The Conversation (0)
May. 23, 2013 04:30AM PST
Uranium prices have fallen slightly, but the outlook remains bright.
Though prices have been depressed since the 2011 Fukushima disaster, they aren’t expected to remain down in the long term. TradeTech noted that while spot market activity is on the lighter side, the uranium market is far from quiet.
The price publisher commented that optimism is evident in the market, with producers and sellers reluctant to offer lower prices despite the summer season, which usually spells a slowdown for spot market activity.
Japan nuclear reactors raises concerns
Concerns about the safety of one of Japan’s nuclear reactors were brought to light on Wednesday. The country’s nuclear regulator accepted an expert panel’s report that a fault line runs directly under one of the idled reactors in Western Japan, making the decision to bring the plant online more complicated.
The fault under the Tsuruga No. 2 reactor could possibly trigger an earthquake, leading to another accident, according to the Associated Press. Since announcing its return to nuclear energy, Japan’s nuclear regulations have become tighter, and this is “first time Japanese regulators had officially recognized an active fault underneath an existing reactor, virtually acknowledging that the risk at Tsuruga had been overlooked for decades by both the operator and regulators despite warnings by some experts.”
Following April’s announcement from the Liberal Democratic Party, the intention is for some of Japan’s nuclear reactors to come online as early as the fall. However, the final decision will be made by regulatory bodies.
Company news
Tigris Uranium (TSXV:WFP) has completed a reverse takeover and will change its name to Wolfpack Gold. The transaction, through which Tigris acquired all of the issued and outstanding shares of Wolfpack via a three-cornered amalgamation, gives the combined company a well-rounded portfolio of gold properties located in Nevada. Wolfpack will continue to advance the Crownpoint and Hosta Butte uranium assets in New Mexico.
Alpha Minerals (TSXV:AMW) and joint venture partner Fission Uranium (TSXV:FCU) will be spending $6.95 million on a summer and fall drill program of at the Patterson Lake South Property in the Athabasca Basin.
The summer program will be focused on delineating the three uranium zones discovered at Patterson Lake South. The company will also look at sampling for the purpose of metallurgical testing as well as working on establishing an environmental baseline study for reporting purposes.
NexGen Energy (TSXV:NXE) is currently working on ground logistics preparations for a 4,400-meter diamond drill program at the Radio deposit, located in the Athabasca Basin directly adjacent to Rio Tinto’s (NYSE:RIO,ASX:RIO,LSE:RIO) Roughrider deposit.
The company has also completed a ground gravity survey over the iced lakes section of the Rook 1 claim, which is located nearby the Patterson Lake South project owned by Fission Uranium and Alpha Minerals.
Strateco Resources (TSX:RSC) was forced to recognize an $87-million impairment charge from Yves-François Blanchet, Quebec’s Minister of Sustainable Development, Environment, Wildlife and Parks, not to issue the certificate of authorization for the Matoush uranium project until the uncertainty surrounding Quebec’s uranium industry is cleared.
Cameco (TSX:CCO) started production at the North Butte in-situ uranium mine in Wyoming on May 13. The project is a satellite facility to Cameco’s Smith Ranch-Highland in Converse County, Wyoming. The mine is expected to add 300,000 pounds of uranium in 2013 with the potential to climb to 700,000 pounds per year by 2015
Production from North Butte would add about US$2 million in annual taxes paid to the state and local governments.
Commenting on the start up was Cameco President Paul Goranson, who sees the project as “a significant milestone for our continued growth of US operations.” Goranson went on to show his appreciation for his team in getting the project up and running.
“We thank our employees, suppliers, contractors and others for the excellent job they’ve done with exploration, development, construction and final testing of process equipment to get us here.”
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
Related reading:
Fission Uranium: High-grade Uranium in the Athabasca Basin
Emerging Uranium District in Saskatchewan’s Patterson Lake Region
Featured Energy Investing Stocks
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.
