Pre-income tax IRR of 116% and NPV of US$120.9 million
Post-income tax IRR of 101% and NPV of US$102.6 million
6.5 million pounds of U3O8 production over 7 years; steady state production of 1.0 million pounds per year
Robust satellite project to Azarga Uranium's flagship Dewey Burdock ISR Uranium Project with low initial capital expenditures estimated at US$26.0 million
Direct cash operating costs estimated at US$11.52 per pound of production
Azarga Uranium CORP. (TSX:AZZ)(OTCQB:AZZUF)(FRA:P8AA) ("Azarga Uranium" or the "Company") is pleased to announce the positive results of an independent Preliminary Economic Assessment(" PEA") on its Gas Hills In-situ Recovery Uranium Project in Wyoming, USA (the "Gas Hills Project") following an increased mineral resource estimate announced by the Company on 30 March 2021. The PEA has been prepared in accordance with the requirements of National Instrument 43-101 ("NI 43-101
Blake Steele, the Company's President and CEO commented: "We are extremely pleased with the results of our maiden in-situ recovery ("ISR") PEA for the Gas Hills Project. The PEA demonstrates robust economics and expands the future production profile of the Company into the state of Wyoming, which has a long history of successful ISR operations. The PEA results further validate our Company's strategy of developing low-cost ISR projects as we continue to progress our flagship Dewey Burdock Project towards construction. With uranium markets in a structural deficit, Azarga Uranium is exceptionally well positioned to capitalize on the anticipated recovery in the uranium price through its two tier one development stage ISR uranium projects in the USA."
Summary of Economics
The base case economic assessment results in a pre-income tax internal rate of return ("IRR") of 116% and a pre-income tax net present value ("NPV") of US$120.9 million when applying an eight percent discount rate. Using the same discount rate, the post-income tax IRR is 101% and the post-income tax NPV is US$102.6 million.
Life of Mine Cash Flow Line Items
Units
Total or average
US$ per pound of production
Uranium production (U3O8)
Lbs ‘000s
6,507
-
Base case uranium price
US$/lb
55.00
-
Uranium gross revenue
US$ ‘000s
357,885
-
Less: surface and mineral royalties
US$ ‘000s
629
0.10
Taxable revenue
US$ ‘000s
357,256
-
Less: property, ad valorem and severance tax
US$ ‘000s
22,918
3.52
Net gross sales
US$ ‘000s
334,338
-
Less: plant and wellfield operating costs
Less: resin processing and transport costs
US$ ‘000s US$ ‘000s
37,957
16,571
5.83
2.55
Less: product conversion and shipping costs
US$ ‘000s
US$ ‘000s
2,538
8,896
0.39
1.37
Less: land and administrative support costs
Less: D&D and restoration costs
US$ ‘000s
8,966
1.38
Net operating cash flow
US$ ‘000s
259,410
-
Less: pre-production capital costs
US$ ‘000s
2,240
0.34
Less: plant development costs
US$ ‘000s
14,126
2.17
Less: wellfield capital development costs
Less: transfer pipeline costs
US$ ‘000s US$ ‘000s
62,645
6,000
9.63
0.92
Net pre-income tax cash flow
US$ ‘000s
174,399
-
Less: income taxes
US$ ‘000s
24,842
3.82
After tax cash flow
US$ ‘000s
149,557
-
The projected cash flows for the Gas Hills Project PEA are positive in the 1st year of production, two years after the commencement of construction. Initial capital expenditures are estimated at US$26.0 million.
Direct cash operating costs are estimated to be US$11.52 per pound of production, royalties and local taxes are estimated to be US$3.62 per pound of production and the total pre-income tax cost of uranium production is estimated to be US$28.20 per pound of production. Income taxes are estimated to be US$3.82 per pound of production and have been calculated on a project basis in accordance with NI 43-101 requirements; therefore, certain tax shelter balances, such as tax loss carry forwards available at the corporate level, have not been considered.
Pre-income tax NPV and IRR Sensitivity to Alternative Uranium Price Scenarios
Uranium price scenario
NPV
IRR
US$35/lb
US$34.9m
44%
US$40/lb
US$56.4m
63%
US$45/lb
US$77.7m
81%
US$50/lb
US$98.7m
98%
US$55/lb (base case)
US$120.9m
116%
US$60/lb
US$141.5m
132%
US$65/lb
US$163.5m
150%
US$70/lb
US$185.6m
168%
Cautionary statement: The results of the Gas Hills Project PEA are preliminary in nature and include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. The Gas Hills Project PEA is based on the Company's mineral resource estimate announced on 30 March 2021. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The estimated mineral recovery (80%) used in the Gas Hills Project PEA is based on site-specific laboratory recovery data and industry experience at similar facilities. There can be no assurance that recovery at this level will be achieved. There is no certainty that the Gas Hills Project PEA will be realized.
Project Description
Between 1953 and 1988 many companies explored, developed, and produced uranium in the Gas Hills district, including on lands now controlled by Azarga Uranium. Three uranium mills have operated in the district and two other uranium mills, which operated nearby, were also fed by ore mined from the Gas Hills district. Cumulative production from the Gas Hills district is in excess of 100 million pounds of uranium, mainly from open-pit mining, but also from underground mining and ISR.
Data sources for the estimation of uranium mineral resources for the Gas Hills Project include radiometric equivalent data (eU3O8) for 4,569 drill holes, and eU3O8 and prompt fission neutron logging data for 272 drill holes. The intent of recent drilling between 2007 and 2013 included verification of earlier data for drill holes and exploration.
Metallurgical studies were completed on recovered materials including bulk samples from reverse circulation drilling and cored sections. Bottle roll and column leach tests indicate uranium recoveries of ~90% and sulfuric acid consumption of ~55 pounds per ton treated, which is consistent with past mining results.
The Gas Hills Project PEA contemplates a satellite plant development approach with final processing at a central processing facility to be constructed at Azarga Uranium's Dewey Burdock Project. Construction of the Gas Hills Project will consist primarily of wellfields in four separate resource areas connected by pipelines to a single satellite plant location containing ion exchange equipment used to extract uranium from produced wellfield fluids. Ion exchange resin will be shipped from the Gas Hills Project to the Dewey Burdock Project for uranium stripping and regeneration, with creation of a dried yellowcake product at Dewey Burdock. This concept has been used successfully for decades in numerous ISR uranium operations in Texas and Wyoming. Wellfield extraction methods will utilize a low-pH complexing solution consistent with other successfully licensed ISR uranium facilities in Wyoming and worldwide. Average project flow rate is estimated at 2,400 gallons per minute with an average head grade of 97 parts per million for an annual production capacity of 1.0 million pounds U3O8.
Qualified Person
The disclosure of a scientific and technical nature contained in this press release was approved by Ray Moores, P.E., and Steve Cutler, P.G., qualified persons ("QP") as that term is defined under NI 43-101.
The Gas Hills Project PEA has been prepared in accordance with the requirements of NI 43-101 by Western Water Consultants, Inc. dba WWC Engineering, Ray Moores, P.E., QP and Roughstock Mining Services, Steve Cutler, P.G., QP. The full technical report and PEA will be filed on SEDAR at www.sedar.com and Azarga Uranium's website www.azargauranium.com within 45 days of the issuance of this news release.
Azarga Uranium is an integrated uranium exploration and development company that controls ten uranium projects and prospects in the United States of America ("USA") (South Dakota, Wyoming, Utah and Colorado), with a primary focus of developing in-situ recovery uranium projects. The Dewey Burdock in-situ recovery uranium project in South Dakota, USA (the "Dewey Burdock Project"), which is the Company's initial development priority, has received its Nuclear Regulatory Commission License and Class III and Class V Underground Injection Control ("UIC") permits from the Environmental Protection Agency (the "EPA") and the Company is in the process of completing other major regulatory permit approvals necessary for the construction of the Dewey Burdock Project.
Certain information and statements in this news release may be considered forward-looking information or forward-looking statements for purposes of applicable securities laws (collectively, "forward-looking statements"), which reflect the expectations of management regarding its disclosure and amendments thereto. Forward-looking statements consist of information or statements that are not purely historical, including any information or statements regarding beliefs, plans, expectations or intentions regarding the future. Such information or statements may include, but are not limited to, statements with respect to the Company's Gas Hills Project PEA, the future financial or operating performance of the Company and its mineral projects, the estimation of mineral resources, the timing and amount of estimated future production and capital, operating and exploration expenditures, the Company's future production profile expanding into the state of Wyoming, the Company being exceptionally well positioned to capitalize on the anticipated recovery in the uranium price, the Gas Hills Project PEA contemplating a satellite plant development approach with final processing at a central processing facility to be constructed at Azarga Uranium's Dewey Burdock Project, and the Company being in the process of completing regulatory permit approvals necessary for the construction of the Dewey Burdock Project. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits Azarga Uranium will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect. A number of risks and uncertainties could cause actual results to differ materially from those expressed or implied by the forward-looking statements, including without limitation: the risk that the Gas Hills Project is not constructed and the estimated economics of the PEA are not realized, the risk that the estimated economics contained in the PEA do not reflect actual project economics, the risk that the Company's future production profile does not expand into the state of Wyoming, the risk that the Company is not exceptionally well positioned to capitalize on the anticipated recovery in the uranium price, the risk that a central processing facility is not constructed timely or ever at Azarga Uranium's Dewey Burdock Project and therefore the Gas Hills Project PEA cannot be realized, the risk that the Company does not complete regulatory permit approvals necessary for the construction of the Dewey Burdock or Gas Hills Project, the risk that such statements may prove to be inaccurate and other factors beyond the Company's control. These forward-looking statements are made as of the date of this news release and, except as required by applicable securities laws, Azarga Uranium assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the most recent AIF filed with Canadian security regulators.
The TSX has not reviewed and does not accept responsibility for the adequacy or accuracy of the content of this News Release.
“We don't need any more catalysts. We've got a 30 million to 50 million pound supply deficit in the market probably for the next five years. That's what we're looking at. And that's what's going to move the price" — Justin Huhn, Uranium Insider
"To us (nuclear energy) was always the answer. And while everyone seems very pessimistic about everything, I think that perhaps we could be on the verge of a huge, major transformation where finally we do appreciate nuclear for the unbelievable technology that it is." — Adam Rozencwajg, Goehring & Rozencwajg
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The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.
Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.
“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.
These favorable fundamentals are expected to support uranium prices for the remainder of the year.
Finegold also noted that spot market activity highlights how sensitive the sector is to supply challenges.
“Spot market prices have also been a key talking point as volatility in pricing has increased dramatically in Q1 to both the upside and downside,” he explained. “It has brought to light just how thinly traded the spot market is, but interestingly term prices have only continued to rise, which is indicative that the long-term fundamentals remain intact.”
Sulfuric acid shortage impeding supply growth
The U3O8 spot price opened the year at US$91.71 and edged higher through January 22, when values hit a 17 year high of US$106.87. However, the near two decade record was short lived, and by month’s end uranium was around US$100.
Some of the price positivity early in the quarter came as Kazatomprom (LSE:KAP,OTC Pink:NATKY) warned that it was expecting to adjust its 2024 production guidance due to “challenges related to the availability of sulfuric acid.”
The state producer and major uranium player confirmed the reduction on February 1, underscoring the importance of sulfuric acid in its in-situ recovery method and describing its efforts to secure supply.
“Presently, the company is actively pursuing alternative sources for sulfuric acid procurement,” a press release states.
“Looking ahead in the medium term, the deficit is expected to alleviate as a result of the potential increase in sulphuric acid supply from local non-ferrous metals mining and smelting operations. The company also intends to enhance its in-house sulfuric acid production capacity by constructing a new plant.”
In 2023, Kazatomprom initiated the establishment of Taiqonyr Qyshqyl Zauyty to oversee the construction of a new sulfuric acid plant capable of producing 800,000 metric tons annually.
In the years ahead, the company is aiming to bolster its sulfuric acid production capacities through existing partnerships to achieve a consolidated production volume of approximately 1.5 million metric tons.
In the meantime, disruptions to Kazakh output will only grow the market deficit.
According to the World Nuclear Association, total global uranium production in 2022 only satiated 74 percent of global demand, a number that is likely to shrink as nuclear reactors in Asian countries begin coming online.
“Kazakhstan is the largest producer of uranium in the world — 44 percent. We like to think of Kazakhstan as the OPEC of uranium,” John Ciampaglia, CEO of Sprott Asset Management, said during a recent webinar.
Kazatomprom forecasts its adjusted uranium production for 2024 will range between 21,000 and 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis. While in line with the company’s 2023 output, the major had to forgo a production ramp up due to the sulfuric acid shortage and development issues.
Analysts and market watchers foresee the sulfuric acid shortage being a long-term price driver.
“The sulfuric acid issue in Kazakhstan is a systemic problem that we do not believe will go away any time soon,” said Finegold. “While the company is doing what they can to alleviate pressures on sulfuric acid supplies, we believe their ability to ramp up production will be hindered for several years before their third domestic plant comes online. As such, we do not see Kazakh uranium production increasing significantly over the next three to four years.”
COP28 nuclear commitment supporting demand
The U3O8 spot price spiked again in early February, reaching US$105 before another correction set in.
As Finegold explained, some of the retraction was the result of profit taking from short-term holders.
“Financial speculators looking to lock in profits towards March year ends played a role, but as we know these moves are achieved on very little volume, so the point remains that the long-term thesis remains unchanged,” he said.
Finegold went on to highlight the different investment perspectives within the market.
“Spot market participants trade on very different parameters and time horizons to one another,” he said. “A trader and a hedge fund, for example, act in a totally different manner to a utility who are long-term thinkers.”
Despite February's slight contraction, uranium prices have remained elevated above US$80.
Some of this long-term support is the result of a COP28 nuclear capacity declaration. At the organization's December meeting in Dubai, more than 20 countries signed a proclamation to triple nuclear capacity by 2050.
There are currently 440 operational nuclear reactors with an additional 13 slated to come online this year and another 47 expected to start electricity generation by 2030. For Finegold, this commitment to building and fortifying nuclear capacity has been uranium's most prevalent demand trend. “The demand side of the equation remains robust and growing at a time when the supply side has never been more fragile,” he commented.
Others also believe the COP28 commitment was a tipping point for the uranium market that spawned several announcements about mine restarts and project extensions.
“Governments around the world have acknowledged that they need to be more supportive, not just financially, but in terms of expediting new projects, expediting the environmental permitting processes for new uranium mines,” said Sprott’s Ciampaglia during the webinar. “And it's not just happening in one country — with the exception of one or two outliers in Europe, this is happening around the globe.”
Geopolitical risk and resource nationalism are price catalysts
Uranium prices continued to consolidate from mid-February through mid-March, but remained above US$84.
This positivity saw several uranium companies in the US, Canada and Australia announce plans to bring existing mines out of care and maintenance. In late November, uranium major Cameco (TSX:CCO,NYSE:CCJ) announced it was restarting operations at its McArthur River/Key Lake project in Saskatchewan after four years.
In January, the McClean Lake joint venture which is co-owned by Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada, reported plans to restart its McClean Lake project, also located in the Athabasca Basin of Saskatchewan.
South of the border, exploration company IsoEnergy (TSXV:ISO,OTCQX:ISENF) is gearing up to restart mining at its Tony M underground mine in Utah. “With the uranium spot price now trading around US$100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the U.S. that we believe can be restarted quickly with relatively low capital costs," IsoEnergy CEO and Director Phil Williams said in a February release.
Building North American capacity is especially important ahead of the global nuclear energy ramp up and the ongoing geopolitical tensions between Russia and the west. While nuclear power is used to provide nearly 20 percent of America's electricity, the nation produces a very small amount of the uranium it needs.
Instead, the country imports as much as 40.5 million pounds annually.
According to the US Energy Information Administration, 27 percent of imports come from ally nation Canada, while 25 percent of imports come from Kazakhstan and 11 percent originate in Uzbekistan — both considered allies of Russia.
Commenting on that topic, Finegold noted, “The ongoing talk around US sanctions remains the most significant geopolitical catalyst for the sector." He added, "While we do not believe sanctions could be enforced immediately, it will send a signal to the market that Russia will no longer be involved in the largest uranium market in the world and would inevitably have an impact on fuel cycle component prices.”
If sanctions do limit imports from Russian allies, Finegold expects these countries to form stronger ties to China.
“Outside of this, the relationship between Kazakhstan and China remains one to watch as the Chinese continue their nuclear rollout strategy and look to procure millions of Kazakh-produced pounds,” he added.
Uranium price outlook remains positive
After hitting a Q1 low of US$84.84 on March 18, uranium began to move positively, ending the three month session in the US$88 range. Commitments to nuclear capacity, the energy transition and stifled supply will continue to be the most prevalent market drivers heading into the second quarter and the rest of the year.
“We believe uranium prices will significantly outrun the recent US$107 highs from February in 2024, driven by a fundamental supply/demand imbalance,” said Finegold. “Producers will continue to cover production shortfalls, while utilities struggle to replenish inventory shortages.”
The Ocean Wall associate went on to note, “The inherent appetite of traders and financial speculators will continue to drive prices higher. These demand drivers are converging at a time when supply has never looked more fragile.”
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: 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.
Justin Huhn: Uranium Price, Supply and Stocks in 2024 — Plus Cameco Analysis
All eyes were on uranium at the end of 2023 as the energy fuel soared through US$100 per pound.
But where is the market headed this year? Justin Huhn, founder and publisher of Uranium Insider, shared his thoughts in an extensive interview with the Investing News Network, emphasizing his continued bullishness.
Outlining current supply/demand dynamics, Huhn said that although 2023's sizeable deficit of about 40 million pounds will shrink a little in 2024, he sees a "very large" deficit persisting for a number of years.
Huhn sees this situation pushing prices for uranium much higher, although he didn't give an exact number.
"The price isn't going to make sense for anybody," he said. "We can arguably go up another US$20 — that will arguably incentivize every project in the world to be profitable. But the price is going to go far beyond that simply driven by the substantially larger amount of demand than we have for supply."
In terms of which stocks to focus on, Huhn said since December small- and mid-cap companies have been outperforming larger-cap companies — he's tracking that movement via the Sprott Junior Uranium Miners ETF (NASDAQ:URNJ), which holds a basket of small- and mid-cap uranium stocks, and sector major Cameco (TSX:CCO,NYSE:CCJ).
"The main theory around this is that as the story gets more popular due to its relative performance and it starts to attract more investment attention, you're going to attract more retail investors, and the retail investors largely go after the smaller companies because they believe that there's torque in those companies. And there is torque in those smaller companies," he explained during the conversation. "Unfortunately, when risk is off, that torque is to the downside. When it's on they can outperform by orders of magnitude."
Watch the interview above for Huhn's full thoughts on the topics discussed above, as well his analysis of Cameco's latest results, contracting in the uranium space and why the sector doesn't need any more catalysts.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, 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.
Lobo Tiggre: Uranium Back on the Table, When Will Gold Stocks Move?
Speaking to the Investing News Network, Lobo Tiggre, CEO of IndependentSpeculator.com, shared his thoughts on uranium's recent price pullback and gold's new nominal all-time high.
"I'm putting uranium back on the table again. I'm actually as bullish again now on uranium as I am on gold for this year. I think both are going to do really well," he said at the Prospectors & Developers Association of Canada (PDAC) convention.
Watch the interview for more from Tiggre on uranium and gold. You can also click here for our PDAC playlist.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, 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.
Affiliate Disclosure: The Investing News Network may earn commission from qualifying purchases or actions made through the links or advertisements on this page.
Gwen Preston: Gold Gearing Up for Next Move, Safest Bets in Uranium
Speaking to the Investing News Network, Gwen Preston of Resource Maven shared her thoughts on gold in 2024, noting that the yellow metal should work for investors from the middle of the year onward.
"I think the next move up in gold is going to require the rate cut — we've had the expectation of the rate cut built into the price, that's why we've gone up to new highs," she said at the Vancouver Resource Investment Conference (VRIC). "But we're still really in that sideways trend ... I think actually breaking through it will require the rate cut."
Looking over to uranium, Preston said that although the price has moved substantially in recent months, the commodity's supply/demand dynamics are such that it could "easily" jump to US$140 per pound overnight.
In terms of supply, uranium has become a seller's market. While companies are working to bring new mines online and restart idled production, the process won't be quick. She sees some relief coming from hedge funds that bought uranium at low prices and are now ready to sell, but emphasized that the volumes they'll be able to provide will be small.
There's also the east/west divide in the sector. Preston noted that the US Senate is likely to approve a ban on Russian uranium imports — and if that happens, Russia will probably preemptively cut off sales of the material to the US.
"There just isn't supply ... despite a few little setbacks that maybe create a trading range for a little while here to stabilize this huge price run that we've seen, I think (the price) will still go higher. I'm very confident that the price is going to end 2024 higher than the insane price that it began the year at. Because it's not actually insane. It's a valid representation of the lack of this essential commodity that the utilities need," she explained during the conversation.
In Preston's view, the safest uranium stocks right now are those with growing US production — those include Uranium Energy (NYSEAMERICAN:UEC), enCore Energy (TSXV:EU,NASDAQ:EU) and Energy Fuels (TSX:EFR,NYSEAMERICAN:UUUU).
Watch the interview above for more from Preston on gold and uranium. You can also click here for the Investing News Network's full VRIC playlist on YouTube.
Don't forget to follow us @INN_Resource for real-time updates!
Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.
Editorial Disclosure: Energy Fuels is a client 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.
The spot uranium price added 86.41 percent to its value in 2023 and started 2024 at US$90.98 per pound. By late January, prices for the energy commodity had rallied to a 17 year high of US$106.
However, as Q1 progressed, uranium saw some consolidation. By March 11, values had slipped below US$90 for the first time since late December. Even so, prices remain historically high, holding above US$85 as of April 10.
Uranium's sustained high values following years of underperformance underscore its positive supply and demand dynamics, which are improving as nuclear power becomes an important factor in the energy transition.
During an interview with the Investing News Network at the annual Prospectors & Developers Association of Canada convention in March, Scott Melbye of Uranium Energy (NYSEAMERICAN:UEC) and Uranium Royalty (TSX:URC,NASDAQ:UROY) expressed optimism about the current price trajectory for the energy fuel.
"There's nothing to keep uranium from going to US$150, US$200 in this environment," he said.
Below are the top uranium stocks on the TSX, TSXV and CSE by share price performance so far this year. All data was obtained on April 9, 2024, using TradingView’s stock screener, and all companies had market caps above C$10 million at the time. Read on to learn what factors have been moving their share prices.
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 Q1 high of C$0.37 on March 11, shortly after the Swedish government announced plans to review a nation-wide ban on uranium mining and exploration that has been in place since 2018.
“We are very pleased with this official statement from the Swedish Government and believe it is a significant step towards lifting the current uranium mining moratorium in Sweden,” Garrett Ainsworth, CEO of District, said. “The Swedish Government has made its intentions clear by stating that ‘the current ban on uranium mining will be removed.’ District is ready for this transformational decision with our portfolio of properties in Sweden.”
Earlier in the quarter, the company completed the acquisition of the remaining four mineral licenses at Viken.
Canada-focused Greenridge Exploration is currently engaged in the exploration of the Nut Lake uranium project in the Thelon Basin in Nunavut, Canada. The Nut Lake asset spans 4,036 hectares, and the company says it is strategically positioned near the Angilak uranium deposit, which was recently acquired by Atha Energy (TSXV:SASK,OTCQB:SASKF) through 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 of U3O8.
On March 28, the uranium explorer announced the addition of Sean Hillacre to its advisory team. Hillacre, who is the president and vice president of exploration at Standard Uranium (TSXV:STND,OTCQB:STTDF), has more than 10 years of experience as a geologist in Saskatchewan's Athabasca Basin. Some of that time was spent on the technical team at NexGen Energy (TSX:NXE,NYSE:NXE,ASX:NXG) advancing the Arrow uranium deposit toward production.
Shares of Greenridge trended higher through Q1, reaching a high of C$0.78 for the period on March 31.
Exploration company Myriad Uranium holds a significant interest in two promising uranium projects. At Wyoming's Copper Mountain uranium project, in which it possesses a 75 percent earnable interest, the company is aiming to tap into the “world-class” potential of the district. The state is the US’ top producer of uranium.
Myriad also has an 80 percent stake in uranium exploration licenses comprising 1,800 square kilometers in Niger's Tim Mersoï Basin, another jurisdiction that boasts world-class uranium deposits.
Shares of Myriad registered a Q1 high early in the period, hitting C$0.39 on January 21. The share price bump coincided with news that the company was welcoming “renowned geologist and the pre-eminent authority on Copper Mountain and its uranium endowment” Jim Davis, to its technical committee.
Commenting on the appointment, Myriad CEO Thomas Lamb said, “On October 31, 2023, we announced historic resource estimates and resource targets relating to Copper Mountain. These estimates and targets were the product of C$100 million in exploration and development spends by Union Pacific during the 1970s. Much of this work was led by Jim Davis, and we are delighted he is joining our Technical Committee.”
CanAlaska Uranium is a self-described project generator with a portfolio of assets in the Athabasca Basin. The region is well known in the sector for its high-grade deposits, which helped birth the moniker "the Saudi Arabia of Uranium."
The company's five asset portfolio includes the West McArthur property, which is situated near sector major Cameco (TSX:CCO,NYSE:CCJ) and Orano Canada’s McArthur River mine. In 2018, Cameco signed on as a joint venture partner for CanAlaska's project and the company retains a 16.65 percent stake.
The uranium explorer made several announcements over the 90 day period, including the approval of a C$7.5 million exploration program at West McArthur. On February 28, the company reported high-grade intersections at the Pike zone at West McArthur. The discovery was made during the exploration firm's winter drill campaign.
The statement drill hole, WMA082-4, intersected 13.75 percent U3O8 equivalent (eU3O8) over 16.8 meters, including 40.3 percent eU3O8 over 4.7 meters and 13.54 percent eU3O8 over 2 meters. CanAlaska’s share price jumped from C$0.46 on February 27 to C$0.74 the day of the news, and marked a Q1 high of C$0.75 on March 7.
Premier American Uranium is focused on consolidating, exploring and developing uranium projects in the US. The company, which was spun out of Consolidated Uranium in late 2023, currently has four assets in two major uranium-producing jurisdictions: Wyoming's Great Divide Basin and Colorado's Uravan Mineral Belt.
On March 20, Premier announced plans to acquire American Future Fuel (OTCQB:AFFCF), which would give Premier access to the Cebolleta uranium project located within the Grants Mineral Belt of New Mexico.
The all-share deal will see the combined value of the merged companies sit at C$129 million.
“The announcement … marks a significant leap in our journey to strengthen our foothold in the US uranium market through opportunistic and strategic M&A,” said Tim Rotolo, chairman of Premier American Uranium. “By acquiring a key project, we’re not just enriching our portfolio; we’re also setting our roots in three principal uranium regions, paving the way for rapid growth.” Shares of Premier reached a quarterly high of C$3.09 on February 8.
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, although some of the major mines have been under care and maintenance in recent years.
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. At this price level, uranium stocks remain highly undervalued.
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Securities Disclosure: I, Georgia Williams, hold no direct investment interest in any company mentioned in this article.
The uranium spot price displayed volatility in Q1, rising to a high unseen since 2007 before ending the quarter below US$90 per pound. U3O8 values shed 3.96 percent over the three month period, but experts believe fundamentals remain strong and expect the sector to benefit from various tailwinds in the months ahead.
Supply remains a key factor in the uranium landscape, with a deficit projected to grow amid production challenges. With annual output well below the current demand levels, the supply crunch is expected to be a long-term price driver.
“Supply-side fragility continued to be one of the key themes in Q1, especially the news out of Kazakhstan that production would be significantly lower than expected in 2024 than previously thought,” Ben Finegold, associate at London-based investment firm Ocean Wall, told the Investing News Network in an interview.
These favorable fundamentals are expected to support uranium prices for the remainder of the year.
Finegold also noted that spot market activity highlights how sensitive the sector is to supply challenges.
“Spot market prices have also been a key talking point as volatility in pricing has increased dramatically in Q1 to both the upside and downside,” he explained. “It has brought to light just how thinly traded the spot market is, but interestingly term prices have only continued to rise, which is indicative that the long-term fundamentals remain intact.”
Sulfuric acid shortage impeding supply growth
The U3O8 spot price opened the year at US$91.71 and edged higher through January 22, when values hit a 17 year high of US$106.87. However, the near two decade record was short lived, and by month’s end uranium was around US$100.
Some of the price positivity early in the quarter came as Kazatomprom (LSE:KAP,OTC Pink:NATKY) warned that it was expecting to adjust its 2024 production guidance due to “challenges related to the availability of sulfuric acid.”
The state producer and major uranium player confirmed the reduction on February 1, underscoring the importance of sulfuric acid in its in-situ recovery method and describing its efforts to secure supply.
“Presently, the company is actively pursuing alternative sources for sulfuric acid procurement,” a press release states.
“Looking ahead in the medium term, the deficit is expected to alleviate as a result of the potential increase in sulphuric acid supply from local non-ferrous metals mining and smelting operations. The company also intends to enhance its in-house sulfuric acid production capacity by constructing a new plant.”
In 2023, Kazatomprom initiated the establishment of Taiqonyr Qyshqyl Zauyty to oversee the construction of a new sulfuric acid plant capable of producing 800,000 metric tons annually.
In the years ahead, the company is aiming to bolster its sulfuric acid production capacities through existing partnerships to achieve a consolidated production volume of approximately 1.5 million metric tons.
In the meantime, disruptions to Kazakh output will only grow the market deficit.
According to the World Nuclear Association, total global uranium production in 2022 only satiated 74 percent of global demand, a number that is likely to shrink as nuclear reactors in Asian countries begin coming online.
“Kazakhstan is the largest producer of uranium in the world — 44 percent. We like to think of Kazakhstan as the OPEC of uranium,” John Ciampaglia, CEO of Sprott Asset Management, said during a recent webinar.
Kazatomprom forecasts its adjusted uranium production for 2024 will range between 21,000 and 22,500 metric tons on a 100 percent basis, and 10,900 to 11,900 metric tons on an attributable basis. While in line with the company’s 2023 output, the major had to forgo a production ramp up due to the sulfuric acid shortage and development issues.
Analysts and market watchers foresee the sulfuric acid shortage being a long-term price driver.
“The sulfuric acid issue in Kazakhstan is a systemic problem that we do not believe will go away any time soon,” said Finegold. “While the company is doing what they can to alleviate pressures on sulfuric acid supplies, we believe their ability to ramp up production will be hindered for several years before their third domestic plant comes online. As such, we do not see Kazakh uranium production increasing significantly over the next three to four years.”
COP28 nuclear commitment supporting demand
The U3O8 spot price spiked again in early February, reaching US$105 before another correction set in.
As Finegold explained, some of the retraction was the result of profit taking from short-term holders.
“Financial speculators looking to lock in profits towards March year ends played a role, but as we know these moves are achieved on very little volume, so the point remains that the long-term thesis remains unchanged,” he said.
Finegold went on to highlight the different investment perspectives within the market.
“Spot market participants trade on very different parameters and time horizons to one another,” he said. “A trader and a hedge fund, for example, act in a totally different manner to a utility who are long-term thinkers.”
Despite February's slight contraction, uranium prices have remained elevated above US$80.
Some of this long-term support is the result of a COP28 nuclear capacity declaration. At the organization's December meeting in Dubai, more than 20 countries signed a proclamation to triple nuclear capacity by 2050.
There are currently 440 operational nuclear reactors with an additional 13 slated to come online this year and another 47 expected to start electricity generation by 2030. For Finegold, this commitment to building and fortifying nuclear capacity has been uranium's most prevalent demand trend. “The demand side of the equation remains robust and growing at a time when the supply side has never been more fragile,” he commented.
Others also believe the COP28 commitment was a tipping point for the uranium market that spawned several announcements about mine restarts and project extensions.
“Governments around the world have acknowledged that they need to be more supportive, not just financially, but in terms of expediting new projects, expediting the environmental permitting processes for new uranium mines,” said Sprott’s Ciampaglia during the webinar. “And it's not just happening in one country — with the exception of one or two outliers in Europe, this is happening around the globe.”
Geopolitical risk and resource nationalism are price catalysts
Uranium prices continued to consolidate from mid-February through mid-March, but remained above US$84.
This positivity saw several uranium companies in the US, Canada and Australia announce plans to bring existing mines out of care and maintenance. In late November, uranium major Cameco (TSX:CCO,NYSE:CCJ) announced it was restarting operations at its McArthur River/Key Lake project in Saskatchewan after four years.
In January, the McClean Lake joint venture which is co-owned by Denison Mines (TSX:DML,NYSEAMERICAN:DNN) and Orano Canada, reported plans to restart its McClean Lake project, also located in the Athabasca Basin of Saskatchewan.
South of the border, exploration company IsoEnergy (TSXV:ISO,OTCQX:ISENF) is gearing up to restart mining at its Tony M underground mine in Utah. “With the uranium spot price now trading around US$100 per pound, we are in the very fortunate position of owning multiple, past-producing, fully permitted uranium mines in the U.S. that we believe can be restarted quickly with relatively low capital costs," IsoEnergy CEO and Director Phil Williams said in a February release.
Building North American capacity is especially important ahead of the global nuclear energy ramp up and the ongoing geopolitical tensions between Russia and the west. While nuclear power is used to provide nearly 20 percent of America's electricity, the nation produces a very small amount of the uranium it needs.
Instead, the country imports as much as 40.5 million pounds annually.
According to the US Energy Information Administration, 27 percent of imports come from ally nation Canada, while 25 percent of imports come from Kazakhstan and 11 percent originate in Uzbekistan — both considered allies of Russia.
Commenting on that topic, Finegold noted, “The ongoing talk around US sanctions remains the most significant geopolitical catalyst for the sector." He added, "While we do not believe sanctions could be enforced immediately, it will send a signal to the market that Russia will no longer be involved in the largest uranium market in the world and would inevitably have an impact on fuel cycle component prices.”
If sanctions do limit imports from Russian allies, Finegold expects these countries to form stronger ties to China.
“Outside of this, the relationship between Kazakhstan and China remains one to watch as the Chinese continue their nuclear rollout strategy and look to procure millions of Kazakh-produced pounds,” he added.
Uranium price outlook remains positive
After hitting a Q1 low of US$84.84 on March 18, uranium began to move positively, ending the three month session in the US$88 range. Commitments to nuclear capacity, the energy transition and stifled supply will continue to be the most prevalent market drivers heading into the second quarter and the rest of the year.
“We believe uranium prices will significantly outrun the recent US$107 highs from February in 2024, driven by a fundamental supply/demand imbalance,” said Finegold. “Producers will continue to cover production shortfalls, while utilities struggle to replenish inventory shortages.”
The Ocean Wall associate went on to note, “The inherent appetite of traders and financial speculators will continue to drive prices higher. These demand drivers are converging at a time when supply has never looked more fragile.”
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: 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.
Ur-Energy Inc. (NYSE American:URG)(TSX:URE) (the "Company" or "Ur-Energy") is pleased to announce the appointment of John Paul Pressey and Elmer W. Dyke as new members of the Ur-Energy Board of Directors
Ur-Energy also announces the anticipated retirement of founding Director James M. Franklin and Director, and former President and CEO, W. William Boberg. Both will continue to serve the Board until the Company's Annual Meeting of Shareholders, June 6, 2024, though neither will stand for re-election at the Meeting. The Company is pleased that our new Board members will be able to benefit from this transition period prior to Dr. Franklin and Mr. Boberg's retirement from the Company.
Ur-Energy Chairman and CEO, John Cash, stated, "We are excited to welcome John Paul (JP) Pressey and Elmer Dyke as Directors on Ur-Energy's Board. Mr. Pressey has nearly 30 years of valuable audit and assurance experience from his career with PricewaterhouseCoopers, including 16 years as a partner. We are pleased that Mr. Pressey brings to our Board his wide-ranging experience having worked with numerous publicly traded companies, including international mining companies, while at PricewaterhouseCoopers. Mr. Dyke is widely known as a leader in the global nuclear community and brings 35 years' experience working in senior positions on issues such as the nuclear fuel cycle, nuclear non-proliferation and marketing of nuclear fuel. Welcome aboard JP and Elmer. We look forward to working with you to advance Ur-Energy's interests as the world is increasingly turning to nuclear power.
"Personally, and on behalf of the Company, I wish to thank Dr. Jim Franklin and Mr. Bill Boberg for their many years of unwavering service to Ur-Energy. While their contributions are too many to list, it is worth noting that Jim Franklin was a founding Director of Ur-Energy when he and original management of the Company recognized in the early 2000s the impending uranium supply gap. Jim's assessments were accurate, and the timely formation of Ur-Energy positioned us to grow the Company to our current ability to capitalize on a strong market for nuclear fuel. Bill Boberg contributed throughout the years serving as a Director and an executive of the Company, but he is perhaps best known for the acquisition of the Great Divide Basin assets in Wyoming, including the property which became our flagship producing mine, Lost Creek. Jim and Bill, thank you so much for your guidance over the years. Without your leadership, Ur-Energy simply would not be the strong company it has become."
John Paul Pressey had a nearly three-decade long career in the assurance practice at PricewaterhouseCoopers LLP, with 16 years as a partner. With a Bachelor of Commerce degree from the University of Alberta, Mr. Pressey is a Chartered Professional Accountant with extensive experience working with U.S. and Canadian publicly traded companies in the mining industry, and other industries including manufacturing, utilities, and alternative energy. His experience includes acquisitions and capital markets transactions, working with clients to identify and implement practical business solutions to accounting, audit and financial issues. Well-respected for his ethics and integrity, Mr. Pressey spent six years at PricewaterhouseCoopers as its Assurance Leader for British Columbia, overseeing all aspects of PricewaterhouseCoopers's assurance results and operations for that Province. Mr. Pressey has significant experience presenting to and working with boards of client companies and has facilitated sessions at the Institute for Corporate Directors.
Elmer Dyke is a recognized global leader in the commercial and government nuclear industry with over 35 years' experience. Mr. Dyke has a Bachelor of Arts Degree in International Political Economy from Davidson College and served as a U.S. Army Officer for thirteen years. Mr. Dyke's professional career includes a tenure with the U.S. Department of State during which he directed international security programs, including nuclear nonproliferation and high technology projects and was detailed to the Departments of Defense and Commerce. Mr. Dyke has worked within global firms NAC International and Booz Allen Hamilton where he served as an expert on nuclear nonproliferation, strategy and nuclear fuel cycle. More recently, Mr. Dyke filled senior executive roles at Centrus Energy Corporation, a global nuclear fuel supplier and technical services provider. At Centrus Energy and in prior executive roles, Mr. Dyke led strategic planning and business development, financial performance, and risk management for the businesses. Currently, Mr. Dyke leads New Horizons Nuclear Associates, LLC, a global nuclear consulting firm he formed in 2022. Mr. Dyke is intimately involved with the entire nuclear fuel cycle and has served terms on the board of directors of the World Nuclear Association and the U.S. Nuclear Industry Council.
About Ur-Energy Ur-Energy is a uranium mining company operating the Lost Creek in-situ recovery uranium facility in south-central Wyoming. We have produced, packaged, and shipped approximately 2.8 million pounds U3O8 from Lost Creek since the commencement of operations. Ur-Energy has all major permits and authorizations to begin construction at Shirley Basin, the Company's second in situ recovery uranium facility in Wyoming and is in the process of obtaining remaining amendments to Lost Creek authorizations for expansion of Lost Creek. Ur‑Energy is engaged in uranium recovery and processing activities, including the acquisition, exploration, development, and operation of uranium mineral properties in the United States. The primary trading market for Ur‑Energy's common shares is on the NYSE American under the symbol "URG." Ur‑Energy's common shares also trade on the Toronto Stock Exchange under the symbol "URE." Ur-Energy's corporate office is in Littleton, Colorado and its registered office is in Ottawa, Ontario.
FOR FURTHER INFORMATION, PLEASE CONTACT John W. Cash, Chairman, CEO & President 720-981-4588, ext. 303 John.Cash@Ur-Energy.com
Cautionary Note Regarding Forward-Looking Information This release may contain "forward-looking statements" within the meaning of applicable securities laws regarding events or conditions that may occur in the future (e.g., when the Company will receive all remaining regulatory authorizations for the Lost Creek expansion; the ability to progress the planned construction and buildout of Shirley Basin as currently projected; and what further growth of the Company is achieved and on what timing)and are based on current expectations that, while considered reasonable by management at this time, inherently involve a number of significant business, economic and competitive risks, uncertainties and contingencies. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as "plans," "expects," "does not expect," "is expected," "is likely," "estimates," "intends," "anticipates," "does not anticipate," or "believes," or variations of the foregoing, or statements that certain actions, events or results "may," "could," "might" or "will be taken," "occur," "be achieved" or "have the potential to." All statements, other than statements of historical fact, are considered to be forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements express or implied by the forward-looking statements. Factors that could cause actual results to differ materially from any forward-looking statements include, but are not limited to, capital and other costs varying significantly from estimates; failure to establish estimated resources and reserves; the grade and recovery of ore which is mined varying from estimates; production rates, methods and amounts varying from estimates; delays in obtaining or failures to obtain required governmental, environmental or other project approvals; inflation; changes in exchange rates; fluctuations in commodity prices; delays in development and other factors described in the public filings made by the Company at www.sedarplus.ca and www.sec.gov. Readers should not place undue reliance on forward-looking statements. The forward-looking statements contained herein are based on the beliefs, expectations and opinions of management as of the date hereof and Ur-Energy disclaims any intent or obligation to update them or revise them to reflect any change in circumstances or in management's beliefs, expectations or opinions that occur in the future.
Perth-based uranium development and exploration company Toro Energy Limited (ASX:TOE) (“Toro” or the “Company”) is pleased to advise its intention to demerge its portfolio of non-core assets including its nickel, gold and base metal assets in Western Australia, subject to all requisite approvals.
Highlights
Strategic review of asset portfolio to maximise shareholder value
Toro anticipates an in-specie distribution to existing shareholders
Lead manager for IPO of demerged company to be finalised soon
Toro to be solely focused on uranium development opportunities
The strategic decision to consider the demerger follows a detailed review of its asset base in light of the strong and impressive results delivered from the Lake Maitland Scoping Study and the implications for its broader flagship Wiluna Uranium Project (“Wiluna Uranium Project”).
The Lake Maitland Scoping Study produced attractive financial metrics demonstrating a stand-alone project highlighted by:
Pre tax NPV8 of A$610m, 41% IRR based on $70/lb U3O8 price, $0.70 AUD:USD
Modest capex of USD189m (including 20% contingency) with a 2.5 year payback
Low opex - Life of mine C1 costs of US$23.10/lb U3O8 and AISC US$28.02/lb U3O8
EBITDA of $1,768.6M for the life of the mine
A very significant increase in the value of Lake Maitland is an anticipated outcome of the soon to be completed update of the Lake Maitland Scoping Study,
Recent work continues to highlight strength of Uranium assets
Toro recently reported that planning was well advanced to commence a near-term drilling programme that would deliver potential ore to the pilot plant that is currently in design for the Wiluna project and that a refresh and update of the Lake Maitland Scoping Study (first completed in 2022) is currently underway to evaluate financial outcomes using the latest more favourable commodity pricing and exchange rare guidance.
In addition, the Company announced that improving uranium market dynamics have allowed Toro to lower the cut-off grade and expand the stated uranium (U3O8) and vanadium (V2O5) resources at the Lake Way and Centipede-Millipede deposits by up to 25% U3O8.
Given the Company’s strategic focus on the development and recent positive developments of the Wiluna Uranium Project, the value of its nickel, gold and base metal exploration assets is not currently reflected in Toro’s share price. The Board considers these assets should now logically sit in a separately listed vehicle specifically focused on progressing their exploration and development.
Management commentary
Toro’s Executive Chairman, Richard Homsany said:
“With the strong financial metrics highlighted by the Lake Maitland Uranium Scoping Study, and the expected transformational increase in NPV following a soon to be completed refresh, we believe it is the right time to consider demerging our non-core projects to allow Toro to focus solely on expediting the development of our globally significant uranium assets.
Toro believes a demerger and anticipated IPO of the demerged company provides a compelling opportunity to unlock the considerable underlying value of these highly prospective nickel, gold and base metals assets, while allowing Toro to aggressively pursue the development of its world-class Wiluna Uranium Project.
The considerable amount of work completed to date by our team has demonstrated that the Lake Maitland Deposit, which is part of the Wiluna Uranium Project, is viable as a stand- alone operation with incredibly attractive financial metrics. There is significant potential upside in combining the other deposits - Lake Way, Millipede and Centipede - with Lake Maitland thereby unlocking greater value for shareholders.”
NewCo strategy and proposed transaction
Toro believes an IPO of its demerged company (“NewCo”) creates a new exploration driven, energy and base metals business with a portfolio of valuable assets located in a Tier-1 mining jurisdiction.
Any demerger is expected to be conducted by way of an equal capital reduction in Toro and an in- specie distribution of its shares in NewCo to Toro shareholders in compliance with applicable ASX Listing Rules including Rule 11.4.1(a). Upon completion of any demerger, existing Toro shareholders will have a significant interest in NewCo, which is expected to attract strong investor interest. Toro shareholders are also expected to be afforded a priority offer as part of any IPO, with an intention to seek an ASX listing for NewCo.
Investors are cautioned that although the application for admission of NewCo to the official list of ASX is intended to occur after the implementation of any demerger, there can be no certainty as to the timing of when such application will be made or that any such application will be successful. Any application by NewCo to admission of the official list of ASX will be subject to satisfying the requirements of ASX. Investors are further cautioned that due to the early-stage nature of the intended demerger no information about the structure of the demerged entity is as yet concluded or available.
This article includes content from Toro Energy, 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.
Nuclear energy is a critical component in the transition to net zero. There's a growing acknowledgment of the pivotal role nuclear power can play in meeting decarbonization objectives, thanks to its clean emissions profile, dependable baseload capabilities, and secure operation. Global electricity demand is set to grow 50 percent by 2040 and nuclear energy will play an integral role in meeting this demand. This is evident in the recently released World Energy Outlook 2023 published by the International Energy Agency (IEA) which highlighted the role that nuclear energy can play in making the journey towards net-zero faster, more secure, and more affordable.
According to the World Nuclear Association, there are currently 439 reactors operating globally. This capacity is increasing steadily with about 61 reactors under construction in 15 countries and a further 400 that are either ordered, planned or proposed. The IEA anticipates a substantial growth of over 43 percent in installed nuclear capacity from 2020 to 2050, reaching approximately 590 gigawatts of electrical output. This should drive demand for uranium over the coming decades.
UxC, a nuclear industry market data and analysis firm, estimates that annual uranium demand could soar by nearly 65 percent, surpassing 300 million pounds (Mlbs) U3O8 by 2030 from the current demand level of 197 Mlbs U3O8. Against this, the mine supply for 2024 is estimated to be around 155 Mlbs U3O8, implying a deficit of nearly 40 Mlbs. Further, substantial underinvestment in new mining projects has exacerbated an already constrained supply side, leading to prolonged strain in the years ahead.
As a result, spot uranium prices have seen a big jump. Uranium prices are now the highest since 2008 at over US$80/lb. Prices are expected to remain strong due to the ongoing tightness in the uranium supply/demand balance. As mentioned earlier, this tightness is likely to intensify over the next 24 months as demand continues to rise, new supply remains restricted, and inventories/stockpiles continue to diminish. The risks to the supply side far outweigh risks to the demand side given that more than 50 percent of global uranium production comes from countries with significant geopolitical risk.
This is where companies such as Skyharbour Resources (TSXV:SYH), with a presence in jurisdictions such as the Athabasca Basin in Canada, stand out for its geopolitical stability. The Athabasca Basin is the world’s most prolific uranium jurisdiction, boasting uranium grades averaging over ten to twenty times higher than those found elsewhere, with levels at 3.95 percent U3O8 in contrast to the global average of 0.15 percent.
Skyharbour Resources possesses a broad portfolio of uranium exploration projects within the Athabasca Basin and is strategically positioned to capitalize on the improving fundamentals of the uranium market. The company follows a dual strategy of mineral exploration at its core projects (Russell and Moore) while utilizing the prospect generator model to advance its secondary projects with strategic partners. Employing the prospect generator model provides advantages to Skyharbour as partner firms finance exploration and development activities, as well as making cash and stock payments directly to Skyharbour Resources as they earn in on the projects. The model allows Skyharbour to retain upside exposure through minority interests and royalties at the partner projects while limiting equity dilution and ensuring that partner companies fund the majority of exploration costs.
Skyharbour Resources has seven partner companies, including Orano Canada, Azincourt Energy, Valor Resources, Basin Uranium Corp, Medaro Mining, Tisdale Clean Energy, and North Shore Uranium. Skyharbour’s option agreements total over C$33 million in exploration expenditures, with more than C$27 million in stock being issued and over C$20 million in cash payments potentially coming into Skyharbour.
Company Highlights
Skyharbour Resources is a junior mining company with an extensive portfolio of uranium exploration projects in Canada’s Athabasca Basin. They comprise 29 uranium projects, 10 of which are drill-ready, totaling over 587,000 hectares.
The Athabasca Basin is the world’s most prolific uranium jurisdiction, boasting uranium grades averaging over 10-20 times higher than those found elsewhere.
The company employs a multi-faceted strategy of focused mineral exploration at its core projects (Russell and Moore) while utilizing the prospect generator model to advance its secondary projects with strategic partners.
The company’s co-flagship Moore project is an advanced-stage uranium exploration asset featuring high-grade uranium mineralization at the Maverick Zone. Previous drilling has returned results of 6 percent U3O8 over 5.9 meters, with a notable intercept of 20.8 percent U3O8 over 1.5 meters, at a vertical depth of 265 meters.
Adjacent to the Moore project is Skyharbour’s second core project, the Russell Lake uranium project, wherein Skyharbour has the option to acquire an initial 51 percent and up to 100 percent interest from Rio Tinto. The Russell Lake uranium project is a large, advanced-stage uranium exploration property totaling 73,294 hectares.
Skyharbour is fully funded for 15-20,000m of drilling in 2024 at its co-flagship Russell and Moore Projects
Management intends to continue building the prospect generator business by offering projects to partners who will fund the exploration and provide cash/stock to Skyharbour for an ownership interest in the projects; Skyharbour typically retains minority interests in the projects and equity holdings in the partners.
The increasing focus on nuclear energy by governments globally to achieve decarbonization goals bodes well for uranium prices. Skyharbour, with key uranium assets in a top mining jurisdiction, stands to benefit from this shift in the global energy mix.
Flagship Projects
The Moore Project
This project covers an area of 35,705 hectares, located in the eastern Athabasca Basin near existing infrastructure with known high-grade uranium mineralization and significant discovery potential. Skyharbour acquired the project from Denison Mines (TSX:DML), a large strategic shareholder of the company. The project can be easily accessed year-round via winter and ice roads, streamlining logistics and reducing expenses. During the summer months, a significant portion of the property remains accessible as well. The property has been the subject of extensive historic exploration with over $50 million in expenditures, and over 140,000 meters of diamond drilling completed historically.
Moore hosts high-grade uranium mineralization at the Maverick zones. Over the past few years, Skyharbour Resources has conducted diamond drilling programs, resulting in the intersection of high-grade uranium mineralization in numerous drill holes along the 4.7-kilometer-long Maverick structural corridor. Some of the high-grade intercepts include:
Hole ML-199 which intersected 20.8 percent U3O8 over 1.5 meters at 264 meters,
Hole ML-202 from the Maverick East Zone which intersected 9.12 percent U3O8 over 1.4 meters at 278 meters.
Hole ML20-09 which intersected 0.72 percent U3O8 over 17.5 meters from 271.5 meters to 289.0 meters, including 1 percent U3O8 over 10.0 meters represents the longest continuous drill intercept of uranium mineralization discovered to date at the project.
Drill hole ML-61 returned 4.03 percent eU3O8 over 10 meters;
Drill hole ML -55 encountered high-grade mineralization, returning 5.14 percent U3O8 over 6.2 meters
Drill hole ML -47 intersected 4.01 percent U3O8 over 4.7 meters
Merely 50 percent of the total 4.7-kilometer promising Maverick corridor has undergone systematic drilling, indicating significant discovery potential both along its length and within the underlying basement rocks at depth. Skyharbour has announced a 3,000-meter 2024 drill program which will include infill and expansion drilling at the high-grade Maverick Corridor as well as testing several regional targets including the Grid Nineteen target area.
Apart from the Maverick Zone, diamond drilling in various other target areas has encountered multiple conductors linked with notable structural disturbances, robust alteration, and anomalous concentrations of uranium and associated pathfinder elements.
Russell Lake Uranium Project
The Russell Lake project is a large, advanced-stage uranium exploration property spanning 73,294 hectares, strategically positioned between Cameco’s Key Lake and McArthur River projects. Skyharbour entered into an option agreement with Rio Tinto which gives it the right to acquire an initial 51 percent and up to 100 percent of the project. Skyharbour can earn an initial 51 percent by paying C$508,200 in cash, issuing 3,584,014 shares to Rio Tinto, and funding C$5,717,250 in exploration on the Russell Lake project, over three years. Skyharbour has a second option to earn an additional 19 percent interest for a total of 70 percent, and a further option to obtain the remaining 30 percent interest in the project.
The project is adjacent to Denison’s Wheeler River project and Skyharbour’s Moore uranium project. It is supported by excellent infrastructure in terms of highway access as well as high-voltage power lines. The project has undergone a significant amount of historical exploration which includes over 95,000 meters of drilling in over 220 drill holes. The exploration identified numerous prospective target areas and several high-grade uranium showings as well as drill hole intercepts.
The property hosts several noteworthy exploration targets, including the Grayling Zone, the M-Zone Extension target, the Little Man Lake target, the Christie Lake target, and the Fox Lake Trail target. Skyharbour completed a 19-hole drilling program totaling 9,595 meters in three phases in 2023. The initial drilling phase encompassed 3,662 meters across eight completed holes at the Grayling Zone, followed by a second phase involving four holes totaling 2,730 meters drilled at the Fox Lake Trail Zone. The third drilling phase involved 3,203 meters across seven holes targeting additional areas within the Grayling Zone.
Skyharbour is carrying out a 5,000-meter winter drilling program currently to follow up on the 2023 campaign and historical exploration work. The 2024 program will focus on Grayling East and Fork targets within the broader Grayling target area as well as the M-Zone Extension target.
Secondary Projects
Falcon Uranium Project
This project comprises 11 claims covering 42,908 hectares located approximately 50 km east of the Key Lake mine. Skyharbour Resources has entered into an option agreement with North Shore Uranium which provides North Shore with an earn-in option to acquire an initial 80 percent interest and up to a 100% interest in the Falcon Property. North Shore can acquire an initial 80 percent interest in the claims within three years by meeting combined commitments of C$5.3 million in cash, share issuance, and exploration expenditures. Additionally, there's an option to buy the remaining 20 percent for an extra C$10 million in cash and shares.
South Falcon East Uranium
This project comprises 16 claims covering 12,234 hectares located approximately 55 km east of the Key Lake mine. Skyharbour has optioned up to a 75 percent interest in a portion of the project to Tisdale Clean Energy. Tisdale will issue Skyharbour Resources 1,111,111 shares upfront, fund exploration expenditures totaling C$10.5 million, and pay Skyharbour Resources C$11.1 million in cash of which C$6.5 million can be settled for shares over a five-year earn-in. Skyharbour Resources will retain a minority interest in the South Falcon East.
East Preston
This project comprises 20,674 hectares located on the west side of the Athabasca Basin. In March 2017, Skyharbour Resources signed an option agreement with Azincourt Uranium (TSXV:AAZ) to option 70 percent of a portion of the East Preston project to Azincourt. Since then, Azincourt earned a majority interest in the project which currently stands at 85.8 percent. Skyharbour retains 9.5 percent ownership and Dixie Gold owns the remaining 4.7 percent.
Azincourt completed a 2023 drill program comprising 3,066 meters in 13 drill holes. A 1,500-meter drill program consisting of 5 drill holes is set to commence in 2024.
Preston
This project comprises 49,635 hectares strategically located near Fission’s Triple R deposit and NexGen’s Arrow deposit. In March 2017, Skyharbour Resources signed an option agreement with Orano (formerly AREVA) Resources Canada to option a majority stake in the Preston project. Orano has fulfilled its first earn-in option interest for 51 percent in the project. Following this, Orano has formed a joint venture (JV) with Skyharbour and Dixie Gold for the advancement of the project. Orano holds 51 percent interest, and the remaining is split evenly (24.5 percent each) between Skyharbour and Dixie Gold.
Hook Lake
This project comprises 16 claims covering 25,847 hectares on the east side of the Athabasca Basin. In February 2024, Valor completed an earn-in for 80 percent interest and formed a JV partnership with Skyharbour which retains the remaining 20 percent interest.
Yurchison Lake
This project consists of 13 claims totaling 57,407 hectares in the Wollaston Domain. In November 2021, Medaro signed an agreement to acquire an initial 70 percent interest by spending C$5 million on exploration, C$800,000 in cash payments, and C$3 million in Medaro shares over 3 years. Medaro may acquire the 30 percent interest, within 30 business days of earning the initial 70 percent interest, by issuing C$7.5 million of shares and a cash payment of $7.5 million to Skyharbour.
Mann Lake
This project is strategically located on the east side of the Athabasca basin, 25 km southwest of Cameco’s McArthur River Mine and 15 km northeast and along strike of Cameco's Millennium uranium deposit. In October 2021, Basin Uranium signed an earn-in option to acquire a 75 percent interest in the project. Basin will pay a combination of cash and stocks over three years comprising C$4.85 million in cash plus exploration expenditure and C$1.75 million worth of shares.
In addition to the projects being advanced by Skyharbour and its partners, the Company has an additional twenty 100% owned projects that they’re actively seeking to option out to potential new partners in the future to add to their growing prospect generator business. All in all, Skyharbour is very well positioned to benefit from an accelerating uranium bull market with increasing demand in the backdrop of a strained supply side.
Management Team
Jordan Trimble, B.Sc., CFA – President and CEO
With a background in entrepreneurship, Jordan Trimble has held various positions in the resource industry, focusing on management, corporate finance, strategy, shareholder communications, business development, and capital raising with multiple companies. Prior to his role at Skyharbour, he was the corporate development manager at Bayfield Ventures, a gold company with projects in Ontario. Bayfield Ventures was subsequently acquired by New Gold (TSX:NGD) in 2014. Throughout his career, Trimble has established and assisted in the management of numerous public and private enterprises. He has played a pivotal role in securing significant capital for mining companies, leveraging his extensive network of institutional and retail investors.
Jim Pettit – Chairman of the Board
Jim Pettit currently serves as a director on the boards of various public resource companies, drawing from over 30 years of experience in the industry. His expertise lies in finance, corporate governance, management and compliance, particularly in the early-stage development of both private and public enterprises. Over the past three decades, he has primarily focused on the resource sector. Previously, he served as chairman and CEO of Bayfield Ventures, which was acquired by New Gold in 2014.
David Cates - Director
David Cates currently serves as the president and CEO of Denison Mines (TSX:DML). Before assuming the role of president and CEO, Cates was the vice-president of finance, tax, and chief financial officer at Denison. In his capacity as CFO, he played a pivotal role in the company's mergers and acquisitions activities, including spearheading the acquisition of Rockgate Capital and International Enexco. Cates joined Denison in 2008, initially serving as director of taxation before he was appointed CFO. Prior to joining Denison, he held positions at Kinross Gold and PwC with a focus on the resource industry.
Joseph Gallucci - Director
Joseph Gallucci was previously a senior manager at a leading Canadian accounting firm. He possesses more than two decades of expertise in investment banking and equity research, specializing in mining, base metals, precious metals, and bulk commodities worldwide. He serves as a senior capital markets executive and corporate director. Presently, Gallucci is the managing director and head of investment banking at Laurentian Bank Securities, where he assumes responsibility for overseeing the entire investment banking practice.
Amanda Chow - Director
Amanda Chow is a chartered professional accountant (CPA, CMA) and holds a Bachelor of Business Administration degree from Simon Fraser University. Chow commenced her career with public companies in 1999.
Dave Billard – Head Consulting Geologist
Dave Billard is a geologist with over 35 years of experience in exploration and development, focusing on uranium, gold and base metals in western Canada and the western US. He served as chief operating officer, vice-president of exploration, and director for JNR Resources before its acquisition by Denison Mines. He played a crucial role in the discovery of JNR’s Maverick and Fraser Lakes B zones. Earlier in his career, he contributed to the discovery and development of several significant gold deposits in northern Saskatchewan. Prior to joining JNR, Billard worked as a geological consultant specializing in uranium exploration in the Athabasca Basin. He also spent over 12 years with Cameco Corporation.
Christine McKechnie – Senior Project Geologist
Christine McKechnie is a geologist with a specialization in uranium deposits, particularly those hosted in the basement and associated with unconformities in the Athabasca Basin and its vicinity. Throughout her career, she has worked with various companies such as Claude Resources, JNR Resources, CanAlaska Uranium and Cameco, engaging in gold and uranium exploration activities. She completed her B.Sc. (High Honors) in 2008 from the University of Saskatchewan and completed a M.Sc. thesis on the Fraser Lakes Zone B deposit at the Falcon Point project. She also received the 2015 CIM Barlow Medal for Best Geological Paper.
Sean Cross – Project Geologist
Sean Cross is a geologist primarily dedicated to uranium exploration, with supplementary expertise in VMS and orogenic gold deposits. Sean has been involved in various flagship projects, including Foran’s McIlvenna Bay Deposit and NexGen Energy’s Arrow Deposit. His expertise extends to greenfield uranium exploration south of the Athabasca, geological mapping with the Saskatchewan Geological Survey, and environmental and archaeological mitigation projects in British Columbia and Alberta.
Dylan Drummond – Project Geologist
Dylan Drummond is a geologist experienced in uranium and rare earth elements exploration. He has been involved in numerous prestigious projects, including NexGen Energy's prominent Arrow Deposit and Orano Canada's Cigar Lake project. Additionally, he has served in various capacities at Appia Energy Corp, ranging from on-site prospecting to supporting drill program supervision.
This profile was written in collaboration with Couloir Capital.
Carmanah Minerals (CSE:CARM) is a junior mining company focused on the acquisition and exploration of energy, critical elements and precious metals. The company is actively exploring its flagship Walker uranium project situated in the Athabasca Basin. The company also recently acquired Hare Hill, a rare earths project tied to both York Harbor's Bottom Brook property and the Baie Verte Brompton project.
Nuclear energy is expected to play an increasingly important role in the global clean energy and decarbonization efforts. The world’s nuclear power capacity has been steadily increasing for the past several years with roughly 60 reactors currently under construction. Although many of these reactors are planned within the Asia-Pacific region and Russia, other countries have made extensive plans to expand the capacity of their existing nuclear energy resources.
This re-emergence of nuclear energy has resulted in increased demand for uranium. Given the current lack of a sufficient primary supply, new discoveries and deposits are growing increasingly valuable in balancing the market.
The outlook for rare earth elements (REEs) is similar, as these critical minerals are essential for everything from batteries to solar panels and wind turbines. Unfortunately, even as demand continues to grow, the market for REEs is currently dominated by China.
Multiple countries have thus begun investing heavily in their own domestic REE supply, considerably increasing the investment potential for exploration and discovery.
With an experienced and heavily invested management team, Carmanah is incredibly well-positioned to leverage the increasingly expanding prospects for uranium and REE development and fulfill its core objective — supporting the transition to a cleaner, more sustainable future.
Company Highlights
Carmanah Minerals is a Canadian junior mining and exploration company focused on rare earth elements (REE) and uranium.
Their flagship project, Walker, is situated in the Athabasca Basin, one of the most uranium-rich regions in the world. Carmanah jointly operates the project with Marvel Discovery.
The Athabasca Basin currently accounts for roughly 13 percent of global uranium production, and deposits in the region are 20 times richer than the global average.
Carmanah also owns and operates a rare earths project in Newfoundland, positioned within a new mining district that is quickly gaining recognition for its REE deposits.
With nuclear power capacity rapidly increasing and the potential of nuclear energy to power decarbonization, demand for uranium is expected to spike over the next several years.
Uranium is also notable for its cost-competitiveness and capacity to produce near zero-carbon heat, giving it the potential to decarbonize many other sectors of the economy in addition to energy.
Carmanah's management team comprises mining industry leaders and experts. These individuals are heavily invested, collectively holding a 25-percent stake in the company.
Key Projects
Walker Claims
Located west of Wollaston Lake and south of Lake Athabasca, the Athabasca Basin spans roughly 100,000 square kilometers across Northern Saskatchewan and Alberta. The Athabasca Basin is best known as the world's leading source of high-grade uranium and currently supplies about 13 percent of the world's annual uranium production. These reserves are arguably most concentrated in the eastern-oriented Wollaston-Mudjatik Transition Zone (WMTZ), which hosts some of the highest-grade uranium mines in the world, including Cigar Lake, McArthur River and Wheeler Project.
Carmanah's Walker project is also situated within the zone and is directly tied to Cameco's properties, which run along the Key Lake Shear Zone and host 10 uranium showings with multiple exploration and magnetic survey (EM) targets. Carmanah jointly owns and operates the Walker Claims with Marvel Discovery (TSXV:MARV), with each company holding a 50-percent stake.
The Arrow Deposit, owned by NexGen Energy, lies along a similar structural corridor as the Marvel properties. The Arrow Deposit, which has undergone a positive feasibility study with robust economics, contains probable reserves of 239.6 million pounds (Mlbs) of triuranium octoxide (U3O8) at an average of 2.37 percent U3O8 and measured and indicated resources of 256.7 Mlbs at an average grade of 3.1 percent U3O8. The Arrow Deposit is the largest undeveloped uranium deposit in Canada.
Project Highlights:
Potential for High-grade Mineralization: The Carmanah-Marvel joint venture straddles several of the largest uranium mines in the world, including:
Cigar Lake, with roughly 221.6 Mlbs of uranium at 16.7 percent U3O8.
The Mcarthur River mine, with reserves of approximately 392 Mlbs of uranium at 6.91 percent U3O8.
Wheeler Project, which hosts 109 Mlbs of uranium in two deposits averaging 11.23 percent U3O8.
Considerable Investment: Carmana will fund $1.5 million in exploration expenditures, along with a payment of $400,000 in cash. Additionally, the company will issue 3.5 million shares and 3.5 million warrants over three years.
Extensive Pre-existing Infrastructure: The Athabasca Basin is one of the most active uranium mining districts in the world, allowing Carmanah and Marvel to considerably reduce their upfront capital investment.
Covering 1,564 claims totaling 39,100 hectares in central Newfoundland, Hare Hill Pluton is a rare earth element project directly contiguous to York Harbour Metals' (TSXV:YORK) recent Bottom Brook acquisition. It is also adjacent to Falcon Gold’s (TSXV:FG) and Marvel Discovery's Baie Verte Brompton projects.
Long overlooked for its potential, the Hare Hill granitic system is highly prospective for REE mineralization. A recent report by York Harbor Metals, for instance, returned total rare earth oxide grades (TREO) between 3.45 percent and 21.63 percent TREO. An analysis by Carmanah indicates the area is underlaid by the same peralkaline granite as York Harbor.
Project Highlights:
High-grade REE: The district in which Hare Hill Pluton is situated contains some of the highest-grade deposits of rare earths in Canada.
Pre-existing Infrastructure: As with Walker Claims, Carmanah benefits from infrastructure constructed within the region by other mining companies, allowing it to pursue exploration, discovery and eventual production at a significantly reduced capital cost.
Management Team
Fraser Rieche - CEO and Director
Fraser Rieche holds a BA in economics and boasts 25 years of expertise in international project management, logistics planning and corporate finance. He has collaborated with resource-based industries and global financial institutions to develop and finance projects in mining, alternative energy, oil and gas, fisheries and forestry. Additionally, Rieche serves as an independent director for Marvel Discovery.
Brian Crawford - CFO and Director
Brian Crawford holds a Bachelor of Commerce degree from the University of Toronto and brings extensive experience as a senior financial executive. He has held positions in both public and private companies and has served as a partner in a national firm of chartered professional accountants. Crawford is a founder and/or co-founder of several companies currently listed on the TSXV or the CSE. Crawford serves as a director, corporate secretary and/or CFO of multiple TSXV- or CSE-listed companies, including Colibri Resource, Searchlight Resources, CBLT and Tempus Capital.
Michelle Suzuki - Director
Michelle Suzuki has dedicated the past 25 years serving as an advisor, specializing in publishing and media relations. Her expertise lies in managing investor communication campaigns for Canada’s largest digital content providers. Throughout her career, she has worked with numerous C-Suite clients across North America, ranging from life sciences technology to mining companies.
In the Canadian markets, she is widely known for her experience in these fields working with many top CEOs, senior investor relations executives, investment broker-dealers and newsletter writers on digital syndication helping educate on the importance of mining and the future of the industry.
Jordan Smith - Director
Jordan Smith previously worked for Imperial Metals at the Mt. Polley mine site, situated 56 kilometers northeast of Williams Lake. He then joined New Gold as an underground maintenance technician at the New Afton mine, located 17 kilometers west of Kamloops. In 2012, he transitioned to the power generation industry and served as a facility manager for over seven years, overseeing all operations. Currently, Smith is involved in the hospitality sector as a principal of the Bow and Stern restaurant group in the Fraser Valley, British Columbia.
Karim Rayani – Strategic Advisor
For the past 18 years, Karim Rayani has been focused on financing both international and domestic mineral exploration and development. Currently, Rayani is a principal of R7 Capital Ventures, an investment family office firm with a diverse portfolio covering natural resources, energy, cleantech, renewables, and health-related ventures all with a focus on public venture capital. Prior to this, he worked independently as a management consultant and financier. Presently, he also serves as chief executive officer, director of Falcon Gold, chairman, chief executive officer, director of Power One Resources, chief executive officer, director of Latamark Resources, chief executive officer, director of Marvel Discovery, chairman, director of District 1 Exploration, and chief executive officer, director of Auvega Labs.
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