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Supplementary Prospectus
This is a supplementary prospectus (Supplementary Prospectus) which is intended to be read with the prospectus dated 24 July 2024 (Prospectus) issued by GTI Energy Limited (ACN 124 792 132) (Company).
This Supplementary Prospectus is dated 29 July 2024 and was lodged with the Australian Securities and Investments Commission (ASIC) on that date. Neither ASIC nor ASX take any responsibility as to the contents of this Supplementary Prospectus.
This Supplementary Prospectus should be read together with the Prospectus. Other than as set out below, all details in relation to the Prospectus remain unchanged. Terms and abbreviations defined in the Prospectus have the same meaning in this Supplementary Prospectus. If there is a conflict between the Prospectus and this Supplementary Prospectus, this Supplementary Prospectus will prevail.
The Company has issued electronic versions of this Supplementary Prospectus and the Prospectus. Electronic versions may be accessed at www.gtienergy.au.
This Supplementary Prospectus and the Prospectus are important documents that should be read in their entirety. If you are in any doubt as to the contents of this Supplementary Prospectus or the Prospectus, you should consult your stockbroker, lawyer, accountant or other professional adviser without delay.
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GTI Energy
Overview
Wyoming has the largest uranium reserves of all the US states and is the home of in-situ recovery (ISR) uranium mining, with experimental ISR mining during the early 1960s and commercial ISR mining starting in 1974. The state is an energy powerhouse in the US, second only to Texas in energy production and accounting for more than 80 percent of the country’s uranium production. It has a production history that dates back to the late 1940s. With a soaring uranium price that passed $90 by the end of 2023, many analysts believe the price will remain on the higher end for years to come.
GTI Energy (ASX:GTR,OTCQB:GTRIF) is a mineral exploration company focused on developing a portfolio of attractive uranium projects in the United States. The company now boasts approximately 42,000 acres in the prolific Great Divide and Powder River Basins, which are low-cost ISR uranium-producing districts within 100 miles of each other.In 2022, the company completed an additional 103 mud rotary exploration drill holes to increase the total trend length for GTI’s projects in the Great Divide Basin to 7.5 miles.
The company has also commenced work at its Green Mountain ISR uranium project next to Rio Tinto’s (ASX:RIO) uranium deposits. GTI has historical drill data confirming the presence of uranium mineralised roll fronts on the properties.
The company is led by a highly experienced management and exploration team with an extensive track record in the mineral exploration industry. GTI’s operational team has proven development and engineering expertise with a history of success in ISR uranium deposit discovery in Wyoming.
GTI’s acquisition of Branka Minerals in November 2021 gave the company control of the largest non-US or Canadian-owned uranium exploration landholding in the Great Divide Basin, with approximately 19,500 acres. The landholding included underexplored and highly prospective sandstone-hosted uranium properties which are the company’s Wyoming projects today. This holding then grew with the purchase of the 13,800-acre Green Mountain project in 2022.
The company further expanded its ISR uranium portfolio in 2023 by acquiring the Lo Herma Project in Wyoming’s prolific Powder River Basin uranium district. The newly staked 13,300 acres of claims are located within 16 kilometers of Cameco’s Smith Ranch-Highland ISR uranium production plant – the largest production site in Wyoming
GTI Energy leverages the strategic positioning of its Wyoming projects, which are located near Ur Energy’s (TSX:URE,NYSE:URG) Lost Creek ISR production plant and the now-rehabilitated historic Rio Tinto Kennecott Sweetwater Mill. The Lost Creek plant is claimed by Ur Energy to be the lowest-cost ISR uranium production plant outside of Kazakhstan.
GTI is committed to strong environmental, social and governance (ESG) initiatives to support the clean energy transition. In November 2021, the company adopted an internationally recognized Environmental, Social and Governance Stakeholder Capitalism Metrics framework, with 21 core metrics and disclosures.
In December 2021, GTI Energy announced it would be transitioning to carbon-neutral operations. The company has subsequently received its carbon neutral certification for its Australian head office and US field operations, through the Australian Government’s Climate Active Program.
GTI Energy is positioned for growth with the pursuit of ISR mining on its Wyoming projects, presenting an opportunity for low operating expenses and capital expenditures with low environmental impact compared to conventional mining. ISR mining supports the company’s goal of low-impact mining and carbon neutrality on its Wyoming projects.
In 2021, the company completed field exploration on its Henry Mountains project in Utah. In the same year, GTI Energy also began a 15,000-meter drill program on its Wyoming projects, concluding the program in early 2022. The drilling confirmed that the targeted ISR-amenable uranium mineralization was present at the Thor project. In 2022, the company completed an additional 103 mud rotary exploration drill holes to increase the total trend length for GTI’s projects in the Basin to 7.5 miles.
Company Highlights
- GTI Energy owns multiple promising assets in Wyoming’s prolific and in-situ recovery (ISR) uranium-producing Great Divide and Powder River Basins. Wyoming is the leading US uranium production state and is “uranium-friendly”.
- GTI’s flagship Lo Herma project comprises 13,300 acres of ground in Wyoming within circa 16 kilometers of Cameco’s $16-billion ISR uranium plant (the largest permitted ISR production facility in Wyoming) and 80 kilometers of five permitted ISR uranium production facilities, including UEC’s Christensen Ranch (due to restart in August 2024) and Peninsula Energy’s (ASX:PEN) Lance Project (due to recommence production in late 2024).
- GTI’s Great Divide Basin projects are strategically located near Ur Energy’s (TSX:URE,NYSE:URG) Lost Creek ISR production plant which has re-commenced production.
- Maiden uranium resource and updated exploration target at the Lo Herma ISR project delivered an inferred mineral resource estimate of 5.71 Mlbs uranium oxide at an average 630 ppm plus an exploration target of an additional 5.87 to 10.26 Mlbs potential at average grade of 500 to 700 ppm.
- Updated total resources across its Wyoming projects of 7.37 Mlbs plus an exploration target of an additional 11.97 to 19.79 Mlbs potential at average grade of 500 – 700 ppm.
- In early 2022, the company completed a further 103 mud rotary exploration drill holes to increase the total trend length for GTI’s projects in the Great Divide Basin to 7.5 miles.
- In late 2023, GTI completed 26 holes at Lo Herma to verify the historical data base & confirm exploration potential along trend & at depth.
- GTI acquired a 1,771 drill hole data set over Lo Herma with a replacement value of AU$15 million.
- GTI received its carbon neutral certification for its Australian head office and US field operations, through the Australian Government’s Climate Active Program.
- GTI aims to utilize ISR mining at its Wyoming projects, which offers lower environmental impact, lower opex and capex than conventional mining.
- GTI Energy has a highly experienced exploration team including the recent appointment of ISR specialist, Matt Hartmann, with a history of successful uranium discovery in Wyoming.
Key Projects
Wyoming Projects
The Wyoming projects are located in the Powder River & Great Divide Basins in Wyoming and the Henry Mountains (Colorado Plateau) Utah, United States. The Greta Divide Basin projects consist of the Thor, Logray, Loki, Odin, Teebo, Wicket and Green Mountain claims. The approximately 13,000 hectare group of projects is prospective for ISR-amenable sandstone-hosted roll-front uranium. The Wyoming projects are situated 5 to 30 kilometers from Ur-Energy’s Lost Creek ISR plant. The projects are also located near Rio Tinto’s Sweetwater/Kennecott Mill.
GTI Energy’s land holding in the Great Divide Basin was bolstered by the acquisition of the Green Mountain project comprising 5,585 hectares of contiguous ISR uranium exploration claims which abuts the Rio Tinto claims at Green Mountain. Historical drill data and geophysics confirms the presence of major uranium mineralisation at the projects.
Initial drilling at Lo Herma commenced in November 2023 and was completed in December with 26 drill holes successfully verifying the historical Lo Herma drill hole database. A drilling permit amendment is currently in progress aiming to optimise follow-up drilling, increase the total number of drill holes, and construct monitoring wells for groundwater data collection. Drilling is expected to resume by July 2024 with an enlarged program, and the mineral resource estimate and exploration targets are expected to be updated in the fourth quarter of 2024.
The company began initial exploration on Thor in 2021, and in 2022, it completed an additional 103 mud rotary exploration drill holes. The drilling of 70 holes was previously reported at the Thor prospect and an additional 33 holes combined have now been completed at the Odin, Teebo and Loki prospects. These 33 holes have discovered an additional combined 4.26 kilometers of ISR amenable uranium mineralised roll front trends increasing the total trend length for GTI’s projects in the Basin to 12.07 kilometers.
In February 2023, GTI Energy secured, by staking, approximately 3,500 hectares of unpatented mineral lode claims known as the Lo Herma project, about 16 kilometers from Cameco’s Smith Ranch-Highland ISR Uranium facility and Energy Fuels Nichols Ranch ISR plant. Lo Herma also lies within 97 kilometers of the companies leading the restart of uranium production in the USA, including Uranium Energy, Ur-Energy, Energy Fuels, Encore Energy and Peninsula Energy.
The company subsequently, secured a material historical data package for the project, which allowed GTI Energy to report a maiden uranium resource and exploration target update at the Lo Herma ISR project, including a cut-off grade of 200 parts per million (ppm) uranium oxide and a minimum grade thickness (GT) of 0.2 per mineralised horizon as 4.12 million tonnes of mineralisation at an average grade of 630 ppm uranium oxide for 5.71 million pounds (Mlbs) of uranium oxide contained metal. The inferred mineral resource estimate is 5.71 Mlbs uranium oxide at an average of 630 ppm.
The company also completed collection of aerial geophysical data at its Lo Herma, Green Mountain and Loki West ISR uranium exploration projects in Wyoming. The survey was conducted using a twin-engine aircraft loaded with a suite of sensors that provide detailed radiometric, magnetic and electromagnetic data, allowing for correlation between the three products.
The airborne geophysical survey at its Green Mountain project consequently updated its drill plan with 16 potential drill holes. The permit application process is underway for the 2024 drill program which aims to test the validity of the historical Kerr McGee drill hole maps, as well as the interpreted mineralised regions as determined from the airborne geophysical survey.
Henry Mountains Uranium Project
GTI’s uranium/vanadium projects in Utah are considered suitable for conventional mining and are located on the east flank of the Henry Mountains, covering 3,860 acres. The permits host historical production, open underground workings and have an exploration permit in place. The projects saw significant work from 2019 to 2021 including two drill programs totaling 52 drill holes and geophysical logging of an additional 76 historical drill holes. GTI subsequently elected to prioritise work at its newly acquired Wyoming ISR projects until such time as activity and investment in the region improves. The company’s projects lie within ~100 miles of Energy Fuels’ (NYSE American: UUUU) (TSX: EFR) White Mesa Mill and within a few miles of Anfield Energy’s (TSX.V: AEC) Shootaring (Ticaboo) mill site. The owners of both of these mills are actively pursuing mill re-starts.
In addition, Western Uranium & Vanadium (CSE:WUC) (OTCQX:WSTRF) has announced the purchase of a mill site in Green River Utah and work to design and permit the facility for processing uranium and vanadium. The plant, which will be located ~80 miles from GTI’s projects, is intended to process feed from Western's recently restarted Sunday Mine Complex over 160 miles away. Western advised of a mine operations restart at Sunday in February 2024. Western stated its new "mineral processing plant" will recover uranium, vanadium and cobalt from ore from Western's mines and that produced by other miners. Western said, on February 13, 2024, it expects the plant to be licensed and constructed for annual production of 1 million pounds U3O8 and 6 million pounds of V2O5, with initial production in 2025.
Based on the renewed interest in exploration, mining, and processing of uranium ore in this region, GTI is currently evaluating potential paths for further exploration, resource development, or other value creating activities with its Utah projects.
Management Team
Bruce Lane - Executive Director
Bruce Lane has significant experience with ASX-listed and large industrial companies. Lane has held management positions in many global blue-chip companies as well as resource companies and startups in New Zealand, Europe and Australia. He holds a master’s degree from London Business School and is a graduate member of the Australian Institute of Company Directors. Lane has led a number of successful acquisitions, fund raising and exploration programs of uranium and other minerals projects during the last 15 years most notably with ASX listed companies Atom Energy Ltd & Stonehenge Metals Ltd & Fenix Resources Ltd (FEX).
James (Jim) Baughman - Executive Director
James Baughman is a highly experienced Wyoming uranium geologist and corporate executive who will help guide the company’s technical and commercial activities in the US. Baughman is the former president and CEO of High Plains Uranium (sold for US$55 million in 2006 to Uranium One) and Cyclone Uranium.
Baughman has more than 30 years of experience advancing minerals projects from grassroots to advanced stage. He has held senior positions (i.e., chief geologist, chairman, president, acting CFO, COO) in private and publicly traded mining & mineral exploration companies during his 30-year career.
He is a registered member of the Society of Mining, Metallurgy, Exploration and a member of the Society of Economic Geologists with a BSc in geology (1983 University of Wyoming) and is a registered professional geologist (P. Geo State of Wyoming). Baughman is a registered member of the Society of Mining, Metallurgy, and Exploration (SME) and a qualified person (QP) on the Toronto Stock Exchange (TSX) and Australian Stock Exchange (ASX).
Petar Tomasevic - Non-executive Director
Petar Tomasevic is the managing director of Vert Capital, a financial services company specializing in mineral acquisition and asset implementation. He has worked with several ASX-listed companies in marketing and investor relations roles. Tomasevic is fluent in five languages. He is currently appointed as a French and Balkans language specialist to assist in project evaluation for ASX-listed junior explorers. Most recently, he was a director at Fenix Resources (ASX:FEX), which is now moving into the production phase. He was involved in the company’s restructuring when it was known as Emergent Resources. Tomasevic was also involved in the company’s Iron Ridge asset acquisition, the RTO financing, and the development phase of Fenix’s Iron Ridge project.
Simon Williamson - Non-executive Director
Simon Williamson was general manager and director of Cameco Australia until late 2023 and has significant uranium industry experience, networks and skills from his 13 years at Cameco. During his tenure with Cameco, Williamson managed relations with key government ministers and departments and community stakeholders. He managed project approvals processes, including negotiations with State and Federal agencies and reviewing the PFS for the Yeelirrie project.
Williamson was intimately involved in obtaining environmental approval for the Kintyre and Yeelirrie uranium projects, including developing and implementing a program of environmental baseline studies, government and community consultation and negotiating land access. Prior to his appointment as general manager, he led the government and regulatory affairs, environmental and radiation safety activities of Cameco in Australia. He also held roles with minerals industry participants in Australia and the US including various positions at Cliffs, Sons of Gwalia the WA Chamber of Minerals & Energy and WMC where he negotiated the mine closure criteria for a gold project near Sacramento, California.
Matt Hartmann - Director
ISR uranium specialist Matt Hartmann is an executive and technical leader with more than 20 years of international experience and substantial uranium exploration and project development experience. He first entered the uranium mining space in 2005 and followed a career path that has included senior technical roles with Strathmore Minerals and Uranium Resources. He is also a former principal consultant at SRK Consulting where he provided advisory services to explorers, producers and prospective uranium investors. Hartmann’s ISR uranium experience has brought him through the entire cycle of the business, from exploration, project studies and development, to production and well field reclamation. He has provided technical and managerial expertise to a large number of uranium ISR projects across the US including, Smith Ranch – Highland ISR Uranium Mine (Cameco), Rosita ISR Uranium Central Processing Plant and Wellfield (currently held by enCore Energy), the Churchrock ISR Uranium project (currently held by Laramide Resources), and the Dewey-Burdock ISR Uranium project (currently held by enCore Energy).
Matthew Foy - Company Secretary
Matthew Foy is an active member of the WA State Governance Council of the Governance Institute Australia. Foy has more than 14 years of experience in facilitating ASX-listing rule compliance. His core competencies are in the secretarial, operational, and governance disciplines for publicly listed companies. Foy has a working knowledge of the Australian Securities and Investments Commission and Australia Stock Exchange reporting. He has document drafting skills that provide the basis for valuable contributions to the boards on which he serves.
Rigs Secured For Wyoming Uranium Drilling & Utah Fieldwork Completed
GTI Resources Ltd (GTI or Company) is pleased to advise that 2 mud rotary drill rigs have been secured for its planned drilling campaign at the Thor ISR uranium project in Wyoming’s Great Divide basin (Figure 1). As previously advised, GTI is on track to commence drilling during December. This maiden drill program is designed to confirm the grade and tenor of uranium mineralisation that was previously identified by Kerr McGee in the 1970’s & 80’s and to ultimately support definition of an economic uranium resource.
Figure 1. Thor Project Uranium Drilling Location Map, Great Divide Basin, Wyoming USA
Henry Mountains Utah Uranium & Vanadium Projects
GTI also completed a field reconnaissance exploration program at its Henry Mountains project. The program aimed to enhance GTI’s understanding of uranium & vanadium mineralisation within Section 2 at the southwestern end of the 5.5km mineralised strike including Section 36 between the Jeffery & Rats Nest areas (Figure 2). The data collected will help guide any further exploration drilling at the project area.
Read the full article here.
1st Quarter Activities and Appendix 5B
HIGHLIGHTS
- Completion of drilling at the Mkuju Project - 20 diamond core holes for 2800 m of drilling, testing the SWC and Mtonya targets, and testing potential extensions to the Likuyu North deposit.
- At SWC, high-grade uranium from surface including:
- 3.8m @ 2,458ppm eU3O8 from surface,
- 2.4m @ 3,528ppm eU3O8 from surface,
- 1.8m @ 3,089ppm eU3O8 from surface and 1.2m @ 988ppm eU3O8 from 5.9m depth
- At Mtonya, best interval of 2.3m @ 372ppm eU3O8 from 6.16m depth.
- At Likuyu North, possible moderate extension to the deposit indicated by visual mineralisation in LNDD015, now awaiting assays; and
- LNDD020 drilled central to the Likuyu North deposit to provide information for an initial assessment of In-Situ Recovery (ISR); intersected 6 mineralised intervals 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.
MKUJU URANIUM PROJECT - TANZANIA
Table 1 summarises the work completed during the quarter at the Mkuju Project.
Table 1. Summary of the work at each target
Figure 1: The Mkuju Project area over airborne radiometric data with important deposits and targets labelled.
SWC TARGET EXPLORATION
During May 2024 a camp was constructed and a drilling and exploration crew was mobilized. The holes drilled at SWC are shown on Figure 2. Table 2 provides the results of the SWC and Mtonya drilling. The drilling at SWC was to follow-up on the high-grade intervals achieved from the trenches reported in the Company announcement dated 9th January 2024.
Figure 2. Map of the SWC and Mtonya targets showing historic and Gladiators drilling
All holes were vertical, drilling was by diamond core and the deepest was 188.7 metres. The results were reported in announcements dated 24th June and 16th August 2024. Selected results are provided below:
- SWDD001: 3.8m @ 2,458ppm eU3O8 from surface.
- SWDD002: 2.4m @ 3,528ppm eU3O8 from surface.
- SWDD005: 1.8m @ 3,089ppm eU3O8 from surface and 1.2m @ 988ppm eU3O8 from 5.9m depth
- SWDD006: 5.3m @ 143ppm eU3O8 from 3.0m depth
The trench and high-grade drilling intersections are interpreted to be the remains of a layer that is preserved on topographic highs within a relatively downthrown block, as illustrated in Figure 3, which represents a cross-sectional interpretation through SWC. Where the layer is at or very near surface as in SWDD001 and SWDD002, enrichment by supergene processes may have occurred whereas where deeper and unaffected by the surficial enrichment, as in SWDD006, grades are lower. No significant mineralisaton was intersected deeper in the holes drilled at SWC.
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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.
Moab Minerals Limited (ASX: MOM) – Trading Halt
Description
The securities of Moab Minerals Limited (‘MOM’) will be placed in trading halt at the request of MOM, 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 Thursday, 31 October 2024 or when the announcement is released to the market.
Issued by
ASX Compliance
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This article includes content from MOAB 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.
Quarterly Activities Report for the Period Ended 30 September 2024
Moab Minerals Limited (ASX: MOM) (Moab or the Company) is pleased to provide an overview of activities for the period ending 30 June 2024 (“Quarter” or “Reporting Period”).
Highlights:
- Moab announced the completion of the acquisition of the Manyoni and Octavo uranium projects in Tanzania on 9 July.
- Validation Drilling commenced at Manyoni in August and is expected to be completed in the December Quarter.
- Objective is to verify Uranex’s historical drill results at Manyoni, obtain additional geologic and bulk density information, and carry out comprehensive metallurgical testwork to ascertain the optimum processing pathway for the project. This work will feed into a JORC 2012 compliant Mineral Resource Estimate to be followed by Scoping level or Pre-feasibility level mining studies in 2025.
- Subsequent to the end of the Quarter (ASX:MOM 16 October 2024) Moab announced the acquisition of an additional four uranium tenements covering 488km2 which will be consolidated into the Manyoni uranium project.
- At the REX uranium project in Colorado the Company is in the process of permitting an 18- hole drill program to follow-up the results of the 2023 drill program. The Company intends to seek a joint venture (JV) partner to drill the project.
- Moab continues to monitor its 11.02% interest in CAA Mining Limited (CAA Mining), an exploration and development company focused on lithium and gold exploration in Ghana, Africa.
- On 20 September Moab announced a $750,000 Director loan facility had been put in place to provide ongoing working capital.
Moab Managing Director, Mr Malcolm Day commented: “During the Quarter, we completed the acquisition of Linx Resources Pty Ltd that owns the Manyoni and Octavo uranium projects in Tanzania. This move is in line with the Company’s strategy to shift focus to uranium exploration in Africa. The task at hand is to verify the historical drill results and to test for extensions to known mineralisation through a step-out drill program. Moab announced the completion of the acquisition on 9 July. Validation Drilling commenced in August, which attests to the efficient approvals process in Tanzania. The Octavo tenement is more grassroots but is located in a highly prospective area adjacent to Rosatom’s world-class uranium deposit at Nyota.
In June 2023, Moab acquired an initial 14.64% (now diluted to 11.02%) interest in CAA Mining, an exploration and development company focused on lithium and gold exploration in Ghana, Africa. The board continues to monitor the exploration results from CAA Mining’s Ghanaian lithium projects.I would like to thank shareholders for their support to date and we look forward to providing further exploration updates.”
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This article includes content from MOAB 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.
Uranium Price Update: Q3 2024 in Review
Uranium prices slid lower during the third quarter, sinking from US$85.68 per pound at the start of July to US$81.76 by the end of the September. All in all the energy commodity shed 4.58 percent.
While prices briefly fell as low as US$78.83 in late August, for most of the quarter they remained above the US$80 threshold, supported by positive fundamentals. Even so, levels are well off 2007's spot price high of US$136.
“The uranium market's price action, both in the spot market and among miners, has been frustrating for much of the last few months,” wrote Jacob White, ETF product manager at Sprott Asset Management, in a September update.
“Uranium miners, in particular, have been reacting to exogenous factors, despite ever-strengthening fundamentals.”
Although prices remained some 20 percent off this year's February highs during the third quarter, the US$80 level is an important measure, according to Lobo Tiggre, CEO of IndependentSpeculator.com.
“(Uranium stalled in Q3) because it corrected back to trend with the long-term contract price, which is high enough to incentivize new production,” he told the Investing News Network (INN).
Uranium price, January to September 2024.
Chart via Cameco.
Gerardo Del Real, co-founder of Digest Publishing and editor of Daily Profit Cycle, also mentioned the significant relationship between the uranium spot price and long-term contract prices.
“We're starting to see higher contract prices, higher contract prices than the spot price. And anytime you see that (it) is a pretty telling indicator of what's to come. And I think what's to come is absolutely higher prices in the uranium space.”
He told INN that utilities remain one of the most impactful drivers in the sector.
“I think the utilities, being the largest consumer as usual, have been slow to come off the sidelines,” he said.
Uranium production problems constraining supply
Looking forward, production issues in leading uranium producer Kazakhstan may add to price tailwinds.
Early in the year, state miner Kazatomprom (LSE:59OT,OTC Pink:NATKY) reduced its 2024 production guidance to 54 million to 58 million pounds of U3O8, down from its previous forecast of 65 million to 66 million pounds.
The 20 percent cut was the result of difficulties sourcing sulfuric acid and delays in new construction.
The decreased output out of Kazakhstan has impacted supply, and has been further compounded by a coup in Niger, the seventh largest uranium-producing nation. In January of this year, Niger’s military government announced plans to reform the mining sector with the aim of boosting revenues for the country. As part of the overhaul, it temporarily suspended the issuance of new mining licenses and began a review of existing mining licenses.
In June, the African nation revoked French nuclear fuel cycle company Orano’s mining permit for the Imouraren uranium project. Imouraren boasts reserves of over 174,000 metric tons of uranium, making it one of the largest deposits.
A month later, exploration company GoviEx Uranium (TSXV:GXU,OTCQB:GVXXF) suffered a similar fate when the mining permit for its Niger-based Madaouela uranium project was canceled.
“There are so many moving parts to production cycles. And you throw in geopolitics, you throw in coups happening around the world, you throw in war, you throw in supply and material shortages. And then you throw in higher tax and higher inflation costs that that aren't priced in initially. And you get the perfect storm for realizing that it's just going to get tougher and tougher to produce cheap uranium," Del Real explained to INN.
Tiggre sees 2024 bringing increased production as companies ramp up output. “My guess is that global production will be net higher in 2024 than 2023, but it won’t matter as fast as demand is piling up,” he said
AI data center demand for uranium piling up
Uranium's strong demand story is no secret as the world looks to transition to clean energy. But this year artificial intelligence (AI) data centers have emerged as another major demand driver in the space.
AI data centers are specialized facilities designed to handle the intensive computational needs of AI applications like machine learning. They rely on high-performance hardware, including GPUs and CPUs, to process vast amounts of data. These centers are highly energy intensive, requiring significant power for both computing and cooling systems.
As AI workloads increase, energy consumption has become a growing concern, leading to efforts to boost efficiency and integrate renewable energy solutions to manage their substantial carbon footprint.
“One query to ChatGPT uses approximately as much electricity as could light one light bulb for about 20 minutes,” tech researcher Jesse Dodge commented to NPR in July. “So, you can imagine with millions of people using something like that every day, that adds up to a really large amount of electricity.”
To meet the massive energy needs posed by data centers, the tech sector is looking to nuclear energy.
In late September, Constellation Energy (NASDAQ:CEG) announced plans to revive Three Mile Island (TMI) Unit 1 under a 20 year power purchase agreement with Microsoft (NASDAQ:MSFT). The deal will deliver 835 megawatts of clean energy to the grid, create 3,400 jobs and add over US$3 billion in taxes and US$16 billion for Pennsylvania’s economy.
As part of the agreement, Constellation will restart of TMI Unit 1, which closed in 2019. TMI Unit 2, the site of a 1979 nuclear accident, is independently owned and being decommissioned.
“This has made big waves, but the need was already baked in the cake before this announcement,” said Tiggre, noting that he has written about the potential for AI to be a uranium play. “Short version: data centers need lots of 24/7/365 power — just the sort of thing that nuclear is best at (not windmills or solar),” he added.
Less than a month later, Amazon (NASDAQ:AMZN) subsidiary Amazon Web Services (AWS) unveiled partnerships with both Dominion Energy (NYSE:D) and Energy Northwest. Under the agreements, it will spend US$500 million to develop advanced small modular reactors (SMRs) for powering AWS data centers.
In mid-October, Google (NASDAQ:GOOGL) made a move to secure nuclear energy supply when it penned an agreement to purchase power from multiple SMRs that will be developed by Kairos Power. The deal will supply up to 500 megawatts of carbon-free electricity to US grids, aiming to support the rising energy demand driven by AI.
The first reactor is expected to go live by 2030, with further expansions planned through 2035.
“I think the Microsofts and the Googles of the world are tipping their hand because they have to," said Del Real.
He went on to explain that other companies in the tech space will likely follow suit given the limited resources available. These circumstances are creating a “perfect storm” in the uranium market.
“The trend is absolutely clear as day to me, and that trend is higher prices. Companies that can find uranium, make significant discoveries and produce it at a decent margin are going to do extremely well for a very long time,” he said.
In a report, IDC forecasts that data center electricity consumption will “more than double” between 2023 and 2028. “AI datacenter energy consumption is forecast to grow at a CAGR of 44.7 percent, reaching 146.2 Terawatt hours by 2027 with AI workloads consuming a growing portion of total datacenter electricity use,” it states.
Uranium M&A heats up, experts calling for more
To fuel global energy demand growth, new uranium projects will need to be developed.
Although the approval process can be more cumbersome for uranium than other commodities, one way majors can circumvent the waiting period is by purchasing companies or deposits that are already permitted.
The third quarter of 2024 saw notable uranium-centric deals, a trend Del Real expects to continue. Right now he sees similarities between uranium M&A and the rising number of transactions in the gold and lithium markets.
“I absolutely see the exact same scenario playing out in the uranium space, especially in light of the amount of energy that's going to be required if we're going to have this AI revolution, per se,” he said.
Uranium M&A activity ramped up in June, when Blue Sky Uranium (TSXV:BSK,OTCQB:BKUCF) expanded its exploration portfolio through the acquisition of two new projects in Argentina's Neuquén Basin.
A few days later, the sector saw a mega deal, when Australia's Paladin Energy (ASX:PDN,OTCQX:PALAF) announced plans to acquire Saskatchewan-focused Fission Uranium (TSX:FCU,OTCQX:FCUUF) in a C$1.14 billion transaction.
In early July, uranium excitement was further piqued when the US Department of Energy announced plans to spend US$2.7 billion on low-enriched uranium from domestic sources. The news sent prices to a Q3 high of US$86.30.
Deals continued when Indigo Exploration (TSXV:IXI,OTCQB:IXIXF) acquired the Hot property, a uranium project located in the Shirley Basin of Wyoming, US. The mid-July purchase was followed by news that US producer Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU) was planning on increasing its annual uranium output.
“We have a long history of producing uranium, (and) we produced approximately two-thirds of uranium in the US over the last six to seven years," Mark Chalmers, CEO of Energy Fuels, said during the firm's earnings call. "We've also been one of the largest producers of uranium over the last 10 or 15 years."
On a similar note, Uranium Energy (UEC) (NYSEAMERICAN:UEC) announced in mid-August that it was restarting uranium production at its Christensen Ranch in-situ recovery operations in Wyoming.
Looking to grow it Wyoming portfolio, UEC purchased Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO) America’s Wyoming assets, including the Sweetwater plant and a portfolio of uranium-focused projects, in late September.
M&A activity continued into Q4 as IsoEnergy (TSX:ISO,OTCQX:ISENF) started the period with the acquisition of US-focused Anfield Energy (TSXV:AEC,OTCQB:ANLDF). By late October, IsoEnergy had formed a joint venture with Purepoint Uranium (TSXV:PTU,OTCQB:PTUUF) to explore and develop uranium projects in the Athabasca Basin.
Advancing into Q4 and 2025, Del Real expects deals involving production-ready facilities and deposits to continue.
“Those transactions right now, especially in stable jurisdictions, are going to continue to command a premium,” he explained to INN. “The companies that have those facilities and those pounds in the ground are going to continue to command a premium. And I think it's going to lead to increased M&A.”
While heightened M&A is good for the news cycle, Tiggre is skeptical that it will address the looming supply shortage. Although he foresees more M&A, noting that it is “almost inevitable,” he also warned, “Just remember that 'buying isn’t building.' Consolidating known mine reserves doesn’t bring any new pounds to the table."
Investor takeaway
As the excitement in the uranium market builds, Del Real offered tips for investors looking to capitalize on projected demand growth for energy. He advised building a solid portfolio by diversifying into companies at various stages — that means a mix of producing companies, along with developers and explorers.
Producers tend to rise first when prices start to increase, while explorers may take longer, but offer greater potential upside if they are successful. In his view, a well-balanced mix of stocks allows for steady gains from established producers and the possibility of significant returns from exploration companies.
“I think triple-digit uranium prices are right around the corner,” he said. “And then I think it's going to be the kind of party everybody wants to be at. And that's going to lead to probably the sector overheating for a bit, the way it always does, but it'll be fun. We have great, great days ahead in the uranium space.”
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels and Purepoint Uranium are clients of the Investing News Network. This article is not paid-for content.
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.
5 Best-performing Canadian Uranium Stocks of 2024
After reaching a 17 year high of US$106 per pound in early January, the uranium spot price has spent the rest of the year consolidating, remaining rangebound between US$79 and US$85 since mid-June.
"The uranium markets continue to digest last year’s 88.54 percent gain and have remained apathetic to ever-strengthening fundamentals,” wrote Sprott Asset Management's Jacob White in a July market update.
White, who is the company's exchange-traded fund product manager, went on to note that Kazakhstan's tax hikes, increased M&A activity and geopolitical risks are adding volatility to the supply side.
Although prices faced consolidating headwinds for much of Q3, White pointed to uranium’s five-year performance history as evidence of broader positive market trends.
“Over the longer term, physical uranium and uranium miners have demonstrated significant outperformance against broad asset classes, particularly other commodities. For the five years ended August 31, 2024, the U3O8 spot price has risen a cumulative 212.25 percent compared to 24.78 percent for the broader commodities index (BCOM),” he wrote in a September update.
Below are the best-performing Canadian uranium stocks by share price performance so far this year. All data was obtained on October 24, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Companies on the TSX, TSXV and CSE were considered, but no TSX stocks made the list this time.
Read on to learn what factors have been moving their share prices.
1. CanAlaska Uranium (TSXV:CVV)
Year-to-date gain: 79.22 percent; market cap: C$107.25 million; share price: C$0.69
CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Saskatchewan-based Athabasca Basin. The region is well known in the sector for its high-grade deposits.
The company's portfolio includes the West McArthur property, which is situated near sector major Cameco (TSX:CCO,NYSE:CCJ) and Orano Canada’s McArthur River/Key Lake mine joint venture. In 2018, Cameco signed on as a joint venture partner for CanAlaska's West McArthur project, and it retains a 16.65 percent stake.
In mid-April, CanAlaska acquired the Intrepid East and Intrepid West projects in the Northeastern Athabasca Basin. The two projects cover a combined 58,747 hectares and are 20 kilometers north of the high-grade Hurricane uranium deposit.
During the second quarter, CanAlaksa conducted airborne surveys at its projects near Cameco and Orano’s Key Lake mill — the Key Extension, Enterprise, Voyager and Nebula projects — as well as at its Frontier project.
In July, a summer drill program at West McArthur’s Pike zone made two significant intersections.
On July 9, hole WMA082-7 intersected 3.44 percent equivalent U3O8 (eU3O8) over 21.6 meters, including 10.9 percent eU3O8 over 5.4 meters. Then, on July 16, CanAlaska reported that hole WMA082-8 had intersected 6.87 percent eU3O8 over 16.9 meters, including 11.62 percent eU3O8 over 9.3 meters.
In mid-September, CanAlaska raised C$5 million through a non-brokered private placement.
2. Greenridge Exploration (CSE:GXP)
Year-to-date gain: 74.47 percent; market cap: C$24.48 million; share price: C$0.82
Canada-focused Greenridge Exploration is engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada, and has acquired several uranium projects this year.
According to the company, Nut Lake is strategically positioned near the Angilak uranium deposit, which was recently acquired by Atha Energy (TSXV:SASK,OTCQB:SASKF) as part of a three way merger with Latitude Uranium and 92 Energy.
Nut Lake is a new property for Greenridge. On January 18, the company entered into an option agreement with three parties to acquire a 100 percent stake in the asset. Historic drilling at the polymetallic deposit has identified “significant” uranium mineralization, with intersections of up to 9 feet containing 0.69 percent U3O8.
Nut Lake isn't Greenridge's only addition this year. In May, the company acquired the Carpenter Lake uranium project, which covers 13,387 hectares near the Athabasca Basin's southern margin. Greenridge ended the quarter by acquiring the Snook Lake and Ranger Lake uranium projects in Ontario. The Ranger Lake project covers 20,782 hectares in the Elliot Lake region, while the Snook Lake project spans 4,899 hectares in Northwestern Ontario.
In mid-August, the company released an updated technical review for Nut Lake. For the new review, Greenridge focused on gathering and analyzing historical data for the project, including digitizing drill hole information, georeferencing maps and extracting data from historical reports related to the Nut Lake property.
Shortly after, Greenridge announced plans to acquire Canadian uranium company ALX Resources (TSXV:AL,OTC Pink:ALXEF). The merger will create a major Canadian uranium exploration company with 15 projects across 276,000 hectares in key uranium districts, along with interests in 13 other resource properties.
3. District Metals (TSXV:DMX)
Year-to-date gain: 68.75 percent; market cap: C$35.18 million; share price: C$0.27
District Metals is an energy metals and polymetallic explorer and developer with a portfolio of nine assets, including five uranium projects in Sweden. It's currently focused on its Viken property, which hosts a uranium-vanadium deposit.
Historic estimates conducted in 2010 and 2014 peg the indicated resource at 43 million metric tons with an average grade 0.019 percent U3O8, with another 3 billion metric tons with an average grade 0.017 percent U3O8 in the inferred category. According to the company, Viken is one of the “world's largest in terms of uranium and vanadium mineral resources."
Shares of District spiked to a year-to-date high of C$0.49 on May 21. The jump coincided with the company announcing that its subsidiary, Bergslagen Metals, had received final approvals for its mineral license applications in Jämtlands and Västerbottens Counties in Sweden to explore for metals including vanadium, nickel, molybdenum and rare earths.
“We are very pleased with the timely approvals for our eight mineral license applications that cover a total of 91,470 hectares of ground that is highly prospective for Alum Shale deposit targets,” said Garrett Ainsworth, CEO of District. “Alum shales are the host rocks of our Viken Energy Metals Deposit, which represents a potentially significant source of critical and strategic metals and minerals for the green energy transition.”
4. Myriad Uranium (CSE:M)
Year-to-date gain: 45.95 percent; market cap: C$13.75 million; share price: C$0.27
Myriad Uranium is an exploration company with a 75 percent earnable interest in the 1,911 acre Copper Mountain uranium project in Wyoming, US. The property holds several known uranium deposits and historic mines, including the past-producing Arrowhead mine, which previously produced 500,000 pounds of eU3O8.
The company also holds a 50 percent interest in the Millen Mountain property in Nova Scotia, Canada, alongside Probe Metals (TSX:PRB,OTCQB:PROBF), as well as an 80 percent interest in uranium exploration licenses in Niger.
Focusing on its Copper Mountain asset, Myriad conducted a geophysical survey targeting the Canning deposit in July. The goal of the survey was to update the resource potential and lay the early groundwork for further exploration.
That was followed by a magnetometer survey in September, an important precursor to a maiden exploration drill program and subsequent maiden mineral resource estimate, slated for completion by the end of Q1 2025.
As Myriad worked to advance its US asset, the company announced it was exiting Niger. In a July 23 statement it said that it would immediately "quit or relinquish, as appropriate," any interests in the country.
CEO Thomas Lamb explained the decision to leave the African country.
“Myriad has been prevented by reasons beyond its control from conducting operations in Niger since the July 2023 coup d’etat,” he said. “We are now focusing all our attention on the Copper Mountain uranium project in Wyoming, USA., a project with significant past production, a large historical uranium resource, and exciting exploration upside.”
5. Premier American Uranium (TSXV:PUR)
Year-to-date gain: 16.13 percent; market cap: C$69.96 million; share price: C$1.80
Premier American Uranium is engaged in consolidating, exploring and developing uranium projects across the US.
The company holds large land packages in two major uranium-producing areas: Wyoming's Great Divide Basin and Colorado's Uravan Mineral Belt. Additionally, Premier took over control of the advanced Cebolleta uranium exploration project in New Mexico when it acquired American Future Fuel in June of this year.
Other highlights from the first nine months of 2024 include the closing of a C$5.77 million private placement in May, and the commencement of an inaugural drill program at the Cyclone in-situ recovery uranium project in Wyoming.
FAQs for investing in uranium
What is uranium used for?
Uranium is primarily used for the production of nuclear energy, a form of clean energy created in nuclear power plants. In fact, 99 percent of uranium is used for this purpose. As of 2022, there were 439 active nuclear reactors, as per the International Atomic Energy Agency. Last year, 8 percent of US power came from nuclear energy.
The commodity is also used in the defense industry as a component of nuclear weaponry, among other uses. However, there are safeguards in effect to keep this to a minimum. To create weapons-grade uranium, the material has to be enriched significantly — above 90 percent — to the point that to achieve just 5.6 kilograms of weapons-grade uranium, it would require 1 metric ton of uranium pre-enrichment.
Because of this necessity, uranium enrichment facilities are closely monitored under international agreements. Uranium used for nuclear power production only needs to be enriched to 5 percent; nuclear enrichment facilities need special licenses to enrich above that point for uses such as research at 20 percent enrichment.
The metal is also used in the medical field for applications such as transmission electron microscopy. Before uranium was discovered to be radioactive, it was used to impart a yellow color to ceramic glazes and glass.
Where is uranium found?
The country with the greatest uranium reserves by far is Australia — the island nation holds 28 percent of the world’s uranium reserves. Rounding out the top three are Kazakhstan with 15 percent and Canada with 9 percent.
Although Australia has the highest reserves, it holds uranium as a low priority and is only fourth overall for production. All its uranium output is exported, with none used for domestic nuclear energy production.
Kazakhstan is the world’s largest producer of the metal, with production of 21,227 metric tons in 2022. The country’s national uranium company, Kazatomprom, is the world’s largest producer.
Canada’s uranium reserves are found primarily in its Athabasca Basin, and the region is a top producer of the metal as well.
Why should I buy uranium stocks?
Investors should always do their own due diligence when looking at any commodity so that they can decide whether it fits into their investment plans. With that being said, many experts are convinced that uranium has entered into a significant bull market, meaning that uranium stocks could be a good buy.
A slew of factors have led to this bull market. While the uranium industry spent the last decade or so in a downturn following the 2011 Fukushima nuclear disaster, discourse has been building around the metal's use as a source of clean energy, which is important for countries looking to reach climate goals. Nations are now prioritizing a mix of clean energies such as solar and wind energy alongside nuclear. Significantly, in August 2022, Japan announced it is looking into restarting its idled nuclear power plants and commissioning new ones.
Uranium prices are very important to uranium miners, as in recent years levels have not been high enough for production to be economic. However, in 2024, prices spiked from the US$58 in August 2023 to a high of US$106 per pound U3O8 in February 2024. They have since consolidated at around US$85, meaning this could be a buying point for those looking to get into the sector.
Don’t forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: ALX Resources is a client of the Investing News Network. This article is not paid-for content.
Toro Energy
Investor Insight
Toro Energy’s significant uranium resource in a tier 1 jurisdiction places the company in a compelling position to leverage a bullish uranium market and the mineral’s strategic role in global decarbonization.
Overview
Countries worldwide are working towards decarbonization and paying more attention to clean energy sources. About 10 percent of the world's electricity is produced from 440 power reactors, and more countries like Japan, Germany, the UK and the US are revitalizing their nuclear energy capacities to reduce fossil fuel production while improving energy security.
Australia produces 12 percent of the world’s uranium, behind Canada (13 percent) and Kazakhstan (43 percent). It is also home to the Wiluna uranium project, a well-established uranium resource, which is also the flagship asset of Toro Energy (ASX:TOE), a uranium exploration and development mining company that actively seeks to uncover value from other commodities in its existing highly prospective project ground.
As of September 24, 2024, Toro holds JORC-compliant uranium resources of 112.7 million pounds (Mlbs) uranium oxide (U3O8), which includes the flagship Wiluna project, Dawson Hinkler deposit (100 ppm U3O8 cut-off), and Theseus and Nowthanna deposit (200 ppm U3O8 cut-off).
The 100-percent-owned Wiluna uranium project includes three key deposits – Lake Maitland, Centipede-Millipede and Lake Way – and offers significant uranium exposure of 87.8 million tons (Mt) at 381 ppm for 73.6 Mlbs U3O8 at 100 ppm cut-off (JORC 2012). It is located only 30 kilometers southeast of Wiluna in Central Western Australia.
The Wiluna uranium project has received state and federal approval (subject to required amendments) and has been granted mining leases.
Considerable research over recent years has identified processing redesign opportunities from unique geological attributes within the uranium deposits, but particularly at Lake Maitland, as well as the ability to extract the inherent vanadium held within the uranium ‘ore’ for a vanadium by-product.
Within the uranium mineralization envelope, the Wiluna project is estimated to contain 141.8 Mt vanadium oxide (V2O5) at 286 ppm for 89.3 Mlbs of V2O5 at 100 ppm V2O5 cut-off (JORC 2012), as of September 24, 2024.
The unique geology of the Lake Maitland deposit and the processing redesign have allowed for a mining and processing option exclusively for Lake Maitland, that could be economic on its own or be the economic spearhead of a longer-term, larger Wiluna mining operation (dependent on market conditions and approvals). The stand-alone Lake Maitland option, aided by the economic efficiency of the new processing design, results in a transformational potential increase in production from the Lake Maitland deposit.
The scoping study for the stand-alone Lake Maitland uranium-vanadium operation option shows potential for exceptional financial returns with a pre-tax NPV of AU$832.8 million, a short payback period of 2.5 years, 48 percent internal rate of return, and low capex of AU$291 million (US$203 million), based on price assumption of US$85/lb U3O8, US$5.67/lb V2O5 and a 70 cents US$:AU$ exchange rate.
In September 2024, the Lake Maitland deposit has been re-estimated using a resource envelope more in line with the other Wiluna uranium deposits; allowed the lowering of the cut-off grade to 100ppm U3O8, expanding Lake Maitland resources by 12 percent and that of the entire Wiluna project by 17 percent (when the expansions at Lake Way and Centipede-Millipede are also included).
The design phase of Toro Energy’s beneficiation and hydrometallurgical pilot plant is on track and in line with plans to finalise construction at the end of 2024-beginning of 2025. . The pilot plant will test the improved beneficiation and hydrometallurgical circuit developed by Toro from bench scale research at a closer-to-production scale and as single streams. It will also test potential ore from the three uranium-vanadium deposits that Toro believes will make up an extended Lake Maitland operation – these include Lake Maitland, Lake Way and Centipede-Millipede.
The company will commence a large sonic core drill program to provide bulk, but targeted potential ore, for the upcoming pilot plant program in 2025.
The Lake Maitland deposit is part of a joint venture partnership with two reputable Japanese corporations, Japan Australia Uranium Resource Development. (JAURD) and Itochu.
Toro has been actively evaluating the prospectivity of its Wiluna asset portfolio for minerals other than uranium, including nickel and gold.
Toro’s Dusty nickel project is located on the northern, eastern and southern shores of Lake Maitland and the Lake Maitland uranium deposit and is focused on two main target areas: Dusty and Yandal One. These properties will be the subject of a proposed demerger, following Toro’s recent strategic review of its non-core assets and future plans to solely focus on its uranium development opportunities and its flagship Wiluna project.
Toro Energy’s management team and board of directors have extensive experience in the mining industry, with combined expertise that includes working at major mining houses, exploration companies, uranium mining operations, corporate financing and government and community relations.
Company Highlights
- Toro Energy is a well-established Western Australian uranium exploration and development company that actively seeks to uncover value from other commodities in existing highly prospective ground.
- Toro holds JORC-compliant uranium resources of 112.7 Mlbs uranium oxide across its Western Australian projects.
- Toro’s 100-percent-owned flagship Wiluna uranium project, located 30 kilometers southeast of Wiluna in Central Western Australia, 87.8 Mt at 331 ppm for 73.6 Mlbs U3O8 at 100 ppm cut-off over three deposits: Lake Maitland, Centipede-Millipede and Lake Way.
- The company has defined a significant maiden vanadium resource of 89.3 Mlbs of V2O5 at a 100ppm V2O5 cut-off inside the uranium mineralisation envelope.
- Scoping study completed for a stand-alone Lake Maitland uranium-vanadium operation shows potential for exceptional financial returns.
- In addition to its flagship uranium project, Toro’s strategic evaluation of the Lake Maitland tenure has resulted in the discovery of massive nickel sulphide and vein-hosted gold, which include the Dusty nickel project and the Yandal gold project.
- Following a recent strategic review, Toro is considering to solely focus on its uranium development opportunities and demerge its portfolio of non-core projects, including the nickel, gold and base metal assets in Western Australia.
- The company is led by a management team and board of directors with direct experience in the uranium exploration and mining as well as base metal exploration industry.
Key Projects
Wiluna Uranium Project
Toro Energy’s flagship asset is located only 30 kilometers from the town of Wiluna in the northern goldfields region within central Western Australia. The Wiluna project contains 87.8 Mt at 381 ppm for 73.6 Mlbs U 3O8 at 100 ppm cut-off over three deposits: Centipede-Millipede, Lake Way and Lake Maitland. The asset has been de-risked and optimized to improve yield and has successfully incorporated the processing of a vanadium resource as a by-product. A scoping study was completed for a stand-alone Lake Maitland uranium-vanadium operation.
Project Highlights:
- De-risked Uranium Project: Toro Energy has de-risked the Wiluna uranium asset by:
- Obtaining state and federal environmental approvals. Retrospective amendment to substantial commencement date condition will be required as well as amendment to mining proposal required as a result of further studies which significantly enhanced the project (refer below)
- Securing mining leases
- Identifying a simple yet effective mining process
- Extensive laboratory testing of a new and efficient beneficiation and processing technique inclusive of the extraction of vanadium for a valuable by-product.
- Uranium Exploration assets: Toro also owns 100 percent of three other exploration projects in Western Australia that have a total uranium resource of 39.1 Mlbs Nowthanna (200ppm U3O8 cut-off), Dawson Hinkler (100ppm U3O8 cut-off) and Theseus (200ppm U3O8 cut-off).
- Lake Maitland Pit Expansion: A 2022 pit expansion for a stand-alone Lake Maitland mining and processing operation, based on an updated uranium price, the inclusion of vanadium as a by-product, revised OPEX based on a the new beneficiation and processing flow sheet, increased the potential volume of uranium ore
- Initial Scoping study at proposed Lake Maitland Uranium-Vanadium Operation: Initial scoping study results following the 2022 pit expansion highlight the project’s potential for robust financial returns, increasing the asset to US$608 million in potential gross product value (assumes a US$70/lb U3O8, US$5.67/lb V2O5 price and a US$: AU$0.70 exchange rate).
- 2024 Scoping Study Financial Metrics Update: A refresh of the scoping study on the stand-alone Lake Maitland operation which incorporates current financial metrics and improved uranium pricing has been recently completed resulting an increase in pre-tax NPV to $832.8 million and 48% IRR (assumes a US$85/lb U3O8, US$5.67/lb V2O5 price and a US$: AU$0.70 exchange rate).
- Further Expansion of Scoping Study: to incorporate amenable ore from Toro’s Lake Way and Centipede-Millipede uranium deposits into the proposed processing operation at Lake Maitland.
- Expanded Resource at Lake Maitland, Lake Way and Centipede-Millipede deposits: Expansion of the stated U3O8 and V2O5 resources at all three uranium-vanadium deposits was conducted by reducing the stated U3O8 and V2O5 resource cut-off grades to 100 ppm (from 200 ppm):
- The stated Lake Maitland U3O8 resource expands by 12 percent or 3.2 Mlbs to 29.6 Mlbs contained U3O8, with a reduction in average grade to 403 ppm U3O8
- The stated Centipede-Millipede U3O8 resource expands by 25 percent or 5.98 Mlbs to 29.95 Mlbs contained U3O8, with a reduction in average grade to 351 ppm U3O8.
- The stated Lake Way U3O8 resource expands by 15 percent or 1.79 Mlbs to 14.12 Mlbs contained U3O8, with a reduction in average grade to 406 ppm U3O8.
- The stated Lake Maitland V2O5 resource expands by 74% or 13.4Mlbs to 31.4Mlbs contained V2O5, with a reduction in average grade to 285ppm V2O5. The stated Centipede-Millipede V2O5 resource expands by 17 percent or 6.6 Mlbs to 45.2 Mlbs contained V2O5, with a reduction in average grade to 281 ppm V2O5.
- The stated Lake Way V2O5 resource expands by 9.5 percent or 1.1 Mlbs to 12.7 Mlbs contained V2O5, with a reduction in average grade to 307 ppm V2O5.
- Pilot Plant Design Commissioned: A detailed pilot plant design is being undertaken to further assess the new processing flowsheet for Lake Maitland at a closer to ‘operational’ scale. The pilot plant design is on track incorporating all aspects of both uranium and vanadium production. A sonic core drilling program will commence to deliver potential ore to the pilot plant currently in design for Wiluna.
- Robust Local Infrastructure: The assets are within an established mining center, which means much of the required infrastructure is readily available. The project has access to power and water, which reduces initial development costs.
- Joint Venture Partnership: Toro Energy has entered into a joint venture partnership with JAURD and Itochu for its Lake Maitland deposit. Both corporations have the right, but not the obligation, to earn a combined 35 percent interest in the project upon contributing US$39.6 million, and an additional proportionate share of expenditure thereafter, once a positive final investment decision has been made based on a definitive feasibility study.
The Dusty Nickel Project – Discoveries of Massive Nickel Sulphide
Toro’s Lake Maitland tenure is located in the Yandal Greenstone Belt within the Yilgarn Craton of Western Australia, a gold district within a world-class gold and nickel province. With little exploration for non-uranium minerals ever conducted on the properties, Toro considers the project area highly prospective for nickel, gold and base metals.
In 2020, Toro made a blind discovery of massive and semi-massive nickel sulphides associated with the base of a 7.5-kilometer unbroken length of previously unknown komatiite (Dusty komatiite) – arguably the first massive nickel sulphides discovered in the Yandal Greenstone Belt, which is located 50 kilometers east of the world-class Mt. Keith nickel deposit. The Dusty nickel project is located near the Lake Maitland uranium deposit and contains two key target areas: Dusty and Yandal One.
Continued exploration and diamond drilling on the project has resulted in four discoveries of massive/semi-massive nickel sulphide zones to date with only 4.5 kilometers tested so far at a single depth along a 7.5-kilometer komatiite magnetic trend. Only limited testing for massive nickel sulphides has been undertaken to date of an approximately 15-kilometer strike length of known komatite - ultramafic target rock. With such limited drilling on the Lake Maitland tenure, it is yet to be known whether other similar magnetic anomalies are also komatiite-ultramafic rock and how much more rock is prospective for massive nickel sulphides on Toro’s 100-percent-owned Dusty nickel project.
Project Highlights:
- Four zones of massive nickel sulphide discovered: Toro has discovered four zones of massive and semi-massive nickel sulphides: Dusty, Houli Dooley, Jumping Jack and Dimma. Significant diamond drill results from these discoveries to date include:
- DUSTY
- 9 meters at 2.07 percent nickel from 250.9 meters downhole (TED07) including:
- 2.0 meter at 4.01 percent nickel from 250.9 meters downhole; and
- 2.0 meters at 3.85 percent nickel from 255.5 meters downhole.
- 2.6 meters at 3.45 percent nickel from 184.5 meters downhole (TED04).
- 7.2 meters at 1.05 percent nickel and 0.26 percent copper from 252 meters downhole (TED22).
- 9 meters at 2.07 percent nickel from 250.9 meters downhole (TED07) including:
- HOULI DOOLEY
- 3.05 meters at 1.59 percent nickel from 297.75 meters downhole (TED14).
- JUMPING JACK
- 3.45 meters at 1.42 percent nickel from 240.2 meters downhole (TED37).
- 2.44 meters at 1.16 percent nickel from 231.6 meters downhole (TED38).
- DIMMA
- 4.31 meters at 1.16 percent Ni from 243.3 meters downhole (TED41).
- 3.13 meters at 1.42 percent Ni from 314 meters downhole (TED42).
- 4.6 meters at 1.61 percent Ni from 194.2 meters downhole, including 3m at 1.09 percent Ni from 166 meters downhole (TED54).
- 2.1 meters at 1.83 percent Ni from 147.1 meters downhole (TED55).
- DUSTY
- Yandal OneTarget Area: The Yandal One Target Area is located some 17 kilometers south of the Dusty discoveries and with limited drilling, Toro has proven the existence of another komatiite with the potential to host massive nickel sulphide.
Toro Yandal Gold Project
The Lake Maitland tenure is located only 20 kilometers northeast of the world-class Bronzewing and Mt McClure gold mines within the same Greenstone Belt, the Yandal, within one of the most famous gold provinces in the world, the Yilgarn Craton.
Early exploration by Toro at the Golden Ways target area in the north of the project has uncovered surface rock chip samples of up to 70 g/t gold and significant drilling results, including:
- 5 meters at 4.4 g/t from 22 meters (TERC24)
- Including 2 meters at 9.93 g/t from 22 meters
- 4 meters at 3.3 g/t from 28 meters (TERC25)
- Including 1 meter at 10.9 g/t from 28 meters
- 2 meters at 3.79 g/t from 10 meters (TERC38)
- Including 1 meters at 7.33 g/t from 10 meters
- 3 meters at 1.41 g/t from 9 meters (TERC36)
- Including 1 meters at 2.76 g/t from 10 meters
Management Team
Richard Homsany - Executive Chairman
Richard Homsany has extensive experience in the resources industry, having been the executive vice-president for Australia of TSX-listed Mega Uranium since April 2010. He has worked for North Ltd, an ASX top 50-listed internationally diversified resources company in operations, risk management and corporate, before its takeover by Rio Tinto.
Homsany is an experienced corporate lawyer and certified practicing accountant (CPA) advising numerous clients in the energy and resources sector, including publicly listed companies. He was corporate partner at international law firm DLA Phillips Fox (now DLA Piper), where he advised clients on a range of transactions and matters including capital raising, IPOs, stock exchange listing, mergers and acquisitions, finance, joint ventures, divestments and governance.
He is a fellow of the Financial Services Institute of Australasia (FINSIA) and a member of the Australian Institute of Company Directors. He has a commerce degree and honors degree in law from the University of Western Australia, and a graduate diploma in finance and investment from FINSIA (State Dux).
Homsany has significant board experience with publicly listed companies in Australia and Canada. He is the chairman of ASX-listed copper explorer Redstone Resources. and TSXV-listed iron ore and gold explorer Central Iron Ore Limited. Homsany is currently the chairman of the Health Insurance Fund of Australia Limited.
Michel Marier - Non-executive Director
Michel Marier joined Sentient in 2009 as an investment manager. Before joining Sentient, Marier worked eight years in the private equity division of la Caisse de dépôt et placement du Québec. Marier holds a master’s degree in finance from HEC Montreal and is a CFA charter holder.
Richard Patricio - Non-executive Director
Richard Patricio is the CEO and president of Mega Uranium, a uranium-focused investment and development company with assets in Canada and Australia.
In addition to his legal and corporate experience, Patricio has built a number of mining companies with global operations. He holds senior officer and director positions in several junior mining companies listed on the TSX, TSX Venture, AIM and NASDAQ exchanges. He is currently also a director of NexGen Energy (TSE:NXE, Mkt Cap. C$2.7 billion). He previously practiced law at a top-tier law firm in Toronto and worked as an in-house general counsel for a senior TSX-listed company. He received his law degree from Osgoode Hall and was called to the Ontario bar in 2000.
Dr. Greg Shirtliff – Geology Manager
Dr. Greg Shirtliff has over 20 years of experience in industry-related geology and geochemistry, including a PhD in mine-related geology and geochemistry from the Australian National University. Since his studies, Dr Shirtliff has spent some 20 years in various roles in the mining and exploration industry ranging from environmental, mine geology, resource development, exploration and management roles in exploration and technical projects inclusive of engineering and metallurgical. His roles have included a number of years at ERA-Rio Tinto’s Ranger Uranium Mine, as the senior geoscientist for Cameco Australasia and more recently as the lead geologist and technical manager for Toro Energy, where he is the exploration and technical lead responsible for increasing the viability of the company’s uranium and mineral resources, developing and directing the company’s uranium and non-uranium exploration strategy, aiding the company technically through EPA approval for a uranium mine, and guiding the engineering and metallurgical through to scoping level economic assessment.
Dr Shirtliff has had recent exploration success at Toro Energy, discovering multiple zones of massive nickel sulphide mineralization along the Dusty Komatiite, arguably the first massive nickel sulphide mineralization discovered in the Yandal Greenstone Belt in Western Australia.
Dr Shirtliff holds directorships on privately owned consultancy and prospecting companies and is a long-standing member of the Australian Institute of Mining and Metallurgy and the internationally recognized Society of Economic Geologists.
Katherine Garvey - Legal Counsel and Company Secretary
Katherine Garvey is a corporate lawyer who has significant experience in the resources sector. Garvey advises public (both listed and unlisted) and proprietary companies on a variety of corporate and commercial matters including capital raising, finance, acquisitions and disposals, Corporations Act and ASX Listing Rule compliance, corporate governance and company secretarial issues. She has extensive experience drafting and negotiating various corporate and commercial agreements including farm-in agreements, joint ventures, shareholders’ agreements, and business and share sale and purchase agreements.
Garvey is a senior associate at Cardinals Lawyers and Consultants, a corporate and resources law firm in West Perth, and company secretary of the Health Insurance Fund of Australia Limited. Garvey is also legal counsel (Australia) to TSX-listed Mega Uranium, and company secretary to TSXV-listed Central Iron Ore.
Marc Boudames - Financial Controller
Marc Boudames is experienced in statutory financial reporting, taxation, ERP systems, business analytics, corporate transactions, due diligence, mergers & acquisitions, finance, joint ventures and divestments. He previously worked at RSM Bird Cameron, as general manager –finance & administration for ASX-listed Redport Ltd and Mega Uranium (Australia), a Canadian TSX-listed mining and equity investment company focused on global uranium properties and multi-mineral exploration. He has worked for multiple companies across various industries, including listed and public companies associated with the mining and oil and gas sectors, such as WesTrac, CB&I and Spotless Group.
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