Using a Hybrid Model to Develop Diverse, High Value Mineral Projects
As investors attempt to mitigate the risks associated with the commodities cycle while still gaining exposure to its rich opportunities, resource companies with diversified portfolios may provide an exciting solution.
Diversified metal portfolios, as opposed to limited individual metal sectors, are hedged against price declines for a given commodity providing a less risky and more valuable investment for investors. Portfolio diversification also allows mining companies to improve cash flow and capitalize on the width and breadth of metal and mineral markets while managing fluctuating commodity values.
One such company is CAT Strategic Metals (CSE:CAT, OTC:CATTF, FRA:8CH), a mineral exploration company focused on the acquisition and exploration of diversified and strategic North American mineral projects. The company’s current projects include a wide range of minerals and metals including gold, silver, uranium, copper and tellurium.
“We look for undervalued projects that have already had exposure, that already had some work done in the past, that maybe had been abandoned over time for a variety of reasons, but still have good potential going forward,” said CAT Strategic Metals CEO Robert Rosner in an interview with INN.
CAT Strategic Metals employs a hybrid model that seeks out, analyzes, and acquires projects that have strong potential given past diverse mineral outputs and supporting samples. This hybrid model saves the company from spending time and resources on discovery and exploration of uncharted areas like other mining companies do. The company also takes advantage of strategic positioning by locating projects in mineral-rich regions of the world and near high-yielding mines such as Hecla Mining Company’s Hollister Nevada and Midas Nevada gold-silver mines.
The Rimrock project is located in the mining-friendly jurisdiction of Nevada in the US, only 15 km southeast of Hecla Mining’s (NYSE:HL) high-grade Midas gold-silver mine and 3 km north of the Hollister gold-silver mine. Near-surface mineralization shows the potential for the property to host several high-grade, low sulfidation, gold and silver deposits, as well as for Carlin-style gold deposits at greater depths.
The Gold Jackpot is located in the prolific Elko district in northeastern Nevada, 100 km north of Nevada Gold Mines’ Long Canyon gold mine. Other notable projects in the same region are Phoenix Copper-Gold, Roninson porphyry copper-gold, Turquoise Ridge/Getchell Mine, Twin Creeks, Goldstrike and Carlin-Mike Cu-Bluestar-Exodus gold. The company believes that Gold Jackpot has potential for Porphyry Copper-, Emperor, Fiji-, Carlin- and Midas Style deposits and Exploration Models.
CAT Strategic Metals also has two other strategic projects: the Burntland project (copper, silver and gold) in New Brunswick and South Preston project (uranium) in Saskatchewan.
CAT Strategic Metals has completed geologic mapping, sampling, Gravity-, MAG- and now is conducting Induced Polarization surveys of large-scale gold-silver targets on the Rimrock and Gold Jackpot projects. The company intends to define drill targets on both projects based on the results from these diverse programs.
CAT Strategic Metals links its success to a few key factors including its strategic alliances and acquisitions and its highly skilled management team. The company has relatively low overhead when compared to its counterparts in the industry, which has made the company highly efficient in obtaining funding and operationalizing its projects.
The company’s management team is well-experienced in the mining and exploration industry, maintaining current positions at Lucky Minerals Inc. (TSXV:LKY), EMGold Mining Corporation (TSXV:EMR) and Tarku Resources Ltd. (TSXV:TKU) and former management positions at Stria Lithium (TSXV:SRA) and Osisko Mining Corporation Canada (TSX:OSK).
CAT Strategic Metals’ Company Highlights
- CAT Strategic Metals’ current projects focus on a wide range of minerals and metals including gold, silver, uranium, copper and tellurium in mining-friendly areas.
- CAT Strategic Metals employs a hybrid model of acquiring mines that have been abandoned but maintain strong potential given past mineral outputs and sample indications which allows for bypassing of the discovery phase.
- The company has two projects in Nevada: Rimrock and Gold Jackpot; and two projects in Canada: Burntland (copper, silver and gold) in New Brunswick and South Preston (uranium) in Saskatchewan.
- The Rimrock project is located in the prolific Carlin and Midas trends and hosts near-surface mineralizations with the potential for high-grade, low sulfidation gold and silver deposits, as well as larger Carlin-style gold deposits at depth. The property is only 15 km southeast of Hecla Mining’s high-grade Midas gold-silver mine.
- The Gold Jackpot is located in the prolific Elko district in northeastern Nevada, 100 km north of Nevada Gold Mines’ Long Canyon Gold Mine. Gold Jackpot potentially has porphyry copper, Emperor gold-tellurium, Carlin- and Midas-style exploration models.
- The company’s management team has a long history of success in the mining and exploration industry including currently held positions at reputable mineral exploration companies.
CAT Strategic Metals’ Key Projects
The Rimrock project is located in the Elko district of Nevada, US near Hecla Mining Company’s Hollister Nevada and Midas Nevada mines, which to date have yielded 0.5 million ounces of high-grade gold-silver and 2.2 million ounces of high-grade gold and 25 million ounces of silver, respectively. The property sits on the Carlin Trend and the Midas Trend, which are prolific gold mine producing areas. The project also has an extensive infrastructure to support year-round operation on the 1,162-hectare land package.
The Rimrock project is a multi-target gold and silver system situated 15 km southeast of Hecla Mining’s high-grade Midas gold-silver mine, 13 km from new high-grade Green Racer Sinter gold-silver discovery and 3 km north of its Hollister gold-silver mine. Rimrock has the potential for shallow epithermal systems, similar to the Midas and Hollister mines, which are low sulfidation, high-grade gold deposits, and the potential for deeper Carlin-type gold deposits.
Mapping, sampling, gravity, and drone MAG survey programs have been completed in 2021, and a high resolution deep-seeking Induced polarization survey is now underway. Geologic mapping and rock-chip sampling has uncovered three new gold-silver drilling targets, bringing CAT Strategic Metals a total of five drilling targets to pursue in coming months.
Gold Jackpot Project
The Gold Jackpot project is located in the Elko district in northeastern Nevada, US which is believed to host a porphyry copper-, Emperor, Fiji-style Au-Te, Carlin-style Au, and Midas-style gold-silver exploration models. The project’s region is highly mineralized and sits on the Pequop Gold-Copper Trend, located east of the Battle Mountain-Eureka Trend, Getchell Trend and Carlin Trends, which are copper- and gold-rich areas. The project is located near high-yielding copper and gold mines such as Long Canyon, Robinson Copper-Gold, Phoenix Copper-Gold, Turquoise Ridge/Getchell Mine, Twin Creeks, Goldstrike and Carlin-Mike Cu-Bluestar-Exodus.
Gold Jackpot has had substantial historical exploration completed from the 1980s to the early 2000s including 27 drill holes completed by Tenneco from 1988 to 1989. The project has multiple exploration targets including the Carlin-style gold target that sampled up to 16 g/t of gold, a diatreme-porphyry copper-gold system and the gold-silver-tellurium-gold-silver target that yielded up to 4 kg/t of tellurium.
Interpretation of a drone-based magnetic, ground-based gravity surveys and induced polarization lines at the have been completed and defined two distinct geophysical anomalies in two locations. The surveys have also confirmed that the southern anomalies represent a diatreme-porphyry-style target, while the northern anomalies represent a Carlin-style gold target.
Planning for a follow up exploration program is underway.
South Preston Project (Uranium)
The South Preston project is located southwest of the uranium-rich region of the Athabasca Basin in Saskatchewan, Canada.
The project has more than 10 km of adjacent property bordering NexGen Energy Ltd. which recently discovered the high-grade Arrow uranium deposit. Another recent discovery in the region belongs to Fission Uranium Corp. which discovered the Triple R uranium Lake South deposit. The project also has more than 18.5 km of a continuous boundary with Orano which is a leading global uranium producer. Additionally, South Preston has 50 km of contiguous claim border with Azincourt Energy Corporation.
The South Preston project could potentially host the extension of a priority uranium exploration corridor extending from NexGen Energy Ltd.’s Rook-1 Project to Azincourt Energy Corp.’s East Preston Uranium project nearby.
Burntland Project (Copper, Silver and Gold)
The Burntland Project is located in the northern portion of New Brunswick, Canada in a region with high-grade silver, gold and copper potential. The project is accessible year-round with highways and logging roads. Burntland is located near the large-scale VMS Bathurst mining district and is adjacent to McKenzie and Rocky Brook regional fault systems.
Mineralization in the area is hosted within skarns, proximal to intruding porphyry dykes. Assay results show high-grade copper mineralization as high as 16.3 percent Cu and silver mineralization as high as 220 g/t Ag. The project has five targets that are believed to contain copper mineralization in porphyry systems based on associated geological factors.
The company has completed a drone MAG survey in 2021 to detect and delineate key geological targets. Additional high resolution Quadri-MAG, VLF, Heli Borne Survey is planned for the fall, with diamond drilling planned for fall/winter of 2021.
CAT Strategic Metals’ Management Team
Robert Rosner – Chairman of the Board, President & CEO
Robert Rosner has over 30 years of extensive experience as a mining industry entrepreneur and executive. Rosner is acting Chairman and CEO of CAT Strategic Metals Corporation. Rosner is also the director and former executive of Lucky Minerals Inc. and a director and CFO of EMgold Mining Corporation. He was instrumental in founding several junior exploration mining companies where he played significant roles in the management and growth of these companies. These included multiple resource ventures that were involved in early-stage exploration, resource location, delineation and development.
Rosner has been an officer and director of both Canadian and U.S. listed companies, providing senior management of compliance reporting, oversight and other fiduciary capacities and directing corporate activities. He also has significant experience in initial public offerings (IPO), mergers and acquisitions and reverse takeovers (RTO).
Steven Cozine – CFO & Corporate Secretary, Director
Steven Cozine has over 25 years of experience as an officer and director of numerous publicly listed companies in the mining, industrial and high-tech sectors. His experience spans a wide range of corporate management responsibilities with a focus on governance and regulatory compliance, project management and corporate finance including private funding and prospectus offerings, human resources, strategic planning and corporate operations.
Sebastian Tang – Chief Financial Officer
Sebastian Tang has been involved in the accounting and preparation of the Company’s financial statements for the past several years and is well acquainted with CAT Strategic Metals and its projects. Additionally, Sebastian has significant experience in the financial management and planning of publicly listed issuers. He has held executive positions, including CFO and corporate controller in other public and private ventures. Before starting his own firm, he worked in public practice for 7 years, including two years at Ernst & Young, and 8 years in private practice with Hunter Dickinson Inc.
Julien Davy – Director
Mr. Davy began his career as an exploration geologist in the summer of 1996. His tenure includes assessing numerous projects at the exploration and/or advanced stages of development throughout Canada and abroad. Davy has been involved in numerous acquisitions and mining investment activities. Davy is currently the President & CEO of Tarku Resources Ltd. and concurrently has held the positions of President at Stria Lithium and a senior exploration geologist at Osisko Mining Corporation Canada.
Additionally, Davy was an investment consultant for SIDEX s.e.c. of Montréal. Davy also has been employed by numerous companies including NioGold Mining Corporation in Val-d’Or, Hecla Mining in Venezuela, Cambior Exploration Canada, Anglo-American Exploration and the Ministry of Natural Resources of Québec. In 2015, Davy co-founded, with Benoit Lafrance, Eureka Exploration, a private exploration company that was sold to Tarku Resources in June 2017. Davy is a member of the OGQ and Qualified Person (QP) according to National Instrument 43-101. Mr. Davy has a Master’s degree from the Université du Québec à Montréal and an MBA from HEC in Montréal.
Luis Martins – Director
Luis Martins is a geologist with over 30 years of experience in the exploration and mining sector. He graduated from the Faculty of Sciences of Lisbon in 1973 and has an MSc in Economic Geology from the same faculty in 1995 and also has completed several other national and international post-graduation courses. Martins previous roles include Director of the Mineral Resources Department at the Geology and Mining Institute, Director of the Mines and Quarries Department at the Directorate-General of Energy and Geology (the mining authority), Vice President of Colt Resources Inc., CEO of Ozdogou Portugal Mining and Exploration Lda. and Director of Assimagra (a Portuguese mining association). He has participated in numerous national and international research projects, especially in the mineral exploration, environmental geology and mining heritage fields. Martins is currently the President of the Cluster Portugal Mineral Resources.
Exploring Highly Prospective Helium Trends in the Western Canadian Sedimentary Basin
The international supply of helium is expected to run into ongoing supply/demand imbalances in the near future. Why does this matter? The simple answer: helium is needed to supply various industries, including healthcare, semiconductors and aerospace. Given that helium is rare, non-renewable and non-substitutable in many cases, new and significant helium production is strongly needed.
As production of helium in the US becomes diminished attention has turned to adjacently-situated Canada, which has the fifth-largest helium resource in the world. Specifically, the province of Alberta is one of the best jurisdictions for exploration and development because it hosts helium-rich reserves. As a result, companies with projects in Alberta present an exciting opportunity for investors seeking to capitalize on the projected increase in helium demand and strong associated helium prices.
First Helium Inc. (“First Helium” or the “Company”) (TSXV:HELI) is a Canadian exploration and development company specializing in identifying and extracting helium in the province of Alberta. The Company strives to become a leading North American helium producer by leveraging a low-risk development project supported by its existing discovery well and adjacent undeveloped lands. First Helium is working to bring its discovery well into production to establish a strong base of cash flows. The Company’s management team, along with its board of directors and strategic advisory board, are highly experienced with previous success in oil and gas exploration and production, capital markets and finance, helium project development, construction and project management and mining exploration and development.
First Helium’s flagship Worsley project is located north of Grande Prairie, Alberta in the Western Canadian Sedimentary Basin (the “WCSB”). Helium content on the property was tested as high as 1.3 percent based over three long-term test periods. The net present value (“NPV”) of the contingent resource is estimated to be as high as $15.2 million (at a 10 percent discount rate) or $0.23 per basic share outstanding based on an independent engineering report conducted by Sproule Associates Limited (“Sproule”).
In March of 2021, First Helium raised approximately $12 million. The majority of the funds will be used to develop the Company’s Worsley project. The initial discovery well that is located on those lands is expected to be ready to produce helium by the end of 2022, following the installation of a scalable and modular processing facility. The development plan also includes a three-well program that is expected to increase the Company’s inventory of helium volumes at its core production area.
Based on the success of its discovery well, First Helium has now acquired 125 sections of land spanning 32,000 hectares on trend with the discovery well. Most of the additional land was acquired in 2018 at Crown land sales at attractive prices. The Company considers the acquired lands to be highly prospective for helium and on trend with the discovery well at the Worsley Property.
In addition to its core Worsley area, First Helium has an excellent opportunity to establish a significant second core area for exploration and development of helium in another proven productive region of the WCSB. Specifically, First Helium has entered into an agreement with a third-party Canadian company to explore for helium on over 350,000 contiguous hectares of highly prospective land in southern Alberta. Helium content is greater than 0.5 percent in a number of formations over the prospective land base. A key highlight of the agreement is that it provides First Helium access to approximately 360 sections of 3D seismic data and 530 km of 2D seismic data – necessary and typically costly information required for successful helium exploration.
First Helium also exhibits a strong and focused financing strategy. Through its long-term helium production plan, the Company aims to maintain a responsible capital structure and avoid any unnecessarily dilutive financings to develop its lands and facilities. Recently, First Helium fulfilled its goal of achieving near-term liquidity through its listing on the TSX-V on July 12, 2021 following the filing of its Final Prospectus.
First Helium also has a highly attractive valuation relative to its publicly-listed peer group, given its current assets and adjacent land assets. As of July 7, 2021, the Company’s market capitalization was under $20 million and its share structure consists of 65.6 million basic shares outstanding, 6.1 million options and 27.6 million warrants, for a fully-diluted share total of 99.3 million. First Helium’s approximate cash position was also approximately $8.5 million on the same date.
The Company is uniquely positioned for success based on the current timeline for its Worsley project. First Helium will be one of the fastest companies to enter production compared to other existing public companies in the helium industry. It believes that its resources will be low-risk given the existing discovery well and will provide significant helium yields based on current data indications. The Company also plans to set up off-take marketing arrangements with third-party distributors for its helium.
First Helium’s Company Highlights
- First Helium is a Canadian exploration and development company specializing in identifying and extracting helium in the province of Alberta. It is working to become a leading North American helium producer by leveraging a low-risk development project supported by its existing discovery well and adjacent undeveloped lands
- The Company’s flagship Worsley Helium project is located north of Grande Prairie, Alberta in the WCSB. Helium content in its discovery well has been tested as high as 1.3 percent based over three individual long-term test periods.
- The Company is working to bring its discovery well into production to establish a strong cash flow base and expand helium production by drilling an additional three wells on adjacent lands as defined by 3D seismic data.
- The NPV of the contingent resource on the Worsley project is estimated to be as high as $15.2 million (at a 10 percent discount rate) or $0.23 per basic share outstanding, based on a Sproule independent engineering report.
- First Helium has secured 125 sections, or 32,000 hectares of highly prospective helium exploration and development land on trend with the discovery well.
- To augment its Worsley Property, First Helium has entered into an agreement with a third-party Canadian company to explore for helium on over 350,000 contiguous hectares of highly prospective land in southern Alberta. This will provide the Company with an excellent opportunity to establish a significant second core area for exploration and development of helium in another region of the WCSB that has been proven to be productive.
- First Helium is listed on the TSX-V under the “HELI” stock symbol.
- The Company’s management team is highly experienced with previous success in oil and gas exploration and production, capital markets and finance, helium project development, construction and project management and mining exploration and development.
First Helium’s Key Projects
Worsley Helium Project
The Company’s flagship Worsley project is located north of Grande Prairie in northern Alberta. The property is situated in the geological WCSB and features a pre-existing well originally drilled by a previous operator targeting natural gas.
Development Opportunities at Worsley Trend
Historical testing data of the well revealed indications of the presence of helium. Upon further testing by First Helium, the Company acquired the property and this well became known as its “discovery well”. In summary, the discovery well has been tested over three long-term test periods at helium content of 1.3 percent. An independent engineering report conducted by Sproule, a third-party evaluator, estimated a best-case NPV of the contingent resource to be $15.2 million (at a 10 percent discount rate) or $0.23 per basic share.
First Helium expects its Worsley project to be fully funded and ready to produce helium by the end of 2022, following the installation of a scalable and modular processing facility, with preliminary engineering on the facility already having been completed.
First Helium’s Management & Board
Vance Loeber — Founder
Vance Loeber has over 30 years of international business experience. Loeber has been involved in the financing and promotion of early-stage to production level resource companies for over 20 years. Loeber was directly involved in the launch of the US Silver mine which is currently the largest pure silver mine in the United States.
He was one of the founders of Sandspring Resources, which raised over $60 million and took the Toroparu gold deposit in British Guyana to over 10 million ounces. His extensive network is focused on Europe, Asia and North America where he matches investors with the capital requirements of public companies. Loeber was one of the founders of Carlisle Goldfields, recently taken over by Alamos Gold at over a 100% premium to the market.
Ed Bereznicki — President and CEO, Director
Ed Bereznicki’s extensive industry experience includes various leadership positions at successful companies. Bereznicki is a former senior vice president of MNP Corporate Finance Inc., former director of Athabasca Minerals Inc., former managing director of Raymond James Ltd., a wholly-owned subsidiary of NYSE-listed Raymond James Financial Inc. and former chief financial officer and executive vice president at Lone Pine Resources.
Bereznicki’s experience includes over 15 years of Corporate Finance, Capital Markets, and Financial Advisory Expertise as Senior Energy Investment Banker, including over $20 Billion of equity and convertible debt raised for Energy Sector, including successful start-ups and IPOs. He was also involved in over 30 successful M&A transactions totaling more than $4.5 Billion in value. He is a seasoned Energy Executive with E&P, risk management, operations, and pipelines experience, domestic and international.
Bereznicki is also a Life Member of the Association of Professional Engineers and Geoscientists of Alberta. Bereznicki holds an MBA from the Richard Ivey School of Business at the University of Western Ontario, and a Bachelor of Science in Civil Engineering at the University of Alberta.
Robert J. Scott — CFO and Director
Robert J. Scott is a chartered accountant with over 20 years of professional experience in corporate finance, accounting, merchant and commercial banking. He has served in management and on the boards of several Canadian companies. He is currently the CFO at Riverside Resources and Northair Silver Corp., and a director of Entourage Metals Ltd. Scott is also a co-founder and a director of Pan American Hydro Corporation – a private company involved in developing small hydro projects in Latin America. Scott earned his CA designation in 1998, his CFA designation in 2002 and has a B.Sc. from the University of British Columbia.
David L. Safton — VP Geosciences
David Safton was an independent director at Top Strike Resources Corp. and the president and CEO at Sage Oil & Gas, Inc. Safton received his undergraduate degree from the University of Saskatchewan and a graduate degree from the University of Aberdeen.
Shaun Wyzykoski — VP of Engineering
Shaun Wyzykoski is a Professional Engineer with over 20 years of experience in the oil and gas industry. Wyzykoski served as the vice president of engineering at Orlen Upstream Canada. Wyzykoski was a founding member and vice president of engineering at Fairmount Energy Inc. Wyzykoski has previously held positions at Crescent Point Energy Trust and Compton Petroleum Inc., including the role of vice president of engineering at Trioil Resources.
Todd Holmstrom — Independent Director
Todd Holmstrom has over thirty years of experience in projection execution, engineering, procurement, construction and product design, development and manufacturing. Holmstrom’s industry experience includes petrochemical, mining, oil and gas, pulp and paper, commercial water and wastewater, wireless telecommunications, and medical devices.
Holmstrom is an experienced leader with proven success developing business strategies in private and public sector companies resulting in significant earnings growth and increased share value. Holmstrom is highly skilled in facilitating organizational change leading to energized, focused and successful people. Holstrom has a proven ability to solve highly complex product and process issues by applying Six Sigma processes. Holmstrom is a Registered Professional Engineer with APEGA and a Trained Project Management Professional through PMI.
Holmstrom is the current CEO of waterStrider Treatment Inc. Holmstrom has held previous positions, including vice president of industrial construction at Stuart Olson Inc., business strategy consultant and senior vice president of operations at Thermal Energy Services Inc., president of Lockerbie & Hole Contracting Ltd., president of Intelliwave Technologies Inc., vice president of industrial construction at Flint Energy Services and senior manager of new product introduction at Nortel.
Cal Watson — Independent Director
Cal Watson received his Bachelor of Science in Engineering at the University of Saskatchewan in 1985. Watson is currently the president of Nobilis Energy Consulting Ltd. and the executive advisor at ACM Facility Safety. Watson spent more than six years with Devon Energy, serving as the vice president of production, the vice president of thermal heavy oil operations, the general manager of thermal heavy oil and the operations manager of thermal heavy oil.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with First Helium and seek advice from a qualified investment advisor.
Key Projects in the Epicenter of US Lithium Development, Nevada’s Clayton Valley
The large-scale shift to carbon-pollution-free electricity and net-zero emissions is already underway. According to analysts and industry executives, “the pandemic has proved to be a reset point for the market.” With the worldwide lithium battery market expected to grow exponentially in the coming decade — which has the potential to reach a record value of US$80 billion by 2026 — it’s clear there is significant potential and a lot of growth to come.
“And when you come into this growth period where year-on-year the volumes are getting significantly bigger in terms of orders from the battery industry, I think that has the potential to create a real bottleneck in terms of keeping supply up with demand,” said Andrew Miller, product director at Benchmark Mineral Intelligence in an interview with INN.
Add to that the passing of the Paris Agreement in 2016 and the Biden Administration’s energy and infrastructure plans, and it points to an increased focus on combating the climate crisis in governments around the world. Even the US Department of Energy (DOE) revealed it believes the solution requires establishing a domestic supply chain for lithium-based batteries.
But with limited production capacity available in the United States, more production will be required to facilitate the growing needs of the electric vehicle and stationary grid storage markets. It’s this perfect storm of conditions that have led Clayton Valley in Esmeralda County, Nevada to become a hotspot for lithium exploration and development in the US. This region uniquely hosts the only US-based lithium mine.
ACME Lithium (CSE:ACME,OTC:ACLHF) is a junior mineral exploration and development company focused on acquiring and developing a portfolio of exploration-stage, lithium-containing projects in Nevada. The company’s management team is highly experienced with a strong history of success in building and financing resource companies around the world including the development of lithium-based projects.
ACME Lithium currently operates its Clayton Valley and Fish Lake Valley projects in the mining-friendly Esmeralda County area in Nevada. The properties are strategically located near Albemarle Corporation’s Silver Peak Lithium mine. The Silver Peak lithium mine has continuously produced lithium since 1966, with concentrations as high as +1,000 ppm of lithium.
ACME Lithium’s projects are also located in an area with a developing battery supply chain, including Tesla’s Gigafactory, which sits only 200 miles away. Both of ACME Lithium’s properties have year-round access to expertise, infrastructure, rail and roads, power and water, including favorable weather conditions and logistics.
“We have been working on our exploration plan over the last few months in preparation for what’s going to be a busy summer. We actually have geological targets that are ready to drill test. We’re going to do some additional mapping and sampling of both the Fish Lake Valley project as well as geophysical analysis of our project in Clayton Valley and we hope to drill before year-end on both projects assuming we get the results we’re looking for from the preliminary work. We also continue to look at accretive projects around the globe,” said ACME Lithium CEO Steve Hanson.
The Clayton Valley property has the potential to host lithium brine just like the Silver Peak Lithium mine, while the Fish Lake Valley property has been confirmed to host the same geological processes like those found at the Albemarle mine in Clayton Valley. The presence of lithium brine would provide ACME Lithium with a strong competitive advantage against other companies that typically go after clays or hard rocks. Clay and hard rocks are more difficult to process and create a concentrator product that can be used by technology companies in battery production. The company strongly believes that its properties have the potential to produce lithium under simple metallurgical conditions based on preliminary indications.
In July 2021, the company closed its second and final tranche of oversubscribed non-brokered private placement financing of units at C$2,378,650 at a price of C$0.40 per unit for total gross proceeds of C$3,609,666.80. The company intends to use the proceeds to partly fund exploration on its lithium projects in Nevada for 2021 and general working capital. ACME Lithium is capitalized and aiming to acquire and develop additional projects in the lithium sector and growing electric vehicle sector for 2021 and 2022 to increase shareholder value.
ACME Lithium owns and is under the option to acquire a combined 100% interest in 122 claims totalling 2,440 acres in Clayton Valley. The company also owns 100% interest in 81 lode mining claims totalling 1,620 acres in Fish Lake Valley.
The company’s leadership team has decades of experience in the mining, energy and finance sectors. ACME Lithium also boasts multiple notable industry figures, including Yiannis Tsitos, who has worked for the BHP Billiton group, William Feyerabend, who has direct experience in developing lithium projects and Steve Hanson, who has been involved in multiple successful M&A transactions in the mining and resource sector, including exit strategies with major corporations.
ACME Lithium’s Company Highlights
- ACME Lithium (CSE:ACME,OTC:ACLHF) is a junior mineral exploration and development company focused on acquiring and developing a portfolio of exploration-stage lithium-based properties in Nevada.
- The company’s Clayton Valley and Fish Lake Valley projects are located in the mining-friendly area of Esmeralda County in Nevada. Both properties have year-round access to expertise, infrastructure, rail and roads, power and water including favorable weather conditions and logistics.
- Clayton Valley and Fish Lake Valley are strategically located near Albemarle Corporation’s lithium-producing Silver Peak mine with Clayton Valley potentially hosting the same lithium brine found at Silver Peak.
- ACME Lithium owns and is under the option to acquire a combined 100% interest in 122 claims totalling 2,440 acres in Clayton Valley and owns 100% interest in 81 lode mining claims totalling 1,620 acres in Fish Lake Valley.
- The company plans to begin drilling before the end of 2021 on both projects after additional exploration, including mapping, sampling and geological testing.
- The company’s management team is highly experienced with a strong history of success in building and financing resource companies around the world including the development of lithium-based projects.
ACME Lithium’s Key Projects
Clayton Valley Project
The Clayton Valley project is located 190 miles northwest of the city of Las Vegas in Esmeralda County in Nevada. The property spans 2,440 acres with year-round access to expertise, infrastructure, rail and roads, power and water including favorable weather conditions and logistics. Clayton Valley is located directly to the south of Albemarle Corporation’s Silver Peaks lithium mine that has produced lithium minerals from brines continuously since 1966 including samples as high as 228 ppm lithium. Concentrations up to +1,000 ppm have also been found to occur within specific horizons of fine sediments.
ACME Lithium’s claims on the Clayton Valley project cover basin-fill sediments and aquifers similar to the sediments currently producing brines in the region based on historic drill information and geophysical survey results. There is also promising evidence that the extensive valley growth faults provide an adequate plumbing system to foster brine reservoir accumulation for moving fluids around.
ACME Lithium owns and is under the option to acquire a combined 100% interest in 122 claims including the CC, CCP, JR, and SX Placer claims on the Clayton Valley property. Moving forward, the company plans to continue interpreting geophysical survey data and results as well as develop its drill targets to test indicated and prospective aquifers. The company believes it has the potential to host lithium brines sourced from lithium Tertiary clays accumulated in a basin environment similar to the Silver Peak lithium mine.
Fish Lake Valley
The Fish Lake Valley project is located in Esmeralda County in Nevada. The project spans 1,620 acres with year-round access to expertise, infrastructure, rail and roads, power and water including favorable weather conditions and logistics. Fish Lake Valley is located 24 miles northwest of Albemarle Corporation’s Silver Peak’s lithium mine that has produced lithium minerals from brines continuously since 1966. Concentrations up to +1,000 ppm have been found to occur within specific horizons of fine sediments and the Silver Peak mine includes samples as high as 228 ppm.
Exploration at Fish Lake Valley since 2010 has revealed sites with anomalous lithium values greater than 100 ppm in Tertiary claystone, sediment samples with values approaching 600 ppm lithium in claystone, positive geophysical surveys and lithium within clay-rich horizons. In 2016, initial mapping and sampling completed by the previous operator found lithium values with potentially the same process as at Clayton Valley ranging from 5 to 40 ppm in mudstones. In 2018, the previous operator confirmed that it was, in fact, the same geological process resulting in high lithium values in fine sediments found at the Fish Lake Valley property.
ACME Lithium owns 100% interest in 81 lode mining claims on the property. The company is currently in the process of designing drill testing of lithium claystone to determine the economic potential. Beginning in the third quarter of 2021, the company plans to begin to identify new targets and expand exploration of the property through in-depth mapping, sampling, and geophysics tests.
ACME Lithium’s Management Team
Steve Hanson — Director, President, and CEO
Stephen Hanson has over 28 years of finance and corporate development experience across four continents. Hanson has held executive (CEO), board and advisor positions for numerous private and public companies in mining, alternative energy, oil and gas sectors. Hanson has been involved in a number of successful M&A transactions including exit strategies with major corporations.
Yannis Tsitos — Director
Yannis Tsitos is originally a physicist-geophysicist with nearly 30 years of experience in the mining industry, including 19 years with BHP Billiton group which is one of the biggest mining companies in the world. Tsitos is currently the President of Goldsource Mines Inc., a TSXV-listed company, and sits on several boards as an independent director.
William Feyerabend — VP Exploration
William Feyerabend is a Certified Professional Geologist and a member of the American Institute of Professional Geologists with direct working experience in the exploration and development of lithium projects, including technical reports in Nevada. Feyerabend has worked on projects in the American West, Mexico and South America.
Vivian Katsuris — Director
Vivian Katsuris is a specialist in corporate development, management, consulting, and corporate services. Katsuris has over 28 years of financial experience in the brokerage industry, the North American capital markets and public financings. Katsuris holds director and officer positions with several CSE- and TSXV-listed companies.
Zara Kanji — Chief Financial Officer, and Corporate Secretary
Zara Kanji is experienced in financial reporting compliance for junior listed companies, taxation, general accounting, financial reporting and value-added advisory services for individuals, private and public companies. Kanji is a member of the Chartered Professional Accountants of BC and Canada.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with ACME Lithium and seek advice from a qualified investment advisor.
Leading Uranium Production in the US
Uranium demonstrated that despite disruptions and even a global pandemic, it is still one of the best-performing commodities in the resource industry, according to leading strategists. With the current demand for the valuable mineral outreaching present supply, the world is seeing a bullish uranium market like never before.
The biggest uranium producers in Canada, Australia, Kazakhstan, and Namibia saw mine closures and production cuts in 2020, leading to a 13-million-pound decline but significantly higher prices for the mineral. With mining operations slowly coming back online, US and Western-centric uranium companies leverage a chance to get a head start on the international competition and bullish market conditions that are hard to ignore.
Energy Fuels is the only uranium producer with both conventional production and In Situ Recovery (ISR) in the US. Its standalone White Mesa Mill is the only conventional uranium mill in the country and leverages early-mover advantages in current production, scalability, capacity and regional dominance. In 2019, the White Mesa Mill became the number one producer of vanadium in the US, with production levels reaching 1.9 million pounds at 99.7 percent high-purity vanadium. And, in 2021, the White Mesa Mill began commercial production of an intermediate rare earth product at a stage more advanced than any other US company.
The mill boasts strategic positioning near highly prospective conventional uranium projects owned by Energy Fuels and other miners. This portfolio includes the La Sal and Henry Mountain/Bullfrog projects in Utah, the Roca Honda project in New Mexico and the Sheep Mountain project in Wyoming. All projects host substantial uranium mineralization and mining-friendly conditions.
The company’s main short-term conventional operation is the Pinyon Plain mine in Arizona. This high-grade uranium production asset could become the lowest-cost uranium mine in the U.S., leveraging advanced stage positioning. The asset is currently licensed, developed and being held on stand-by and well maintained by Energy Fuels in preparation for improving markets.
Additionally, Energy Fuels has two high-quality licensed and developed ISR production operations in its robust asset portfolio. The Alta Mesa ISR project in Texas hosts significant resources and exploration potential across 200,000 acres and the Nichols Ranch ISR project in Wyoming leverages 34 licensed wellfields, which advantageously benefits its long-term production profile. Both projects are on standby in anticipation of improving market conditions.
Energy Fuels offers excellent leverage to rising uranium prices and is well-positioned to capitalize on the growing need for additional domestic and global uranium supplies. The company also expects to earn additional revenues through third-party recycling and toll processing, production of other valuable minerals (including rare earths and vanadium), and other business opportunities at its White Mesa Mill.
In 2021, the company added Rare Earth Elements (REE) to its robust portfolio of critical metal production in efforts to transform the company into “America’s Critical Mineral Hub,” as described by Energy Fuels president and CEO Mark S. Chalmers. The future plans for the company include focusing on significant uranium production at the White Mesa Mill while also developing a complementary, fully integrated REE business.
“While we are obviously extremely excited about the potential for rare earths, our core business remains uranium production, and by almost any metric, including a successful track record of past and current uranium production, experience in both ISR and conventional uranium mining, existing licensed and constructed processing capacity, U.S.-origin inventory, recycling capabilities, and the like, Energy Fuels is clearly the leading U.S. uranium company as well. We are particularly excited by actions the Biden Administration is taking to address climate change and support nuclear energy,” commented Chalmers.
Energy Fuels Inc. has an impressive management team consisting of resource development, finance and M&A heavyweights. With over a century of combined experience in related fields, this leadership primes the company for economic success and exciting uranium production expansion.
Energy Fuels’ Company Highlights
- Energy Fuels is the largest uranium producer in the US.
- The company is entering commercial production of an intermediate rare earth product in 2021, with plans to install fully integrated rare earth capabilities in the coming years.
- The company became the only primary vanadium producer in North America in 2019 with its White Mesa Mill.
- The White Mesa Mill in Utah is the only conventional uranium and vanadium mill operating in the US. It leverages an impressive annual capacity of over 8 million pounds of uranium.
- The Nichols Ranch ISR project is an existing ISR facility in Wyoming, licensed to produce two million pounds of uranium per annum.
- The Alta Mesa ISR project is a significant existing ISR production on standby in Texas with 1.5 million pounds of annual capacity.
- The company operates significant future scalability potential with three large-scale uranium projects containing over 50 million pounds of combined measured and indicated resources at the Sheep Mountain (fully-permitted), Roca Honda (advanced-stage permitting) and Bullfrog projects (pre-permitting stage).
- The company executes its alliance with RadTran to evaluate the recovery of thorium and radium from its existing rare earth carbonate and uranium process streams for use in the production of medical isotopes for emerging targeted alpha therapy cancer therapeutics.
- International Consolidated Uranium Inc. entered into a definitive asset purchase agreement with certain wholly-owned subsidiaries of Energy Fuels to acquire a portfolio of conventional uranium projects located in Utah and Colorado.
Energy Fuels’ Key Projects
White Mesa Mill
The White Mesa Mill is strategically located in southeast Utah, central to high grade uranium and vanadium mines in the United States. The mill is the only fully licensed and operating conventional uranium mill in the United States and operates extensive controls to ensure air, water, wildlife and environmental sustainability. The White Mesa Mill just began production of an intermediate rare earth product (mixed rare earth carbonate) and also has the capability of producing a high-purity vanadium product.
Since 2013, the mill has produced over six million pounds of uranium, reaching highs of 917,000 pounds of uranium in 2018. The asset has a licensed capacity to produce over eight million pounds of uranium per year. Although the mill has an ideal positioning to generate revenue through third-party toll milling, recycling low-cost alternate feed materials and participating in the cleanup of historic uranium mines in the region.
White Mesa Mill provides the company with a multitude of business opportunities, including the production of uranium, rare earths and vanadium. The mill gives Energy Fuels an early-mover domination in the uranium space as one of only two operating conventional uranium mills in North America.
Alta Mesa ISR Mine & Plant
The flagship Alta Mesa ISR Mine & Plant, located in South Texas, is a proven low-cost uranium producer, well-known within the US nuclear industry. The project is a fully licensed and constructed ISR asset that sits on over 200,000 acres of private land. Energy Fuels owns 100 percent of the project.
Between 2005 and 2013, the facility produced about 4.6 million pounds of uranium, including over one million pounds in two of those years. Its total operating capacity stands at 1.5 pounds of uranium per year. Additionally, the current measured and indicated mineral resources report 3.6 million pounds of uranium at averaged grades of 0.111 percent uranium with 16.8 million pounds of inferred mineral resources at average grades of 0.121 percent uranium. The large private land position contains highly prospective ground for future exploration and resource expansion.
Energy Fuels currently has Alta Mesa in a state of readiness and maintenance to resume production following market conditions.
Nichols Ranch ISR Project
The Nichols Ranch ISR project is located in the prolific Powder River Basin of Wyoming. Energy Fuels acquired this key production asset in 2015 through its acquisition of Uranerz Energy Corporation.
In 2017, Energy Fuels produced about 366,000 pounds of uranium at Nichols Ranch and produced over 140,000 pounds of uranium the year later. The company currently has an additional 34 wellfields permitted for future production as market conditions warrant, ensuring a long-term production profile.
The following steps for Nichols Ranch include increasing its production and advancing yield potential from the facility’s current licensed capacity of two million pounds of uranium per year. The project hosts significant expansion potential and has extensive controls in place to ensure environmental and wildlife protection.
Pinyon Plain Mine
The Pinyon Plain mine in Arizona is a licensed and substantially developed uranium mine that hosts the highest grade permitted mineralization in the US. The mine is currently on standby awaiting improved prices, and its surface infrastructure and production shaft are completed. Energy Fuels owns 100 percent of the asset.
The mine hosts measured and indicated uranium resources at 2.43 million pounds at average grades of 0.88 percent uranium. The company intends to ship ore produced from the mine to its White Mesa Mill for processing. Pinyon Plain also has the potential to become a significant copper producer with measured and indicated copper resources of 11.94 million pounds at average grades of 5.93 percent copper.
The asset could become the lowest-cost uranium mine in the U.S. The asset currently is on stand-by.
Henry Mountains Complex
The Henry Mountains complex is a contiguous group of uranium properties, including the Tony M and Southwest deposit and the Copper Bench and the Indian Bench (Bullfrog) deposits in Utah. Its NI 43-101 technical report shows approximately 2.5 million tons of indicated resources with an average grade of 0.27 percent uranium and approximately 1.61 million tons of inferred resources with an average grade of 0.25 percent uranium.
The fully-permitted and developed Tony M portion of the Henry Mountains complex is currently on standby, with the high-grade Bullfrog deposit preparing for permitting. Energy Fuels estimates Henry Mountain could produce up to 1.5 million pounds of uranium per year as a strategic asset near the company’s White Mesa Mill.
La Sal Complex
The La Sal complex is a fully permitted and developed series of mines, including four uranium and vanadium mines (La Sal, Beaver, Energy Queen and Pandora) connected by an extensive network of underground workings. The complex is located in the La Sal mining district, Utah along the La Sal trend, which runs east to west for about 20 miles. Energy Fuels owns 100 percent of La Sal.
Past exploration on the asset includes production in early 2013 and test mining in 2019, revealing high-grade uranium and vanadium. La Sal hosts measured and indicated mineral resources hovering 4.1 million pounds of uranium and 21.5 million pounds of vanadium at average grades of 0.18 percent uranium and 0.94 percent vanadium.
Moving forward, Energy Fuels plans to continue with its readiness activities and expects to complete a surface and underground drilling program at the La Sal complex to potentially expand the known uranium and vanadium resources in a future resource report.
Sheep Mountain Project
The Sheep Mountain project is a fully-permitted conventional uranium mine located approximately eight miles south of Jeffrey City, Wyoming, on a land package totaling 4,475 acres. The project includes the Congo pit, a proposed open-pit development and the existing Sheep Mountain underground mine.
The Sheep Mountain mine is a formerly producing conventional uranium mine with the potential to become a long-term uranium production center at higher uranium prices. The project has a resource estimate of approximately 12.9 million tons of measured and indicated resources at an average grade of 0.12 percent uranium, including 18.4 million pounds of reserves.
Energy Fuels has already strategically acquired its final Environmental Impact Statement (EIS) and Record of Decision (ROD) for the Sheep Mountain project, which was the last major government approval required to begin mining at this site. Energy Fuels plans to redevelop Sheep Mountain using conventional underground and open-pit mining methods with uranium produced in a new heap leach extraction process. The pre-feasibility study estimates Sheep Mountain can produce up to 1.5 million pounds of uranium annually over its 15-year lifespan.
The Roca Honda project is located in northwest New Mexico within trucking distance of Energy Fuels’ White Mesa mill. Honda is one of the largest and highest-grade development-stage uranium projects in the US. Energy Fuels owns 100 percent of the project.
The project hosts 1.51 million tons of measured and indicated resources, with an average grade of 0.48 percent uranium containing 14.56 million pounds of uranium and an additional 1.20 million tons of inferred mineral resources with an average grade of 0.47 percent uranium containing 11.21 million pounds of uranium. Roca Honda has strategic positioning adjacent to General Atomics’ Mount Taylor mine and could see similarly successful yield as its geographic neighbor.
Energy Fuels is currently working towards advanced stages of permitting for Roca Honda and could see up to 2.7 million pounds of annual uranium production for the project over a nine-year mine life.
Energy Fuels’ Management Team
Mark Chalmers — President, CEO & Director
Mark Chalmers brings an extensive background in both the U.S. and global uranium mining and processing industries to Energy Fuels. From 2011 to 2015, he served as executive general manager of Production for Paladin Energy Ltd., a uranium producer with assets in Australia and Africa, including the Langer Heinrich and Kayelekera mines, where he oversaw sustained, significant increases in production while reducing operating costs.
Chalmers also possesses extensive experience in ISR uranium production, including management of the Beverley Uranium Mine owned by General Atomics in Australia and the Highland mine owned by Cameco Corporation. Chalmers has consulted with several of the largest players in the uranium supply sector, including BHP Billiton, Rio Tinto and Marubeni and currently serves as the Chair of the Australian Uranium Council, a position he has held since 2007.
David C. Frydenlund — CFO, General Counsel & Corporate Secretary
David Frydenlund’s expertise extends to NRC, EPA, State and Federal regulatory and environmental laws and regulations. From 1997 to 2012, Frydenlund was VP of Regulatory Affairs, counsel and corporate secretary of Denison Mines Corp. and its predecessor International Uranium Corporation and was also a director of IUC from 1997 to 2006. From 1996 to 1997, Frydenlund was a VP of the Lundin Group of international public mining and oil and gas companies. Before, he was a partner with the Vancouver law firm of Ladner Downs, where his practice focused on corporate, securities and international mining transactions law. He was also an adjunct professor, corporate law, at the University of British Columbia Faculty of Law from 1990 to1994.
Curtis H. Moore — VP of Marketing & Corporate Development
Curtis Moore is in charge of product marketing for Energy Fuels and is closely involved in mergers and acquisitions, investor relations, public relations, and corporate law. He has been with Energy Fuels for over 14 years, holding various roles of increasing responsibility. Prior, Moore worked in multi-family real estate development, government relations and public affairs, production homebuilding and private law practice. He is a licensed attorney in the State of Colorado.
*Disclaimer: This profile is sponsored by Energy Fuels (TSX:EFR, NYSE:UUUU). This profile provides information which was sourced by the Investing News Network (INN) and approved by Energy Fuels in order to help investors learn more about the company. Energy Fuels is a client of INN. The company’s campaign fees pay for INN to create and update this profile.
INN does not provide investment advice and the information on this profile should not be considered a recommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Energy Fuels and seek advice from a qualified investment advisor.
Developing High-Quality, Low-Cost Oil & Gas Assets in Nigeria
Nigeria is the biggest oil producer in Africa. It holds the largest oil and natural gas reserves on the continent and is one of the world's largest exporters of liquefied natural gas (LNG). With crude oil prices rising, this African nation presents investors with world-class investment and production potential in one of the world's most prolific hydrocarbon basins, the Niger Delta.
In 2020, the country announced plans to increase its oil reserves, including condensates, substantially to 40 billion barrels by 2025. With a current uplift in exploration programs from other proven undeveloped marginal fields, getting entry-level access to Nigeria's exploration and unparalleled production potential could mean significant returns for willing investors.
Decklar Resources Inc. (TSXV: DKL,OTCQX: DKLRF) is an independent international oil & gas company focused on low-risk appraisal and development opportunities in the prolific West African region. Decklar is currently focused on its flagship Oza Oil Field in Nigeria.
The Oza Oil Field contains up to 12 zones of conventional stacked sands, allowing for vertical drilling and conventional horizontal development drilling. Leveraging excellent infrastructure in a prolific oil & gas jurisdiction presents excellent production and development opportunities.
Over the next 12 months, Decklar expects extensive well drilling and exciting development activities at the Oza Oil Field. Its two-phase development program in 2021 and into 2022 could lead to production levels as high as between 5,000 and 10,000 barrels per day with high-margin, high-quality oil, according to Decklar Resources CEO, Duncan T. Blount.
In March 2021, the company announced it completed a private placement financing for approximately US$3.7 million. Proceeds were put immediately towards advancing operational activities to re-enter the Oza-1 by contracting a drilling rig. In August 2021, Decklar has advanced its re-entry and development plans where pulling of existing tubing and 5 ½ inch casing from the Oza-1 wellbore has been successfully completed, and the 9 ⅝ inch casing was cleaned out. Surface testing facilities are currently being installed, and it is anticipated that testing activities on the L2.6 zone are expected to commence early next week with the initial perforation and flow operations.
The company operates a tight share structure with a fully-diluted share capital of 110,608,818. Its acquisition of Decklar Petroleum Ltd. in 2020 pushed the company closer to becoming a more dominant player in the oil & gas space with this high-quality development project with near-term production potential.
Decklar Resources is dedicated to oil & gas best practices and supporting local communities through various government initiatives, indigenous partnerships, and sustainable project development. Likewise, its emphasis on local community development manifests in its ability to create opportunities to support the independent indigenous oil & gas sector and ensure stakeholder satisfaction.
The leadership team of Decklar Resources comprises top experts with years of focused experience in all aspects of Nigerian oil & gas development, local community relations, financial management, and capital markets. Combined, they equip the company with a proven team that can deliver excellent growth potential and fast-tracked development and production possibilities.
Decklar Resources' Company Highlights
- Decklar Resources is an independent international oil & gas company focused on low-risk appraisal and development opportunities in the prolific West African region. The company has its flagship Oza Oil Field prospect in Nigeria.
- In July 2020, the company closed its acquisition of Nigeria-based Decklar Petroleum Limited, which has a Risk Service Agreement with Millenium Oil and Gas Company Limited on the Oza Field.
- The Oza Field is located onshore in the northern part of Oil Mining License (OML) 11 in the eastern Niger Delta of Nigeria. The asset leverages excellent infrastructure, including export pipeline access tied into the Trans Niger Pipeline.
- 2021 and early 2022 plans involve involve a two-phase development program, which schedules a rig mobilizing to the Oza Field with re-entry activities estimated to start imminently. The second phase of development involves additional well drilling and well tie-ins to existing infrastructure.
- Its re-entry program presents low-risk development opportunities in proven undeveloped oil fields. The company could see production levels as high as 10,000 barrels per day in the advancement of its development program.
- Decklar announced the commencement of completion operations for the Oza-1 well re-entry.
- Decklar announced the final completion installed in the Oza-1 well composed of a single 2 7/8 inch tubing string, with a selective zone sliding sleeve configuration.
Decklar Resources' Key Project
Oza Oil Field
The Oza Field is an onshore conventional oil field in the northern part of Oil Mining Lease (OML) 11, operated by Shell and located in the eastern Niger Delta of Abia State, Nigeria. The concession covers a 20 square kilometer area carved out of OML 11 in 2003 as part of the Government's Marginal Field Development Program. Strategic positioning places Oza Field close to other producing fields operated by Shell Petroleum Development Company, including Isimiri, Obeakpu, Afam, Obigbo, and Umuosi.
The Oza Field contains upwards of 12 major target zones of conventional stacked sands, allowing for vertical drilling and horizontal development drilling. Additionally, Shell has previously drilled three wells in the Oza Field, which produced over 1.0 million barrels cumulatively with 2,000 barrels per day per well of 35°/43° API gravity light / medium grade crude oil. Field structure analysis has also outlined several additional low-risk appraisal and exploration targets across the Oza Field.
The next steps for the project include a two-phase development program, including a six to twelve-month Oza Field re-entry and development drilling program, followed by another well development program scheduled for the second half of 2021 and into 2022. Decklar expects these development targets to increase production to approximately 5,000 to 10,000 barrels per day in conjunction with the property's excellent infrastructure, already in place.
Decklar Resources' Management Team
Duncan T. Blount – CEO & Executive Director
Duncan T. Blount has over 13 years of experience focused on the natural resources sector. He was previously the head of Emerging & Frontier Market Commodities at RWC Partners, responsible for developing their commodity and natural resources portfolio strategy. Mr. Blount has been an early investor in numerous public and private West African oil & gas companies throughout his career. He also has experience in physical minerals trading and structuring off-take agreements.
Paula Kember – CFO & Corporate Secretary
Paula Kember is a Canadian chartered accountant with over 25 years of financial and administrative experience in the mining industry. From 1996 to 2006, she served as VP of Finance of Philex Gold Inc. and previously as a financial officer of Corona Corporation and a director of PolyMet Mining Corporation.
Sanmi Famuyide – Managing Director
Sanmi Famuyide has over 20 years of experience focused on structuring natural resources and infrastructure transactions in West Africa. He is the former strategic advisor and subsequently head of Business Development at Lekoil Limited. He was also the head of Oil & Gas – Marginal Fields and Upstream Independents at Guaranty Trust Bank in Lagos, where he arranged the financings of many Nigerian independents. In addition, Mr. Famuyide has held executive positions at FBN Capital and MineQore Resources.
David Halpin – VP of Finance
David Halpin has over 25 years of experience in management and as a finance and accounting consultant for public and private Canadian and international resource companies.
He is the former CFO and senior financial advisor for Mart Resources Inc., a TSX-listed company with oil production in Nigeria that had a peak market capitalization of over CAD$750 million. He was also a director of a TSX-V listed company focused on exploring oil & gas opportunities in Saskatchewan and Alberta and was a founder and CFO of a publicly listed healthcare and insurance software company.
Zack Malone – VP of Operations
Zack Malone is a highly experienced oil well drilling and work-over specialist. He has over 25 years of experience working and managing drilling rig operations with the past 15 years working in Nigeria. Mr. Malone's prior experience included working as rig manager for Precision Drilling Canada and other rig contractors. Mr. Malone's certification includes second-line supervisor's well control, well service blowout prevention, fall protection, fall rescue, rigging and hoisting, safety management & regulatory awareness for wellsite supervision.
Bill Foose – Director
Bill Foose has over 35 years of experience working in the international oil and gas production and processing equipment sector. He held various positions with Barton Instruments before starting OilPro Production Equipment in 1997. OilPro was heavily involved in providing production equipment for domestic and international projects throughout Africa, the Middle East and other oil producing countries. Many of OilPro's African projects were centered around Nigeria. Mr. Foose previously served on the board of Sunocean Energy.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Decklar Resources and seek advice from a qualified investment advisor.
Acquiring and Developing Significant Natural Gas and Oil Resources in the Southeast U.S. Gulf States
The export of Liquid Natural Gas (LNG) in the United States has dramatically grown since 2016. Analysts report that U.S. LNG exports set an all-time record in March 2021 at 10.5Bcf/d and averaged 9.2Bcf/d the following month leading to an increase demand for natural gas.
With projected U.S. consumption of natural gas to hit unprecedented averages of 82.6 billion cubic feet per day in 2021, investors looking to gain exposure in this growing space could see significant upside potential by investing in emerging players in oil and natural gas production.
Southern Energy (TSXV:SOU) is Canadian listed, primarily natural gas company focused on acquiring and developing conventional natural gas and light oil resources in the southeast U.S. Gulf States of Mississippi, Louisiana, and East Texas.
Southern Energy’s core asset base consists of 2,300 boe/d of high cash margin, low decline stable production, and a combined area of 33,000 acres held by production. Its main Mechanicsburg, Gwinville and greater Williamsburg assets host exceptional development upsides, including large scale, multi-zone expansion potential within company owned infrastructure.
Southern’s emphasis on incorporating technological advancement in its development plans gives the company a competitive edge. In the past 5 years management has put together a massive proprietary digital database of over 25,000 wells within the Gulf Coast focus area, which allows the company to geologically map areas much quicker and across millions of acres at one time. This highly valuable data also optimizes acquisition evaluation workflow and the company has evaluated over 100 assets for possible acquisition.
The company anticipates significant growth in the next 18 to 24 months with the completion of strategic and transformative acquisitions in the focus area. Southern has conducted extensive groundwork to access capital in the global equity markets and has engaged with key high profile advisors to access these markets.
In April 2021, Southern closed a CAD$5.5 million private placement priced at CAD$0.04 per share with a full warrant for two years priced at CAD0.04 per share unit. This placement involved existing and new investors alongside management participation in the financing. The company intends to use the proceeds to complete its restructuring transiaction and for general corporate purposes.
Southern Energy’s core values emphasize dedication to the environment, safety, stakeholder satisfaction and governance. The company works actively with state regulators to design best practices and policies in areas of reducing air emissions and fresh water usage. Southern has an impeccable saftey record since management began operations in the area in 2013. A focus on governance is also a key to success for Southern with independent and diverse board oversight and regular stakeholder engagement.
Southern Energy’s management team has a long and successful track record of working together and creating significant shareholder value through strategic acquisition and efficient development of existing conventional oil and natural gas fields..The team is working to utilize modern development techniques on mature, low decline assets. Together, they prime the company for significant success and economic growth.
Southern Energy’s Company Highlights
- Southern Energy 100 percent focused on consolidating and developing its Gulf Coast oil and natural gas operations, where they leverage exceptional resource pricing, low-risk and high cash margin potential.
- The company currently operates in two counties in Alabama, twelve countries in Mississippi and holds a high working interest in more than 30,000 net acres of favorable land positioning.
- Southern has a robust core asset base consisting of the main Mechanicsburg, Gwinville and Green Creeks assets and highly prospective Magee, Mount Olive and Williamsburg targets.
- As an early-stage company, Southern hosts exceptional growth potential and expansion opportunities, including projected listing on London markets in the near future. The company could see growth from its CAD$20 million market capitalization to upwards of CAD$200 million.
- Southern Energy leverages strong institutional investor support for its business plan execution and projected international expansion in the future.
- The company has an expert management and technical team with extensive experience in profitably developing assets with horizontal drilling and modern unconventional completion techniques and enhanced oil recovery methods.
Southern Energy’s Key Projects
Southeast Gulf State Oil and Natural Gas Operations
Southern Energy operates in two counties in Alabama, twelve counties in Mississippi and holds a high working interest in more than 60,000 net acres. Its core asset base consists of the main three Mechanicsburg, Gwinville and Greens Creek assets, as well as the highly prospective Magee, Mount Olive and Williamsburg targets.
- Mechanicsburg hosts liquids-rich resources approximately at over 30bbl/MMcf of oil and liquid natural gas.
- Gwinville hosts multi-zone development upsides with over 60 horizontal Selma Chalk locations.
- Greens Creek hosts low-cost Hosston recompletions, infill Hosston drilling opportunities and Cotton Valley potential.
- Magee has a field production potential of over 10MMbbl and high-quality oil opportunities.
- Mount Olive hosts high deliverability gas wells and infill Eutaw drilling opportunities.
- Williamsburg hosts infill drilling opportunities and has revealed large oil discoveries on-trend.
Southern Energy has a defined plan to build its Cotton Valley assets in a regional fairway using its proprietary database. The low-risk, prolific hydrocarbon trend displays consistent ‘macro’ trapping elements throughout the structure and a proven vertical production in Mississippi with low-cost completions transitioning into horizontal drilling, multi-stage completion technques in Louisiana and East Texas. Southern has also identified several low-risk horizontal redevelopment plays along this trend.
The company remains focused on controlling costs and developing its scalable large resource assets. Through acquisitions and strategic investor partnerships, Southern Energy intends to continue consolidating its low-decline, high-growth potential assets in the Gulf Coast area.
Southern Energy’s Management Team
Ian Atkinson — P.Eng., President & CEO
Ian Atkinson is a petroleum engineer with over 25 years of technical, executive and board of directors experience in the energy industry. He is the founder and senior executive officer of Athabasca Oil Corporation. Atkinson previously held engineering, operations, acquisitions and executive positions at Talisman Energy Inc., Renaissance Energy Ltd. and Morpheus Energy.
Calvin Yau — CA, CPA, VP of Finance & CFO
Calvin Yau has over 15 years of financial experience in the oil and gas industry. He has held previous positions of increasing responsibility at Molopo Energy, Waldron Energy, Bronco Energy, and Daylight Resources. Yau is also a member of the Institute of Chartered Accountants of Alberta.
Chris Birchard, P.Geol. — VP of Exploration
Chris Birchard has over 20 years of exploration and management experience in the oil and gas industry. He was the former senior geologist and team lead at Athabasca Oil Corporation and VP of Exploration at Bellamont Exploration Ltd. Birchard has held previous technical positions at Espoir Exploration Corp., Keywest Energy Ltd., Devon Canada and Anderson Exploration Ltd.
Erin Buschert — VP of Land
Erin Buschert has over 20 years of experience in mineral & surface land, mergers & acquisitions and contract negotiations. She was the former manager of Land for Saskatchewan and Manitoba at Crescent Point Energy Corp. Buschert has held previous positions of increasing responsibility at Talisman Energy, TriStar Oil & Gas and ARC Resources Ltd.
Buschert is a member of the American Association of Petroleum Landmen (AAPL), the Canadian Association of Petroleum Landmen (CAPL), the Canadian Association of Petroleum Land Administrators (CAPLA), and the Petroleum and Acquisition Divestment Association (PADA).
Jim McFadyen — VP of Operations
Jim McFadyen has over 20 years of operational experience in the oil and gas industry. He was the former operations manager at Athabasca Oil Corporation (Light Oil) and Galleon Energy Inc. Mcfadyen has also held previous leadership and operational roles at Fairborne Energy and Renaissance Energy Ltd.
Gary McMurren, P.Eng. — VP of Engineering
Gary McMurren has over 20 years of engineering, operational and management experience in the oil and gas industry. He was the former director of Light Oil at Athabasca. McMurren also held previous engineering and operational roles at Galleon Energy Inc., ARC Resources Ltd. and Talisman Energy Inc.
*Disclaimer: This profile is sponsored by Southern Energy (TSXV:SOU). This profile provides information which was sourced by the Investing News Network (INN) and approved by Southern Energy in order to help investors learn more about the company. Southern Energy is a client of INN. The company’s campaign fees pay for INN to create and update this profile.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Southern Energy and seek advice from a qualified investment advisor.
High-Grade Uranium Projects in the Athabasca Basin
Industry experts expect uranium prices to rise and the nuclear industry resurgence to start accelerating as uranium continues to play an integral role in the generation of clean, base-load, affordable and reliable energy globally. Despite a predicted demand for uranium topping 180 million pounds in 2020, a major supply-side response has played out in recent years and supply deficits have continued to grow. As uranium is needed for nuclear power, exploration and development companies focused on uranium-based assets could benefit significantly in the coming years as renewed investor interest comes back to the sector.
Skyharbour Resources (TSXV:SYH,OTCQB:SYHBF,FWB:SC1P) is a mineral exploration company that holds an extensive portfolio of uranium and thorium projects in Canada’s Athabasca Basin and is well positioned to benefit from improving uranium market fundamentals with six drill-ready projects covering over 240,000 hectares. The company has acquired from Denison Mines, a large strategic shareholder of the Company, a 100% interest in the Moore Uranium Project which is located 15 kilometres east of Denison’s Wheeler River project and 39 kilometres south of Cameco’s McArthur River uranium mine. Moore is an advanced stage uranium exploration property with high grade uranium mineralization at the Maverick Zone with drill results returning up to 6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres at a vertical depth of 265 metres. Skyharbour is actively advancing and drilling the project with ongoing exploration programs.
In addition to offering investors exposure to high-grade uranium discovery potential at its flagship Moore Project, Skyharbour leverages its property portfolio using the prospect generator model and has partner companies fund exploration and development at its other projects. It is a cost-effective model that facilitates large exploration programs without substantial equity dilution.
The Athabasca Basin hosts the highest-grade uranium deposits in the world and has historically accounted for 15-20% of annual global uranium production. Using modern exploration techniques and methodologies, Skyharbour is looking to emulate recent discovery success stories that have created significant returns for shareholders including those made by NexGen Energy (TSX:NXE), Fission Uranium (TSX:FCU), Alpha Minerals, Denison Mines (TSX:DML), and Hathor Exploration.
In March 2021, Skyharbour announced the mobilization of its 2021 geophysical and diamond drilling programs at its 35,705-hectare flagship Moore uranium project. The company has planned a nine-kilometre small moving loop EM (electromagnetic) geophysical program to refine additional drill targets and has begun mobilization of drilling equipment for a subsequent 3,000-metre diamond drilling program consisting of 10 to 12 drill holes. These fully financed and permitted programs will focus on following up on existing unconformity and basement-hosted targets along the high-grade Maverick structural corridor as well as identifying new targets at other target areas on the project.
The company expects major developments and extensive exploration to be carried out in 2021. “Outside of our Moore project, Skyharbour’s partner companies have been advancing some of our other projects,” Skyharbour CEO Jordan Trimble commented.
Currently Skyharbour has joint venture agreements with Orano Canada Inc. (industry-leader and France’s largest uranium mining and nuclear fuel cycle company) and Azincourt Energy Corp. [AAZ-TSXV; AZURF-OTC] on the Preston and East Preston Projects, respectively, which collectively cover one of the largest land positions in the Paterson Lake region. Orano recently became a 51% joint venture partner with Skyharbour and Dixie Gold after completing an earn-in option at the 49,645-hectare Preston Project by funding exploration and making cash payments. Meanwhile, Azincourt has recently earned a 70% stake in the 20,647 hectare East Preston Project by issuing shares, spending $2.5 million on exploration, and paying $1 million in cash to Skyharbour and Dixie Gold.
Skyharbour has also recently signed a definitive agreement with ASX-listed Valor Resources on its Hook Lake Uranium Project (previously called North Falcon Point). Under the agreement, Valor can earn-in 80% of the project by spending $3.5 million on exploration and making $475,000 in cash payments over three years, as well as issuing 233,333,333 million shares to Skyharbour.
A world-class management and geological team lead Skyharbour Resource. The team brings years of expertise in uranium exploration, energy industries, corporate finance and capital markets. The company is well positioned to capitalize on the uranium market’s resurgence with strong potential for resource growth and new discoveries at its project base. Skyharbour’s goal is to maximize shareholder value through new mineral discoveries, committed long-term partnerships, and the advancement of exploration projects in geopolitically favourable jurisdictions.
Skyharbour Resources’ Company Highlights
- Skyharbour Resources is a high-grade uranium exploration and early-stage development company with six highly prospective uranium projects in the prolific Athabasca Basin in Saskatchewan, ranked as a top mining jurisdiction globally.
- This 240,000 hectare portfolio includes the high-grade flagship Moore Project as well as the Preston, East Preston, North Falcon Point (Hook Lake), South Falcon Point, Yurchison and Mann Lake projects. All projects are drill ready.
- The flagship Moore uranium project is 100% owned by Skyharbour and the property hosts several high-grade uranium lenses; historical results include 6.0% U3O8 over 5.9 metres including 20.8% U3O8 over 1.5 metres.
- Primary target is the Maverick Corridor which is a 4.7 km long conductive corridor that is open along strike and at depth into the underlying basement rocks.
- Acquiring assets at attractive valuations and using prospect generator and JV model to advance secondary assets.
- Strategic partnerships with industry-leaders Denison Mines and Orano Canada.
- Skyharbour’s management and geological team bring over many years of experience with a track record of success.
- Timing and an impending turnaround in the uranium market.
- Noteworthy shareholder base and significant insider ownership.
Skyharbour Resources’ Key Projects
Skyharbour owns 100% of the 35,705 hectare Moore Uranium Project located 42 kilometres northeast of the Key Lake mill, approx. 15 kilometres east of Denison’s Wheeler River project, and 39 kilometres south of Cameco’s McArthur River mine. Unconformity-hosted uranium mineralization was discovered on the property at the Maverick Zone in the early 2000’s at relatively shallow depths. Skyharbour has carried out several drill programs with multiple holes intersecting high grade uranium mineralization over the 4.7 km long Maverick corridor. Drill results include 20.8% U3O8 over 1.5m at 264m depth in hole ML-199, 9.12% U3O8 over 1.4m at 278m in hole ML-202 and 5.29% over 2.5m U3O8 at 279m depth in hole ML-200. Hole ML-202 represents a new high-grade discovery and illustrates the strong discovery potential of additional high grade lenses along strike. The Company is planning additional drill programs to expand the known high grade Maverick Zone and to test basement-hosted targets as well as regional targets.
The depth to the unconformity on the property is relatively shallow, with the thickness of the sandstone cover varying from less than 125 metres on the property’s eastern side to over 325 metres on the property’s northwestern side. Basement rocks are predominantly paragneisses belonging to the Wollaston Domain. A large mafic sill known as the “Moore Lake complex” partially overlies a portion of the eastern side of the property. The property has been the subject of extensive historical exploration with over $40 million in expenditures, and over 140,000 metres of diamond drilling completed in over 380 drill holes. The project is accessible via ice roads from the McArthur River mine haul road and float or ski equipped aircraft.
The next steps for the project include an assortment of airborne and ground electromagnetic and magnetic surveying campaigns and a 9 kilometer Small Moving Loop EM geophysical program to refine additional drill targets. The company has also begun mobilization of drilling equipment for a subsequent 3,000 meter diamond drilling program consisting of 10 to 12 drill holes.
The drilling will focus on both unconformity and basement-hosted targets along the Maverick structural corridor and new targets identified in the Grid Nineteen area. Skyharbour specifically plans to expand the high-grade mineralization discovered recently at the Maverick East zone, along strike, down plunge and at depth with a focus on basement-hosted mineralization. Other targets along the 4.7 km long Maverick structural corridor will be investigated, including the Esker target, again with a focus on basement-hosted mineralization. All 2021 exploration work is fully funded and appropriately permitted.
The Preston project is a large 49,635-hectare (122,651 acre) land position strategically located to the south of and proximal to NexGen Energy’s Rook 1 project host to the high-grade Arrow deposit, as well as proximal to Fission Uranium’s (TSX: FCU) Patterson Lake South (“PLS”) project host to the high-grade Triple R deposit. Uranium mineralization in the Patterson Lake area bears a number of similarities to the high-grade uranium deposits in the Eastern part of the Athabasca Basin like those at the Cigar Lake and McArthur River mines. The mineralization occurs in structurally disrupted and strongly clay altered, commonly graphitic pelites and metapelites with narrow felsic segregations / pegmatites.
The Preston Uranium Property is bisected by the all-weather Highway 955, which runs north through the PLS discovery being advanced by Fission through to the former Cluff Lake uranium mine. Over $7 million in historical exploration expenditures on the Preston Project have been incurred to date. This exploration has consisted of ground gravity, airborne and ground electromagnetics, radon, soil, silt, biogeochem, lake sediment, and geological mapping surveys, as well as several exploratory drill programs. Several high-priority drill target areas associated with multiple prospective exploration corridors have been successfully delineated through this methodical, multiphased exploration initiative, which has culminated in an extensive, proprietary geological database for the project area.
Orano Canada has now earned 51% of the project through $4.8 million in exploration expenditures as well as cash payments. Skyharbour retains a 24.5% minority interest in the project.
East Preston Project
The East Preston project is a large 20,647 hectare (51,020 acre) land position strategically located proximal to NexGen Energy’s Rook 1 project host to the high grade Arrow deposit, as well as proximal to Fission Uranium’s (TSX: FCU) Patterson Lake South (“PLS”) project host to the high grade Triple R deposit. Uranium mineralization in the Patterson Lake area bears a number of similarities to the high-grade uranium deposits in the Eastern part of the Athabasca Basin like those at the Cigar Lake and McArthur River mines. The mineralization occurs in structurally disrupted and strongly clay altered, commonly graphitic pelites and metapelites with narrow felsic segregations / pegmatites.
Over $5 million in historical exploration expenditures on the Preston Uranium Project have been incurred to date. This exploration has consisted of ground gravity, airborne and ground electromagnetics, radon, soil, silt, biogeochem, lake sediment, and geological mapping surveys, as well as several exploratory drill programs. Several high-priority drill target areas associated with multiple prospective exploration corridors have been successfully delineated through this methodical, multiphased exploration initiative, which has culminated in an extensive, proprietary geological database for the project area.
Azincourt Energy has now earned 70% of the project by issuing shares, spending $2.5 million on exploration, and paying $1 million in cash to Skyharbour and Dixie Gold. Skyharbour retains a 15% minority interest in the project.
North Falcon Point Project (Hook Lake)
The North Falcon Point (Hook Lake) project consists of 16 contiguous mineral claims totaling 25,847 hectares. The property has seen extensive historical work, which advantageously allows for fast-tracked exploration. Uranium mineralization discovered to date at the Hook Lake Project is shallow and is characterized by structurally controlled mineralization at the Hook Lake, West Way and Nob Hill target zones. The primary Hook Lake target area at the property’s north end has returned high-grade uranium grab samples of up to 68% uranium in massive pitchblende veining at surface level.
Skyharbour recently announced a Definitive Agreement signed with ASX-listed Valor Resources whereby Valor can earn-in 80% of the project by contributing cash and exploration expenditures consideration totaling CAD $3,975,000 over a three-year period ($475,000 will be in cash payments to Skyharbour as well as $3,500,000 in exploration expenditures) as well as issuing a total of 233,333,333 shares to Skyharbour.
The project area is in close proximity to all-weather northern highways and grid power. Historical exploration has consisted of airborne and ground geophysics, multi-phased diamond drill campaigns, detailed geochemical sampling and surveys, and ground-based prospecting culminating in an extensive geological database for the project area. Compilation and reinterpretation of previous exploration work results is already underway. An initial phase of exploration work by Valor Resources will include further bio-geochemical surveys, detailed UAV magnetics, ground gravity and resistivity surveys as well as detailed geological and structural mapping. Based on this work drill targets will be selected.
South Falcon Project
The South Falcon project consists of 21 claims totaling 44,470 hectares and is strategically located 55 kilometers east of the Key Lake mine. In March of 2015, Skyharbour released an updated NI 43-101 mineral resource estimate for the Fraser Lakes Zone B deposit at south end of the property: 6,960,681 pounds U3O8 inferred at average grade of 0.03% U3O8 and 5,339,219 pounds ThO2 inferred at average grade of 0.023% ThO2 within 10,354,926 tonnes (cutoff grade of 0.01% U3O8). The deposit has geological and geochemical features similar to basement-hosted deposits in the Athabasca Basin such as Eagle Point, Millennium, P-Patch and Roughrider. Exploration potential of the 6 by 7 kilometre Fraser Lakes target area is considered exceptional, including resource expansion potential along strike and at depth at the Zone B uranium deposit.
Drilling to date at South Falcon Point totals over 21,000 meters across 110 holes with over C$13 million spent on exploration across its six near-surface targets. Skyharbour carried out a drill program in 2015 that returned 0.172% U3O8 over 2.5 metres and the findings point to increasing uranium grades at depth beneath the deposit. Recommended future work includes defining additional resources at the Fraser Lakes Zone B deposit area and further interpretation of geochemical and assay data following geological analysis.
The 100 percent owned Yurchison property consists of 11 claims totaling 54,184 hectares in the Wollaston Domain of Northern Saskatchewan. Access to the area is enhanced by Highway 905 which transects the property near Courtney Lake. The project boasts strong discovery potential for both basement-hosted uranium mineralization as well as copper, zinc and molybdenum mineralization. Historical exploration work returned highly anomalous molybdenum values up to 3,750 ppm and anomalous uranium values up to 240 ppm across two drill holes. Outcrop and float samples also support high-grade mineralization at the property. Recommended future work includes reassessment of historical till geochemistry and re-logging of Yurchison’s drill core.
Mann Lake Project
The 100% owned Mann Lake uranium project sits 25 kilometers southwest of the Cameco’s McArthur River Mine and is strategically located on the east side of the Athabasca Basin. The property is adjacent to the Mann Lake joint venture operated by Cameco with partners
Drilling history includes one drill hole containing anomalous uranium of up to 73.6 ppm over a 1.5 meter interval. Skyharbour carried out ground-based EM surveying which points to a uniquely broad trending corridor of conductive basement rocks prospective for new discoveries.
Skyharbour Resources’ Management Team
Jordan Trimble, B.Sc., CFA — Director, President & CEO
Jordan Trimble is an entrepreneur and has worked in the resource industry in various roles with numerous companies specializing in management, corporate finance and strategy, shareholder communications, deal structuring and capital raising. Previous to Skyharbour, he was the corporate development manager for Bayfield Ventures, a gold company with projects in Ontario, which New Gold successfully acquired in 2014. Throughout his career, Trimble has founded and helped manage several public and private companies and has been instrumental in raising substantial capital for mining companies with his extensive network of institutional and retail investors. He is a frequent speaker at resource and mining conferences globally and has appeared on various media outlets, including BNN and the Financial Post. Mr. Trimble holds a Bachelor of Science Degree from the University of British Columbia and he is a CFA Charterholder currently serving as a director of the CFA Society Vancouver.
James G. Pettit — Director & Chairman of the Board
Jim Pettit is currently serving as a director on the boards of several public resource companies. He offers over 30 years of experience within the industry specializing in finance, corporate governance, management and compliance. Pettit specializes in the early stage development of private and public companies. His background over the past 30 years has been focused primarily within the resource sector and he was previously chairman and CEO of Bayfield Ventures, which was sold to New Gold in 2014.
Richard Kusmirski, P.Geo, M.Sc. — Director, Head Technical Advisor and Qualified Person
Rick Kusmirski has over 40 years of exploration experience in North America and overseas and has actively participated in discovering multiple uranium, gold and base metal deposits. For several years, he directed Cameco Corporation’s uranium exploration projects in the Athabasca Basin in his capacity as an exploration manager. In 1999, Kusmirski joined JNR Resources, becoming VP of Exploration in 2000. Subsequently, he directed the exploration program that led to the discovery of the Maverick Zone on the Moore Lake uranium joint venture in the Athabasca Basin in Saskatchewan with partner Kennecott Canada. He became JNR’s president and CEO in January of 2001.
David Cates, CPA, MACC — Director
David Cates is a Director of Skyharbour. He is the President and CEO of Denison Mines (TSX: DML) and Uranium Participation Corp (TSX: U). Prior to being appointed the President and CEO position Mr. Cates served as Denison’s Vice President Finance, Tax and Chief Financial Officer. As Chief Financial Officer, Mr. Cates played a key role in the Company’s mergers and acquisitions activities – leading the acquisition of Rockgate Capital Corp. and International Enexco Ltd. Mr. Cates joined Denison in 2008 and held the position of Director, Taxation prior to his appointment as Chief Financial Officer. Prior to joining the Company, Mr. Cates held positions at Kinross Gold Corp. and PwC LLP with a focus on the resource industry.
Paul Matysek, M.Sc, P.Geo — Advisory Board
Paul Matysek is a Strategic Advisor for Skyharbour and is a mining entrepreneur, professional geochemist and geologist with over 35 years of experience in the mining industry. He was the Founder, President and CEO of Energy Metals Corporation (“EMC”), a premier uranium company that traded on the New York and Toronto Stock Exchanges. Mr. Matysek led EMC as one of the fastest growing Canadian companies in recent years, increasing its market capitalization from $10 million in 2004 to approximately $1.8 billion when it was acquired by a larger uranium producer, Uranium One Inc., in 2007. In December of 2017, Mr. Matysek was involved of the sale of Lithium X Energy Corp. for $265M to NextView New Energy. Mr. Matysek was the President and CEO of Goldrock Mines Corp. which on June 7th, 2016 announced it had entered into a definitive agreement to be acquired by Fortuna Silver Mines (NYSE:FSM) (TSX:FVI) for $129 million on a fully-diluted in-the-money basis. Previously, Mr. Matysek was the President and CEO of Lithium One Inc., which developed a high-quality lithium project in northern Argentina. In July 2012, Lithium One and Galaxy Resources merged with a $112 million plan to create a fully integrated lithium company. Prior to Lithium One, Mr. Matysek was the President and CEO of Potash One Inc. where he was the architect of the $434 million friendly takeover of Potash One by K+S Ag, which closed in early 2011.
Joseph Gallucci — Director
Mr. Gallucci is a capital markets executive with over 15 years of experience in investment banking and equity research focused on mining, base metals, precious metals and bulk commodities on a global scale. Joseph is currently the Managing Director and the Head of Mining Investment Banking at Laurentian Bank Securities Inc. His career has spanned across various firms including BMO Capital Markets, GMP Securities, Dundee Securities, and he was a founding principal of Eight Capital where he recently led their Mining Investment Banking Team.
In his previous roles he has acquired experience in corporate finance, mergers, acquisitions, business and operational development, financings and corporate strategy. He was directly involved in raising over $1 billion for mining companies with a focused expertise on Canadian base metal companies.
Prior to investment banking, Mr. Gallucci spent over a decade in equity research with a focus on global mining at both GMP and Dundee Securities. At Dundee Securities, he was a Managing Director and head of the Metals and Mining Research Team where he oversaw the complete mining franchise. He has traveled extensively visiting well over 100 mining properties across the globe. He holds a Bachelor of Commerce degree from Concordia University and an MBA in Investment Management from the Goodman Institute of Investment Management.
Developing the East Preston Uranium Project in the Athabasca Basin
The uranium market is on the rise. Market research expects global demand for the mineral to continue to grow in the coming years, with more than a dozen nuclear reactors slated to come online, followed by steady rollouts.
These changes in the energy space pose great growth opportunities for junior companies. As the market expects price adjustments for uranium to accommodate a limited supply and growing demand, companies developing uranium assets could be an integral part of producing the building blocks of energy futures.
Azincourt Energy (TSX.V:AAZ, OTCQB:AZURF, FSE:A0U2) is a Canadian resource company focused on acquiring, exploring and developing critical alternative energy projects for uranium and lithium. The company is currently developing its joint venture East Preston uranium project in the Athabasca Basin, Saskatchewan, Canada, as well as the Escalera Group uranium-lithium project located in Peru’s Picotani Plateau.
The company’s joint venture partners for the East Preston uranium project include Skyharbour Resources (TSXV:SYH) and Dixie Gold (TSXV:DG), both with 15 percent ownership. Azincourt controls a majority interest of 70 percent in the asset, having spent C$2.5 million on the project and paid C$1 million in cash payments since 2017.
The surrounding Athabasca Basin region is a world-class district with the largest, highest grade uranium deposits in the world. The property leverages a rich uranium mining history, a stable political climate and pro-mining policies on the federal and provincial government levels.
The East Preston project is adjacent to NexGen Energy (TSX:NXE), which has a market cap of C$1.69 billion, and Orano, the second largest uranium producer in the world. The overall area surrounding the property contains over C$10 billion in market capitalization.
In Peru, Azincourt’s Escalera Group property consists of three concessions: Escalera, Lituania and Condorlit. They cover a combined area of 7,400 hectares of prospective exploration targets for volcanic-hosted supergene/surficial uranium and lithium on the Picotani Plateau in the Puno district of Southeastern Peru.
The properties are located in a mineral-rich district where mining giants like Minsur and Rio Tinto operate alongside growing mid-tiers and juniors like Bear Creek Mining and Plateau Energy Metals.
A world-class leadership heads Azincourt Energy. The team brings years of expertise in mineral exploration, venture capital markets and geology. Together they have vested institutional support and built a highly attractive mining project portfolio prepped for success.
Azincourt Energy’s Company Highlights
- The uranium market is on the cusp of significant supply deficits despite growing demand.
- As of 2018, there were 151 planned and 335 proposed reactors to be constructed globally.
- Azincourt Energy is focused on acquiring, exploring and developing alternative energy assets involving uranium, lithium and other critical clean energy elements.
- The flagship East Preston uranium project is a 25,000 hectare land position in the prolific Athabasca Basin, Saskatchewan.
- The Escalera Group in Puno, Peru, is a 7,400 hectare asset that leverages the strategic positioning as an emerging uranium-lithium district with a strong base metal presence.
- The company has a world-class management team and boasts strong institutional support with funds owing approximately 30% of the total shares outstanding.
Azincourt Energy’s Key Projects
East Preston Uranium Project
The flagship East Preston uranium project covers over 25,000 hectares in the western Athabasca Basin, Saskatchewan, a premier location for uranium mining. The property consists of a large inventory of priority drill targets identified within 25 kilometers of prospective exploration corridors. Over C$3 million in exploration expenditures has been spent on the project over the past three years.
Groundwork in 2018 returned samples as high as 8,061 ppm uranium and delineated over 6.5 kilometers of prospective trends. A geophysical program the same year completed 51 kilometers of grid preparation and 46 kilometers of horizontal loop electromagnetic to identify multiple shallow conductive systems across the property. These targets point to potential basement-hosted unconformity uranium deposits.
In March 2021, the company announced its 2021 winter exploration program had ended ahead of schedule. Warm weather and unseasonably limited snowfall helped fast-track development and push project advancement further. Azincourt is excited for the future of this project.
The 2018 ground geophysical program confirmed the interpretation of the previous airborne data and has yielded drill targets within previously untested corridors. Another 2021 drill campaign is underway with a planned 12 holes up to 2,500 meters and a diamond drill program targeting its conductive corridor.
Escalera Group Uranium-Lithium Project
The Escalera Group covers 7,400 hectares located in the Macusani-Crucero-Picotani volcanic field of Puno, southeast Peru. The project leverages the district’s mining-friendly conditions and reputation as an emerging uranium-lithium district with a strong base metal presence.
Historical samples taken from the Escalera project have yielded values of up to 6,812 ppm uranium. Additionally, a 2017 sampling program produced values up to 3,560 ppm uranium and 153 ppm lithium with 2018 samples returning as high as 8,061 ppm uranium. The sampling has identified two new prospective uranium areas measuring a combined 6.5 kilometers.
The proposed uranium mineralization at Escalera is similar to that found at the Macusani uranium deposit held by Plateau Energy Metals, which reported a measured and indicated resource of 52.9 million pounds of uranium and an inferred resource of 72.1 million pounds. Azincourt intends to continue its exploration and rock analysis of the asset.
Azincourt Energy’s Management Team
Alex Klenman — President, CEO & Director
Alex Klenman has served as president and CEO of Azincourt since July of 2017. He brings over 30 years of business development, marketing, finance, media and corporate communications experience. Klenman has held and currently holds senior management and board positions in both the public and private sectors, including the CEO position of Nexus Gold Corp., CEO of Leocor Ventures and director of Corporate Development for Arbor Metals Corp. From 2010 to 2014, he was VP of Communications and partner with Falcon Point Capital Partners, a firm that provided finance, communications and marketing initiatives for TSX Venture listed resource companies. Klenman also spent 10 years in broadcasting, which included notable board positions with CKVU Television and Canwest Pacific Television in Vancouver.
C. Trevor Perkins, B.Sc., P.Geo. — Vice President for Exploration
C. Trevor Perkins is a professional geologist with wide-ranging experience in planning and executing mineral exploration programs and managing exploration teams. He brings a proven track record of discovery and results from a successful 25 year career in mineral exploration in some of the world’s most prolific mining regions.
For the past five years, Perkins held the title of exploration manager for UEX Corporation, responsible for overseeing exploration in the Athabasca Basin, Saskatchewan. As a Qualified Person for UEX’s uranium and cobalt projects, he was responsible for several 43-101 technical reports and resource estimates for both the Christie Lake and West Bear projects. Also, he managed the team that made the Ōrora Uranium Deposit discovery in 2017.
Perkins was also a senior geoscientist with Rio Tinto and spent a decade with Cameco Corporation. As project geologist for the McArthur River project, he led the team that discovered the McArthur River North Extension zones (110Mlb U3O8) and as senior project geologist based in Darwin, Australia, he led the team that discovered the Angulari uranium deposit.
Paul Reynolds, B.Sc., P.Geo — Director
Paul Reynolds is a professional geoscientist with over 30 years of experience working in Canada, the US, Bolivia, Argentina and Guyana. He specializes in the conception and management of mineral exploration ventures. He has 25 years of experience managing public companies as both a director and executive officer. Reynolds was formerly the chairman of Athlone Energy Ltd., which was sold to Daylight Energy Ltd. in September 2008. He is the president and CEO of Triumph Gold Corp. He is also a director of Cairo Resources Inc., Fremont Gold Ltd. and TerraX Minerals Inc.
Reynolds holds a B.Sc. degree in geology from the University of British Columbia (1987) and is a member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia, a fellow of the Geological Association of Canada and a member of the Society of Economic Geologists.
Ted O’Connor, P.Geo., M.Sc., B.Sc. — Director
Ted O’Connor is a professional geoscientist with over 25 years of experience, predominantly in the uranium exploration industry. He spent 19 years with Cameco, one of the world’s largest uranium producers. He was a director of Cameco’s Corporate Development group where he was responsible for evaluating, directing and exploring uranium deposits throughout North America, Australia, South America and Africa. O’Connor successfully led new project generation from early exploration through to discovery on multiple unconformity uranium projects. O’Connor was also responsible for opportunity evaluation, acquisition, and managing Cameco’s exploration partnerships to grow and diversify Cameco’s exploration portfolio in new jurisdictions and other uranium model types. Most recently, he was the CEO of Plateau Energy Metals, where he oversaw the development of the Macusani uranium and lithium deposits and is now a director and technical advisor to the company.
Vivian Chaung — CFO
Vivien Chuang is a Chartered Professional Accountant with several years of experience in the resource and mining sector. She worked at PricewaterhouseCoopers LLP from 2006 to 2010 and Charlton & Company from 2010 to 2011. Currently, Chuang is president of VC Consulting Corp., which provides CFO and other financial accounting and compliance services to several companies. Chuang holds a Bachelor of Business Administration degree from Simon Fraser University.
*Disclaimer: This profile is sponsored by Azincourt Energy (TSXV:AAZ). This profile provides information which was sourced by the Investing News Network (INN) and approved by Azincourt Energy in order to help investors learn more about the company. Azincourt Energy is a client of INN. The company’s campaign fees pay for INN to create and update this profile.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Azincourt Energy and seek advice from a qualified investment advisor.
Exploring Three Highly Prospective Energy Metals Projects in Saskatchewan
Saskatchewan ranks first in Canada for mining investment attractiveness. The province is resource-rich and maintains a consistent favorable regulatory environment that offers highly attractive mineral investment opportunities. In 2019, C$7.4 billion in mineral sales were generated.
Saskatchewan is known for the world’s richest high-grade uranium deposits, but remains underexplored for energy metals, thereby offering unparalleled investment opportunities.
Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF) is an exploration and discovery company focused on developing its diverse portfolio of exciting energy metal exploration projects in Saskatchewan. With strong local geological expertise, Forum was early in acquiring attractive properties in the energy metals space, and has leveraged this expertise to attract significant leading industry partners to help position the company for potential significant discoveries.
Key Saskatchewan Projects
- Janice Lake Copper – Rio Tinto C$30 million Option
- Fir Island Uranium – Orano C$6 million Option
- Love Lake Copper-Nickel-Palladium (100 percent)
- Seven Athabasca Basin uranium projects with advanced exploration targets available for partnering
Janice Lake Sedimentary Copper Project
Forum granted Rio Tinto Canada a four-year option to acquire up to an 80 percent interest in the 52 km long district scale (39,943 Ha) Janice Lake sedimentary copper project by spending C$30 million.
In February 2021 Rio Tinto commenced a drill program with two drills to test multiple copper/silver targets.
- Potential for discovery of significant copper open pit resource within 300 meters from surface
- 2019 drilling: 1.09 percent copper over 9.1 meters and 1.32 percent copper over 5 meters within a 51.8 meter interval grading 0.57 percent copper.
- Access via the completion of a 110 kilometer winter road and an 80 person work camp at Burbidge Lake. Power readily available.
- 2020 Summer Rotary Air Blast drill program added multiple new near-surface mineralized copper/silver targets northeast of primary Janice and Jansem targets.
Fir Island Uranium Project
Forum granted the French owned uranium miner and exploration subsidiary Orano Canada (formerly Areva) a four-year option to acquire up to a 70 percent interest in the Fir Island uranium property located on the northeast fringe of the Athabasca Basin by spending $6 million in exploration.
In February 2021 a drill program with two drills commenced to test prioritized targets.
- 20,463 hectare property is highly prospective for shallow unconformity type uranium deposits.
- Shallow near surface to 250 meter targets offsetting major fault structures.
- All weather road access to the provincial highway system and is within driving distance to the Orano operated McClean Lake mill.
Love Lake Nickel-Copper-Platinum-Palladium Project
Forum’s 100 percent owned Love Lake project is located along Highway 905 approximately 60 kilometers north of the Janice Lake project. The property consists of 13 claims totaling 32,075 hectares and is strategically positioned near Forum’s Janice Lake copper project.
- Underexplored district wide nickel-copper-PGM prospect under the direction of PGM expert Dr. Larry Hulbert; very limited historic exploration.
- Geochemical analysis demonstrates nickel and copper depletion at surface and high sulphide content.
- Three feeder zones and two prospective sulphide targets identified.
- Inaugural drill program totaling 3000 meters planned for summer 2021.
Forum is targeting magmatic nickel/copper/platinum/palladium deposits similar to Voisey’s Bay in Canada, as well as to the Nova-Bollinger project and the Julimar project, both in Australia.
Athabasca Basin Uranium Project Profile
Forum holds 7 additional uranium properties within the Athabasca Basin based on a shallow open pit discovery mode
- Northwest Athabasca: Forum 39.5 percent, Cameco 29 percent, Nexgen 20 percent, Orano 12.5 percent
- Maurice Point: 100 percent
- Henday: Rio Tinto 60 percent Forum 40 percent
- Wollaston: 100 percent
- Key Lake Road Properties
- Highrock: 100 percent
- Costigan: 65 percent
- Clearwater: Forum 75 percent, Vanadian 25 percent
Forum Energy Metals’ Management Team
Richard J. Mazur, P.Geo., MBA — President, CEO and Director
Richard J. Mazur is an executive and geoscientist with over 45 years of Canadian and international experience in the exploration and mining industry as a project geologist, financial analyst and senior executive on uranium, gold, diamonds, base metals and industrial minerals projects. Mazur founded Forum in 2004. He is also currently a director of Big Ridge Gold , Empress Royalty, Impact Silver, and Midnight Sun Mining. Mazur graduated with a B.Sc. in Geology from the University of Toronto in 1975 and obtained an MBA from Queen’s University in 1985.
Ken Wheatley, P.Geo, M.Sc — VP of Exploration
Ken Wheatley is a professional geoscientist with the Association of Professional Engineers and Geoscientists in Saskatchewan. He has 40 continuous years of uranium exploration experience in Canada, including AREVA Resources Canada (now Orano), one of the world’s largest uranium exploration and production companies and Uranerz Exploration and Mining Limited. His established track record of mineral discoveries includes eight uranium deposits, four of which became producing mines in the Athabasca Basin, Saskatchewan. Wheatley graduated with an H.B.Sc. from Laurentian University in 1980 and an M.Sc. from the University of Saskatchewan in 1985.
Jacqueline Collins — Corporate Secretary
Jacqueline Collins is a securities/corporate finance paralegal with over 25 years of experience as a legal administrator, corporate secretary and paralegal at independent and national law firms and public resource companies. She specializes in preparing and filing all securities documents with Canadian and US securities regulators, including all continuous disclosure documents.
Dan O’Brien, CPA, CA — CFO
Dan O’Brien is a member of the Institute of Chartered Professional Accountants of British Columbia and has over 15 years of experience working with public companies in the resource industry. Mr. O’Brien is the CFO for several publicly listed exploration companies trading on the TSX and TSXV exchanges and was previously a senior manager at a leading Canadian accounting firm where he specialized in the audit of public companies in the mining and resource sector.
Disclaimer: This profile is sponsored by Forum Energy Metals (TSXV:FMC,OTCQB:FDCFF). This profile provides information which was sourced by the Investing News Network (INN) and approved by Forum Energy Metals. in order to help investors learn more about the company. Forum Energy Metals is a client of INN. The company’s campaign fees pay for INN to create and update this profile.
INN does not provide investment advice and the information on this profile should not be considered a rExploring Three Highly Prospective Energy Metals Projects in Saskatchewanecommendation to buy or sell any security. INN does not endorse or recommend the business, products, services or securities of any company profiled.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Forum Energy Metals. and seek advice from a qualified investment advisor.
Advanced Projects in the Athabasca Basin
Often regarded as the of the world, the Athabasca Basin in Saskatchewan presents exceptional discovery and exploration opportunities for companies looking to enter the thriving uranium market.
According to leading strategists, uranium is still one of the best-performing commodities in the resource industry, despite a year of disruptions from COVID-19. With new reactors continually coming online to meet demand and a limited number of suppliers to fill it, looking to high-valued mining jurisdictions for uranium is one of the best strategies for companies trying to get ahead of the crowd.
Purepoint Uranium Group (TSXV:PTU,OTCQB:PTUUF) has been a major player in the Athabasca Basin for some time now, actively acquiring and operating an exploration pipeline of 12 advanced projects including its flagship Hook Lake project and Red Willow, Smart Lake, Turnor Lake, Henday Lake, Umfreville and the Tabbernor Block projects.
Purepoint Uranium’s flagship project, Hook Lake, is a joint venture with two of the largest uranium mining majors in the world, Cameco Corporation and Orano Canada. Purepoint Uranium holds a 21 percent ownership of Hook Lake and acts as the operator of the joint venture.
The company has another high-value joint venture with its partner Cameco Corporation in its Smart Lake project where Purepoint Uranium, as operator, holds a 27 percent ownership.
Outside its joint venture projects with the world’s largest uranium suppliers, Purepoint holds another 10 projects in the eastern Athabasca Basin, all of which are 100% owned with clearly defined uranium bearing targets that have been safely maintained in order to maximize their value in anticipation of the current uranium price revival.
As we now enter the beginning of an exciting bull rally in uranium, Purepoint is emerging as the pre-eminent uranium explorer in the world’s richest uranium district. The company is fully funded and with an aggressive exploration program currently underway.
With a strategic financial positioning and a market capitalization of approximatelyC$50 million, Purepoint’s strong capital poise the company for exceptional and deliberated positioning for uranium’s revival.
Purepoint’s leadership team is comprised of an independent, highly qualified group of experts with deep provincial and regulatory ties, as well as decades of experience in the Athabasca Basin. Together, their expertise in mining, finance and exploration prime the company for exceptional growth and uranium discovery potential.
Purepoint’s Company Highlights
- Purepoint has the most advanced exploration portfolio of uranium projects in the Athabasca Basin, the world’s richest uranium region
- Two high-value partnerships with Cameco Corporation and Orano Canada Inc. Together, they have joint ventures on the Hook Lake project and Smart Lake project.
- The company also operates a pipeline of ten, 100-percent owned, highly prospective uranium projects in Eastern Athabasca Basin, including the Red Willow, Turnor Lake, Henday Lake, Umfreville Lake and the Tabbernor Block properties.
- A fully funded aggressive exploration program is currently underway
- The company has a world-class leadership and management team with unparalleled experience in uranium mining and exploration expertise.
Purepoint Uranium Group’s Key Projects
Hook Lake Project
The Hook Lake property is located within the Patterson Uranium district and consists of nine claims totalling 28,598 hectares. The project is jointly owned by Cameco, Orano Canada and Purepoint Uranium. Operated by Purepoint since 2007, the project has seen significant discoveries and exploration campaigns.
A highlighted discovery on the property includes the Spitfire high-grade discovery which revealed 53.3 percent uranium oxides over 1.3 meters, including a 10-meter interval of 10.3 percent uranium mineralization measurements. Currently, three prospective structural “corridors” have been defined on the property, each of which consists of multiple EM conductors confirmed by drilling.
The 2021 program on the property saw a total of 2,556 meters of drilling and positive measurements that still require pending geochemical and assaying results for final interpretation.
Smart Lake Project
The Smart Lake property includes two claims across 9,860 hectares situated in the southwestern portion of the Athabasca Basin, approximately 60 kilometers south of the former Cluff Lake mine. As the project’s operator, Purepoint holds 27 percent ownership of Smart Lake in a joint venture with Cameco Corporation.
Aeromagnetic and electromagnetic patterns at Smart Lake reflect an extension of the patterns underlying the Shea Creek deposits. Uranium grades have revealed grades upwards of 58.3 percent uranium over 3.5 meters near the north point of the property. Exploration by Purepoint and Cameco has firmly established the presence of uranium mineralization, hydrothermal alteration and the location of several basement electromagnetic conductors, which have yet to be drilled.
Purepoint remains excited to continue exploring this element-rich property and tap into underexplored targets across Smart Lake.
Red Willow Project
The 100-percent owned Red Willow property consists of 17 mineral claims across a total area of 40,116 hectares on the eastern edge of the Athabasca Basin in Northern Saskatchewan. The property is located close to several uranium deposits including Orano Resources Canada Inc.’s JEB mine, approximately 10 kilometers to the southwest and Cameco’s Eagle Point mine that is approximately ten kilometers due south. Red Willow could see similar mining feats as these established assets.
Geophysical surveys conducted by Purepoint at Red Willow have included airborne magnetic and electromagnetic (VTEM) surveys, an airborne radiometric survey, ground gradient array IP, pole-dipole array IP, fixed-loop and moving-loop transient electromagnetics and gravity. A total of twenty-one conductive zones have been identified as priority exploration targets, which Purepoint remains excited to explore.
The 2021 Red Willow drill program returned uranium values (0.012% U3O8 over 5.5 metres and an additional 0.06% U3O8 over 0.4 metres from drill hole GEN21-05) and will be followed up in 2022.
Turnor Lake Project
The Turnor Lake project is a 100-percent owned asset that consists of four claims totalling 9,705 hectares on the eastern side of Canada’s Athabasca Basin. The property includes four defined exploration areas: the Serin Conductor, the Laysan zone, the Turnor Lake zone and the Turaco zone.
The Serein Conductor lies within the La Rocque corridor and hosts several major prospects including Cameco Corp’s La Rocque showing and IsoEnergy Ltd.’s Hurricane zone, which reported results of 38.8 percent uranium over 7.5 meters. Purepoint has already conducted extensive geophysical programs to outline approximately 34 kilometers of conductors throughout the Turnor Lake project. The company intends to continue to explore this asset through technological modelling, targeting and geochemical discovery.
Purepoint Uranium Group’s Management Team
Chris Frostad – BBA, CA, CPA, President & CEO
Chris Frostad is a founding partner bringing over 40 years of expertise to his position as president and CEO. He led Public Companies in both the technology and mining & metals industries.
Throughout his career, Frostad has been instrumental in the development and building of a variety of high growth, early-stage, public and private companies.
Before Purepoint, he held numerous senior positions in the technology industry including CEO in Residence of a Toronto-based Venture Capital firm. Frostad is a Chartered Accountant and a Chartered Professional Accountant who began his career in International Taxation with Deloitte.
Scott Frostad – BSc, MASc, P.Geo, VP of Exploration
Scott Frostad’s experience in the mining industry throughout Canada spans over three decades. He brings to his position as VP of Exploration a background in mineral exploration with renowned mining companies such as Lac Minerals, Teck and Placer Dome. Most recently, he was the environmental specialist for Cogema Resources Inc. and managed environmental issues at both the Cluff Lake and McClean Lake Uranium Mines in Northern Saskatchewan.
Frostad is a graduate of the University of Western Ontario with a B.Sc. in Geology and holds an M.A.Sc. in Mining and Mineral Process Engineering from the University of British Columbia. He is a Member of the Association of Professional Engineers and Geoscientists of British Columbia and the Association of Professional Engineers and Geoscientists of Saskatchewan.
Ram Ramachandran – BA, CA, CPA, CFO
Before his position as CFO with Purepoint, Ram Ramachandran brings an 11-year tenure as deputy director and associate chief accountant with the Ontario Securities Commission. Most recently, Ramachandran provided advisory services in the area of litigation/compliance to numerous companies. To his credit, Ramachandran conceived, developed and launched the Canadian Securities Reporting Advisor – an online compliance tool for public companies.
Linda Tong – B.Sc., GIS Specialist
Linda Tong has been Purepoint Uranium’s GIS Specialist since January 2006. She has over 20 years of experience in GIS application, GIS development and computer programming.
Tong is a graduate of Wuhan University with a B.Sc. in Computer Science & Application.
Jeanny So – Corporate Communications
Jeanny So has over 20 years of experience in operations, investor relations, sales & marketing in the financial industry and has executed corporate communication programs for several private and publicly-listed companies.
High Grade Uranium Exploration in Saskatchewan
Baselode Energy (TSXV:FIND, OTCQB: BSENF) is a uranium-focused exploration company with two high potential projects in the Athabasca Basin area, which accounts for roughly 20 percent of global annual uranium production. Baselode Energy is exploring for basement-hosted deposits outside of the traditional “unconformity-controlled”-type uranium deposits, with emphasis on avoiding sandstone cover, and instead focusing on near-surface, structurally-controlled mineralization that could be mined easier than deposits underneath sandstone cover.
The Athabasca Basin is located in the top Canadian mining investment jurisdiction of Saskatchewan, based on the Fraser Institute Annual Survey of Mining Companies 2019. Since 2008, basement-hosted, high-grade uranium deposit discoveries have spurred and reinvigorated an exploration rush in the Basin, with a number of discoveries having been made, especially by junior companies which have created massive shareholder returns. The highest-grade uranium mines in the world are all situated within the Athabasca Basin area and they include Cameco’s (TSX:CCO,NYSE: CCJ) Cigar Lake, the world’s highest grade uranium mine, as well as McArthur River/Key Lake, NexGen Energy’s (TSX:NXE) Arrow project and Denison Mines’ (TSX:DML) Phoenix and Gryphon deposits.
Baselode’s strategy and exploration model, Athabasca 2.0, is to explore overlooked and easily accessible basement rocks with little to no sandstone cover along deep structural corridors that host known high-grade uranium deposits. Baselode Energy’s 100 percent owned Shadow project covers one of these corridors along the Virgin River Shear Zone, which was recently confirmed by an airborne magneto-telluric survey.
Baselode Energy has a solid management team made up of individuals with technical and capital markets experience. CEO James Sykes has a proven track record as he brings more than 15 years of Athabasca experience and discoveries to the team. He has been directly and indirectly involved in the discovery of over 550,000,000 pounds of uranium in the Basin.
Baselode Energy’s Company Highlights
- Focused on exploring for near-surface, basement-hosted high-grade uranium deposits in the Athabasca Basin area—the Athabasca 2.0 model
- Maiden drill program at Shadow slated for Q4 2020/Q1 2021
- Baselode uses “out-of-the-box” thinking and unique methodologies to increase the chances of making a discovery
- Directed by an excellent management team with the right technical and capital markets experience
- Tight capital structure with ~40 million shares outstanding and ~50 percent controlled by insiders, meaning potential for massive shareholder wealth
- Both Shadow and Hook projects are located within 50 km of highways, they are near power lines and the Hook project is in close proximity to a uranium mill
- Saskatchewan is rated as one of the top 10 global jurisdictions for mining investment on the Fraser Institute Annual Survey of Mining Companies 2019, and the top jurisdiction in Canada
- Baselode intersected numerous intervals of elevated radioactivity within two new diamond drill holes at the ACKIO target on its Hook Uranium project Athabasca Basin area, northern Saskatchewan.
Baselode Energy’s Key Properties
Baselode Energy’s primary properties are the Shadow and Hook projects. Both properties are located outside the Athabasca Basin but share similar geology as those corridors that host high-grade uranium deposits. The 100,000 km² Basin hosts the highest uranium grade deposits in the world. Uranium was first discovered in the region in the 1940s, giving the Basin a rich exploration and mining history.
The Shadow Project is a 42,000 hectare property located along the Virgin River Shear Zone (VRSZ) to the south of the Athabasca Basin. The property is 100 percent owned by Baselode Energy with no underlying royalties. Shadow has structural and geophysical features similar to multiple high-grade deposits across the entire Athabasca Basin, and the VRSZ is already a host to several uranium deposits. The geophysical features showcase that the Shadow property covers a deep-rooted structural corridor with numerous loci for structural fluid traps. The Shadow property is conveniently located along a regional dilational jog along the VRSZ, a perfect place to draw in uranium-rich fluids for deposition and deposit formation.
The basement rocks underlying the VRSZ are naturally rich in uranium. An airborne radiometric anomaly over 10 km in length has been discovered on the property, pointing to either a large boulder field, bedrock exposures with elevated concentrations of uranium or possibly high-grade but narrow uranium veins. Baselode Energy plans to explore the property and test some high-priority target areas with diamond drilling scheduled for Q4 2020/Q1 2021, and the company also plans to assess the airborne radiometric anomalies during the summer months of 2021.
The Hook project property, which covers 30,000 hectares, is situated about 60 km northeast of the Key Lake mill and 75 km southeast of the McArthur River mine. The property was staked between two high-grade uranium occurrences: Cameco’s McArthur River mine to the northwest and the Hook Lake high-grade surface showing (average 44.5 wt% U3O8) to the southeast. The property location provides Baselode the confidence that the Hook project is ripe for discovery. Although Hook is located outside the Athabasca Basin, the area was once covered with Athabasca sandstones, which have since been eroded. The basement rocks of the property are those of the Wollaston domain, which hosts the highest-grade uranium deposits in the world. This property is 100 percent owned by Baselode Energy without option agreements or underlying royalties.
Although the Hook Lake high-grade uranium showing is adjacent to the property, that showing already indicates something fundamental about the potential for additional high-grade uranium discoveries waiting to be made in the area. Baselode’s Hook property covers a few uranium showings of interest: the Art Lake showing with visible uranium stains at surface and a radioactive boulder train. For Baselode, exploration of the Hook project will combine mapping structural displacements, research of historic work on the property and follow-up ground prospecting and geophysics in search of high quality targets for drill testing. Once the company has identified the target areas, the project will be ready for diamond drilling.
Baselode Energy’s Management Team
James Sykes – CEO, Director
Mr. James Sykes is a successful geologist with multiple uranium discoveries. The professional has 15 years of experience in Athabasca Basin uranium exploration and discovery. He has previously been involved with NexGen’s Arrow deposit discovery and Hathor Exploration’s Roughrider deposits, both of which successfully created large shareholder wealth. There is a good chance that Sykes, who has helped discover 550 million pounds of uranium, will find more.
Stephen Stewart – Director
Stephen holds a Bachelor of Arts, Master of Business Administration and Master of Science. Apart from serving as a director at Baselode Energy, he is also the CEO and Director of Orefinders Resources Inc. and PowerOre Inc. In addition, Stephen is also Managing Partner of Minvest Partners and founder and chairman of Young Mining Professionals Scholarship Fund.
Charles Beaudry – Director
Charles Beaudry is an accomplished geologist with over 30 years of experience. The professional is also experienced in project generation, exploration chemistry, business development and project management. Between 2008 and 2009, Charles served as the General Manager of new business opportunities at IAMGOLD Corporation.
Gautam Narayanan – Director
Gautam Narayanan wears many hats. The geologist and business administration executive is the VP of Corporate Development for Power Ore Inc. and Orefinders Resources Inc. He is also a Director of Mistango River Resources. In the past, Gautam worked at Canaccord Genuity, where he focused on equity research.
Michael W. Mansfield – Director
Mr. Michael Mansfield is an investment professional with more than 20 years’ experience. He has helped numerous companies go public by assisting in the completion of qualifying transactions. Michael works with Industrial Alliance Securities Inc. and also as an investment advisor in the Canadian venture market.
Exploring for Uranium in Saskatchewan’s Athabasca Basin
Fission 3.0 (TSXV:FUU,OTCQB:FISOF,FSE:2F3A) is a leading uranium project generator developing a portfolio of properties in Saskatchewan's Athabasca Basin, home to over 60 years of mining exploration and development, producing grades anywhere from 10 to 20 times higher than the global average at nearly two percent U3O8. The company follows a business model of exploration, development and de-risking on the path towards production.
Fission 3.0 has a proven track record of successfully identifying and developing uranium projects. The company is led by CEO Dev Randhawa and COO Ross McElroy, who have been instrumental in the discovery and development of a number of significant uranium projects, including Fission Uranium's Triple R deposit. Randhawa and McElroy founded Fission Energy, which became Fission Uranium (TSX:FCU,OTCQX:FCUU), after selling a portfolio of properties and their 60 percent ownership in the Waterbury Lake deposit in Jan 2013. Fission Energy went on to discover the Triple R deposit which it holds to this day (132mm lbs of 2 percent U3O8). Fission 3.0 was formed later (December 2013 ) when Fission Uranium decided to spin out all other existing properties in the Fission Uranium portfolio into Fission 3.0 so that it could focus solely on the Triple R discovery.
Fission 3.0 is leveraging its experience and familiarity with the Athabasca Basin to develop a significant portfolio of uranium projects in the region, including 18 projects in or around the Basin. The company has divided its projects into four main location areas in the region: the Beaverlodge Area Projects, the PLS Area Projects, the Key Lake Road Projects and the NE Athabasca Basin.
The company is focused on its exploration efforts in Saskatchewan's Athabasca Basin, believed to have produced 13.2 percent of the world's uranium. Saskatchewan's rich resources and mining-friendly government have helped drive exploration work in the area for a number of years. According to the Fraser Institute's 2018 annual survey, Saskatchewan was ranked the second-friendliest mining jurisdiction in the world. The Athabasca Basin's rich uranium deposits and high grades have resulted in a number of major uranium projects, including Cameco's Cigar Lake and McArthur River projects, NexGen's (TSX:NXE, NYSE:NXE) Arrow deposit, Denison Mines' Phoenix project, and many others. The projects in the Athabasca Basin have provided the area with excellent infrastructure that Fission 3.0 intends to leverage as it develops its portfolio of projects.
Fission 3.0 is currently focusing its 2020 exploration efforts on the Cree Bay project in the northeast portion of the Athabasca Basin, which is located only 15 kilometers away from the past-producing Nisto uranium mine. The project comprises 16 mineral claims totaling 14,080 hectares, the latest of which overlie the Black Lake Fault, which is associated with Cameco's (TSX:CCO, NYSE:CCJ) Centennial deposit. In addition to Cree Bay, Fission 3.0 has committed to focusing its 2020 exploration efforts on the Hearty Bay and Beaver River projects. All three projects are 100-percent owned by Fission 3.0.
After production cuts were announced by major uranium producers including Cameco and Kazatomprom in 2020, industry stakeholders have speculated a supply deficit could occur moving forward. “With rising spot prices and positive sentiment, the outlook for uranium explorers has significantly improved in recent months. Fission 3.0 owns an exceptional portfolio in the Athabasca Basin, with projects that are prospective for both high-grade and shallow mineralization. Following an in-depth technical review we have now prioritized our key projects moving forward," said Ross McElroy, COO and Chief Geologist for Fission 3.0.
Fission 3.0's Company Highlights
- Developing a portfolio of 18 projects in Saskatchewan's Athabasca Basin including a collection of properties surrounded by producing uranium mines
- Focused on three highly prospective uranium projects: Cree Bay, Hearty Bay and Beaver River
- Each project benefits from the policies and mining support that caused Saskatchewan to be ranked the 9th best mining jurisdiction in the world in 2019
- Prospecting at Hearty Bay has identified 45 new occurrences of radioactive boulders, including those returning assay samples of up to 8.23 percent U3O8
- Drilling at Beaver River's Trigger Zone returned 13.9 percent U3O8, 2.27 g/t gold, 5.93 percent U3O8 and 1.55 g/t gold
- CEO & Chairman Dev Randhawa and COO & Chief Geologist Ross McElroy lead the same group that made both the Patterson Lake South (PLS) high-grade discovery and the J-Zone high-grade discovery in the Athabasca Basin
- Leveraging extensive exploration experience and expertise as demonstrated by Fission Uranium at the Triple R deposit
- Company management and technical team has established significant partners and relationships with those working in the Athabasca Basin
- Fission 3.0 acquired two new properties, Grey Island and Flowerdew, in the Athabasca Basin region of Saskatchewan expanding the company's total 16 properties, comprising of 212,446 hectares in the region.
New Property UpdateFission 3.0's Cree Bay Project
Fission 3.0's current focus is the Cree Bay project which comprises 16 mineral claims totaling over 14,000 hectares in the northeast portion of Saskatchewan's Athabasca Basin. The project is only 20 kilometers south of the town of Stony Rapids, which provides seasonal access via the west side of the property.
In 2019 Fission 3.0 conducted a three-hole drill campaign on the Cree Bay property that focused on a 1.2-km resistivity anomaly that was identified by Fission 3.0 during previous ground geophysics surveys. The first pass of the company's drill program encountered faulting, strong hydrothermal alteration and elevated concentrations of pathfinder elements in both holes. Fission 3.0 believes pathfinder elements including uranium and boron can help to identify prospective areas of mineralization.
Fission 3.0's Hearty Bay Project
The Hearty Bay project comprises five land claims totaling 9,804 hectares located on the north edge of the Athabasca Basin, approximately 60 kilometers east of the Beaver Lodge uranium district. The Hearty Bay project surrounds a historic trend of radioactive sandstone boulder trains that contain up to three percent uranium.
In July 2019 Fission 3.0 began exploring the Hearty Bay project for the source of the high-grade uranium boulder trains previously identified on the property. The company's glaciologists set out to conduct detailed geomorphological mapping in an effort to determine the direction of the ice flow and assist with locating the source of boulders.
The prospecting work conducted on the Wolfe and Jackfish boulder fields in the area identified 45 new occurrences of radioactive boulders, including those returning assay samples of up to 8.23 percent U3O8. Complimentary surveys conducted at the time including glacial directional flow determination pointed to a likely direction of the boulder fields and have helped identify markets for the potential source of radioactivity. Over 24 percent of the boulders tested in the region returned greater than one percent U3O8.
Fission 3.0's Beaver River Project
The Beaver River project comprises 19 mineral claims totaling nearly 14,000 hectares just outside the Athabasca Basin. The property hosts four historical uranium showings, the Matthews Lake showing, the Cluster showing, the VIC north uranium zone and the VIC south uranium zone.
The Matthews showing has been trenched and stripped with samples assaying 0.23 percent U3O8 across 1.5 feet and 1.77 percent U3O8 across 3 feet. The Cluster showing appears to occur in shear zones with past trenching revealing uranium staining. Each of the VIC uranium zones has been trenched and sampled, with high-grade veins in trenching at the north zone returning 25 percent uranium over 3.5 meters within 2.6 percent uranium over 7.3 meters.
At VIC south, grab samples have returned up to 31 percent U308 with channel sampling returning 16 percent U3O8 across 0.41 meters of vein material and 1.28 percent U3O8 over 2.4 meters. Drilling in the area returned 0.6 meters of 2 percent copper, 1 percent nickel, 0.06 percent U3O8, 0.06 oz/ton gold and 0.70 oz/ton silver.
In 2019 Fission 3.0 announced it had discovered new areas of high-grade uranium and gold at multiple locations, identifying the Trigger Zone in the process. Samples taken from the newly-named zone returned 13.9 percent U3O8 and 2.27 g/t gold and 5.93 percent U3O8 and 1.55 g/t gold, confirming the presence of high-grade uranium, gold, copper and nickel at historical showings in the process.
Fission 3.0's Management Team
Dev Randhawa – Chairman & CEO
Dev is an experienced CEO and has a wealth of experience in growing resource, mining exploration, and energy companies. Northern Miner Magazine named Dev 'Mining Person of the Year 2013' and Finance Monthly awarded him with their 'Deal Maker of the Year 2013' award. As part of the Fission team, Dev has won the Mining Journal Excellence Award 2015 for Exploration. He is currently CEO of Fission 3.0 Corp and Fission Uranium Corp which made the shallow depth, high-grade uranium discovery at PLS.
Ross McElroy – COO
Ross McElroy is a professional geologist with nearly 30 years of experience in the mining industry. He has comprehensive experience with working and managing many types of mineral projects from grassroots exploration to feasibility and production. Mr. McElroy has held positions with both major and junior mining companies, which include BHP Billiton, Cogema Canada (now AREVA), and Cameco. He was a member of the early-stage discovery team of the MacArthur River uranium deposit.
Ryan Cheung – CFO & Corporate Secretary
Ryan Cheung provides accounting, management, securities regulatory compliance services to private and public-listed companies. Mr. Cheung also serves as an officer and/or director of a number of public-listed companies. Mr. Cheung holds a Bachelor of Commerce degree from the University of Victoria and is a member of the Chartered Professional Accountants of British Columbia.
Phil Morehouse – Director
Mr. Morehouse is the former Executive Vice-President for Sernova Corp., as well as the JV manager for Fission Energy Corp. prior to the sale of the company to Denison Mines in 2013. He founded his own consulting company in 1990 and, for nearly 25 years, has provided leadership and management services to a wide range of public companies. Mr. Morehouse was a consultant to Fission Uranium Corp., prior to his appointment as President of Fission 3.0 Corp.
Frank Estergaard – Director
Mr. Estergaard is a professional Chartered Accountant who retired as a Partner with KPMG in 2001. His career with KPMG spanned 38 years, providing audit, taxation, and business advice to clients in Vancouver, Vernon, Ottawa, and Kelowna. He served a wide variety of corporations in the forestry, mining, real estate and land development, high technology, manufacturing, wholesale and retail industries. These companies ranged from start-ups to mature enterprises with both domestic and worldwide operations. In addition, he served on the Management Committee and Partnership Board of KPMG.
William V. Marsh – Advisor
Mr. Marsh previously worked on domestic and international drilling programs for Chevron for 15 years both in Canada and Internationally. Mr. Marsh was a former director of Pacific Asia China Energy until its sale to Green Dragon Gas wholly-owned subsidiary, Greka China Ltd, for 35.18 million in 2008. He was also a former director of Predator Capital Corp. and Wolf Capital Corp. and is currently on the Board of Ballyliffin Capital Corp. Mr. Marsh has also provided consulting services to a number of resource exploration and production companies, both public and private, operating in Canada and internationally.
John Dejoia – Technical Advisor
Mr. Dejoia has over 40 years in the uranium industry and has held positions as Chief Geologist, Director of Technical Services, Construction Manager and Senior Vice-President positions. He has worked in every sector of the uranium industry, including mining, where he was directly responsible for mining 22 million pounds of uranium, along with managing Geologic, Engineering, Environmental and Land projects throughout his career. He has also worked in open-pit, underground and In-Situ uranium production, exploration, mine development and nuclear remediation. Mr. Dejoia has a B.S. in Geology from the University of Wyoming.
The information contained here is for information purposes only and is not to be construed as an offer or solicitation for the sale or purchase of securities. Readers should conduct their own research for all information publicly available concerning the company. Prior to making any investment decision, it is recommended that readers consult directly with Fission 3.0 and seek advice from a qualified investment advisor.
Finding the Fuel to Power a Clean Energy Future
Standard Uranium Ltd. (TSXV:STND, OTCQB:STTDF) is a uranium exploration company aiming to leverage its geological experience to make additional discoveries in Saskatchewan’s renowned Athabasca Basin. The company is currently focused on the exploration of the Davidson River uranium project, which is located in the southwest portion of the Basin. In March 2020 Standard Uranium filed a NI-43 101 compliant technical report on the Davison River project, outlining the potential for a two-phase exploration program to expand the company’s understanding of the property.
Standard Uranium believes it has assembled the team and land package necessary to make the next major uranium discovery in the Athabasca Basin. The company intends to leverage its experience in the area to advance potential future discoveries. Standard Uranium believes the Clearwater Domain Mirror Theory suggests the exploration corridors on the west of the Clearwater Domain could have similar uranium deposits as those on the east.
In July 2020 Standard Uranium announced it had expanded its land holdings in the Athabasca Basin by acquiring the Ascent and Canary projects through staking. The two projects, totaling 11,040 hectares, are both located in the eastern Athabasca Basin. Shortly after, Standard Uranium added three new mineral claims that are adjacent to the company’s existing holdings at the Gunnar Project located in the Beaverlodge Uranium District. The 15,770-hectare Gunnar Project contains unconformity and basement-hosted uranium targets, including historically identified uranium mineralization in the Athabasca sandstone.
In an effort to strengthen its exploration team, Standard Uranium recently announced the addition of Galen McNamara and Sean Hillacre to its technical team. Mr. Sean Hillacre has been named the company’s Project Manager for the upcoming Davidson Drill Program, while Mr. Galen McNamara has been named Technical Advisor. Hillacre has experience in the region after working with NexGen Energy as an exploration geologist as part of the technical team that developed the Arrow Deposit. McNamara also brings considerable exploration experience to the team after managing all field-based drilling and exploration activities for NexGen. McNamara earned the 2018 PDAC Bill Dennis “Prospector of the Year” Award and 2016 Mines and Money Exploration Award for his work on the Arrow Deposit.
Moving forward, Standard Uranium intends to continue to explore the Davidson River Project including an inaugural exploration drilling program expected to begin in Q3 2020. The company is optimistic that it has one of the most promising land packages in Saskatchewan’s Southwest Athabasca Basin, which has attracted the attention of resource companies including Cameco (TSX:CCO, NYSE:CCJ), Orano, NexGen Energy (TSX:NXE, NYSE:NXE), Fission Uranium (TSX:FCU, OTCQX:FCUUF), Fission 3.0 (TSXV:FUU, OTCQB:FISOF) and Denison Mines (TSX:DML, NYSE:DNN).
Standard Uranium’s Company Highlights
- Davidson River uranium project comprises 25,886 hectares of the Patterson Lake Uranium District, located in the southwest Athabasca Basin
- The Davidson River Project is highly prospective for basement hosted uranium deposits yet remains untested by drilling despite its location along trend from recent high-grade uranium discoveries. NI-43 101 Technical Report filed on the Davidson River project outline the potential for a two-phase exploration program
- Ascent and Canary projects are located within the Eastern Athabasca Basin region, and compliment the existing Atlantic Project
- Gunnar project, located south of the Beaverlodge Uranium district, and is targeting unconformity-style uranium mineralization
- Geological team has proven experience in the Athabasca Basin
- Director Garrett Ainsworth led the NexGen technical team, which discovered the Arrow deposit in the Athabasca Basin
Standard Uranium’s Flagship Davidson River Project
Standard Uranium’s Davidson River uranium project comprises 25,886 hectares including 21 mineral claims in the heart of the Patterson Lake uranium district. The district is within the southwest portion of Saskatchewan’s Athabasca Basin. Staking on the property was not authorized until 2012 due to previous oil and gas reserves found in the area.
In 2018, Standard Uranium acquired the core claims at the Davidson River project from a property vendor. Standard Uranium conducted a geophysics program on the Davidson River Project in 2018, including a VTEM survey that confirmed the conductors within exploration corridors that were previously conceptualized by Standard Uranium’s geological team.
Standard Uranium’s Other Projects in the Athabasca Basin
In July 2020 Standard Uranium expanded its assets in the Athabasca Basin by acquiring two projects, Canary and Ascent, through staking. Both projects are located near Standard Uranium’s Atlantic project, which is located approximately a dozen kilometers away from IsoEnergy’s Hurricane Zone at its Larocque East project.
Also in July 2020, Standard Uranium expanded its land package in the Beaverlodge Uranium District by staking three new claims next to its existing ones at the Gunnar Project. These new claims contain unconformity-and basement-hosted (“unconformity-style”) uranium targets.
The Canary Project comprises two claims totaling 7,303 hectares with a depth that reaches the sub-Athabasca unconformity between 84 meters and 230 meters from the surface. Historical airborne EM work was conducted on the claims between 1993 and 2006 that identified three conductive corridors that are prospective for host rocks for uranium mineralization. Historical drill hole CRK-137 identified highly anomalous uranium enrichment near the unconformity with 10 ppm uranium over 7.4 meters in systematic composite sampling of the sandstone. Within this zone, a discrete 0.5m sub-interval returned 103.1 ppm uranium and a 1.0m interval in the graphitic meta-sediments immediately below the unconformity returned 200.0 ppm uranium.
The Ascent Project comprises one claim totaling 3,737 hectares with depth to the sub-Athabasca unconformity that is known to be between 0 and 50 meters from the surface. Historical airborne EM work was conducted on the property between 1979 and 2006 that identified one large, six-kilometer long and three-kilometer wide conductive corridor with numerous target areas related to potential cross structures. Ground EM surveys were conducted in the early 1980s that confirmed the airborne targets.
In 1979 a lake sediment program conducted on the property identified a very high-priority polymetallic anomaly located immediately above the conductive target. The current exploration model for the Ascent project is analogous to that of the J-Zone and Roughrider deposits, which are interpreted by the company to be shallow-dipping conductive bodies.
The Gunnar Project comprises five claims totaling 15,770 hectares, and is located at the northern margin of the Athabasca Basin. The new claims of the Gunnar Project have many attributes that are favourable for high-grade unconformity-style uranium mineralization such as uranium-enriched bedrock, reactivated structures in the basement, Athabasca Sandstone cover and favourable basement lithologies. The Gunnar Project contains two main target areas that contain uranium mineralization and fit the model of an unconformity-style uranium deposit style.
Standard Uranium’s Management Team
Jon Bey – President, Chief Executive Office, Director
Mr. Bey is a capital markets executive with over 13 years in the junior exploration industry with experience in uranium, gold, silver, lead, zinc, diamonds and oil and gas. He has public company experience across several sectors and with companies listed on the TSX, TSX-V, CSE, and LSE Exchanges. Mr. Bey is the founder and Managing Director of the Steel Rose Group of companies.
Neil McCallum – V.P. Exploration, Director
Mr. McCallum has over 15 years of experience primarily in North American mineral deposit exploration, with a focus on targeting and discovery of unconformity-related uranium deposits. He is currently a Senior Geologist at Edmonton based Dahrouge Geological Consulting Ltd. Mr. McCallum has managed and conducted uranium exploration in and around the Athabasca Basin and other jurisdictions for multiple companies.
Garrett Ainsworth – Independent Director
Mr. Ainsworth recently led the NexGen technical team from June 2014 to April 2018, and was co-recipient of the 2018 PDAC Bill Dennis Award for the Arrow Uranium Deposit in the southwest Athabasca Basin, Saskatchewan. Prior to NexGen, Mr. Ainsworth was co-recipient of the 2013 AME BC Colin Spence Award. This honour was in recognition of his efforts which led to the discovery of the high-grade uranium mineralized system on the Patterson Lake South Project in the southwest Athabasca Basin, Saskatchewan, which is presently owned by Fission Uranium Corp.
Blair Jordan – Independent Director
Mr. Jordan was most recently Managing Director of Investment Banking at Echelon Wealth Partners Inc., and before that, spent nearly 10 years with Credit Suisse in London, New York and Tokyo. Before joining Credit Suisse, he was a securities lawyer with Bennett Jones LLP in Calgary. He holds an MBA from the Booth School of Business at the University of Chicago, and an LLB from the University of British Columbia. As a former banker, Mr. Jordan has extensive experience working in public markets.
Ms. Laurie Thomas – Vice President of Investor Relations.
Ms. Thomas is a Chartered Professional Accountant and Certified Professional in Investor Relations with more than 15 years of professional experience. Most recently, she held the position of Vice President Corporate Relations at UEX Corporation, a junior uranium and cobalt exploration company. She was responsible for leading and developing a high performing team accountable for shaping, articulating, and managing the UEX story and its strategic relationship with key stakeholders. Prior to UEX Corporation, Ms. Thomas worked with Cameco Corporation for 10 years where she held the position of Manager, Investor Relations.
Developing an Exploration Package in the Athabasca Basin
CanAlaska Uranium (TSXV:CVV,OTCQB:CVVUF) is a Canadian exploration company developing a portfolio of high-grade uranium and nickel projects located across the country. The company follows a project generator model, with properties in both the Athabasca and the Thompson Nickel Belt region.
CanAlaska Uranium collectively holds one of the largest land positions in the Athabasca Basin with approximately 1.2 million acres in land claims. In total, the company holds 12 uranium projects. The company’s strategic investments have attracted the interest of major mining companies including Cameco (TSX:CCO,NYSE:CCJ), Denison (TSX:DML,NYSE:DNN). Prior activities have been with KORES, KEPCO, Mitsubishi and De Beers.
CanAlaska Uranium’s flagship West McArthur project is a joint venture in partnership with Cameco, with CanAlaska serving as operator. Results from the 2019 drill program at West McArthur returned 0.70 meters at 6.8 percent U3O8 within 2.1 meters averaging 2.3 percent U3O8. This drilling extended earlier 5 percent U3O8 drill intersections, and confirmed an extensive mineralizing event. The 2019 results contained high-grade uranium as well as base metal mineralization, similar in character to the nearby high-grade Fox Lake uranium deposit.
In May 2020 CanAlaska Uranium announced the company had staked a further 29,671 hectares of land in four large blocks northeast of the Athabasca Basin. While the project areas lie outside the current boundaries of the Basin, the sandstone remnants described in the Pinkham Lake area reflect an extension of Athabasca mineralization.
CanAlaska Uranium has also entered into an option agreement with Fjordland Exploration (TSXV:FEX) giving the company an opportunity to earn 80 percent interest in CanAlaska’s North Thompson Nickel project. According to the agreement, Fjordland has an opportunity to earn an 80 percent interest in the North Thompson Nickel Project by contributing exploration expenditures of $9M, 8.5M common Fjordland Exploration shares and other considerations.
CanAlaska Uranium’s Company Highlights
- Holds an extensive portfolio of uranium and nickel projects in Canada, including projects located in the Athabasca Basin and Thompson Nickel Belt
- West McArthur uranium project is under a joint venture with Cameco, with a 2019 drill program extending the high-grade uranium zone on the property
- 2019 drill results at West McArthur returned 0.70 meters @ 6.8 percent U3O8 within 2.1 meters averaging 2.3 percent U3O8
- Portfolio of resource projects have attracted the current attention of Cameco and Denison
- Partnered with Fjordland Exploration on the North Thompson Nickel Project
- CanAlaska completed its winter drilling on its wholly-owned Waterbury uranium project and intersected polymetallic mineralization. The program consisted of 1,347.5 metres of drilling in three drill holes.
CanAlaska Uranium’s West McArthur Property
The West McArthur project is located in the Athabasca Basin approximately six kilometers away from the producing McArthur River mine owned by Cameco. Between 2002 and 2012, McArthur river produced 225.5 million pounds U3O8 grading 13.5 percent U3O8 per tonne. The project was consolidated by CanAlaska Uranium in 2016, giving the company 100 percent ownership of the property following a deal with Mitsubishi Development Pty Ltd.
Under an option agreement signed with Cameco, CanAlaska Uranium conducted drilling on the West McArthur property that returned a new zone of high-grade uranium mineralization at Grid 5. In 2018, the company resumed operatorship of the West McArthur property with Cameco signed on as a 30 percent joint venture partner. Under the terms of the joint venture agreement, both CanAlaska and Cameco agreed to focus on expanding Grid 5 with a 2019 drill program.
In October of 2019, CanAlaska Uranium announced the results from its 2019 drill program in partnership with Cameco. Highlights of the drill results included 0.70 meters at 6.8 percent U3O8 within 2.1 meters averaging 2.3 percent U3O8.
CanAlaska Uranium’s Cree East Project
The Cree East uranium project is located in the southeast corner of the Athabasca Basin, approximately 35 kilometers west of Cameco’s Key Lake Mine and uranium mill. The project comprises 16 contiguous mineral claims totaling 55,935 hectares. The project is wholly-owned by CanAlaska Uranium, which has established nine target areas across the property, with the prior assistance of KEPCO and KORES.
CanAlaska first began exploring Cree East in 2005, conducting VTEM airborne surveys across the property to determine priority targets. In 2006 the company collected over 2,000 surface rock samples and over 400 lake sediment samples, defining three large areas of dravite and clay alteration on the surface, with localized boulder samples containing anomalous uranium. CanAlaska later conducted additional IP-Resistivity and Audio Magneto Telluric geophysical surveys to further define the targets.
In 2008 CanAlaska Uranium conducted a $1.6 million exploration program at Cree East, returning strong fracturing and alteration in most drill holes with faulting in many of the drill holes as well. Geochemical enrichment of uranium and other elements was found in both the basement and sandstone.
Exploration work including additional geophysical surveys was conducted on Grid 7 at Cree East between 2009 and 2012 in order to improve the drill targets on the property. In total, 91 holes were drilled covering 34,638 meters resulting in nine target zones. All nine zones have shown indications of hydrothermal alteration or uranium mineralization.
Northeast Athabasca Targets
In May 2020 CanAlaska announced it had staked four large blocks of land just outside of the Athabasca Basin totaling 114 square miles. The staked area focused on regional structures similar to those hosting the nearby high-grade Collins Bay-Eagle Point uranium deposits.
The targets on the four land claims are basement-hosted large uranium deposits similar to those found at Eagle Point, Arrow and Millennium. CanAlaska Uranium believes the sandstone remnants described in the nearby Pinkham Lake area reflect the possibility that the area could be a continuation of the Athabasca Basin.
Thompson Nickel Properties
CanAlaska Uranium owns three properties in the Thompson Nickel Belt: Strong, Hunter and Manibridge. The Thompson Nickel Belt is home to over 18 nickel deposits. Since 1959, the region has produced an estimated 5 billion pounds of nickel.
The Hunter Property is located 20 kilometers north of Thompson, Manitoba. The property consists of 11 land claims totaling 12,520 hectares and has been approved for a mineral exploration license. CanAlaska Uranium believes the property is underlain by the same series of formations that host the nickel deposits along the Thompson Nickel Belt and considers the property to be an extension of the belt. Using historical exploration data, a number of exploration targets have been defined surrounding the Mel deposit, which was first located in the 1970s.
From 2000 through 2005 CanAlaska Uranium conducted extensive UTEM and AMT surveys, resulting in a high number of drill targets. A number of these targets are expected to require follow-up work.
The Strong project is comprised of 6,140 hectares of land approximately 26 kilometers away from Thompson, Manitoba including one mineral exploration license. The Strong property was explored by a number of companies during the 1950s and 1970s, leading to the discovery of the Mel deposit located to the east of the Hunter property. Falconbridge and Crowflight Minerals Inc. were previously active on the Strong Property between 1998 and 2005.
CanAlaska Uranium has established significant exploration targets that have been defined on both properties based on historical data. A VTEM survey completed in 2007 provided the company with a series of targets, none of which have been drilled. Several of these targets are in the same structural position as the Mel deposit.
The Manibridge Property, acquired by CanAlaska Uranium in 2018, consists of 19 land claims totaling 4,368 hectares. The property is located 125 kilometers southwest of Thompson and is accessible by road via Highway 6. The claims held by CanAlaska Uranium also include the site of the reclaimed Manibridge Mine, which operated between 1971 and 1977 based on an initial resource of 1.4 million tonnes at an average grade of 2.25 percent nickel and 0.27 percent copper.
North Thompson Nickel Project
In May 2020 CanAlaska Uranium announced the company had entered into an option agreement with Fjordland Exploration (TSXV:FEX) giving the company an opportunity to earn 80 percent interest in CanAlaska’s North Thompson Nickel project.
Under the terms of the agreement, Fjordland has an opportunity to earn 80 percent interest in the North Thompson Nickel Project by contributing exploration expenditures of $9M, 8.5M common Fjordland Exploration shares and other considerations. The North Thompson Nickel Project consists of the Strong, Hunter and Hunter Claims for a combined total of 18,685 hectares located approximately 25 kilometers from Thompson, Manitoba.
CanAlaska Uranium’s Management Team
Ambassador Thomas Graham Jr. — Chairman of the Board, Director,
Ambassador Thomas Graham, Jr. is one of the world’s leading experts in nuclear non-proliferation. Amb. Graham has served under four successive U.S. Presidents as a senior U.S. diplomat involved in the negotiation of every major international arms control and non-proliferation agreement for the past 35 years. This includes the SALT, START, ABM, INF, NPT, CFE and CTBT Treaties. Amb. Graham has served with the U.S. Arms Control and Disarmament Agency and as the Special Representative of the President of the United States for Arms Control, Non-Proliferation, and Disarmament, in which role he successfully led U.S. government efforts to achieve the permanent extension of the Nuclear Non-Proliferation Treaty.
Cory Belyk — CEO and Executive Vice President
Cory Belyk is a professional geologist with nearly 30 years of experience working for major and junior mining companies in the Athabasca Basin and worldwide. Prior to joining CanAlaska in 2019 as Chief Operating Officer, he was Director of Exploration for Cameco’s international operations including Mongolia and Australia. Mr. Belyk was also a member of Cameco’s exploration management team during the Fox Lake and West McArthur uranium discoveries in Saskatchewan. Mr. Belyk holds a Bachelor’s (1994) degree in Geology from the University of Saskatchewan and a Certificate in Negotiation from Harvard Law School (2014). He is a registered member of the Association of Professional Engineers and Geoscientists of Saskatchewan.
Peter G. Dasler — P.Geo. President, Director
Recognizing the favorable upturn of the uranium cycle in early 2004, Mr. Dasler positioned CanAlaska Uranium (then CanAlaska Ventures Ltd.) to become a significant presence in the field of Canadian uranium exploration by staking mineral claims in the most favorable districts of Canada’s Athabasca Basin, home to the world’s largest-richest uranium mines. He has since assembled an expert geological team that has enabled CanAlaska to carry out over $50 million in exploration and advance multiple uranium projects towards discovery.
Nathan Bridge — Vice President of Exploration
Nathan Bridge has over a decade of experience managing exploration, delineation, and geotechnical drilling programs at Cameco Corporation. He was senior Geologist on Cameco’s Fox Lake discovery team that took the deposit from exploration stage, through discovery, and into resource definition. Nathan has spent the majority of his career exploring uranium and in 2017 he led the exploration program that discovered the 42 Zone on the Company’s West McArthur project.
Dr. Karl Schimann — Senior Exploration Consultant
Dr. Schimann possesses extensive experience in mineral exploration, spanning a career in exploration geology of over 30 years and across three continents. He has participated in significant discoveries for uranium and base metals and has also led various exploration and mining initiatives for gold and diamonds. Between 1977 and 1997, Dr. Schimann was employed by French uranium giant AREVA (previously COGEMA) as a Senior Geologist and Project Manager, where he was a key member of the team that undertook the discovery and development of the massive Cigar Lake uranium mine. In total, he spent twenty years with AREVA, ten of which were based in Canada’s Athabasca Basin, home to the world’s largest-richest uranium mines.
Harry Chan — Chief Financial Officer
Harry Chan has over 20 years of experience working in several different industries ranging from public practice, sports entertainment, wholesale distribution and telecommunications. He is a graduate of the University of British Columbia and received his Certified General Accountant designation in BC in 1996.
Jean Luc Roy — Director
Mr. Roy is an independent Director of the Company (2007 — present). He has over 20 years of experience in the mining industry. The majority of his experience has been in Africa for companies such as International Gold Resources, Ashanti Goldfields Inc., Senafo, and First Quantum Minerals. Mr. Roy has managed projects from exploration through to production in three different countries. As Managing Director for First Quantum Minerals, Jean Luc played a crucial role in securing extensive land positions and by successfully placing a mining operation into production in the Democratic Republic of Congo during a period of major unrest in the country. Mr. Roy is presently a resident of Burkina Faso where is COO of Ampella Mining Ltd an Australian listed company focused on gold exploration in West Africa with their flagship property Batie West.
Victor Fern — Director
Independent Director of the Company (2007-present); road maintenance supervisor for Athabasca Development Corporation (2009-present); mill training foreman and a mill process operator for Cameco Corporation; past Chief of the Fond Du Lac Denesuline First Nation (/2005–2007). Mr. Fern has lived in Fond du Lac all of his life, he is a traditional land user and still hunts and fish for food in the area. He is active in community development, and works with local committees. Mr. Fern has been involved in environmental monitoring in the Northern Athabasca area and is involved with various business interest in the Fond du Lac area.
Karen Lloyd — Director
Karen Lloyd comes from a strong and significant strategy and marketing background across five different industries including mining, telecommunications, online payments, executive training and banking. This depth of experience comes from her employment with Telus Communications, Hongkong Bank of Canada and Cameco Corporation. Between 2009 and 2020, Ms. Lloyd managed a team of contract and inventory specialists to seamlessly fulfill global uranium sales generating annual revenue of between $1.8 and $2.4 billion for Cameco Corporation as a Director in Cameco’s Marketing team. In April 2021, Ms. Lloyd joined Kreos Aviation as Chief Operating Officer where she oversees all aspects of the Kreos operations including asset management, strategic alliances, flight operations, maintenance, fuel operations, marketing and sales, and business development.
Geoff Gay — Director
Geoff Gay is currently Chief Executive Officer of Athabasca Basin Development, an Indigenous-owned investment company based in Saskatchewan. Mr. Gay has been its executive leader, and subsequent CEO, since the company’s inception nineteen years ago and was instrumental in establishing and growing the company to where it is today. As CEO, Mr. Gay is responsible to articulate the vision of the partnership with a focus on creating value for the unit holders and leading the company in long term strategic planning and implementation, evaluating new opportunities for investment, assessing and mitigating risk, and overseeing all financial aspects of the partnership. In 2017, Mr. Gay was named Business Leader of the Year by Saskatchewan Chamber of Commerce at its annual ABEX awards.
Shane Shircliff — Advisor
Shane Shircliff has over twenty years of experience in senior management and corporate director roles for both publicly traded and private companies, and has extensive experience with various publicly traded regulatory regimes. Mr. Shircliff’s breadth of expertise over his career includes negotiation, deal structure, due diligence and transacting mergers, acquisitions and divestitures totaling over one billion dollars in value. Industries of experience include logistics, finance, natural resources, exploration and mining, retail, real estate and construction. Mr. Shircliff has been directly involved with all aspects of developing resource projects encompassing lithium, uranium, gold, silver, industrial minerals, diamonds as well as oil and gas in a variety of countries. Mr. Shircliff is the founder and Chief Executive Officer of Clinworth Management Corp., a private company, which provides management, acquisition, divestiture and corporate development services to a wide range of clients.
Upgrading Natural Gas into a Renewable Energy Source
Greenlane Renewables Inc. (TSXV:GRN) is a leading global provider of biogas-upgrading systems that are capable of contributing to the decarbonizing of the natural gas grid and transportation network. The company’s systems produce clean, low-carbon, renewable natural gas (RNG) from organic waste sources such as landfills, wastewater treatment plants, farms and food waste facilities. The RNG is then used as fuel for vehicles, such as those adopted by UPS (NYSE:UPS), or for injection into the natural gas grid.
In response to end-user demands for a lower carbon footprint and renewable fuels, Greenlane Renewables is the only RNG pure play that offers the three main biogas upgrading technologies. These technologies remove impurities and separate biomethane in raw biogas to create clean RNG for pipeline injection, liquefaction or direct use as a vehicle fuel. The company works with customers from around the globe to find the right solutions for the type and scope of the project.
Focused on providing turnkey solutions for its clients, Greenlane Renewables offers three technologically-advanced solutions to its clients, beginning with its patented water-wash system, pressure swing adsorption (PSA) and membrane separation, all three of which are designed to meet project specifications without breaking the budget. More than that, Greenlane Renewables brings core competency and outright expertise built on decades of experience to get the job done. Units are priced from $1 million to $7 million depending on the size and scope of the project, generating $18 million in revenue for the company in 2018. Greenlane Renewables is launching its “Develop, Build, Sell, Operate” (DBSO) business model that is expected to provide recurring revenue streams and stronger margins as well as exposure to more profitable off-take contracts with customers that require a strategic partner.
To date, Greenlane Renewables has installed over 100 units in 18 countries across the globe. The company has installed one of the largest RNG operations in both Europe (Germany) and Canada (Quebec). Greenlane Renewables has also completed a project in California that upgrades and injects RNG into the SoCalGas (OTCMKTS:SOCGP) (part of the Sempra group of utilities) natural gas pipeline network.
With over 30 years of industry experience, patented technology and over 100 biogas units installed in 18 countries, Greenlane Renewables is committed to help eliminate waste and provide a greener future for generations to come.
Greenlane Renewables is also one of the founding members of the Integrated Biogas Alliance (IBA), an organization designed to help provide the global biogas industry with unique and fully-integrated organic waste to renewable energy solutions.
Greenlane Renewables’ Company Highlights
- Greenlane Renewables is a market leader in upgrading low-energy biogas to RNG.
- The company has 14 patents and 28 device titles.
- The company offers three patented biogas upgrading technologies to customers across the globe.
- Each technology unit is worth between $1 million and $7 million.
- Revenue generated in 2018 totaled $18 million.
- The company has installed over 100 units in 18 countries.
- Greenlane Renewables plans to expand beyond equipment into more lucrative long-term contracts under a “build, own, operate” business model.
- The company is comprised of industry leaders with over 30 years of experience.
- Insiders own approximately 37 percent and institutional shareholders own approximately four percent of the company’s shares.
Why Renewable Natural Gas?
According to a report by McKinsey & Company, the demand for natural gas is expected to reach 20 billion cubic feet per day by the year 2030. The market is expected to have a significant impact on the North American gas landscape in particular, as coal loses popularity as an energy solution and renewable energy takes a more dominant role in the market. McKinsey & Company notes that the North American gas market is dependent on the global market as roughly 60 percent of natural gas will come from the US and Canadian exports.
The increase in demand for renewable energy sources is being driven by greenhouse gas emission reductions, strict government regulations and growing demand for waste treatments. For example, in 2010, California passed the California Low Carbon Fuel Standard (CA-LCFS), which looks to reduce greenhouse gas emission by 10 percent by 2020. The new standards were designed to promote the use of alternative fuels including biofuels, compressed natural gas, hydrogen and electricity, making biogas an important renewable energy solution.
To present a viable solution for the need for renewable energy, Greenlane Renewables has developed three innovative technologies that are capable of producing biogas. Biogas is produced from decomposing organic material without the presence of oxygen and primarily comprised of methane and carbon dioxide gas. Biogas started as a cheap heating fuel but was adopted in the late 1980s for combined heat and power applications. Applications for biogas have recently expanded to include high-value and high-tech upgrading processes to make it available for pipeline injection (utilities) and vehicle use.
Many existing natural gas plants, however, are not equipped to produce biogas, creating a large market for biogas upgrades. According to Research and Markets, the global biogas upgrading market is expected to reach US$4.96 billion by 2026. Biogas plants are needed to help the utility sector meet sustainability targets and many companies, such as SoCalGas, FortisBC and Energir to adopt biogas upgrades at their natural gas plants. For example, SoCalGas has committed to replace 20 percent of its traditional natural gas supply with RNG by 2030.
Greenlane Renewables’ Technology
Greenlane Renewables has built a team with significant technology and implementation expertise that collaborate with the company’s clients. The team works with customers to evaluate project objectives and identify solutions that work for them. Greenlane Renewables helps its clients choose the right type of technology for the project, advisory services and assists with a variety of project development activities such as financing, siting, permitting and RNG off-take.
Greenlane Renewables is one of the only companies to offer multiple core technologies for creating RNG products. The company’s biogas upgrading-systems are marketed and sold through its wholly-owned subsidiary Greenlane Biogas and the Greenlane Biogas brand. Biogas upgrading systems are responsible for cleansing impurities and separating carbon dioxide from biomethane to create a clean, high-purity, low-carbon fuel, known as RNG.
Greenlane Renewables manages the entire project life cycle from design and procurement through to on-site installation, commissioning and aftercare. After the company’s technology has been installed, Greenlane Renewables provides 24/7 technical support, remote monitoring and maintenance.
Greenlane Renewables offers three technology solutions to its clients: water-wash, PSA and membrane separation. All three pieces of technology are designed to fulfill the needs of big and small projects alike. Each unit price ranges from $1 million to $7 million depending on the size and scope, which resulted in $18 million in revenue for the company in 2018.
A simple process with no upstream treatment requirements, the water wash technology removes impurities in the feed material without using chemicals or heat. It is one of the most widely-used upgrading technologies in the world. Greenlane Renewables has developed five models for this technology that are designed to meet a range of flow-rate requirements. All technology systems contain a modular design with a compact footprint, making it easily scalable.
Pressure Swing Adsorption (PSA)
PSA can effectively separate specific gases from a complex mixture of different gases, like those generated at landfills. The PSA technology uses several steps to purify biogas and separate methane from carbon dioxide. It is one of the only technologies available today that can remove nitrogen; however, high nitrogen levels can reduce methane recovery rates, making it sometimes necessary to pair the technology with another solution like the water wash.
Often more suitable for small to medium-sized projects, the membrane separation technology uses permeation to filter out larger methane molecules from the smaller carbon dioxide molecules. Greenlane Renewables believes that this option is best for clients that consider initial capital expenditure as more important than long-term life cycle costs.
Every biogas upgrading project requires its own unique solution depending on the source of the raw biogas, its composition and level of impurities. The solution also changes based on the size of the project and the end-user of the RNG. To this aim, Greenlane Renewables works with its customers to find the right solution for that particular client and has established projects in a number of countries around the globe.
In 2009, Greenlane Renewables was commissioned to develop one of the largest RNG projects in Europe in Gustgrow, Germany. The plant, which has a capacity of 10,000 normal cubic meters per hour, treats biogas from crops and feeds the RNG into the local natural gas pipeline.
Greenlane Renewables has also designed one of the largest RNG processing facilities in the world in Montreal, Quebec. The facility has a capacity of 16,000 normal cubic meters per hour and treats biogas from a large landfill and feeds the RNG into the local natural gas pipeline. The project was commissioned in 2014.
Greenlane Renewables’ latest project was commissioned in 2018 and is stationed in Perris, California. The plant treats biogas from municipal organic waste and feeds the Rule-30 pipeline-quality RNG into SoCalGas’ pipelines. The project has a total capacity of 2,000 normal cubic meters per hour and is credited with being the first facility to produce RNG within California. The project uses Greenlane Renewables’ Totara system in combination with PSA to produce the required end product.
Greenlane Renewables’ Growth Strategy
Greenlane Renewables plans on moving away from equipment sales and into more lucrative long-term contracts. The company hopes this will provide exposure to more profitable off-take contracts with customers that require a strategic partner for RNG production. In turn, this should provide Greenlane Renewables with recurring revenue streams and stronger margins. The company plans to focus on providing turnkey solutions for upgrading a client’s RNG processing facility. Greenlane Renewables’ goal is to announce a “build, own, operate” deal in the near-term.
Greenlane Renewables’ Management Team
Brad Douville — President, CEO and Director
Brad Douville joined Greenlane in 2017 after a 25-year career in the natural gas commercial vehicle industry. He was a founding member of Westport Innovations Inc. (formed in 1995), now Westport Fuel Systems Inc., and Cummins Westport (2001). He holds a M.A.Sc. in Mechanical Engineering (University of British Columbia) and an Executive Program certificate from the Stanford School of Business.
Lynda Freeman — CFO
Lynda Freeman is a distinguished financial professional with over 22 years of experience. She has held progressively senior financial leadership roles, including five years as CFO of TSX-listed Alterra Power Corp., a global renewable energy company with hydro, wind, geothermal and solar generation capacity. She earned her BA Honours degree in Accountancy and Law at Oxford Brookes University and is a UK qualified Chartered Accountant (ACA).
Brent Jaklin — Senior VP of Sales and Service
Brent Jaklin has more than 20 years of experience in engineering and operations for alternative fuels and RNG projects. Prior to joining Greenlane, he was with QuestAir Technologies. He holds a degree in Mechanical Engineering (Lakehead University).
Dale Goudie — VP of Technology and Product Management
Dale Goudie has over 18 years of engineering experience in the design and development of natural gas engines, fuel systems and cryogenic systems. Prior to joining Greenlane, he was with Westport Fuel Systems Inc. He holds a B.Sc. in Mechanical Engineering (Queen’s University) and an M.A.Sc. in Mechanical Engineering (University of Victoria).
Jim Bornholdt — VP of Purchasing, Project Management and Quality, Health, Safety and Environment (or QHSE)
Jim Bornholdt has over 35 years of experience in purchasing and logistics functions for multi-million-dollar projects across a broad range of industries, including manufacturing, aerospace, civil construction and the Olympic Games.
Marco Mazafarro — Director of Project Development
Marco Mazafarro has over 15 years of experience in renewable energy project sales and development. He holds a degree in Business Administration from the Pontifícia Universidade Católica de São Paulo in Brazil and a M.Sc. in Sustainable Energy Development (University of Calgary).
Sandra Keyton — VP Human Resources
Sandra Keyton is a growth-oriented human resources executive with 30 years of global HR experience in the technology, automotive and energy sectors. Prior to Greenlane, she was with Westport Fuel Systems Inc. She holds her CHRP designation and is a graduate of the British Columbia Institute of Technology Human Resources Management Program.
Wade Nesmith — Chairman and Director
Wade Nesmith founded Primero Mining Corp. in 2008, acting as CEO until 2010 and Chairman until 2018. He was a founding board member of Westport Innovations Inc. and Silver Wheaton Corp. and was previously Superintendent of Brokers for the Province of British Columbia (1989 to 1992), and senior partner, specializing in securities law with Lang Michener LLP (now McMillan LLP) (1993 to 1998). He obtained his LLB from Osgoode Hall Law School.
David Demers — Director
David Demers was a founding member of Westport Innovations, serving as CEO and a director from 1995 to 2016. He was a director of Primero Mining Corp. (2008 to 2018). Previously with IBM, Demers currently sits on the boards of TIMIA Capital Corp. and Augurex Life Sciences Corp. He has a B.Sc. in Physics and a D.Juris, both from the University of Saskatchewan.
David Blaiklock — Director
David Blaiklock previously served as the Chief Financial Officer of Primero Mining Corp., and as the Corporate Controller for Intrawest Corporation. He received his designation as a Chartered Accountant while working with the international accounting firm Deloitte Touche Tohmatsu Limited. He has a B.A. in Economics and Business Studies (University of Sheffield) and holds his CPA, CA designations in British Columbia and the UK.
Patricia Fortier — Director
Patricia Fortier is a former Canadian diplomat who most recently acted as an Assistant Deputy Minister in Global Affairs Canada. She has held several diplomatic postings, including Canadian Ambassador to Peru, Bolivia and the Dominican Republic, and Minister-Counsellor at the Canadian Embassy in Washington, D.C. She has a master’s degree in public administration (Queen’s University).
Candice Alderson — Director
Candice Alderson is currently a Senior Vice President, Infrastructure Investments for the Ledcor Group of Companies, a privately-held company that is one of the most diverse conglomerates in North America. Ms. Alderson is responsible for leading the Infrastructure Investment group overseeing equity investments and supporting multiple Ledcor divisions in the pursuit of major infrastructure projects. She holds a BA in Political Science and Environmental Studies (Concordia University) and an LLB (University of Victoria).
Elaine Wong, CPA, CA — Director
Ms. Wong is currently President, Pine Street Ventures Ltd. and is a seasoned executive with over 25 years of experience in accounting, finance and operations in fast growing companies. She spent 13 years with Westport Fuel Systems, a publicly listed (Nasdaq & TSX) clean technology company with a global presence, holding various senior positions including Chief Financial Officer and Executive Vice-President, Strategic Development, responsible for strategy and mergers and acquisitions. Prior to Westport, Elaine was with ISM-BC, an information technology joint venture owned by IBM and TELUS, where she was Corporate Controller and then Director of Corporate Performance responsible for financial reporting and analysis. Named one of Canada’s Top 100 Most Powerful Women in 2010, Ms. Wong earned her Chartered Accountant designation in 1993 while working with KPMG and is also a Certified Public Accountant (Illinois). She holds a Bachelor of Commerce (Honours) degree from the University of British Columbia.
Near-term Uranium and Vanadium Producer
Western Uranium and Vanadium Corp. (CSE:WUC,OCTQX:WSTRF) is a near term producer of uranium and vanadium with six uranium-vanadium properties in western Colorado and eastern Utah. The company has also acquired and advanced to a production scale a patent-protected ablation technology that reduces the amount of pre-ablation material to 10 to 20 percent of its mass while maintaining 85 to 95 percent of the mineralization.
Western Uranium and Vanadium’s ablation technology has garnered the attention of many mining companies as it significantly reduces the costs of processing vanadium and uranium from sandstone deposits. In the case where 90 percent of the waste is removed, this technology would also reduce approximately 90 percent downstream processing and transportation costs. Additionally, the process has environmental applications for the remediation and reclamation of waste rock, protore and low-grade stockpiles created from legacy uranium mines.
Western Uranium and Vanadium has assembled a resource portfolio containing a core group of permitted and developed mines that are low CAPEX and OPEX to be brought into production. The company’s primary focus is on its Sunday Mine Complex in Colorado. The property hosts five fully-permitted and developed vanadium-uranium mines that Western Uranium and Vanadium is focusing its efforts to bring back into production in the near term. These mines were last in production in 2009.
As a result of ongoing discussions with several prospective vanadium customers, Western Uranium and Vanadium has initiated the re-opening of the Sunday Mine Complex. This program has been commenced with the goal of providing samples for evaluation in customer’s existing processing facilities and for further definition of the vanadium resource. Once completed, the 2015 technical report is expected to be updated accordingly. The ultimate end goal is to sign an offtake agreement that supports the restart economics to place the mine back into production. It is contemplated that the project can be initiated with the restart of two of the five mines and additional mines can be brought online to support offtake demand.
As Sunday Mine Complex is brought back in operation, Western Uranium and Vanadium intends to work towards bringing additional projects into production funded through the revenue generated at the Sunday Mine Complex. The company’s two other permitted and developed properties, Sage and Van 4, are expected to be the sixth and seventh mines developed and brought into production. Thereafter the company’s focus is expected to shift to the San Rafael, Hansen-Taylor Ranch and Dunn properties which need to enter the permitting phase prior to the development of those projects.
In addition to the low CAPEX and OPEX model that Western Uranium and Vanadium has been founded upon, Western Uranium and Vanadium President and CEO George Glasier brings a wealth of experience in acquiring and moving uranium and vanadium projects into production, having been the founder of Energy Fuels Inc. (TSX:EFR, NYSEMKT:UUUU), a leading producer of uranium and vanadium in the US. Additionally, Glasier notably holds 18 percent of Western’s shares.
America’s Next Uranium Developer
Azarga Uranium Corp. (TSX:AZZ,OTCQB:AZZUF) is an integrated uranium exploration and development company that controls 10 uranium projects and prospects in the United States (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in-situ recovery uranium projects. The Dewey Burdock in-situ recovery uranium project in South Dakota, which is the Company’s initial development priority, has received its US Nuclear Regulatory Commission License and draft Class III and Class V Underground Injection Control permits from the Environmental Protection Agency (EPA) and continues to advance towards construction.
Azarga Uranium’s flagship Dewey Burdock project has a preliminary economic assessment (PEA) that outlines a 16 year mine life, and the project is forecast to produce 14.3 million pounds of U3O8. The base case economic assessment results in a pre-income tax internal rate of return (IRR) of 55 percent and a pre-income tax net present value (NPV) of US$171.3 million when applying an 8 percent discount rate. Using the same discount rate, the post-income tax IRR is 50 percent and the post-income tax NPV is US$147.5 million. The projected cash flows for the Dewey Burdock project PEA are positive in the second year of production, two years after the commencement of construction.
Azarga Uranium President and CEO Blake Steele commented, “What’s really interesting about our Dewey Burdock project is the economics. The PEA demonstrates robust economics and cements the Dewey Burdock project as one of the preeminent undeveloped in-situ recovery (ISR) projects in the United States. The PEA results further validate our company’s strategy and we continue to progress the project towards construction as the global uranium market strengthens by virtue of supplier discipline and higher demand. The estimated cost profile and modest initial capital expenditures leave Dewey Burdock and the company well positioned to capitalize on the anticipated recovery in the uranium price.”
An initial capital investment of US$31.7 million for the Dewey Burdock project is sector leading for a project of its size and forecast C1 cash costs of US$10.46/lb per pound of production are first quartile on the cost curve.
In addition to its flagship Dewey Burdock project, the company has a strong pipeline of uranium projects in the US with 41 million pounds of measured and indicated plus 6 million pounds of inferred U3O8 resources.
- The company’s flagship Dewey Burdock project is one of the preeminent undeveloped uranium projects in the United States, possessing a unique combination of grade and scale.
- Initial capital investment of US$31.7 million for the Dewey Burdock project is sector leading for a project of its size.
- The Dewey Burdock project has robust economics at low uranium prices.
- ISR is favorable over conventional mining due to environmental and low-cost advantages.
- Strong demand growth of uranium is forecast at a time when supply has been cut back.
- Management is made up of experienced mine developers.
- The company has a strong pipeline of projects in the US, including its Gas Hills Project in Wyoming, which has the potential to transform into a significant satellite deposit for the Dewey Burdock project.
The uranium supply and demand dynamics have been improving steadily over recent years due to strong demand growth, dwindling stockpiles and recent cuts in production. Uranium is a vital part of nuclear power, as power plants use nuclear fission, a process in which neutrons collide with uranium atoms and release large amounts of heat and radiation energy as they split, which then releases more neurons.
Roughly 10 percent of global electricity production comes from nuclear energy, so if the world wants to move to greener alternatives and reduce carbon emissions while maintaining the same level of power, nuclear production will have to increase. Nuclear power is also essential to the US economy, accounting for approximately 20 percent of electricity generation. Demand growth in the sector will continue to be driven by industries move towards renewable and more environmentally sustainable carbon-free sources of energy as well as countries continuing to adopt policies to reduce their carbon footprint.
According to the World Nuclear Association, there were 441 nuclear reactors in operation in August 2020 and 54 additional reactors under construction. The US alone hosts 95 nuclear reactors.
In addition to the US’ commitment to using nuclear power, the US Department of the Interior has listed uranium as a critical mineral. Further, in February 2020, US President Donald Trump’s fiscal 2021 budget proposal requested an annual allocation of US$150 million over a 10 year period, for a total of US$1.5 billion, to establish a United States uranium reserve.
Subsequently, in April 2020, the United States Nuclear Fuel Working Group (NFWG) released its report detailing its Strategy to Restore American Nuclear Energy Leadership. This strategy is designed to restore America’s competitive nuclear advantages and proposes, among other items, that the US government “take immediate and bold action to revive and strengthen the uranium mining industry.” The strategic objectives will “restore the viability of the entire front-end of the nuclear fuel cycle.” A summary of the other most relevant points included in the NFWG report pertaining to the US uranium mining industry include:
- The US government would complete purchases of 17-19 million pounds of uranium, through a competitive procurement process from domestic producers.
- The Department of Energy would end the uranium bartering program and reevaluate the Department of Energy’s excess uranium inventory management policy.
- There would be streamlined regulatory reform and land access for uranium extraction.
- Department of Commerce efforts would be supported to extend the Russian Suspension Agreement to protect against future uranium dumping in the US market.
Dewey Burdock Uranium Project
The Dewey Burdock project is located in the Edgemont uranium district in southwest South Dakota, less than 100 miles from Cameco’s Crow Butte ISR uranium project in Nebraska. Azarga Uranium’s 100 percent owned advanced stage Dewey Burdock project is one of the preeminent undeveloped uranium projects in the United States, possessing a unique combination of grade and scale. ISR is a mining process that involves drilling holes into ore deposits to recover minerals; it accounts for approximately 50 percent of uranium production globally. “In uranium, mining methodology is the key. ISR deposits, which require the right hydrological and geological conditions, have lower cash costs and lower capital expenditure requirements on average than conventional mines,” said Steele.
Through property purchase agreements, mining leases and claims, the project is comprised of approximately 12,613 surface acres and 16,962 net mineral acres. The Dewey Burdock mineralization occurs in the Fall River and Lakota formations of the lower Cretaceous age, consisting of permeable sandstones deposited in a major sand channel system. Uranium occurs in the sandstones as classic roll front deposits favorable to ISR mining methods. Uranium was first discovered at surface in the Edgemont district in 1952, while later drilling projects revealed deeper uranium deposits.
2020 Resource Estimate
In January 2020, Azarga Uranium released an updated NI 43-101 compliant independent resource estimate for the Dewey Burdock Project. The resource estimate outlined a measured ISR resource of 14.3 million pounds U3O8 at a grade of 0.132 percent, a measured and indicated resource of 17.1 million pounds U3O8 at a grade of 0.116 percent and an inferred resource of 0.7 million pounds U3O8 at a grade of 0.055 percent.
The Dewey Burdock PEA resulted in a pre-income tax IRR of 55 percent and a pre-income tax NPV of US$171.3 million when applying an 8 percent discount rate. Using the same discount rate, the post-income tax IRR is 50 percent and the post-income tax NPV is US$147.5 million.
|Annual U3O8 Production||1.0 Mlbs/yr|
|Mine Life (incl. two year ramp-up)||11 years|
|Total LOM Production||9.7 Mlbs|
|Initial Capital Costs||US$27.0M (US$2.80/lb)|
|Cash operating costs
-Plant and well field operating
-Restoration / de-commissioning
-Site management / overhead
|Local Taxes & Royalties||US$6.33/lb|
|Sustaining Capital Costs||US$14.00/lb|
|Pre / Post Tax NPV8%||US$149.4M / US$113.8M|
|Pre / Post Tax IRR||67% / 57%|
Status of Key Permits
The company’s immediate objective is to obtain the necessary permits and licenses to move the Dewey Burdock project into construction. The company has received its US Nuclear Regulatory Commission License and draft Class III and Class V UIC permits from the EPA. The EPA is expected to issue the final Class III and Class V UIC permits in the near-term. Applications with the State of South Dakota for the groundwater disposal plan, water rights permit and large-scale mine plan permit have been completed and recommended for conditional approval by the South Dakota Department of Environment and Natural Resources staff. The state is expected to resume the permitting process following federal regulatory approvals.
Pipeline of Projects
The company’s 100 percent owned Gas Hills project is located in the historic Gas Hills uranium district situated 45 miles east of Riverton, Wyoming. The Gas Hills project consists of approximately 1,280 surface acres and 12,960 net mineral acres within a brownfield site that has experienced extensive development, including mine and mill site production.
Between 1953 and 1988, previous operators explored, developed and produced uranium in the district, which fed multiple uranium mills in the area. Cumulative production has exceeded 100 million pounds of uranium in the Gas Hills district, primarily from open-pit and underground mining operations.
In June 2017, a NI 43-101 compliant independent resource estimate was prepared for the company’s Gas Hills project. It estimated that the project contains indicated uranium resources of 4.7 million pounds U3O8 (2.4 million tons at an average grade of 0.098 percent U3O8) and inferred uranium resources of 2.5 million pounds U3O8 (2.3 million tons at an average grade of 0.054 percent U3O8) at a 0.10 grade-thickness cut-off.
Subsequent to issuing the Gas Hills technical report, the company commenced detailed ISR studies on the project. These studies focused on piezometric surface conditions and permeability of the Wind River formation confined aquifer, the primary host of uranium mineralization at the company’s Gas Hills project. The studies concluded that both permeability and piezometric surface conditions, two important hydrologic parameters when evaluating ISR uranium mining, are suitable for ISR uranium mining at three of the primary deposits at the project, those being Day Loma, George-Ver and Loco-Lee.
Further, as announced on April 6, 2020, and June 8, 2020, the company has identified additional uranium mineralization at the Gas Hills project. The company identified this additional uranium mineralization through the analysis of historical data procured by the company (the “Gas Hills Data Set”). As announced April 6, 2020, the analysis of the Gas Hills Data Set identified 147 mineralized drill holes with 173 intercepts equal to or exceeding a 0.2 grade-thickness cutoff using a 0.02 percent grade cutoff with an average U308 grade of 0.137 percent and an average thickness of 5.3 feet. Subsequently, as announced on June 8, 2020, the analysis of the Gas Hills Data Set identified 82 additional mineralized drill holes equal to or exceeding a 0.2 grade-thickness cutoff using a 0.02 percent grade cutoff with an average U308 grade of 0.205 percent and an average thickness of 4.0 feet. This analysis expands the envelope of uranium mineralization indicating the potential to supplement the existing Gas Hills project resource estimate. The analysis also confirms that the uranium mineralization occurs in sandstone-hosted roll fronts located below the water table, indicating the potential for ISR amenability. The company is currently working on an updated resource estimate at the Gas Hills project, which has the potential to become a significant satellite project to the Dewey Burdock Project.
The company’s 100 percent owned Dewey Terrace project is located in the Weston and Niobrara Counties of Wyoming, directly adjacent to the company’s US Nuclear Regulatory Commission licensed Dewey Burdock project. Through mining leases and mining claims, the Dewey Terrace Project comprises approximately 1,874 acres of surface rights and approximately 7,514 acres of net mineral rights.
The company has identified uranium mineralization at the Dewey Terrace project through the review and analysis of historical data owned by the company (the “Dewey Terrace Data Set”). The Dewey Terrace Data Set identified 259 mineralized drill holes indicating significant potential for a new resource area at the Dewey Terrace project. Further, deposition is consistent with sand channel systems categorized within the Dewey Burdock project and conditions that indicate possible ISR amenability.
As announced by the company, the Dewey Terrace Data Set analysis identified 91 mineralized drill holes with 129 intercepts equal to or exceeding a 0.2 grade-thickness cutoff using a 0.02 percent grade cutoff with an average U3O8 grade of 0.062 percent and an average thickness of 7.4 feet.
Moving forward, Azarga Uranium will continue to review the property’s historical data with the goal of quantifying the uranium mineralization to supplement the existing resources at company’s flagship Dewey Burdock project. The Dewey Terrace project has the potential to become a satellite project to the Dewey Burdock Project.
Centennial Uranium Project
The company’s 100 percent owned Centennial project is located in the western part of Weld County in North-eastern Colorado. Through property purchase and lease agreements, the Centennial project comprises approximately 1,365 acres of surface rights and 6,238 acres of net mineral rights.
In August 2010, a NI 43-101 compliant independent preliminary economic assessment was prepared for the Centennial uranium project. The Centennial PEA resulted in a pre-tax NPV of US$51.8 million at a discount rate of 8 percent and an IRR of 18 percent. The Centennial PEA assumed uranium prices of US$65/lb U3O8, cash operating costs of US$34.95/lb U3O8 and capital costs of US$71.1 million. The Centennial PEA includes indicated uranium resources of 10.4 million pounds at 0.09 percent U3O8, inferred uranium resources of 2.3 million pounds at 0.09 percent U3O8 and annual production of 700,000 pounds per annum. This results in a 14 year mine life.
The majority of the major mine permit applications for the Centennial uranium project have not been prepared or submitted to date.
The company’s 100 percent owned Juniper Ridge project is located in the southwest portion of Wyoming, approximately 10 miles west of the town of Baggs. The Juniper Ridge project consists of approximately 640 surface acres and 3,240 net mineral acres within a brownfield site that has experienced extensive exploration, development and mine production.
Between 1954 and 1966, the Juniper Ridge area saw intermittent commercial mining operations and seven companies are responsible for producing over 0.5 million pounds of uranium in open-pit and shallow underground mines.
In June 2017, a NI 43-101 compliant independent resource estimate was prepared for the Juniper Ridge project. The project contains indicated uranium resources of 6.0 million pounds U3O8 (5.1 million tons at an average grade of 0.058 percent U3O8) and inferred uranium resources of 0.2 million pounds U3O8 (0.1 million tons at an average grade of 0.085 percent U3O8) at a 0.10 grade-thickness cut-off.
The Juniper Ridge PEA resulted in a pre-tax NPV of $27.3 million at a discount rate of 8 percent and an IRR of 26 percent compared to a post-tax NPV of $19.9 million at a discount rate of 8 percent and an IRR of 22 percent based on open pit mining and heap leach extraction of uranium. The Juniper Ridge PEA assumed uranium prices of $65/lb U3O8, total direct operating costs of $39.77/lb U3O8 and capital expenditures of $36.7 million.
Blake Steele – President and CEO
Blake Steele began his career with Deloitte & Touche, where he worked in both the audit and financial advisory practices. Before joining Azarga Resources, which merged with Powertech Uranium to form Azarga Uranium, Mr. Steele worked at SouthGobi Resources (Ivanhoe Mines Group) as Director of Finance; he had previously held the position of Manager, Corporate Development. He holds a Bachelor of Commerce degree from the University of British Columbia and is a Chartered Accountant and Chartered Business Valuator in Canada.
John Mays – COO
John Mays brings more than 20 years of engineering experience in the uranium industry, focusing on ISR mining in both the US and internationally. He has experience in all facets of ISR mining spanning from design to construction to operation of ISR uranium mines. From 2006 until joining Powertech Uranium, Mays served as the Chief In-situ Mining Engineer at UrAsia’s three ISR projects in Kazakhstan, and later at Uranium One. Prior to joining UrAsia, he held the position of Senior Mining Engineer with Searles Valley Minerals of Trona, California. Mays also held the position of Superintendent of Well Field Construction for Power Resources Inc. on both their Smith Ranch and Highland Uranium Project in Douglas, Wyoming. He holds a Bachelor of Science Degree in Chemical Engineering and Petroleum Refinement from the Colorado School of Mines and is a licensed professional engineer in South Dakota and Colorado.
Doris Meyer – Corporate Secretary
Doris Meyer is highly regarded as a financial accountant and gained her early experience in the mining industry as Vice President of Finance of Queenstake Resources Ltd. from 1985 to 2003 and Corporate Secretary until 2004. She was the Chief Financial Officer and Corporate Secretary of AuEx from 2004 to 2010, and she played an integral role in the discussions and dealings between AuEx and Fronteer that ultimately led to the acquisition of AuEx by Fronteer. Since 1996, Doris has owned and served as President of Golden Oak Corporate Services Ltd. Golden Oak provides publicly traded mineral exploration companies with administrative, accounting and corporate and regulatory compliance services. Doris serves as an officer and/or director of several mining companies that trade on the exchanges in Canada, London and the US.
Dan O’Brien – CFO
Dan O’Brien is a Canadian Chartered Professional Accountant with many years of experience working with junior resource companies. He works for Golden Oak and serves as Chief Financial Officer for a number of publicly listed exploration companies trading on the TSX and TSX Venture exchanges. He was previously a senior manager at a leading Canadian accounting firm, at which he specialized in the audit of public companies in the mining and resource sector.
Glen Catchpole – Non-Executive Chairman
Glen Catchpole was a member of the Board of Directors and the Chief Executive Officer of Uranerz Energy Corporation when the company was sold to Energy Fuels Inc. for more than $150 million, creating the largest integrated uranium producer in the US. Mr. Catchpole is a licensed engineer who holds an M.S. in civil engineering from Colorado State University. He has been active in the uranium solution mining industry since 1978, holding various positions including wellfield engineer, project manager, general manager and managing director of several uranium solution mining operations.
In 1988 Mr. Catchpole joined Uranerz USA, Inc. and Uranerz Exploration and Mining and became Director of Regulatory Affairs, Environmental Engineering and Solution Mining. Mr. Catchpole’s responsibilities included the monitoring and oversight of the environmental and regulatory aspects of two large uranium mines in Canada and the operational aspects of one uranium solution mine in the United States. In 1996, Mr. Catchpole was appointed General Manager and Managing Director of the Inkai uranium solution mining project located in Kazakhstan (Central Asia). In 1998, Cameco Corporation acquired Uranerz USA Inc. and Mr. Catchpole continued his post at the Inkai Project for Cameco. Mr. Catchpole spent six years taking the Inkai project from acquisition through feasibility study, joint venture formulation, government licensing, environmental permitting, design, construction and the first phase start-up.