FinancialNewsMedia.com News Commentary
PALM BEACH, Fla., May 25, 2022 /PRNewswire/ -- Uranium is one of the few commodities that has seen two years of solid gains in the midst of the coronavirus pandemic, which most analysts believe indicates that the metal's price is not dropping any time soon. However, on the supply side, current supply of the metal cannot meet demand. It is expected that constrained supply will push the price of uranium even higher this year. Last year, the price of uranium rose by 45%, going from about $29 per pound at the start of the year to $50 per pound in September. This increase followed growth in 2020, which saw uranium go from $24 in January to $30 by year's end. Despite not being able to maintain that $50 level, the value of the energy fuel has remained at about $40 since then. An article in Mining News Wire discussed an interview with an industry insider. It said: "IndependentSepculator.com CEO and founder Lobo Tiggre stated in an interview that unlike the 2007 uranium price surge, which saw uranium hit $139 from $45 in a single year, the current surge in price would be affected by a number of factors. Tiggre, who expects uranium to settle between $60 and $70 this year, explained that in 2007, no companies and funds were voluntarily holding back cheap supply and sitting on significant amounts of uranium. Now, however, he noted that the presence of funds such as ANU Energy OEIC and the Sprott Physical Uranium Trust, which has bought more than $1 billion of uranium since last year, could serve as a price headwind or a catalyst. The ANU Energy OEIC is a physical uranium fund that was launched last year by Kazatomprom, Kazakhstan's primary uranium producer." Active mining companies in the markets this week include Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC), Uranium Energy Corp (NYSE: UEC), Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM), Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC), NexGen Energy Ltd. (NYSE: NXE) (TSX: NXE).
The Mining News Wire article continued: "Nuclear Energy Institute VP of public affairs and policy development John Kotek stated that nuclear was the second biggest source of carbon-free electricity, making up 10% of total electricity produced around the globe. Kotek explained that while this figure wouldn't change significantly in the short term, the interest in new nuclear constructions combined with decarbonization efforts increased expectations that nuclear's share would grow in the long term. This outlook is backed by the increase in demand for clean energy, particularly the need for carbon-free power. An analysis conducted by the International Energy Agency, the Organization for Economic Co-operation and Development, the International Atomic Energy Agency and other organizations also found that global nuclear generation capacity will have risen substantially by 2050, which supports Kotek's expectation. This increase will be facilitated by the coming online of new reactors, which will join the already operating global fleet."
Traction Uranium Corp. (OTCQB: TRCTF) (CSE: TRAC) BREAKING NEWS: Traction Uranium Collars First Hole of Summer Drill Program at the Lazy Edward Bay Property - Traction Uranium Corp. (the "Company" or "Traction"), a mineral exploration issuer focusing on the development of discovery prospects in Canada, including its two flagship uranium projects in the world-renowned Athabasca Region, is pleased to announce that the crew had mobilized the drill rig and has collared the first hole for the summer drill program at our Lazy Edward Bay property, located in Northern Saskatchewan's Athabasca Basin.
Fission 3.0 Corp. (" Fission 3 ') will conduct the work program in accordance with the terms of the Option Agreement between Traction and Fission 3, whereby Traction can acquire up to a 70% interest in the Lazy Edward Bay property. (see Dec 10, 2021 Traction news release.)
Key Focus Points:
· The Program Objective is to investigate / twin historic drill holes LE-073 and LE-072 on the western conductive corridor known as the Horse Trend that returned a number of favorable indicators for uranium mineralization
- 8 diamond drill holes totaling 2,000m along section, and along strike from encouraging historic drill results
- $1.5M Helicopter-supported, diamond drill exploration program
- The Lazy Edward Bay property is located halfway between Cameco's Key Lake Mine and the high-grade Centennial uranium deposit, and hosts NE-trending conductive corridors similar to those associated with Key Lake and Centennial
Lester Esteban, Chief Executive Officer, stated, "We are excited to have the first hole collared and the drill turning at our Lazy Edward Bay property. Historic drill hole LE-072 intersected strongly altered basement rocks returning up to 170ppm Uranium in a brecciated, sheared and altered basement structure. LE-073 reported strongly bleached and fractured, in part limonitic, sandstone throughout its entire length with clay filled fault gouge in the lower sandstone returning 550ppm anomalous boron. Ticks a lot of boxes for identifying uranium mineralization in the basin and our team will be drilling along section, and along strike from these encouraging historic drilling results." CONTINUED… Read this full press release and more news for Traction Uranium at: https://www.financialnewsmedia.com/news-trac/
Other recent developments in the mining industry of note include:
Platinum Group Metals Ltd. (NYSE American: PLG) (TSX: PTM) recently reported that the Company and Japan Oil, Gas and Metals National Corporation ("JOGMEC") have signed a formal Memorandum of Understanding ("MOU") acknowledging a consensus to accelerate financing opportunities for the Waterberg Project. Hanwa Co., Ltd. ("Hanwa") was a witness to the MOU.
During a meeting held on the sidelines of the African Mining Indaba in Cape Town on May 10, 2022, representatives of JOGMEC and Platinum Group discussed finance and development plans for the Waterberg Project. Following the meeting, both parties signed the MOU acknowledging their discussion. Furthermore, JOGMEC expressed its intention to maintain JOGMEC's interests in the Waterberg Project and to support funding contributions for project development to the extent possible.
Platinum Group President and CEO Frank Hallam stated, "We are honored and encouraged by the declaration of support from our Japanese partners. The current geopolitical situation has reinforced the importance of establishing a secure and ethically sourced supply of platinum and palladium for Japanese and global industry. We look forward to working closely with JOGMEC and Hanwa over the coming months to secure and finalize a funding package for the Waterberg Project."
Uranium Royalty Corp. (NASDAQ: UROY) (TSXV: URC) recently announced that it has acquired an additional 1% gross revenue royalty interest on the Lance In-Situ Recovery ("ISR") Uranium Mine in Wyoming, USAoperated by Strata Energy Inc. ("Strata"), a wholly owned subsidiary of Peninsula Minerals Limited ("Peninsula").
The royalty was acquired from an existing royalty holder and the consideration paid by the Company was US$1.25 million in cash.
Scott Melbye, Chief Executive Officer of URC stated: "URC couldn't be more pleased with the addition of this comprehensive, near-term cash-flowing royalty on the Lance Project. We have great confidence in Peninsula's management and technical teams to be able to bring this competitive asset into full production as one of the early movers, taking advantage of improving uranium markets. We look forward to the updated feasibility study recently announced by Peninsula."
Uranium Energy Corp (NYSE: UEC) recently reported that it has now secured an additional 400,000 pounds of U.S. warehoused uranium, expanding its physical uranium program to 5 million pounds U3O8, with delivery dates out to December 2025 at a volume weighted average price of ~$38 per pound. UEC's physical uranium program represents an unrealized gain of over $125 million based on the current spot price published by TradeTech on April 19, 2022, at $63.25 per pound U3O8.
Amir Adnani, President and CEO stated: "A year ago, UEC launched a physical uranium portfolio with 500,000 pounds purchased at a uranium cost basis of less than $30 per pound. The Company has grown the size of our inventory over ten-fold to 5 million pounds by making well-timed purchases near cycle lows that allow us to maintain a low-cost portfolio of ~$38/lb with spot uranium now trading at over $63/lb. At a time of heightened geopolitical uncertainty, UEC has the benefit of secure U.S. warehoused physical inventories. We have also staged our deliveries to receive uranium as far out as December 2025, providing a low-cost stream of physical uranium as we enter this uranium bull market that shows a major structural supply deficit exceeding 215 million pounds by 2026."
NexGen Energy Ltd. (NYSE: NXE) (TSX: NXE) recently announced the signing of an Impact Benefit Agreement ("IBA") with the Clearwater River Dene Nation ("CRDN"), covering all phases of the Rook I Project ("Rook I" or the "Project"), which hosts the 100% owned Arrow uranium deposit.
NexGen signs a historic IBA with CRDN. The Rook I Project is located within the traditional territory of the CRDN. The IBA defines the environmental, cultural, economic, employment and other benefits to be provided to the CRDN by NexGen in respect of the Project, and to confirm the consent and support of CRDN for the Project throughout its complete lifecycle, including reclamation. The Agreement was negotiated and developed out of the Study Agreement that was signed in 2019 between NexGen and the CRDN. The Study Agreement formalized engagement with the CRDN to identify potential impacts to Aboriginal and treaty rights and socio-economic interests, and identify potential avoidance and accommodation measures in relation to the Project whilst acknowledging the duty to consult remains with the Crown. Further, the Study Agreements provided CRDN support to negotiate the IBA. Note, the IBA does not abrogate, extinguish, or constitute the abandonment of any existing Aboriginal, inherent, or treaty rights of the CRDN recognized and affirmed pursuant to Section 35 of the Constitution Act, 1982. Importantly, the Agreement is entered into in recognition of the Aboriginal and Treaty Rights of the CRDN.
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