The Conversation (0)
Oct. 03, 2013 04:30AM PST
Although Iran has said it has no interest in nuclear weapons, global leaders remain skeptical about the country’s uranium enrichment plans, and talks have continued.
In the renewed discussions, Iran has said that its intentions with the nuclear program are peaceful and aimed at generating electricity and producing radio isotopes to treat cancer patients. Iranian President Hassan Rouhanistated that Iran “has nothing to hide,” pledging that it will “keep doors of our nuclear facilities open to IAEA inspection.”
Rouhani was open to discussing the details of its nuclear activities, however he maintained that “Iran’s enrichment right is not negotiable but we must enter into talks to see what would the other side proposes to us about the details.”
Even so, concerns that a nuclear program in Iran could lead to weaponization continue to plague world leaders.The most vocal opposer has been Israel’s prime minister, Benjamin Netanyahu, who urged US President Barack Obama to keep the sanctions on Iran in place. “If diplomacy is to work, those pressures must be kept in place,” Netanyahu told the president during an Oval Office meeting.
For the most part, the United States has not changed its stance on Iran’s nuclear ambitions. Further negotiations on the subject are slated to take place in mid-October in Geneva.
Uranium prices fail to impress
With the last quarter of 2013 upon us, uranium prices are still failing to impress investors. Uranium consultancy firm UxC reported that on September 30, uranium spot prices sat at $35 per pound of U3O8, a $0.15 decrease from the previous week’s figure. Competing uranium price and analysis firm TradeTech concluded that although uranium spot prices picked up in the last week of September, market players either concluded or decided to postpone their buying.
Lackluster uranium prices are taking their toll on mining companies like Paladin Energy (ASX:PDN), which has been cutting spending anywhere it sees fit. Most recently, the company announced job cuts at its head office and base salary cuts of 10 percent for managers. The company wrote down US$420.9 million in 2012/2013 due to the weak uranium price devaluing its assets.
Company news
Canada-based uranium exploration junior Lakeland Resources (TSXV:LK,FSE:6LL) started exploration at its wholly owned Riou Lake uranium property, which is situated on the northern rim of the prolific Athabasca Basin in Saskatchewan. Lakeland will be focusing on the Gibbon’s Creek target and will pursue surface prospecting and boulder sampling with hand-held scintillometers. The company will also be undertaking a RadonEx soil gas radon survey, line cutting and a ground DC resistivity geophysical survey.
Lakeland aims to start its initial drill program at Gibbon’s Creek in Q1 2014.
On October 3, Fission Uranium Corp. (TSXV:FCU,OTCQX:FCUUF) entered into an amended letter of engagement with Dundee Securities Ltd. on behalf of a syndicate of underwriters including Raymond James Ltd., Cantor Fitzgerald Canada Corporation, Canaccord Genuity Corp. and Macquarie Capital Markets Canada Ltd. Through the agreement, the Underwriters will purchase 7,500,000 subscription receipts, exchangeable into flow-through common shares of Fission, by way of a private placement on a “bought deal” basis, subject to all required regulatory approvals, at a price per Subscription Receipt of $1.50, for total gross proceeds of $11,250,000.
Uranium golden child Fission Uranium and joint venture partner Alpha Minerals (TSXV:AMW) also made headlines last week as the companies capped off September with yet another impressive announcement. This time, the companies released news that since the 2013 winter program, zone R390E has quadrupled in length. This assessment includes the new strike length of 255 meters. The companies also released the results of eight further drill holes at R390E; all intersected narrow to wide zones of mineralization with varying degrees of radioactivity.
On September 25, Canadian International Minerals (TSXV:CIN) announced that it has entered into an option agreement through which it will grant Rio Grande Mining (TSXV:RGV) the option to acquire an undivided 75-percent interest in certain mineral claims. The claims consist of two groups, Britts Lake East and Firebag East/Descharme, and total 15 claims in an area of 18,041 hectares. The properties are located in close proximity to the Patterson Lake South discovery.
Uranium Participation (TSX:U) reported its financial results for the second quarter ended August 31, 2013. Total equity was down $69.3 million for the three months in 2013 ended August 31, 2013 and $89.3 million for the six months ended on that date. The company cites unrealized losses on investments of $68.1 million and $87.2 million, respectively.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any companies mentioned in this article.
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Investor Insight
Generation Uranium offers investors high-leverage exposure to a potential major discovery in Canada’s underexplored and resource-rich Thelon Basin, led by a management team with a proven track record of securing high-value exits.
Overview
Generation Uranium (CSE:GEN, OTCQB:GENR, FRA:W85) is a Canadian exploration company focused on wealth creation through discovery within the uranium sector. The company’s primary strategy is to build a high-caliber exploration team that can rapidly test and drill high-potential targets, de-risking projects for potential takeover by larger producers. Currently centered in the prolific Thelon and Angikuni Basins of Nunavut, the company is also actively evaluating additional project acquisitions in the Athabasca Basin to expand its portfolio.
The company is led by a veteran management team with nearly 30 years of experience in mineral development. CEO Michael Collins has a significant track record of building and exiting public companies, including the co-founding of Bluerock Resources, a conventional uranium producer during the 2000-2008 cycle. This expertise is paired with a focused business model that leverages modern geophysical targeting to accelerate exploration timelines and reduce costs, ensuring the company can deliver results quickly in a bullish uranium market.
Company Highlights
- Strategic Location in a Premier Uranium District: The flagship Yath Project is located in Nunavut’s Thelon Basin, contiguous to ATHA Energy’s Angilak Project, which hosts the high-grade Lac 50 deposit.
- High-Grade Discovery Potential: Historical surface sampling at the Yath Project has yielded exceptional uranium grades, including boulders testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
- Expert Management with Exit Experience: Led by CEO Michael Collins, the team has decades of experience in mineral exploration and a history of co-founding companies that were later acquired, such as Prime Mining and Nuclear Fuels.
- Low-Cost, Rapid Exploration Strategy: By leveraging modern geophysics and extensive historical data, the company aims for a "short road to discovery," de-risking projects quickly to maximize shareholder value.
- Bullish Market Fundamentals: Generation Uranium is well-positioned to meet the growing global demand for carbon-free nuclear power, supported by a projected supply deficit and increased interest from major tech companies seeking clean energy.
Key Project
Yath Project - Nunavut, Canada
The Yath Project is Generation Uranium’s flagship project. This 100 percent owned property covers about 120 square kilometers within the underexplored Thelon Basin in Nunavut, Canada. The project is located where the Yathkyed and Angikuni sub-basins meet, which is a region known globally for high-grade uranium potential. It sits directly along the same trend as the Angilak Project owned by ATHA Energy (TSXV:SASK, OTCQB:SASFK, FWB:XSU.F), which contains the Lac 50 deposit, one of the highest-grade uranium resources found outside of the Athabasca Basin with a historical mineral resource estimate of 43.3M lbs at an average grade of 0.69 percent U3O8.
The Yath Project is contiguous to the Lac 50 trend and is crossed by several regional faults and basin boundaries. Past exploration work has already identified high priority targets, while surface sampling in the area has produced uranium grades from boulders, with some testing at 9.81 percent, 3.95 percent, and 2.14 percent U3O8.
The company has commenced its initial field program at the site, set to define and rank drill targets. Historic showings will be combined with new anomalies from the MMT geophysics survey, preparing the project for an anticipated drill permit.
Management Team
Michael Collins - CEO & Director
Michael Collins is a professional geoscientist with nearly 30 years of experience in mineral exploration. He has co-founded several public companies, including Exploits Discovery, Prime Mining (acquired in 2025), and Nuclear Fuels (merged with Premier American Uranium in 2025). He is also currently a director of First Atlantic Nickel.
Christoph Bruening - Director
Christoph Bruening is the founder and managing partner of Value Relations GmbH, a full-service investor relations and public relations agency in Frankfurt with over 25 years of excellence, focusing on mining, exploration, biotech and health care. In addition, he has listed over 600 companies on the Frankfurt Stock Exchange and is a speaker and author of several publications, including on rare earths and uranium.
Dallas Miller - Director
Dallas Miller has been working within the international mining industry for over 15 years, working with BHP and Santos Ltd. He has experience on the ground from an operational standpoint, as well as being an integral part of raising millions of dollars in capital funding for both private and public companies in recent years.
Roger Leschuk - VP Corporate Development
Roger Leschuk has been in corporate management for over two decades, with the past 15 years dedicated to corporate development and investor relations. He has experience participating in and assisting with mergers and acquisitions, and was an investment advisor for various services such as stocks, mutual funds and tax-sheltered investments. He is a Chartered Investment Manager and a Fellow of the Canadian Securities Institute.
Monty Sutton - CFO
Monty Sutton brings over 35 years of experience in public markets and corporate governance. He previously served as CFO for Nuclear Fuels from its IPO through its acquisition.
