Although uranium markets are in a prolonged downturn, more than a few junior companies are patiently waiting to reap the rewards of better days ahead. Here are five companies advancing uranium projects in Canada and beyond.
CANALASKA URANIUM
Peter Dasler-led CanAlaska Uranium (TSXV: CVV; US-OTC: CVVUF) is involved in uranium exploration in Saskatchewan’s Athabasca basin, but the firm also has a hand in grassroots copper-zinc and diamond exploration in Western Canada.
Its key uranium properties are West McArthur and Cree East, both in the Athabasca.
West McArthur is next to Cameco’s rich McArthur River uranium mine, and has seen $20-million worth of work carried out on the property to identify seven target areas for possible unconformity-style uranium deposits.
Cree East is a 578 sq. km land package located 35 km from Cameco’s Key Lake uranium mine, where CanAlaska is also looking for an unconformity-style uranium deposit.
A consortium of Korean companies — Hanwha, KORES, KEPCO and SK — has contributed $19 million at Cree East since 2007 for a 50% interest, but the Koreans are now pulling back.
In May, CanAlaska said it would buy back the 50% interest held by the consortium “in consideration for certain indemnities” that it will provide to the partners. In addition, all funds previously invested by the consortium that are held in their bank account on the date of closing will be returned to the consortium partners.
Exploration drilling at the project had been suspended since 2012, as uranium prices languished, though CanAlaska says it will now look for new partnerships to advance the project.
CanAlaska has also accepted the termination of property sales agreements with Fjordland Exploration and Canterra Minerals for certain diamond exploration properties in the western Athabasca. It has a 100% unencumbered interest in these properties.
FISSION URANIUM
Fission Uranium (TSX: FCU; US-OTC: FCUUF) is exploring its Patterson Lake South uranium property, which hosts the Triple R deposit in the basin’s southwest.
In April, the junior reported 16 assays from the R840W and R1620E zones, with results confirming high-grade mineralization. These zones are not in Triple R’s resource estimate, but may be included in an update, anticipated later this year.
Fission aims to complete baseline studies and a possible prefeasibility study in 2018, followed by a feasibility study a year later.
A 2015 PEA envisions that a combined open-pit and underground operation at Triple R could produce 101 million lb. over a 14-year mine life. The deposit currently hosts an indicated resource of 81 million lb. U3O8 (2 million tonnes grading 1.83% U3O8), including the R780E high-grade resource of 45 million lb. at 18.21% U3O8. It has an inferred resource of 27 million lb. (785,000 tonnes at 1.57% U3O8), including the R780E high-grade resource of 13.9 million lb. at 25.06% U3O8.
As of March 31, 2017, the junior had $54.7 million in its treasury. Fission shares exited May at 62¢, down 3%, or 2¢, from their 2016 close.
NEXGEN ENERGY
NexGen Energy (TSX: NXE; NYSE-MKT: NXE) has initiated a maiden preliminary economic assessment (PEA) on the basement-hosted Arrow uranium deposit on the company’s Rook I property in Saskatchewan’s Athabasca basin.
The PEA will use the updated March 2017 resource estimate to outline Arrow’s potential. The deposit has an indicated resource of 179.5 million lb. U3O8 (1.2 million tonnes grading 6.88% U3O8), including the A2 high-grade core of 164.9 million lb. U3O8 (400,000 tonnes of 18.8% U3O8). It has an inferred resource of 122.1 million lb. (4.3 million tonnes of 1.3% U3O8). NexGen expects to finish the PEA before this September.
The junior recently reported results from its early 2017 drill program on the Rook I property, highlighted by intersections within the “gap” area, which show a “resource expansion opportunity.” NexGen started May with a cash position of $58 million. Its shares closed May 31 at $3.06, up 31% since finishing 2016 at $2.33.
The Rook I camp in Saskatchewan’s southwest Athabasca basin. Credit: NexGen Energy.
PLATEAU URANIUM
Plateau Uranium (TSXV-PLU; US-OTC: PLUUF) describes itself as “well positioned for the uranium sector recovery” as it focuses on developing its large, low-grade Macusani uranium deposit in the Macusani plateau area of southern Peru.
Plateau Uranium completed a PEA of Macusani in 2016 that showed a robust project at US$50 per lb. U3O8 (spot prices are currently US$20 per pound).
Total resources from five deposits stand at 95.2 million measured and indicated tonnes at 0.0248% U3O8 for 51.9 million lb. U3O8, plus 130 million inferred tonnes at 0.0251% U3O8 for 72.1 million lb. U3O8. There is an economic amount of lithium by-product in four of the uranium deposits.
Plateau is proposing to build a mine that produces 6 million lb. U3O8 per year for 10 years at a US$300 million initial capital cost, and relatively low cash-production costs of US$17 per lb. U3O8.
In April, Plateau signed a non-exclusive, non-binding letter of intent with European-based commodity trading company Curzon Resources for the first potential sale of future production from Macusani, amounting to 2 million lb. U3O8 over initial five years of production, with potential for increased annual volumes and a two-year extension option at prices above US$42 per lb. U3O8.
At a US$40 per lb. U3O8 price, Plateau says Macusani has a post-tax net present value of US$360 million and a 29.2% internal rate of return, with a 2.5-year payback.
UEX
UEX (TSX: UEX) has three projects in the Athabasca basin, including the PEA-stage, wholly held Hidden Bay project and the Shea Creek project, where Areva holds a 50.9% interest. But to move the deposits on these two projects closer to development, UEX says it would need a uranium price of at least US$65 per pound.
Meanwhile, the junior has an option to earn 70% of the Christie Lake uranium project from joint-venture partner JCU (Canada) Exploration. Christie sits near Cameco’s McArthur River mine.
In May, UEX and JCU approved a two-phase exploration program, with a combined budget of up to $2.5 million, with a focus on expanding Christie’s Orora zone. The program will comprise two drills and up to 20 holes totalling 9,000 metres.
UEX says that by the end of 2017 it will convert and upgrade Christie’s historic resource.
At the end of April, it had $6.7 million in cash. UEX shares closed May 31 at 21¢, down 14% since ending 2016 at 24.5¢.
Drillers at Areva and UEX’s Shea Creek uranium project in the Athabasca basin. Credit: UEX.
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