Uranium Sector Expected to See a Run as Positive Momentum and Demand Builds
PALM BEACH, Fla., May 07, 2024 (GLOBE NEWSWIRE) -- FN Media Group News Commentary - An article from REUTERS on the Uranium markets earlier this year painted a prosperous picture for the global Uranium. The report said: “Investment banks Goldman Sachs and Macquarie as well as some hedge funds are positioning themselves to reap the benefits of a newly buoyant uranium sector as prices of the nuclear fuel ingredient spike. While many other investment banks are still avoiding uranium, Goldman and Macquarie are boosting trading in physical uranium and in Goldman's case trading its options as well, five industry and hedge fund sources with knowledge of the deals said. The heightened activity comes as utilities seek new supplies amid shortfalls that have lifted prices to 16-year highs.” It continued: “A few hedge funds are also stepping up involvement in both equities and physical uranium, a sign that the metal is starting to broaden its appeal to financial institutions after a decade in the doldrums following the Fukushima nuclear disaster. With the headlines and positive momentum in nuclear more generally, hedge funds and other commodity investors are back in the (uranium) sector. A lot of it is done via physical funds, the easiest way to get exposure to uranium prices,” said Bram Vanderelst at trading firm Curzon Uranium. The metal has captured investors' attention after prices doubled over the past year to $102 a pound as top producers Kazatomprom and Cameco cut production guidance because reopened mines that had been mothballed struggled to ramp up production to meet renewed demand.” Active mining companies in the markets this week include Stallion Uranium Corp. (OTCQB: STLNF) (TSX-V: STUD) (, enCore Energy Corp. (NASDAQ: EU), Forum Energy Metals Corp. (OTCQB: FDCFF) (TSX-V: FMC), Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR), Ur-Energy Inc. (NYSE American: URG).
“It also comes with the revival of nuclear energy to help countries cut their carbon emissions, which was highlighted in the December 2023 Group of Seven most industrialized nations' statement that envisioned tripling nuclear energy capacity from 2020 to 2050.” Goldman Sachs has started writing options on physical uranium for hedge funds, the first time it has created a derivative for the metal.” It concluded: “"Goldman has been increasing their visibility, they've been increasing their book steadily," a source who dealt with the bank said, declining to give details of the transactions because they are confidential. Goldman is largely dealing with financial clients like hedge funds while Macquarie's main focus is boosting trading and marketing output from miners, another source who dealt with both banks said, also declining to elaborate because the data is confidential.”
Stallion Uranium ($STUD.V $STLNF) Intersects Significant Conductive Structure - Stallion Uranium Corp. (TSX-V: STUD) (OTCQB: STLNF) (FSE: HM40) is proud to announce the successful completion of their inaugural winter 2024 diamond drilling program on its 100% owned Coffer Project situated in the prolific Southwestern Athabasca Basin in Saskatchewan, Canada. This milestone initiative was successful in encountering anomalous radioactivity in all three drill holes and culminated with the discovery of a large, deep-rooted conductive structure intersected on the final drill hole CF24-003 giving the target area the characteristics needed to host a large uranium deposit.
Highlights
- Three diamond drill holes totaling 2,798.2m were completed at the Appaloosa target area (Figure 4).
- Hole CF24-003 intersected the unconformity at 720 m and was completed at a depth of 1055 m.
- CF24-003 is located 700 m west along strike from CF24-002, and 1.4km west of CF24-001.
- Anomalous radioactivity was encountered at the unconformity in all three holes.
- A total of 282 whole rock samples were obtained for assay, including interval and selective samples.
- A deep-rooted conductive structure, spanning 94.7 meters in down-hole thickness, was encountered in hole CF24-003 highlighting the significant size of the structure.
- Strong clay and chlorite alteration which is known be is associated with uranium mineralization was encountered.
- Stallion holds a 100% ownership of the project.
“Stallion’s winter 2024 drilling program at the Coffer project has yielded remarkable results, identifying a large conductive structure and 1.4 km of anomalous radioactivity at the unconformity across all three drill holes. The third hole intersected significant alteration and structure, and given the size of those intersections, indicate that the Appaloosa target possesses the characteristics capable of hosting a substantial uranium deposit. Further processing and modeling of the data collected will provide enhanced targeting capabilities, greatly increasing the probability for discovery on a future program,” commented Darren Slugoski, Vice President Exploration, Canada.
Winter Drill Program Summary - Stallion’s maiden drill program commenced on March 6, 2024, to drill test geophysical targets derived from both regional and advanced ground surveys. A total 2,798.2m of diamond drilling was completed over 3 holes, all of which were successful in encountering anomalous radioactivity at or above the unconformity. The final hole targeted and intersected the conductive structure, with an intercept of over 94m, highlighting the size and ability of the structure in transporting uranium bearing fluids. The significant size of the structure adds to Stallion’s view that not only is the structure fertile for a uranium deposit but has the potential to host a large deposit.
The drill program successfully identified the key characteristics of a uranium bearing system and the promising findings validate Stallion’s geological model, allowing for building confidence in the target area. The structural elements and scale encountered, along with anomalous radioactivity throughout, are strong indicators the Appaloosa target has the potential to host a significant uranium discovery. The winter drill program only tested 1.4km of the extensive 3.5-kilometre-long conductive zone, giving the target area further size and exploration potential.
The company is currently in the process of compiling and analyzing all data acquired during the drilling program. Stallion will leverage this comprehensive analysis to inform future exploration efforts and guide the development of an optimized exploration strategy for the target area moving forward.
“Our maiden drill program was a game-changing moment for Stallion, as we not only uncovered radioactivity in every hole, but also struck a massive conductor that unveiled the size of the structure at Appaloosa. Our confidence in the Appaloosa target's potential continues to grow given the results of the drill program, providing us with the information needed to vector towards a discovery," declared Drew Zimmerman, CEO. "Our drill program proved to be a resounding success, showcasing our ability to swiftly navigate from greenfield to drill testing in just 14 months. This achievement highlights our strategic approach to uncovering the next major uranium discovery. By systematically uncovering high-potential targets within our extensive portfolio of conductive corridors, we are maximizing the probability of success in all future exploration endeavors.” #stallionuranium #uranium - CONTINUED… Read these full press releases and more news for Stallion Uranium at: https://stallionuranium.com/news/press-releases/
Other recent developments in the mining industry of note include:
enCore Energy Corp. (NASDAQ: EU), a domestic uranium producer, recently published its 2023 Annual Report, which is now available on the enCore Energy website at https://encoreuranium.com/investors/annual-report/. The Annual Report outlines enCore's business plan, the corporate objectives for 2024 and evaluates the Company's success in meeting its 2023 objectives.
William M. Sheriff, Executive Chairman, commented: "enCore has made substantial progress throughout 2023 and I am proud of the dedication and work by our team to achieve all our objectives, specifically our highest priority 2023 objective to advance the Rosita Uranium Central Processing Plant into production. And now, within our 2024 objectives, we remain focused on commencing production at the Alta Mesa Uranium Central Processing Plant. I want to extend a large thank you to our dedicated staff, esteemed shareholders, capable management team, and valued board of directors. It's through your collaboration and shared vision that we've made significant strides forward. As we move forward in 2024 and beyond, we continue to strive to set high goals, achieve them, and continue to conduct ourselves as an industry leader as America's Clean Energy Company™."
Forum Energy Metals Corp. (OTCQB: FDCFF) (TSX-V: FMC) has recently reviewed initial data processed from its Ambient Noise Tomography (ANT) survey conducted over the Tatiggaq anomaly during the summer of 2023, The survey successfully established new drill targets over a one plus kilometer east-northeast extension along the Tatiggaq fault zone, which hosts the high-grade Tatiggaq uranium discovery at Forum's 100% owned Aberdeen Project in the Thelon Basin, Nunavut. The Aberdeen project comprises 95,500 hectares and is located adjacent to Orano's 133 million pound Kiggavik uranium project.
Dr. Rebecca Hunter, Forum's VP, Exploration commented, "The ANT survey may be a game-changing geophysical method for targeting unconformity systems in the northeast Thelon Basin. By measuring the velocity change interfaces throughout our anomalies, we can potentially image the faults that host the mineralization and the location of the mineralized bodies themselves. The survey results obtained suggest we will be able to target our drilling with a much higher degree of precision than what could be done in the past. I am very excited to resume on our Aberdeen Project in 2024."
Energy Fuels Inc. (NYSE American: UUUU) (TSX: EFR) recently reported its financial results for the quarter ended March 31, 2024. The Company's Quarterly Report on Form 10-Q has been filed with the U.S. Securities and Exchange Commission ("SEC") and may be viewed on the Electronic Document Gathering and Retrieval System ("EDGAR") at www.sec.gov/edgar, on the System for Electronic Data Analysis and Retrieval + ("SEDAR+") at www.sedarplus.ca, and on the Company's website at www.energyfuels.com.
"Energy Fuels maintained our momentum from 2023, by reporting continued profitability in Q1-2024, driven mainly by uranium. We also continued to make extraordinary progress diversifying into the complementary HMS and rare earth oxide businesses.
"During the quarter, we made profitable uranium sales into our portfolio of long-term utility contracts, and we completed two opportunistic spot sales averaging nearly $103 per pound of U3O8, enabled by our significant uranium inventories backed by our near-term low-cost uranium production capacity. From these sales, we maintained high gross margins, averaging roughly 56%, contributed to in large part by our low-cost alternate feed material and other historic uranium production which we have maintained in inventory pending increased uranium prices such as we see today.
Ur-Energy Inc. (NYSE American: URG) recently invited visitors to attend its 2024 Q1 webcast/teleconference on May 8, 2024. Ur-Energy management will provide a review of our 2024 Q1 operations and results. A Q&A session will follow the presentation. The webcast and teleconference will be held Wednesday, May 8, 2024 at 8:00 a.m. MT / 10:00 a.m. ET. Please join us by phone or online as follows:
Toll Free Number: 888-506-0062
International Number: 973-528-0011
Provide event code 756904 or ask to join the Ur-Energy call.
The webcast can be accessed 10 minutes prior to the call. Pre-registration and participation access is available by clicking here or by copying the following URL into your web browser:
https://www.webcaster4.com/Webcast/Page/2307/50540. Following the webcast, a replay will be available at the same link.
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