The Conversation (0)
Dec. 27, 2012 04:30AM PST
Uranium market news is slow heading into the holidays, but signs that the world is moving toward increased use of nuclear power are evident.
The spot price of U3O8, according to TradeTech’s latest report, stands at $45 per pound, up $1.50 from the previous week, the result of more buyers, including utilities, traders and financial entities, entering the marketplace.
Uranium market news was sluggish heading into the holidays, but signs that the world is moving toward increased reliance on nuclear power are evident across the globe.
Russia and the United Arab Emirates (UAE) signed a nuclear cooperation agreement to share technology, equipment and nuclear material in an effort to help the Gulf nation meets its goal of acquiring 25 percent of its energy needs from nuclear power. The UAE has signed similar agreements with Australia, Canada, the United States, the United Kingdom, South Korea and France.
The National Defense Authorization Act (NDAA) is headed to the US House of Representatives and includes $150 million in funding for the American Centrifuge Plant (ACP). The plant, located in Piketon, Ohio, is an advanced uranium-enrichment facility that is being developed by USEC (NYSE:USU). The ACP’s “capacity will be equal to about one-third of the fuel requirements for the commercial power reactors in the United States, which provide approximately 20% of the U.S. electricity supply today,” according to USEC’s website. The NDAA is expected to pass both the House and the Senate and be signed by President Obama by the close of this year.
Of course, no mining sector is without roadblocks. Following news that Australia’s environment minister, Tony Burke, has delayed a final decision on environmental approval for Toro Energy’s (ASX:TOE) Wiluna project in the state of Western Australia (WA), Australian Uranium Association chief executive Michael Angwin called for the regulatory process to be reformed. Specifically, Angwin is concerned about the “discriminatory treatment” of the uranium industry under the Environment Protection and Biodiversity Conservation Act and the doubling up of state and federal approval processes — prior to the delay, WA Environment Minister Bill Marmion had approved the Wiluna project.
Company news
On Monday, Virginia Energy Resources (TSXV:VUI) announced its listing on the OTCQX under the ticker symbol VEGYF. “We are proud to join OTCQX, the highest OTC marketplace,” stated Walter Coles Jr., executive vice president of Virginia Energy, in the press release. “We are committed to providing our U.S. investors with timely news and information to help them better analyze, value and trade our securities.”
Virginia Energy’s wholly owned, advanced-stage Coles Hill uranium project is located in Virginia, where the state government is debating whether or not to lift a 30-year ban on uranium mining. Coles Hill reportedly contains measured resources of 3,260 tonnes of U3O8 and indicated resources of 42,800 tonnes U3O8. The largest-known untapped uranium deposit in the United States and one of the largest in the world, the deposit has an estimated worth of $10 billion and holds enough uranium to power all the nation’s nuclear plants for nearly two years. The company is also pursuing an active uranium exploration program in Quebec’s Otish Basin.
Energy Fuels (TSX:EFR) reported its results for the 2012 fiscal year, calling the past 12 months a “transformational year” for the company, which “attained a dominant production and resource position within the uranium sector’s single largest market, the United States.” Highlights for the year include sales of 447,000 pounds of U3O8 at an average realized price of $55.83 per pound.
European Uranium Resources (TSXV:EUU) signed a memorandum of understanding (MoU) with the Slovak Republic’s Ministry of Economy. The MoU pertains to the advancement of the Kuriskova uranium deposit, which a recent preliminary feasibility study shows could be developed as an underground mine and could become one of the world’s lowest-cost uranium producers. The MoU highlights the importance of this deposit to Slovakia’s energy needs; the Eastern European nation is the third-largest per capita user of nuclear energy in the world — more than 50 percent of its electricity is generated by nuclear power. European Uranium also began trading on the OTCQX under the ticker symbol EUUNF.
AREVA’s (EPA:AREVA) majority owned SOMAÏR uranium mine in Northern Niger recently set a new annual production record for the second year in a row, producing a total of 2,700 tonnes of uranium. The company attributes the record production to heap-leaching technology, which allows for the processing of low-content ore. “This new performance, which contributes to the growth of our mining activities and secures the uranium supply, rewards the work accomplished by the SOMAÏR’s team and the employees of the mining BG,” stated Olivier Wantz, senior executive vice president of the company’s mining business group, in the press release.
Cameco (TSX:CCO,NYSE:CCJ) finalized its buyout of BHP Billiton’s (NYSE:BHP,ASX:BHP,LSE:BLT) Yeelirrie property — Australia’s largest undeveloped uranium deposit — for US$430 million. The deposit is near the surface and reportedly can be reached via open-pit mining methods.
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company 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.
