shown in the uranium price chart below.
Uranium's price history, 2000 to 2024.
Uranium price chart via Trading Economics.
At the start of 2011, uranium got a serious push to the upside along with other energy metals as the global economy began to recover. The tight supply situation, heightened by years of low prices, also played a part in pushing the spot price past the US$70 level.
The rally was short-lived, however, as Japan’s Fukushima nuclear disaster in March shook confidence in the sector. The uranium spot price began a slow slide to lows not seen since the start of the century, ultimately bottoming out at US$18 in November 2017.
Although COVID-19-induced supply disruptions at the world's top uranium mines briefly sent the commodity to a four year high of US$33.93 in May 2020, it wasn't until the fall of 2021 that uranium started to find its footing again.
In September 2021, uranium began to show signs of life as it shot up to a nine year high of US$50.80. The 2021 uranium price rally came after supply cuts from major producers, including Kazakhstan's Kazatomprom and Canada's Cameco( TSX:CCO,NYSE:CCJ), alongside the emergence of the launch of the Sprott Physical Uranium Trust (TSX:U.UN).
Prices were soon see-sawing between US$38 and US$48 in October and November, but the start of 2022 brought civil unrest in Kazakhstan, as well as Russia's invasion of Ukraine. These events proved price positive for the uranium market, and by mid-April, uranium prices had reached an 11 year high of US$64.61.
Looking at the demand side, utility companies had once again returned to the table to sign new long-term uranium supply agreements to secure price and supply. This coincided with uranium supply challenges related to conversion and enrichment. The result was that from April 2021 to April 2022, the price of uranium soared by an eye-popping 106.47 percent.
By H2 2022, uranium prices had begun to slide back to the US$50 range. Much like the broader commodities market, uranium felt the squeeze of higher interest rates as central banks, including the US Federal Reserve, sought to curb rising inflation.
While the uranium price remained stuck in the low US$50s range for much of 2023’s first half, positive fundamentals born out of the view that nuclear energy is critical to reducing global carbon emissions sparked another major price rally beginning in the fall. By January 2024, as the uranium spot price hit US$106 per pound, many market analysts were loudly proclaiming that the next uranium bull market is finally here.
However, uranium prices went on to consolidate in Q2 2024 to the US$80 range, which many experts see as a natural part of the nuclear fuel's emerging bull market cycle. Although the spot price has pulled back this year, the long-term contract price has increased. Term prices are considered by industry insiders to better reflect uranium market fundamentals.
What factors impact uranium supply and demand?
Uranium prices are mainly influenced by aboveground mine supply and demand for nuclear energy. To understand where those stand, investors in this sector typically look to:
- output from uranium mines
- the number of nuclear reactors online, under construction or planned
- the signing of long-term contracts between uranium suppliers and utilities companies
Analysts with a bullish lean believe the uranium market cycle has reached its bottom and that a break to the upside for uranium prices is supported by positive supply and demand fundamentals.
On the demand side, nuclear energy generated from 440 reactors around the globe supplies about 9 percent of the world's energy requirements. Russia is constructing four with another 14 confirmed or planned, and India has seven nuclear reactors under construction. Meanwhile, China alone is constructing 30 new reactors at the moment. In fact, Bloomberg reported in August 2024 that the Chinese government is investing US$31 billion in building 11 new reactors across five sites over the next five years.
A World Nuclear Association (WNA) report forecasts that nuclear generation capacity will grow from 391 gigawatts electric (GWe) in 2023 to a total of 686 GWe in 2040. About 83,840 metric tons (MT) of uranium will be required to feed reactors in 2030, up significantly from the 65,650 MT of uranium required in 2023, according to the WNA's uranium forecast. The firm projects that nearly 130,000 MT will be needed in 2040.
On the supply side, major uranium producers are still not producing at full capacity, and new uranium exploration and development projects are few and far between. The WNA points out that world uranium production dropped from 63,207 MT of uranium in 2016 to 47,731 MT of uranium in 2020. Although that figure ticked up slightly higher in 2021 to 47,808 MT and again in 2022 to 49,355 MT, the organization notes that only 74 percent of 2022's reactor requirements were covered by primary uranium supply.
Huge cuts to global uranium production have come from Kazakhstan, the world's largest uranium-producing country. Responsible for 43 percent of global uranium production, the Central Asian nation began reducing its annual production levels in 2018.
In its 2023 financial report, Kazakhstan’s state uranium firm Kazatomprom warned that it sees a major supply deficit in the uranium market post-2030. “In the current pricing environment, another Kazatomprom-sized supply source will be needed to cover future market needs," said Kazatomprom CEO Meirzhan Yussupov.
In early 2024, the company reduced its production guidance for the year due to several challenges, including difficulties obtaining sulfuric acid.
However, after its H1 2024 production totals showed a 6 percent increase over total production in the same period last year, Kazatomprom increased its production guidance for the year from a range of 21,000 to 22,500 MT of uranium to the new guidance of 22,500 to 23,500 MT of uranium. The company's sales guidance for 2024 remained unchanged.
Canada, Namibia, Australia and Uzbekistan are also among the world's biggest uranium producers. In Canada, Cameco shuttered the Saskatchewan-based McArthur River mine in 2018 and temporarily closed Cigar Lake — the world's top uranium mine — in response to the COVID-19 pandemic. In November 2022, the mining giant brought the McArthur River/Key Lake operation back online.
In 2023, Cameco produced 17.6 million pounds of uranium, falling short of its original production target of 20.3 million pounds for the year. The company’s 2024 guidance is set at 22.4 million pounds. In its H1 2024 report, the company shared that production for the first half of the year had come in at 12.9 million pounds.
As for Australia, Boss Energy (ASX:BOE,OTCQX:BQSSF) announced in April 2024 that it had produced the first drum of uranium out of its Honeymoon project in South Australia as part of its commissioning process. The current mine plan only uses 36 million pounds of the project's total JORC resource of 71.6 million pounds. Boss’ goal is to scale up production at Honeymoon to 2.45 million pounds of U3O8 per year.
In the US, Boss Energy began uranium production at its South Texas-based Alta Mesa in-situ recovery (ISR) central processing uranium plant in June 2024. “With operations now ramping up at both Honeymoon and Alta Mesa, we are on track to hit our combined nameplate production target of 3 million pounds of uranium per annum," said Managing Director Duncan Craib.
Uranium Energy (NYSEAMERICAN:UEC) announced the restart of uranium production at its Wyoming-based Christensen Ranch ISR operations in August 2024. The first shipment of yellowcake from the mine is projected later in the year. Scott Melbye, executive vice president at UEC, told INN during a March 2024 interview that the Burke Hollow ISR project in Texas will be company’s next project to come online.
Despite this positive news, the WNA reports that supply deficits are likely to continue in the years ahead as current global production levels are not enough to meet forecasted demand.
"To meet the Reference Scenario requirements from early in the next decade, in addition to restarted idled mines, mines under development, planned mines and prospective mines, other new projects will need to be brought into production,” the WNA report states. “Considerable exploration, innovative techniques and timely investment will be required to turn these resources into refined uranium ready for nuclear fuel production within this timeframe."
When will uranium prices go up?
So when can investors expect to see further gains in the uranium price? And how far can we expect uranium spot prices to climb?
A good gauge for which way the winds are blowing is utilities contracts, as these entities are traditionally the greatest sources of uranium demand. In fact, only about 10 to 15 percent of uranium trades happen on the spot market — the vast majority of uranium is sold through large long-term contracts between producers and utilities.
It's also useful to watch the rest of the nuclear fuel cycle. Russia controls about 50 percent of global conversion and enrichment capacity — this dominance amid the country's war with Ukraine has spiked prices for these services. Recent moves by the United States may impact this dominance. In mid-May 2024, Biden signed into law a US bill banning Russian uranium imports through the end of 2040.
Speaking to the Investing News Network in a June interview, Ben Finegold, director at Ocean Wall, referred to this as one of the most significant events for the uranium market since Russia's invasion of Ukraine.
"I think that we're going to start to see a move much higher both in terms of term volume and in terms of term prices," he said. "Fuel buyers have got the clarity that they need, particularly in the west now, on the US' stance on the future procurement of Russian uranium."
In the month following the launch of the ban on Russian uranium imports, the US Department of Energy announced plans to invest up to US$2.7 billion to stimulate the development of the country's uranium enrichment capacity and nuclear fuel supply chain.
Not to be outdone, in September Russian President Vladimir Putin put forth the threat of limiting exports of uranium to western nations. The news gave a bump to the share prices of uranium miners such as NexGen Energy (TSX:NXE,NYSE:NXE), Cameco and Denison Mines (TSX:DML,NYSEAMERICAN:DNN).
Uranium stocks have languished in recent months as the winds have left the sails of uranium prices. But plenty of optimism remains for the sector. Speaking to INN in September 2024, Mart Wolbert, analyst at Contrarian Codex, shared his thoughts on supply and demand fundamentals in the uranium market, why uranium prices have dropped, if uranium stocks will go up and what's next for prices.
Even though uranium spot prices have receded down around the US$80 level, Wolbert remains bullish on the market going forward and thinks higher prices could be in the cards. He points to the 42.5 million pounds that have been signed into long-term contracts this year, and advises uranium market watchers to look at term prices rather than spot as a truer indication of where the market is going.
As Reuters reports, long-term uranium prices are coming in at 16-year highs, and are expected to increase further. "With a stronger market environment, we're currently locking in ceilings of about $125-130/lb and floors at about $70-75/lb in market-related contracts," according to Cameco.
Looking over at spot uranium price prediction for 2025, as of mid September 2024, analysts at Trading Economics were forecasting that uranium would trade at US$82.60 in 12 month's time.
This is an updated version of an article first published by the Investing News Network in 2020.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Melissa Pistilli, 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.
$1.1M Placement to Advance Lyndon Uranium Project
Odessa Minerals Limited (ASX:ODE) (“Odessa” or “the Company”) is pleased to announce it has received firm commitments from professional and sophisticated investors for a Placement to raise $1,112,500 (before costs) (“Placement”) by way of a two tranche placement of fully paid ordinary shares (“New Shares”).
Highlights:
- Oversubscribed Placement to sophisticated investors raises $1.1M via two tranche placement
- Proceeds to be utilised to continue exploration and drilling the Lyndon Uranium project, including key targets at Relief Well and Baltic Bore.
Tranche 1 comprising of 225 million New Shares will be issued immediately utilising the Company’s existing placement capacity under ASX Listing Rule 7.1/7.1A. Tranche 2 comprises 331.25 million New Shares which are subject to shareholder approval at the Company’s AGM in November, including a subscription by Non- Executive Chairman Mr Zane Lewis for $100,000 of New Shares.
The issue price of A$0.002 per New Share represents a discount of nil to the last closing price of $0.002 on 25 September and a 23.9% discount to the 15-day volume weighted average price of $0.0263.
Proceeds from the Placement will be utilised to continue exploration at Odessa’s projects including:
- Exploration and drilling of the Company’s Lyndon Uranium Project
- General working capital purposes.
Zane Lewis, Chairman of Odessa, said: “I am very pleased to receive commitments for $1.1M from highly supportive group of long term investors, who share our vision at Odessa. This placement will ensure Odessa is well funded for the upcoming exploration and drilling program at Lyndon.”
Click here for the full ASX Release
This article includes content from Odessa Minerals, 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.
Odessa Minerals Limited (ASX: ODE) – Trading Halt
Description
The securities of Odessa Minerals Limited (‘ODE’) will be placed in trading halt at the request of ODE, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Monday, 30 September 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
Click here for the full ASX Release
This article includes content from Odessa Minerals, 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.
High-Grade Uranium Interval of 1963ppm at Likuyu North at the Mkuju Uranium Project; Commencement of Initial ISR Work
Gladiator Resources Ltd (ASX: GLA)(Gladiator or the Company) is pleased to provide an update on its ongoing exploration activity at the Mkuju Uranium Project, located in southern Tanzania.
- Drill-hole LNDD020 drilled at the Likuyu North deposit, part of the Mkuju Project, returns 6 mineralised intervals including 7.1 metres averaging 1,963ppm eU3O81, from 63.1 metres depth. This hole was drilled central to the deposit to provide core for an assessment of In Situ Recovery (ISR) of the uranium.
- ISR is the preferred method for mining uranium deposits. ERM Australia Consultants Pty Ltd (ERM) are undertaking an initial ISR assessment for Likuyu North.
- Drill-hole LNDD015 down-dip of the deposit has a ~5m mineralised interval; samples have been dispatched to the lab. This interval is 100m south of the current Mineral Resource Estimate (MRE).
- The 2022 JORC compliant MRE for Likuyu North (4.6 Mlbs U3O8) was based on a pit- shell assuming conventional open-pit mining methods; adoption of ISR may support expansion of it.
Commenting on the drill results, Gladiator’s Chairman Greg Johnson said:
“Drillhole LNDD020 demonstrates the quality of the Likuyu North deposit, and we are excited by the potential opportunity the area provides. Grade and other characteristics appear to be well-suited to ISR. With that in mind, Gladiator has appointed ERM (formerly CSA Global) to help advance this strategy, and if the ISR study is encouraging the Company will consider larger-scale exploration at Likuyu North, Likuyu South and at the Mtonya deposit area, with an aim of maximizing the resource available for a potential ISR operation”.
Drillhole LNDD020
This hole was drilled to provide fresh drill-core to assist with initial assessment of the potential of ISR as a mining method for the Likuyu North deposit. The deposit has a JORC compliant Mineral Resource Estimate of 4.6Mlbs U3O8 with an average grade of 267ppm U3O8. The hole was positioned in an area relatively central to the deposit known to have thick and high-grade mineralisation, hosted by medium to coarse grained sandstone beds. Figure 1 is a cross-section and shows LNDD020. The hole contains 6 mineralised intervals (Table 2) including:
- 2.5 metres with an average grade of 438 ppm eU3O8 from 17.1m depth.
- 7.1 metres with an average grade of 1,963 ppm eU3O8 from 63.1m depth.
Figure 1: North-south cross-section showing the downhole logged eU3O8, mineralized layers and oxide/transitional zones. LNDD015 and LNDD020 are shown.
Click here for the full ASX Release
This article includes content from Gladiator Resources Limited, 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.
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