As the world looks for low-carbon energy solutions, more nations are coming to the conclusion that nuclear power needs to be part of the mix. Here are seven junior companies looking for the next uranium deposits to power the nuclear renaissance.
BASIN URANIUM
In early September, Basin Uranium (CSE: NCLR, US-OTC: BURCF) announced the intersection of significant uranium mineralization in first-phase drilling at its flagship Mann Lake uranium project in Saskatchewan’s Athabasca Basin.
Drilling highlights from the five-hole, 3,503-metre program included 323 parts per million (ppm) U3O8 over 0.5 metres below the unconformity within a broader 7.2-metre interval of anomalous uranium and graphite mineralization. Significant boron mineralization, a pathfinder element for uranium mineralization, was encountered in several other holes with values ranging from 319 to 1,000 ppm.
On Sept. 20, the company announced the start of a follow-up 4,000-metre core drilling program. The program will also test conductive zones and structures identified as a result of a Mobile MT survey along the unconformity contact that corresponds to prevalent gravity lows located near the southeastern portion of the project.
Basin Uranium entered into an option agreement with Skyharbour Resources (TSXV: SYH) in October 2021 to acquire up to a 75% interest in the 34.7-sq.-km Mann Lake project. Under the agreement, Basin Uranium agreed to spend $4 million on exploration over a three-year period among other cash and share considerations to complete the earn-in.
The Mann Lake project is located 25 km southwest of Cameco’s (TSX: CCO, NYSE: CCJ) McArthur River mine, the largest, high-grade uranium deposit in the world; 15 km northeast of Cameco’s Millenium uranium deposit; and adjacent to the Mann Lake joint venture co-owned by Cameco, Denison Mines (TSX: DML, NYSE-AM: DMN) and Orano Canada.
In late September, Basin announced the receipt of permits to conduct drilling at its 6,282-acre Wray Mesa project in San Juan Cty., Utah. The Wray Mesa project is contiguous to the Energy Fuels’ (TSX: EFR, NYSE: UUUU) fully permitted and production-ready La Sal project.
Basin Uranium has a market capitalization of $4.5 million.
BLUE SKY URANIUM
Geophysicists advancing a borehole radiometric survey at the Ivana deposit. Credit: Blue Sky Uranium
Blue Sky Uranium (TSXV: BSK, US-OTC: BKUCF) is focused on uranium and vanadium exploration in Argentina. In early September, the Vancouver-based junior released final assay results from its Ivana deposit, part of its wholly owned Amarillo Grande uranium-vanadium project in Rio Negro province. The most recent results from reverse-circulation drilling intersected a highlight of 7 metres grading 309 ppm U3O8 and 417 ppm V2O5, including 1 metre of 1,273 ppm U3O8 and 1,260 ppm V2O5. A second hole encountered 8 metres averaging 197 ppm U3O8 and 202 ppm V2O5, including 1 metre of 805 ppm U3O8and 243 ppm V2O5. The entire 3,346-metre program collected 3,136 samples from 350 holes.
Located 25 km north of Valcheta City, the Ivana deposit hosts an inferred resource of 22.7 million lbs of U3O8 and 11.5 million lbs of V2O5 based on 28 million tonnes averaging 0.037% U3O8 and 0.019% V2O5 at a 100 ppm uranium cut-off.
A member of the Vancouver-based Grosso Group of companies, Blue Sky Uranium has several other targets along a 145-km-trend with mineralization in all cases occurring at or very near surface. A 2019 preliminary economic assessment based on inferred mineral resources described the potential viability of a 13-year surface mining operation.
On Sept. 26, the company announced the launch of a comprehensive field exploration program at its Cateo Cuatro target, 32 km southwest of its Ivana deposit. It also said it would advance the Ivana East target, 10 km east of the Ivana deposit, to the drill-testing stage. Both targets were identified by airborne or hand-held radiometric surveys and auger drilling between 2012 and 2013.
Blue Sky hopes to supply uranium to Argentina’s nuclear power sector, which is currently dependent on imported production.
Blue Sky Uranium has a market capitalization of $27.9 million.
FORSYS METALS
The Norasa uranium project in central-west Namibia. Credit: Forys Metals
Forsys Metals (TSX: FSY) is in the process of updating a 2015 feasibility study for its wholly owned Norasa uranium project in Namibia. The study, under the leadership of recently hired metallurgical engineer Pine van Wyk, will review and update all geology data and examine how newer, alternative mining equipment and technologies can enhance pit design, recovery and slope angle to improve mining and processing costs.
The Norasa uranium project consists of the 7.4-sq.-km Valencia property, for which Forsys has a 25-year mining licence issued in 2008, and the 12.7 sq. km Namibplaas property 7.5 km northeast. In early October, Forsys announced that its 100%-owned subsidiary, Valencia Uranium, submitted an application to Namibia’s Ministry of Mines and Energy for a 25-year mining licence for its Namibplaas property.
The 2015 feasibility reported proven and probable reserves of 206 million tonnes grading 200 ppm U3O8 for 90.7 million lb. of U3O8.
The study estimated operating costs of US$32.96 per lb. of U3O8 over the first five years of production and US$34.72 per lb. over a 15-year life of mine. The economic analysis estimated a post-tax net present value of $383.4 million at a discount rate of 8% and an internal rate of return of 26%. Plant throughput was estimated at 11.2 million tonnes per year to produce an average of 5.2 million lb. of U3O8 per year. Capital costs were estimated at US$432.8 million.
Forsys has a market capitalization of $131.1 million.
MADISON METALS
Madison Metals’ Rössing North uranium project in Namibia. Credit: Madison Metals
Madison Metals (CSE: GREN, US-OTC: MMTLF) is an exploration company focused on consolidating ownership of landholdings in the Erongo uranium province of Namibia, recently signing deals to acquire interests in three properties. In September, the Toronto-based company entered into a binding letter of intent with Otjiwa Mining and Prospecting CC to acquire an 85% interest in two prospecting licences close to China National Uranium Corp.’s Rossing uranium mine, an open pit operation that has been in production since 1976, and the nearby Husab mine owned by Taurus Metals, a subsidiary of China General Nuclear Power Co., Uranium Resources Co. Ltd. and the China-Africa Development Fund. Madison Metals agreed to pay US$150,000 and issue 1.6 million common shares for the 85% interest.
On Sept. 13 it entered into an agreement with Namibia Nuclear Corp. to acquire a 24% interest in another mining licence in return for US$2 million and two million shares. The resulting licences will be consolidated under the property names Madison North and Madison West.
“The uranium outlook is continuing to strengthen because it is a critical metal for energy transition and energy security,” said Duane Parnham, Madison Metals executive chairman and CEO. “Madison’s strategy of acquiring highly prospective concessions in a tier-one uranium jurisdiction provides the company with an opportunity to establish itself as a key player in the uranium industry.”
All three licences are located between 42 and 50 km east of the city of Swakopmund.
One of the licences – previously known as Rossing North – has a historical inferred resource of 15.6 million tonnes grading 260 ppm U3O8 for 9 million lb. U3O8, 85% of which would be attributable to Madison. However, the company cautions that the estimate is in need of review and verification before it can be treated as a current mineral resource.
In late September, Madison signed a forward sales agreement with Lux Partners, an Isle of Man-based fintech company. The five-year exclusive supply agreement provides for the delivery of up to 20 million lb. of U3O8 following the commencement of commercial production, the fulfillment of which would back the first-ever uranium-backed non fungible tokens.
In addition to its interests in Namibia, Madison has a 100% interest in the 398.5-sq.-km Kenora uranium property containing the past-producing Richard Lake uranium mine in northwestern Ontario.
A 60-hole, 2,000-metre drilling program is planned for the Kenora property once targets are selected based on database compilation and cross-section mapping of historical drill results and channel sampling.
Madison has a market capitalization of $17.5 million.
MYRIAD METALS
Myriad Metals has over 1800 sq. km of exploration licenses in the Tim Mersoï Basin, Niger. Credit: Myriad Metals
Vancouver-based Myriad Metals (CSE: MMC) recently entered into an option agreement to earn a 100% interest in 1,882 sq.-km of uranium exploration licences in the Tim Mersoi Basin in Niger. Under the Aug. 17 deal with Loxcroft Resources, Myriad can earn an initial 80% interest in the properties by issuing 8.5 million common shares to Loxcroft and spending at least $2 million on exploration within two years.
The properties are immediately adjacent to the Imouraren deposit, one of the largest uranium reserves in the world with more than 174,000 tonnes of uranium, according to Orano, the previous licensee of the properties. Orano returned the licences to the public domain in 2012 following the Fukushima disaster when uranium prices tanked.
The agreement with Loxcroft obliges Myriad to make additional payments of $5 million on the attainment of various milestones, including $1 million in cash or shares on completion of a technical report establishing a minimum resource of more than 10 million lb. of uranium with a minimum average grade of 0.25%, and an additional $2 million in cash or shares on completion of a technical report establishing a minimum resource of more than 50 million lb. of uranium at the same grade.
Myriad will also be obliged to pay Loxcroft $1 million in cash or shares on completion of a preliminary economic assessment and another $1 million on the issuance of a mining permit.
The remaining 20% interest in the properties can be acquired for $6 million.
The company is compiling and analyzing previous work programs that occurred on the properties by the French Nuclear Energy Commission from 1959 to 1990 and more recently by Orano from 2006 to 2012. The work included spectrometer surveys, geophysics, seismic surveys, sampling, geological mapping and drilling.
Myriad also has a 50% interest in the Millen Mountain gold property located in Nova Scotia. The remaining 50% interest is held by Probe Metals (TSXV: PRB, US-OTC: PROBF).
Myriad Metals has a market capitalization of $4.9 million.
PUREPOINT URANIUM GROUP
Drilling at one of Purepoint Uranium’s properties in northern Saskatchewan. Credit: Purepoint Uranium
Purepoint Uranium Group (TSXV: PTU, US-OTC: PTUUF), a Toronto-based exploration company with interests in 12 uranium properties in the Athabasca Basin, began a 3,500-metre 10-hole drill program at its Red Willow project in late September. The drill program follows one last winter that intersected uranium mineralization along 1.2 km of strike length.
“Last winter’s drill program consistently returned anomalous uranium highlighted by (hole) RW22-06 that intersected 0.47% U3O8 over 0.9 metres, and our final winter hole RW22-15, which encountered alteration and structure favourable to uranium deposition,” said Purepoint president and CEO Chris Frostad in a release.
The company’s 100%-owned, 401.2 sq.-km Red Willow project is situated on the northern edge of the eastern Athabasca Basin near Orano’s JEB mine (about 10 km southwest), and Cameco’s Eagle Point mine (10 km due south).
Purepoint also continued airborne exploration efforts on its Carson Lake, Russell South and Hook Lake JV projects last summer. Purepoint is the operator and 21% owner of the Hook Lake JV located on the southwestern edge of the Athabasca Basin adjacent to and on trend with the high-grade uranium discoveries at Fission Uranium’s (TSX: FCU, US-OTC: FCUUF) Triple R deposit and NexGen Energy’s (TSX: NXE, NYSE: NXE, ASX: NXG) Arrow deposit. Cameco and Orano each own a 39.5% interest in the Hook Lake JV, which is considered one of the highest quality uranium exploration projects in the Athabasca Basin.
Aside from airborne electromagnetics, exploration on the Hook Lake JV has included line cutting, ground induced polarization, EM and gravity surveys, a soil geochemical survey and 143 diamond drill holes totalling 57,589 metres.
Purepoint also holds a 27% interest in the Smart Lake property in a joint venture with Cameco. Another 10 Athabasca Basin properties in its portfolio, including Red Willow, are wholly owned.
Purepoint has a market capitalization of $25.8 million.
VALORE METALS
ValOre Metals’ Angilak property in Nunavut Territory. Credit: ValOre Metals
ValOre Metals (TSXV: VO, US-OTC: KVLQF), a Vancouver-based exploration company, reported positive results from a summer 2022 core drilling program at its 100%-owned Angilak uranium property in Nunavut. The 594.8-sq.-km property hosts the Lac 50 Trend with an inferred resource of 2.8 million tonnes grading 0.69% U3O8, totaling 43.3 million lb. U3O8, making it the highest grade uranium resource in Canada outside of Saskatchewan and one of the highest grade uranium resources globally.
The summer 2022 core drilling program, undertaken to follow up on strong radioactive intercepts in 22 of 27 holes from a spring 2022 reverse-circulation drill program, intercepted radioactivity in 23 of 26 holes, including one hole that registered scintillometer readings of up to 60,000 counts-per-second. The 3,590-metre core drilling program tested the down-dip extension and along-strike continuity of previous high-grade U3O8 intercepts at the company’s Dipole and J4 West targets.
Since acquisition of Angilak in 2008, ValOre has invested more than $55 million on resource delineation and exploration drilling, metallurgy, geophysics, geochemistry and logistics. The company has drilled 589 holes totalling 89,572 metres.
Uranium mineralization on the 15-by 3-km Lac 50 Trend starts at surface and has been drilled to a depth of 380 metres.
ValOre also owns 50% of the Genesis property in the Athabasca Basin in partnership with Coast Copper (TSXV: COCO); 100% of the Hatchet Lake property, 3.5 km northeast of the Genesis property; and 100% of the Pedra Blanca PGE and gold property in northeastern Brazil.
ValOre has market capitalization of $56.9 million.
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