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Gladiator Resources: Capitalizing on the Uranium Momentum with Prolific Assets in Tanzania
Gladiator Resources (ASX:GLA) focuses on uranium assets covering 1,811 square kilometres located in Tanzania. The company’s key projects include – Mkuju, Minjingu, Liwale, Foxy and Eland. The flagship Mkuju has the potential to host world-class uranium deposits given its proximity to the Nyota deposit, which contains 124.6 million pounds (Mlbs) U3O8. Nyota is regarded as one of the largest uranium deposits in the world.
The company is planning a 2024 drill program at Mkuju focusing on the South West Corner (SWC), Mtonya and Likuyu North targets. The 2024 drilling program will commence with initial core drilling at the SWC target, where 2023 trenching revealed up to 7,139 parts per million (ppm) U3O8. Drilling at Mtonya and Likuyu North aims to explore potential extensions and new zones of the existing uranium deposits.
The Mkuju project spans over 725 sq kms and is located 20 kms south of Uranium One’s Nyota deposit, regarded as one of the largest uranium deposits in the world. Nyota hosts a measured and indicated mineral resource estimate of 187 metric tons (MT) at 306 ppm U3O8, containing 124.6 Mlbs U3O8. The deposit is being developed by global uranium company Uranium One. The Nyota deposit and the Mkuju project are underlain by sediments of the lower Karoo, which are considered highly prospective for uranium.
Company Highlights
- Gladiator Resources is an ASX-listed exploration and mining company focused on uranium. The company operates eight exploration projects, mainly in Tanzania, covering a total area of 1,811 sq kms.
- The company’s key projects include – Mkuju, Minjingu, Liwale, Foxy and Eland.
- Gladiator’s primary short term focus is on advancing the Mkuju project, located only 20 kms south of Uranium One’s Nyota deposit, regarded as one of the largest uranium deposits in the world.
- The 2024 drill program at Mkuju will focus on the South West Corner (SWC) initially, where trench assay results received Dec/Jan 2023/24 confirmed high-grade uranium in sandstone, 1000’s ppm U3O8 in places.
- Further work is also planned at Mtonya and Likuyu North – also located within the promising Mkuju area.
- Tanzania is endowed with many uranium-bearing deposits and is known for its mining-friendly policies. The government offers attractive tax policies and quick permitting processes to encourage investment in the sector.
- The presence in relatively attractive uranium mining jurisdictions such as Tanzania positions the company to capitalize on opportunities in the uranium sector and deliver superior returns to its shareholders.
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Gladiator Resources
Overview
Gladiator Resources (ASX:GLA) is an Australian explorer focused on uranium projects. The company’s portfolio of uranium assets covers 1,811 square kilometres located in Tanzania. The company’s key projects include – Mkuju, Minjingu, Liwale, Foxy and Eland. Mkuju is the company’s flagship project, having the potential to host world-class uranium deposits given its proximity to the Nyota deposit, which contains 124.6 million pounds (Mlbs) U3O8. Nyota is regarded as one of the largest uranium deposits in the world.
The company is planning a 2024 drill program at Mkuju focusing on the South West Corner (SWC), Mtonya and Likuyu North targets. The 2024 drilling program will commence with initial core drilling at the SWC target, where 2023 trenching revealed up to 7,139 parts per million (ppm) U3O8. Additionally, drilling at Mtonya and Likuyu North will aim to explore potential extensions and new zones of the existing uranium deposits.
The Minjingu project is the other key focus area for Gladiator. This project compliments the company’s flagship Mkuju uranium project in southern Tanzania. Surface pit samples at the Minjingu project have returned high-grade uranium mineralization up to 269 ppm U3O8. Follow-up auger drilling is planned to understand the thickness of the mineralized layer and potential extension.
Tanzania is an ideal location for uranium mining due to its favourable geology. It is rich in uranium-bearing deposits, notably the Mkuju River project, among the world's largest undeveloped uranium reserves. The Tanzanian government’s mining-friendly policies, including taxation and quick permitting process, are encouraging for uranium miners. The presence of well-developed infrastructure, including several ports, makes it easy to transport uranium ore. Further, the country has a large and skilled workforce with graduates in various fields, such as geology and mining. These factors make Tanzania a favourable jurisdiction for uranium exploration and development.
Company Highlights
- Gladiator Resources is an ASX-listed exploration and mining company focused on uranium. The company operates eight exploration projects, mainly in Tanzania, covering a total area of 1,811 sq kms.
- The company’s key projects include – Mkuju, Minjingu, Liwale, Foxy and Eland.
- Gladiator’s primary short term focus is on advancing the Mkuju project, located only 20 kms south of Uranium One’s Nyota deposit, regarded as one of the largest uranium deposits in the world.
- The 2024 drill program at Mkuju will focus on the South West Corner (SWC) initially, where trench assay results received Dec/Jan 2023/24 confirmed high-grade uranium in sandstone, 1000’s ppm U3O8 in places.
- Further work is also planned at Mtonya and Likuyu North – also located within the promising Mkuju area.
- Tanzania is endowed with many uranium-bearing deposits and is known for its mining-friendly policies. The government offers attractive tax policies and quick permitting processes to encourage investment in the sector.
- The presence in relatively attractive uranium mining jurisdictions such as Tanzania positions the company to capitalize on opportunities in the uranium sector and deliver superior returns to its shareholders.
Key Projects
Mkuju Project
The project spans over 725 sq kms and is located 20 kms south of Uranium One’s Nyota deposit, regarded as one of the largest uranium deposits in the world. Nyota hosts a measured and indicated mineral resource estimate of 187 metric tons (MT) at 306 ppm U3O8, containing 124.6 Mlbs U3O8. The deposit is being developed by global uranium company Uranium One. The Nyota deposit and the Mkuju project are underlain by sediments of the lower Karoo, which are considered highly prospective for uranium.
The 2024 drilling program, expected to commence in June 2024, will test the Southwest Corner target and test potential extensions to the Mtonya and Likuyu North deposits at the Mkuju project.
- At Southwest Corner, the 2024 drilling will test the potential for down-dip extension of the recently trenched high-grade surface uranium. The surface samples here returned high-grade uranium mineralization, including 2.55 metres @ 2017 ppm U3O8, 0.75 metres @ 7,139 ppm U3O8, 2.35 metres @ 1,636 ppm U3O8, and 1.4 metres @ 3,945 ppm U3O8.
- At Mtonya, the drilling program will follow up on high-grade uranium intersections discovered in the previous drilling program carried out in 2011/2012. The 2011/12 drill holes URAMT105 and 106 contain excellent mineralization that may extend to the northwest and will be tested in the 2024 drilling program.
- At Likuyu North, the 2024 drilling program will focus on testing for potential new zones that could add to the existing JORC resource of 4.6 Mlb U3O8 JORC.
Minjingu Project
The Minjingu project covers an area of 296.9 sq kms It is situated in northern Tanzania, 106 kilometers southwest of Arusha, the region's main administrative city, and 520 kilometers northwest of Dar es Salaam. The project boasts excellent infrastructure, such as quality tarmac roads, power lines and airport services via both Arusha and Kilimanjaro.
Surface pit samples at the Minjingu project have returned uranium mineralization up to 269 ppm U3O8. This project compliments the company’s flagship Mkuju Uranium project in southern Tanzania, where high-grade trench results have recently been reported. Follow-up work is being planned to understand the thickness of the mineralized layer and potential extension.
South West Corner Project
The South West Corner license holds high-grade uranium deposits at shallow depths. It features a relatively concentrated 3.5 x 1.8 km radiometric anomaly and has a history of multiple instances of excellent grading. Previously owned by Mantra Resources, SWC underwent a successful takeover in 2011 by Uranium One for approximately AU$1 billion
Liwale Project
The Liwale project spans an area of 195 sq kms and is situated beyond the boundaries of the Nyerere National Park. It was formerly owned by both Mantra Resources and Uranium One.
Foxy Project
The Foxy Project spans an area of 299.7 sq kms and was formerly under the ownership of Western Metals. It is recognized for hosting uranium mineralization akin to that found in the Mkuju region. Positioned approximately 25 kms away from the Mkuju tenements at its nearest point, the company is in the process of acquiring historical data.
Eland Project
The Eland project encompasses 294.7 sq kms and was previously held by Western Metals. It is known for hosting uranium mineralization. The company is in the process of arranging to obtain historical data.
Management Team
Gregory Johnson – Non-executive Chairman
Gregory Johnson has over two decades of experience in capital markets, including fund management and capital raising. He has held senior capital raising and client relationship roles at Macquarie, Perpetual and Dimensional, and has led client services teams at Deutsche Bank, Credit Suisse and Macquarie Funds Management. At Gladiator, Johnson provides vast financial services experience, building relationships with existing and new investors.
Matthew Boysen – Non-executive Director
Matthew Boysen possesses significant expertise in marketing and communication. Over the past two decades, Boysen has made successful investments in numerous exploration, energy and mining companies, demonstrating a deep understanding of the agility necessary in the dynamic environment in which ASX mining companies operate.
Peter Tsegas – Non-executive Director
Peter Tsegas boasts over two decades of experience across Africa, collaborating with private enterprises and government entities on mining projects spanning various commodities, including uranium. He played a pivotal role in the acquisition of Gladiator's uranium projects. He has consulted with several Tanzanian government ministries and mining firms, including Rio Tinto. As the founder and former managing director of Tancoal Energy, he effectively steered the company from its exploration phase to establishing a joint venture with the Tanzanian Government, eventually leading to production. Presently, he serves as a non-executive director at Magnis.
Rod Chittendan – Non-executive Director
Rod Chittendan has over 40 years of experience in the minerals industry, spanning Africa, Australia and South America. He has held executive management positions and metallurgical project development roles covering the entire spectrum from exploration to production. He has played a key role in the advancement of Mantra Resources' Mkuju River uranium project and the development of Paladin Energy's (ASX:PDN) Langer Heinrich and Kayelekera uranium projects. Previously, he held positions with large mining companies such as Newcrest (ASX:NCM) and Barrick Gold (NYSE:GOLD).
Andrew Pedley – Non-executive Director
Andrew Pedley has over 25 years of experience as a geologist in Africa, progressing from roles as exploration manager to VP of exploration. His extensive uranium expertise is particularly pertinent to Gladiator. Pedley possesses specialized skills in uranium exploration and the delineation of uranium mineral resource estimates, adhering to JORC and ASX listing regulations. He has served as a competent person on numerous uranium projects. He holds a masters in geology from the Camborne School of Mines in England.
Andrew Metcalfe – Company Secretary
Andrew Metcalfe has served as a company secretary and governance advisor to ASX-listed companies for more than 25 years. He currently oversees the company secretary services within Gladiator Resources.
When Will Uranium Prices Go Up? (Updated 2024)
Uranium is an important fuel source for the nuclear energy industry, but many investors were shaken out of the market after many years of low uranium prices. With the rebound in 2024, many wonder if the commodity will once again reach its peak.
Driven by rising demand and massive supply disruptions, uranium prices shot up in 2007 from US$72 per pound at the start of the year to an all-time high of US$136.22 by early June. However, uranium prices didn’t last long above US$100 per pound, and the market value of the energy fuel was in the doldrums for more than a decade.
Prices began to climb again in 2021, and picked up speed in 2023. This rally led the uranium spot price to hit a major milestone in January 2024 when it broke through the US$100 per pound level for the first time in 17 years.
This most recent rally was sparked by a confluence of global and market events, including the Russia-Ukraine war and uranium supply challenges related to conversion and enrichment.
The drive for nuclear energy to be a part of the fight to combat climate change is also having an oversized impact on the uranium price outlook as governments look to nuclear as a carbon-free energy source. Even Sweden is considering lifting its ban on uranium mining in an effort to support growth in it own nuclear power industry, for which it currently imports nuclear fuel.
"Sweden currently uses 2.4 million pounds U3O8 annually in its three nuclear power plants and has committed to building two additional nuclear reactors by 2035," World Nuclear News reported.
Although prices have since pulled back to the US$78 to US$80 range as of mid-September, there are notable signals that the market may be in for plenty of upside to the uranium price forecast in the years ahead.
For many years, the uranium market's back-and-forth struggle to move out of a rather entrenched trough had investors asking, "When will uranium prices go up?" Now that they have, the questions that remain are whether they are up enough to spur uranium mining activity and whether or not they have further to go.
Before we try to answer those questions, we'll have a look at what's moved the uranium spot price in the past, including the energy metal's supply and demand dynamics.
How have uranium prices traded historically?
As briefly outlined above, uranium has experienced a wide price range this past century — while its highest level was nearly US$140, the lowest U3O8 spot price came in at just US$7.
In 2003, the price of uranium began an upward trend as demand for nuclear power rose alongside the world's need for energy, especially in growth economies such as China and India. These increasing energy demands came at the same time as significant supply-side disruptions. For example, in 2006, Cameco's massive Cigar Lake mine in Saskatchewan flooded, stalling production for several years at one of the largest uranium deposits in the world.
The inability to move this uranium ore to market was a huge setback for the uranium industry, and translated into explosive price growth for the metal in 2007. However, those impressive gains were soon undone by the 2008 economic crisis, which sent uranium on a downward spiral, slipping below the key US$50 level in early 2009 and to the US$40 range in 2010, as is shown in the uranium price chart below.
Uranium's price history, 2000 to 2024.
Uranium price chart via Trading Economics.
At the start of 2011, uranium got a serious push to the upside along with other energy metals as the global economy began to recover. The tight supply situation, heightened by years of low prices, also played a part in pushing the spot price past the US$70 level.
The rally was short-lived, however, as Japan’s Fukushima nuclear disaster in March shook confidence in the sector. The uranium spot price began a slow slide to lows not seen since the start of the century, ultimately bottoming out at US$18 in November 2017.
Although COVID-19-induced supply disruptions at the world's top uranium mines briefly sent the commodity to a four year high of US$33.93 in May 2020, it wasn't until the fall of 2021 that uranium started to find its footing again.
In September 2021, uranium began to show signs of life as it shot up to a nine year high of US$50.80. The 2021 uranium price rally came after supply cuts from major producers, including Kazakhstan's Kazatomprom and Canada's Cameco( TSX:CCO,NYSE:CCJ), alongside the emergence of the launch of the Sprott Physical Uranium Trust (TSX:U.UN).
Prices were soon see-sawing between US$38 and US$48 in October and November, but the start of 2022 brought civil unrest in Kazakhstan, as well as Russia's invasion of Ukraine. These events proved price positive for the uranium market, and by mid-April, uranium prices had reached an 11 year high of US$64.61.
Looking at the demand side, utility companies had once again returned to the table to sign new long-term uranium supply agreements to secure price and supply. This coincided with uranium supply challenges related to conversion and enrichment. The result was that from April 2021 to April 2022, the price of uranium soared by an eye-popping 106.47 percent.
By H2 2022, uranium prices had begun to slide back to the US$50 range. Much like the broader commodities market, uranium felt the squeeze of higher interest rates as central banks, including the US Federal Reserve, sought to curb rising inflation.
While the uranium price remained stuck in the low US$50s range for much of 2023’s first half, positive fundamentals born out of the view that nuclear energy is critical to reducing global carbon emissions sparked another major price rally beginning in the fall. By January 2024, as the uranium spot price hit US$106 per pound, many market analysts were loudly proclaiming that the next uranium bull market is finally here.
However, uranium prices went on to consolidate in Q2 2024 to the US$80 range, which many experts see as a natural part of the nuclear fuel's emerging bull market cycle. Although the spot price has pulled back this year, the long-term contract price has increased. Term prices are considered by industry insiders to better reflect uranium market fundamentals.
What factors impact uranium supply and demand?
Uranium prices are mainly influenced by aboveground mine supply and demand for nuclear energy. To understand where those stand, investors in this sector typically look to:
- output from uranium mines
- the number of nuclear reactors online, under construction or planned
- the signing of long-term contracts between uranium suppliers and utilities companies
Analysts with a bullish lean believe the uranium market cycle has reached its bottom and that a break to the upside for uranium prices is supported by positive supply and demand fundamentals.
On the demand side, nuclear energy generated from 440 reactors around the globe supplies about 9 percent of the world's energy requirements. Russia is constructing four with another 14 confirmed or planned, and India has seven nuclear reactors under construction. Meanwhile, China alone is constructing 30 new reactors at the moment. In fact, Bloomberg reported in August 2024 that the Chinese government is investing US$31 billion in building 11 new reactors across five sites over the next five years.
A World Nuclear Association (WNA) report forecasts that nuclear generation capacity will grow from 391 gigawatts electric (GWe) in 2023 to a total of 686 GWe in 2040. About 83,840 metric tons (MT) of uranium will be required to feed reactors in 2030, up significantly from the 65,650 MT of uranium required in 2023, according to the WNA's uranium forecast. The firm projects that nearly 130,000 MT will be needed in 2040.
On the supply side, major uranium producers are still not producing at full capacity, and new uranium exploration and development projects are few and far between. The WNA points out that world uranium production dropped from 63,207 MT of uranium in 2016 to 47,731 MT of uranium in 2020. Although that figure ticked up slightly higher in 2021 to 47,808 MT and again in 2022 to 49,355 MT, the organization notes that only 74 percent of 2022's reactor requirements were covered by primary uranium supply.
Huge cuts to global uranium production have come from Kazakhstan, the world's largest uranium-producing country. Responsible for 43 percent of global uranium production, the Central Asian nation began reducing its annual production levels in 2018.
In its 2023 financial report, Kazakhstan’s state uranium firm Kazatomprom warned that it sees a major supply deficit in the uranium market post-2030. “In the current pricing environment, another Kazatomprom-sized supply source will be needed to cover future market needs," said Kazatomprom CEO Meirzhan Yussupov.
In early 2024, the company reduced its production guidance for the year due to several challenges, including difficulties obtaining sulfuric acid.
However, after its H1 2024 production totals showed a 6 percent increase over total production in the same period last year, Kazatomprom increased its production guidance for the year from a range of 21,000 to 22,500 MT of uranium to the new guidance of 22,500 to 23,500 MT of uranium. The company's sales guidance for 2024 remained unchanged.
Canada, Namibia, Australia and Uzbekistan are also among the world's biggest uranium producers. In Canada, Cameco shuttered the Saskatchewan-based McArthur River mine in 2018 and temporarily closed Cigar Lake — the world's top uranium mine — in response to the COVID-19 pandemic. In November 2022, the mining giant brought the McArthur River/Key Lake operation back online.
In 2023, Cameco produced 17.6 million pounds of uranium, falling short of its original production target of 20.3 million pounds for the year. The company’s 2024 guidance is set at 22.4 million pounds. In its H1 2024 report, the company shared that production for the first half of the year had come in at 12.9 million pounds.
As for Australia, Boss Energy (ASX:BOE,OTCQX:BQSSF) announced in April 2024 that it had produced the first drum of uranium out of its Honeymoon project in South Australia as part of its commissioning process. The current mine plan only uses 36 million pounds of the project's total JORC resource of 71.6 million pounds. Boss’ goal is to scale up production at Honeymoon to 2.45 million pounds of U3O8 per year.
In the US, Boss Energy began uranium production at its South Texas-based Alta Mesa in-situ recovery (ISR) central processing uranium plant in June 2024. “With operations now ramping up at both Honeymoon and Alta Mesa, we are on track to hit our combined nameplate production target of 3 million pounds of uranium per annum," said Managing Director Duncan Craib.
Uranium Energy (NYSEAMERICAN:UEC) announced the restart of uranium production at its Wyoming-based Christensen Ranch ISR operations in August 2024. The first shipment of yellowcake from the mine is projected later in the year. Scott Melbye, executive vice president at UEC, told INN during a March 2024 interview that the Burke Hollow ISR project in Texas will be company’s next project to come online.
Despite this positive news, the WNA reports that supply deficits are likely to continue in the years ahead as current global production levels are not enough to meet forecasted demand.
"To meet the Reference Scenario requirements from early in the next decade, in addition to restarted idled mines, mines under development, planned mines and prospective mines, other new projects will need to be brought into production,” the WNA report states. “Considerable exploration, innovative techniques and timely investment will be required to turn these resources into refined uranium ready for nuclear fuel production within this timeframe."
When will uranium prices go up?
So when can investors expect to see further gains in the uranium price? And how far can we expect uranium spot prices to climb?
A good gauge for which way the winds are blowing is utilities contracts, as these entities are traditionally the greatest sources of uranium demand. In fact, only about 10 to 15 percent of uranium trades happen on the spot market — the vast majority of uranium is sold through large long-term contracts between producers and utilities.
It's also useful to watch the rest of the nuclear fuel cycle. Russia controls about 50 percent of global conversion and enrichment capacity — this dominance amid the country's war with Ukraine has spiked prices for these services. Recent moves by the United States may impact this dominance. In mid-May 2024, Biden signed into law a US bill banning Russian uranium imports through the end of 2040.
Speaking to the Investing News Network in a June interview, Ben Finegold, director at Ocean Wall, referred to this as one of the most significant events for the uranium market since Russia's invasion of Ukraine.
"I think that we're going to start to see a move much higher both in terms of term volume and in terms of term prices," he said. "Fuel buyers have got the clarity that they need, particularly in the west now, on the US' stance on the future procurement of Russian uranium."
In the month following the launch of the ban on Russian uranium imports, the US Department of Energy announced plans to invest up to US$2.7 billion to stimulate the development of the country's uranium enrichment capacity and nuclear fuel supply chain.
Not to be outdone, in September Russian President Vladimir Putin put forth the threat of limiting exports of uranium to western nations. The news gave a bump to the share prices of uranium miners such as NexGen Energy (TSX:NXE,NYSE:NXE), Cameco and Denison Mines (TSX:DML,NYSEAMERICAN:DNN).
Uranium stocks have languished in recent months as the winds have left the sails of uranium prices. But plenty of optimism remains for the sector. Speaking to INN in September 2024, Mart Wolbert, analyst at Contrarian Codex, shared his thoughts on supply and demand fundamentals in the uranium market, why uranium prices have dropped, if uranium stocks will go up and what's next for prices.
Even though uranium spot prices have receded down around the US$80 level, Wolbert remains bullish on the market going forward and thinks higher prices could be in the cards. He points to the 42.5 million pounds that have been signed into long-term contracts this year, and advises uranium market watchers to look at term prices rather than spot as a truer indication of where the market is going.
As Reuters reports, long-term uranium prices are coming in at 16-year highs, and are expected to increase further. "With a stronger market environment, we're currently locking in ceilings of about $125-130/lb and floors at about $70-75/lb in market-related contracts," according to Cameco.
Looking over at spot uranium price prediction for 2025, as of mid September 2024, analysts at Trading Economics were forecasting that uranium would trade at US$82.60 in 12 month's time.
This is an updated version of an article first published by the Investing News Network in 2020.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
$1.1M Placement to Advance Lyndon Uranium Project
Odessa Minerals Limited (ASX:ODE) (“Odessa” or “the Company”) is pleased to announce it has received firm commitments from professional and sophisticated investors for a Placement to raise $1,112,500 (before costs) (“Placement”) by way of a two tranche placement of fully paid ordinary shares (“New Shares”).
Highlights:
- Oversubscribed Placement to sophisticated investors raises $1.1M via two tranche placement
- Proceeds to be utilised to continue exploration and drilling the Lyndon Uranium project, including key targets at Relief Well and Baltic Bore.
Tranche 1 comprising of 225 million New Shares will be issued immediately utilising the Company’s existing placement capacity under ASX Listing Rule 7.1/7.1A. Tranche 2 comprises 331.25 million New Shares which are subject to shareholder approval at the Company’s AGM in November, including a subscription by Non- Executive Chairman Mr Zane Lewis for $100,000 of New Shares.
The issue price of A$0.002 per New Share represents a discount of nil to the last closing price of $0.002 on 25 September and a 23.9% discount to the 15-day volume weighted average price of $0.0263.
Proceeds from the Placement will be utilised to continue exploration at Odessa’s projects including:
- Exploration and drilling of the Company’s Lyndon Uranium Project
- General working capital purposes.
Zane Lewis, Chairman of Odessa, said: “I am very pleased to receive commitments for $1.1M from highly supportive group of long term investors, who share our vision at Odessa. This placement will ensure Odessa is well funded for the upcoming exploration and drilling program at Lyndon.”
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This article includes content from Odessa Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Odessa Minerals Limited (ASX: ODE) – Trading Halt
Description
The securities of Odessa Minerals Limited (‘ODE’) will be placed in trading halt at the request of ODE, pending it releasing an announcement. Unless ASX decides otherwise, the securities will remain in trading halt until the earlier of the commencement of normal trading on Monday, 30 September 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
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This article includes content from Odessa Minerals, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
High-Grade Uranium Interval of 1963ppm at Likuyu North at the Mkuju Uranium Project; Commencement of Initial ISR Work
Gladiator Resources Ltd (ASX: GLA)(Gladiator or the Company) is pleased to provide an update on its ongoing exploration activity at the Mkuju Uranium Project, located in southern Tanzania.
- Drill-hole LNDD020 drilled at the Likuyu North deposit, part of the Mkuju Project, returns 6 mineralised intervals including 7.1 metres averaging 1,963ppm eU3O81, from 63.1 metres depth. This hole was drilled central to the deposit to provide core for an assessment of In Situ Recovery (ISR) of the uranium.
- ISR is the preferred method for mining uranium deposits. ERM Australia Consultants Pty Ltd (ERM) are undertaking an initial ISR assessment for Likuyu North.
- Drill-hole LNDD015 down-dip of the deposit has a ~5m mineralised interval; samples have been dispatched to the lab. This interval is 100m south of the current Mineral Resource Estimate (MRE).
- The 2022 JORC compliant MRE for Likuyu North (4.6 Mlbs U3O8) was based on a pit- shell assuming conventional open-pit mining methods; adoption of ISR may support expansion of it.
Commenting on the drill results, Gladiator’s Chairman Greg Johnson said:
“Drillhole LNDD020 demonstrates the quality of the Likuyu North deposit, and we are excited by the potential opportunity the area provides. Grade and other characteristics appear to be well-suited to ISR. With that in mind, Gladiator has appointed ERM (formerly CSA Global) to help advance this strategy, and if the ISR study is encouraging the Company will consider larger-scale exploration at Likuyu North, Likuyu South and at the Mtonya deposit area, with an aim of maximizing the resource available for a potential ISR operation”.
Drillhole LNDD020
This hole was drilled to provide fresh drill-core to assist with initial assessment of the potential of ISR as a mining method for the Likuyu North deposit. The deposit has a JORC compliant Mineral Resource Estimate of 4.6Mlbs U3O8 with an average grade of 267ppm U3O8. The hole was positioned in an area relatively central to the deposit known to have thick and high-grade mineralisation, hosted by medium to coarse grained sandstone beds. Figure 1 is a cross-section and shows LNDD020. The hole contains 6 mineralised intervals (Table 2) including:
- 2.5 metres with an average grade of 438 ppm eU3O8 from 17.1m depth.
- 7.1 metres with an average grade of 1,963 ppm eU3O8 from 63.1m depth.
Figure 1: North-south cross-section showing the downhole logged eU3O8, mineralized layers and oxide/transitional zones. LNDD015 and LNDD020 are shown.
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This article includes content from Gladiator Resources Limited, licensed for the purpose of publishing on Investing News Australia. This article does not constitute financial product advice. It is your responsibility to perform proper due diligence before acting upon any information provided here. Please refer to our full disclaimer here.
Uranium Reserves: Top 5 Countries (Updated 2024)
Uranium is an important commodity in the energy sector, and knowing the countries with the top uranium reserves is key.
Mined uranium resources have provided fuel for nuclear power generation for more than 60 years, and today nuclear power serves 10 percent of global energy needs. Global uranium demand is anticipated to grow in the coming years, which bodes well for future uranium prices. According to the World Nuclear Association (WNA), around 60 nuclear reactors are under construction worldwide, and significant increases to capacity at existing plants are also planned.
Global uranium production totaled 57,651 metric tons (MT) of U3O8 in 2022, the latest year for which numbers are available. The five top uranium-producing countries in the world are Kazakhstan, Canada, Namibia, Australia and Uzbekistan, and they were responsible for the vast majority of that production.
But what are the top uranium reserves by country? Here the Investing News Network provides an overview of the five countries with the largest uranium resources, with data sourced from the WNA. Reserves data for deposits owned by public companies is sourced from MiningDataOnline.
1. Australia
Uranium resources: 1,684,100 metric tons (28 percent of world uranium resources)
Which country has the most uranium? While Australia ranks fourth in global uranium production, it takes the lead for the highest uranium reserves in the world.
Australia’s crown jewel is Olympic Dam, the largest-known single deposit of uranium in the world with proven and probable reserves of 588 million MT at an average grade of 590 grams per MT (g/t) uranium in-situ. The mine is owned by BHP (ASX:BHP,NYSE:BHP,LSE:BHP) and produces uranium as a byproduct.
Other major uranium deposits in the country include Ranger, Beverley and Four Mile. While the latter two are owned by a private company, Ranger is owned by Energy Resources of Australia (ASX:ERA,OTC Pink:EGRAF), in which Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) has a majority interest. However, production at Ranger was brought to a halt in early 2021 and the site is now being rehabilitated.
Australia is key to the global uranium industry, but mining the material is politically contentious in the country. For example, the Western Australian government has put the brakes on any new domestic uranium-mining project approvals, although it is allowing existing projects to go ahead. In addition, the federal government is opposed to nuclear energy.
In July, the Australian Government put the kibosh on Energy Resources of Australia's attempt to renew its licence permit for the Jabiluka uranium project in the Northern Territory in response to community backlash.
2. Kazakhstan
Uranium resources: 815,200 metric tons (13 percent of world uranium resources)
Kazakhstan comes in second in terms of uranium resources, but ranks first in uranium production. The country's national uranium-mining company, Kazatomprom (LSE:KAP,OTC Pink:NATKY), is the world’s largest uranium producer. Kazatomprom's Inkai uranium mine, a 60/40 joint venture with Canada's Cameco( TSX:CCO,NYSE:CCJ), hosts proven and probable reserves of 261.7 million pounds of uranium contained in 305.6 million MT of ore grading 0.04 percent.
At least 67 percent of Kazakhstan's electricity production comes from coal, with the remainder supplied by natural gas (22 percent), hydro (9 percent) and solar and wind (1.5 percent). However, the country's energy development plan details changes to the mix that would include 5 percent of electricity generation from nuclear power and 10 percent from renewable energy by 2030. Kazakhstan has two proposed and planned nuclear power plants.
Russia's war in Ukraine has created a significant roadblock for Kazakhstan's uranium exports to western markets. Sanctions imposed on Russia have made the cost-effective route via St Petersburg no longer a viable option for transport.
Another issues facing Kazakhstan's uranium mining sector is supply shortages of sulphuric acid, which is used during in-situ leaching to dissolve uranium from host rock. This challenge, coupled with construction delays at new projects, led Kazatomprom to cut its production targets for 2025 by 17 percent.
3. Canada
Uranium resources: 588,500 metric tons (10 percent of world uranium resources)
The second largest uranium producer, Canada is third largest in terms of top uranium countries by reserves. Saskatchewan’s Athabasca Basin is a hotbed for uranium exploration and is known the world over for having the highest-grade uranium deposits on the planet.
The North American nation is home to the world’s top uranium mines: Cameco’s Cigar Lake and McArthur River. Together, they make the province of Saskatchewan an international leader in the uranium sector, although in recent years these operations have spent time offline.
The mines host high-grade deposits, with Cigar Lake's proven and probable reserves totaling 208.6 million pounds of uranium from 600,000 MT grading 17.03 percent, and McArthur River's coming in at 380.5 million pounds of uranium from 2.6 million MT grading 6.72 percent.
Nuclear energy accounts for about 15 percent of Canada’s electricity demand, and its nuclear power infrastructure includes 19 nuclear reactors. As the second largest country by landmass, providing reliable energy to Canada’s many remote regions poses a significant challenge. However, novel reactor technologies, such as small modular reactors, have the potential to supply power to smaller electrical grids or to remote, off-grid areas.
4. Russia
Uranium resources: 480,900 metric tons (8 percent of world uranium resources)
As the largest country by landmass, Russia has a wealth of resources, including 8 percent of the world’s uranium. The majority of Russia’s domestic uranium output comes via Rosatom, a subsidiary of ARMZ Uranium Holding, which owns the Priargunsky underground mine and is developing the Vershinnoye deposit in Southern Siberia.
To meet the nation’s growing energy needs, Russia’s government is keen on increasing its uranium output. According to the WNA, nuclear energy accounted for 19 percent of Russia’s energy mix as of December 2021, the most up-to-date data available. The country has 36 nuclear reactors generating 26,802 megawatts of electricity, with an additional four units under construction.
Russia is among the world's top 10 uranium producers in addition to holding significant reserves, and the country's war with Ukraine has raised questions about the extent to which Russia will be able to continue exports. However, European countries such as France are still importing Russian uranium. In 2023, Russia reportedly accounted for 27 percent of all enriched uranium supplied to US nuclear plants. However, in May 2024, US President Joe Biden signed into law a ban on enriched uranium imports from Russia.
In mid-September 2024, Russian President Vladimir Putin said his government is considering limiting uranium exports in response to ongoing sanctions.
5. Namibia
Uranium resources: 470,100 metric tons (8 percent of world uranium resources)
The world’s third largest uranium-producing country, Namibia, comes in fifth for reserves.
The African nation’s Langer Heinrich mine, owned by Paladin Energy (ASX:PDN,OTC Pink:PALAF), and Rössing mine, majority owned by China National Uranium, are capable of producing 10 percent of the world’s uranium output. Langer Heinrich hosts total proven and probable reserves of 83.8 million pounds uranium from 84.8 million MT at a grade of 448 parts per million.
Significant Namibian deposits also include Trekkopje, which is near Rössing and owned by Orano, and the world-class Husab uranium mine, which is also majority owned by China National Uranium. Husab hosts 224.8 million pounds of probable uranium reserves.
The Namibian government is in favor of expanding the country’s uranium-mining industry. While there are no nuclear power plants in Namibia, there is some support for a national nuclear power industry.
Don’t forget to follow us @INN_Resource for real-time news updates!
Securities Disclosure: I, Melissa Pistilli, hold no direct investment interest in any company mentioned in this article.
Tisdale Announces Change of Name to Terra Clean Energy
TISDALE CLEAN ENERGY CORP. (“ Tisdale ” or the “ Company ”) (CSE: TCEC, OTCQB: TCEFF , FSE: T1KC ) announces that it will change its name (the “ Name Change ”) to “Terra Clean Energy Corp.”
No change to the capital structure or ticker symbol is expected in connection with the Name Change. The Name Change remains subject to the approval of the Canadian Securities Exchange, and the Company will issue a further news release once the effective date for the Name Change has been determined.
About Tisdale Clean Energy Corp.
Tisdale Clean Energy is a Canadian-based uranium exploration and development company. The Company is currently developing the South Falcon East uranium project located in the Athabasca Basin region, Saskatchewan, Canada.
ON BEHALF OF THE BOARD OF TISDALE CLEAN ENERGY CORP.
“Alex Klenman”
Alex Klenman, CEO
For further information please contact:
Alex Klenman, CEO
Tel: 604-970-4330
Tisdale Clean Energy Corp
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