Why Industry Experts Are Expecting a Bull Market For Uranium Stocks In 2024

Energy
Wednesday, January 24th, 2024 8:37 pm EDT

 FN Media GroupNews Commentary – Experts see that base demand for uranium will continue to outpace the combined existing production, secondary supply and returning mine production through 2040, according to projections. A recent article in the American Nuclear Society’s site, NuclearNewswire, said Investors continue to be bullish on uranium, according to a number of recent news reports. Stockhead recently trumpeted, “Uranium has started 2024 the same way it ended 2023—like a bull in a china shop. Spot prices are now agonizingly close to US$100/lb for the first time since 2008, with term pricing not far behind.” Similarly, Mining.com noted, “The spot price of uranium continues to rise, boosted by pledges to triple nuclear power by mid-century, supply hiccups from producers such as Cameco . . . , and the looming threat of a ban on Russian exports to the West.” It continued: ”Supply and demand: A major factor behind the bullish outlook is that the demand for uranium in Western markets (excluding Russia)—currently at approximately 200 million pounds—is about 40 million pounds greater than the radioactive metal’s supply. Furthermore, market analysts project an average supply deficit of 35 million pounds per year over the next decade. That projection considers existing production, secondary supply, and returning mining production. Ramping up production: Stockhead observed that a number of mining operations are ramping up their uranium production, including Boss Energy’s Honeymoon (in South Australia), Paladin Energy’s Langer Heinrich (in Namibia), and Cameco’s McArthur River project (in Saskatchewan, Canada). The latter company plans to increase its uranium production to 22 million pounds this year. However, to meet the market’s base demand out to 2040, much more production will be required from additional mining operations. Unfortunately, a new uranium mine can take as long as 15 years to come on line from discovery to first production, so meeting the demand will be difficult. Therefore, the “underlying market fundamentals are still ratcheting tighter,” according to Leigh Goehring, managing partner with natural resource investors Goehring & Rozencwajg Associates. Active mining companies in the markets this week include Stallion Uranium Corp.(TSX-V: STUD) (OTCQB: STLNF), Uranium Energy Corp (NYSE American: UEC), FISSION URANIUM CORP. (OTCQX: FCUUF) (TSX: FCU), IsoEnergy Ltd. (OTCQX: ISENF) (TSX-V: ISO), Skyharbour Resources Ltd. (OTCQX: SYHBF) (TSX-V: SYH).

It continued: “Another factor behind the market is the Sprott Physical Uranium Trust (SPUT), which began buying uranium in 2021 to take the metal out of circulation and impound it for the long term. As of early 2024, SPUT had impounded more than 63 million pounds of uranium. Some people in the industry have proposed adding a “redemption feature” to SPUT, so that as much as 5 percent of the trust’s uranium inventory might be made available for sale once or twice a year—a proposal that has generated some controversy. Nuclear resurgence: Mining.com quoted John Ciampaglia of Sprott Asset Management, which operates SPUT, as attributing part of the bull market to a nuclear “resurgence given the growing momentum. Who would have thought that in just two years, public sentiment and government support would have shifted this strongly?” He added, “The industry will require significant capital investments to meet its ambitious expansion plans.”

Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) Announces the Successful Completion of the Ground EM Survey on the Coffer Uranium Project in the Athabasca Basin – Stallion Uranium Corp. is pleased to announce the completion of ground-based time-domain electromagnetic (EM) geophysical survey over the high priority Appaloosa Target on its 100% owned Coffer Uranium Project (“Coffer” or the “Project”) in the prolific Athabasca Basin, Saskatchewan. The data has now moved into final processing and modeling to be available as Stallion prepares for their maiden drill program.

Key Highlights:

• The Ground TDEM survey has been successfully completed.
• Preliminary data highlights high priority targets.
• Data is currently undergoing final processing and modeling to refine drill targets.
• Preparation has begun for a follow-up drilling program.

Darren Slugoski, Vice President Exploration, Canada, stated “The EM survey is the final step in progress of advancing the Appaloosa target to drill ready status. The preliminary data has identified multiple high priority targets which will be systematically tested with a follow up drilling program. The final processed data will provide Stallion with the highest priority drill targets and greatly enhances the chances of making a significant discovery.”

The survey covered the Appaloosa target which hosts a ~3km long conductive corridor which contains multiple discrete conductors. The final processing of the data will refine the target to provide optimal conditions for drill testing. The geophysical signatures and anomalies seen at the Appaloosa target are known to occur over high-grade uranium deposits including UEC’s Shea Creek, that lies straight east of the Appaloosa target zone, and NexGen’s Arrow deposit.

Coffer Geophysical Survey – Stallion Uranium has engaged Discovery International Geophysics Inc (“Discovery”) for the ground TDEM survey over the Appaloosa Target on the Coffer Project. The survey is currently undergoing final processing which will refine discrete drill targets observed in the preliminary data. The EM survey is capable of penetrating far beyond the estimated unconformity depth and will provide the best targets for drilling testing.

Discovery is a wholly owned division of Dias Geophysical Ltd., a leading geophysical services company bringing expertise and state-of-the-art equipment to ensure the success of the survey. Discovery will utilize a low temperature (liquid helium cooled) super conductor technology called Jessy Deep SQUID that has been developed specifically for mineral exploration and resolving conductors at extremely low-frequencies.

About Coffer Project – The Coffer Project is comprised of 8 mineral claims that cover 35,875 hectares of highly prospective ground in the Western Athabasca Basin. The project has never been drill tested and contains several kilometer-scale prospective zones within the key target areas identified as Appaloosa, Clydesdale and Mustang.

The Appaloosa target is the focus of the up-coming exploration programs as the Company has identified gravity and magnetic lows on a conductive corridor known to correlate to alteration that hosts uranium mineralization. The highly prospective target area shares geological analogues to the nearby Shea Creek deposit, home to over 95M lbs. of uranium. CONTINUED…Read these full press releases and more news for Stallion Uraniumat: https://stallionuranium.com/news/press-releases/

Other recent developments in the mining industry of note include:

Uranium Energy Corp (NYSE American: UEC) is pleased to publishits Sustainability Report for fiscal year 2023 (the “Report”). The Report includes the Company’s first disclosure aligned with the recommendations of the Task Force on Climate-Related Financial Disclosures (“TCFD”) and highlights the Company’s achievements related to environmental stewardship. The Report is available on the Company’s website at https://www.uraniumenergy.com/sustainability/ and has been filed with the SEC through EDGAR on Form 8-K.

Amir Adnani, President and CEO stated: “We have made significant progress in advancing our sustainability program, in line with the advancements we have made as a Company. We have maintained our industry leading health and safety record, while advancing our reclamation and decarbonization programs. By prioritizing environmental stewardship, we are not only meeting regulatory requirements but also exceeding industry standards. As we look to restart uranium production in August 2024, our commitment to sustainable mining practices bolster our reputation as a responsible corporate citizen and serve as a foundation for long-term success.”

FISSION URANIUM CORP. (OTCQX: FCUUF)(TSX: FCU) is pleased to announce that preparations are underway to commence its ~6,000m winter regional exploration program (see News Release December 06th, 2023) at the PLS high-grade uranium project in Canada’s Athabasca Basin. Bryson Drilling Ltd. of Archerwill SK, has been contracted to conduct the drilling program. Two diamond drill rigs are now on site and being positioned with the first holes testing the Saloon and Holster target areas: DDH-A and DDH-B respectively.

Target Area Details: Patterson Lake Corridor – Holster Target: Located on the northern side of the Patterson Lake Corridor and ~600m north of the R840W, this target will test an area where historical drilling intersected anomalous uranium and boron geochemistry within a strongly graphitic shear zone. Similar to the Pistol target, outlined below, drilling will test for deeper uranium mineralization along the east-west electromagnetic (EM) conductor where a sharp conductivity thickness gradient occurs coincident with an interpreted north-northeast cross cutting fault. One drillhole totaling 645m is currently planned to test the Holster target.

Saloon Target: This target area is located ~5km to the southwest of the Triple R deposit, where historic drilling by Fission in 2017 had encountered the most anomalous uranium concentrations on the PLS property outside of the Triple R deposit. In 2008, a single radon in water sample, collected from a small stream within the Saloon trend returned a highly anomalous radon in water value of 162 pCi/L. For comparison, the highest radon in water value recorded over the Triple R deposit was 14.4 pCi/L. Up to four holes in 1,915m are currently planned to test the Saloon target area.

IsoEnergy Ltd. (OTCQX: ISENF)(TSXV: ISO) recently announced that it has entered into an amended agreement with Eight Capital, as co-lead underwriter and joint bookrunner on behalf a syndicate of underwriters (collectively, the “Underwriters”), including Haywood Securities Inc., as co-lead underwriter and joint bookrunner, pursuant to which the Underwriters will now purchase for resale, on a “bought deal” basis, 3,200,000 federal flow-through common shares of the Company (the “Premium FT Shares”) at an offer price of C$6.25 per Premium FT Share (the “Issue Price”), for aggregate gross proceeds of C$20,000,000 (the “Offering”).

The Company has granted the Underwriters an option to purchase for resale up to an additional 15% of the Premium FT Shares at the Issue Price (the “Over-Allotment Option”). The Over-Allotment Option will be exercisable in whole or in part, up to 48 hours prior to the closing date of the Offering.

Skyharbour Resources Ltd. (OTCQX: SYHBF) (TSX-V: SYH) recently announced that it has acquired several new prospective uranium exploration claims through online staking and through an agreement with Eagle Plains Resources Ltd. (“Eagle Plains”), contributing to Skyharbour’s large property portfolio. These 100% owned claims are located in Northern Saskatchewan, adding an additional 30,184 hectares to Skyharbour’s existing holdings in and around the Athabasca Basin, which is host to the highest-grade uranium deposits in the world and is consistently ranked as a top mining jurisdiction by the Fraser Institute. As the Company remains focused on its co-flagship Russell Lake and Moore uranium projects, these new claims will become a part of Skyharbour’s prospect generator business as the Company will seek strategic partners to advance them.

New Property Summaries/Foster Property: The drill-ready Foster property consists of 15 claims totaling 6,362 hectares approximately 20 km east of Cameco’s Key Lake operation and adjoining the southwestern end of Skyharbour’s Falcon Project, currently optioned out to North Shore Energy Metals Ltd. The Foster claims are situated in the Wollaston Domain just outside of the currently mapped extent of the Athabasca Basin, with several small outliers of sandstone located regionally in the area. The basement geology consists of psammopelite, calc-silicate, diorite, pelitic gneiss and graphitic pelitic gneiss of the Daly Lake Group, accompanied by minor felsic orthogneisses.

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