The Conversation (0)
Jan. 10, 2013 04:30AM PST
Both industry experts and market watchers are confident that uranium spot prices will begin to rise this year as nuclear power plants are constructed and commissioned around the world.
The uranium spot price slid 50 cents, to $42.75 per pound U3O8, in 2013’s first week of trading, according to TradeTech. The consultancy firm also reported that materials purchases for delivery later in the year fetched a higher price than transactions involving immediate delivery — a sign that market participants are anticipating higher uranium spot prices in 2013.
The results of a recent Bloomberg News analyst survey show that the spot price for uranium will average $55 per pound this year. That’s still a far cry from the $70 to $80 per pound that industry experts say is needed to make most major uranium production operations economical. Thomas Neff, a uranium analyst at MIT, told the news agency that the market will most likely not see “strong demand signals” until 2015 as nuclear restarts in Japan are expected to move “fairly slow[ly].”
Virginia’s Coal and Energy Commission voted 11 to 2 on Monday to recommend that in its 2013 session, which begins this week, the state’s General Assembly address overturning Virginia’s 30-year uranium mining moratorium. Lifting the ban would allow Virginia Uranium to carry through with its plans to mine the Coles Hill uranium project — valued at $7 billion. The vote follows that of Danville’s city council, whose members voted unanimously in favor of keeping the ban on uranium mining, according to a local media report.
The first of four 1,080 MW reactors at China’s Ningde nuclear facility began initial operation December 28, with full commercial operation to follow after the plant’s operator, China Guangdong Nuclear Power, conducts additional testing. All four CPR-1,000 units are expected to be operational by the end of 2015.
Turkey will soon announce the winning bid for a tender to construct the nation’s second nuclear power facility on the Black Sea Coast at Sinop. Nuclear firms from China, Japan and South Korea are in the running. Construction of Turkey’s first nuclear power plant will begin this year under Russia’s state-owned Rosatom. The government of Turkey plans to build a total of three nuclear power plants in the next five years.
Company news
On Wednesday, Pistol Bay Mining (TSXV:PST) received notice of Rio Tinto Canada Uranium’s (RTCUC) planned 2013 exploration program at the Pistol Bay Mining C5 property, located in Saskatchewan’s Athabasca Basin. The proposed $750,000 program includes an 1,800-meter diamond drill campaign and a ground gravity survey. RTCUC currently has a 55-percent interest in the project with the option to earn 100 percent following $1 million in expenditures and $5 million in cash payment. Pistol Bay Mining would receive a 5-percent net profits interest royalty.
Tuesday, Macusani Yellowcake (TSXV:YEL) announced additional assay results from its ongoing drill program at the Chilcuno Chico anomaly on the company’s Kihitian property in Puno, Peru. Highlights include drill hole PT-CH26-TNE with an 18-meter intersection from 197 to 215 meters; it returned a weighted average of 762 ppm U3O8 (or 1.524 lbs/ton), including a higher-grade zone of 9 meters that averaged 1,459 ppm U3O8 (or 2.918 lbs/ton). Macusani is operating three diamond drill rigs on the Kihitian project, one drill at Quebrada Blanca and two drills at Chilcuno Chico.
Monday, Powertech Uranium (TSX:PWE) received a second-draft uranium recovery license for its South Dakota-based Dewey-Burdock project from the US Nuclear Regulatory Commission (NRC). The draft license is preliminary and further discussions are necessary to finalize the Safety Environmental Report and Supplemental Environmental Impact Statement (SEIS). Powertech expects to finalize the SEIS in March 2013 and the NRC has scheduled completion on its end by May 2013. The company anticipates receiving the uranium recovery license shortly after.
Uranium Resources (NASDQ:URRE) reported an expansion and extension of its exploration agreement with Cameco Texas, a subsidiary of Cameco (NYSE:CCJ, TSX:CCO). Both parties have agreed to extend the exploration agreement to a five-phase, five-year exploration program that will include an additional 22,700 net acres known as the Tecolote tract. Under the expanded program, Cameco is committing $4.3 million to increase its interest in the uranium mining lease to 70 percent.
Last week, Alpha Minerals (TSXV:AMW) and Fission Energy (TSXV:FIS) announced assay results from the September 2012 boulder prospecting program at their Patterson Lake South joint venture project, which is located in the uranium-rich Athabasca Basin. The results include assays of 37 glacially transported rocks with returned grades of over 10 percent U3O8 from 54 percent of the boulders assayed. The highest-grade sample assayed at 40 percent U3O8.
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.
