"After soaring more than 250 per cent over the past five years, Sprott Asset Management says the spot price of uranium still has room to run."
Amid a resurgence in demand as governments embrace nuclear power to reduce reliance on fossil fuels, uranium prices climbed above US$100 in early 2024 and have since settled near US$95.
However, one of Sprott's Product Managers says uranium's return to triple-digit prices is only the beginning given the current 25 million to 30 million pound shortfall between supply and demand, occurring alongside the long lead times and high costs for new mines to come online.
Located amid this market with a historical resource with 7 million pounds delineated with an above average grade, Tisdale Clean Energy (TCEC.c TCEFF) is set to begin a drill program at its South Falcon Uranium Project imminently.
Lying just outside the Athabasca Basin, the project hosts the Fraser Lakes B Uranium Deposit and the upcoming and preliminary phase one drill program is a milestone insofar and will consist of ~1,500m of drilling with the priority to confirm and expand the existing mineralization associated with the deposit.
Infill drilling will confirm the presence and continuity of existing mineralization in preparation for a current updated resource estimate and 3D model in the future with step out drilling to expand the footprint of the deposit as the current mineralization is open in all directions.
A secondary priority will be to begin regional exploration by following up on promising anomalies located in the T-Bone area with regional drilling focused on adding mineralized zones and deposits along the folded structural package that hosts the deposit
TCEC Consulting Geologist, Trevor Perkins, commented:
“This program will be the first step to confirming and expanding the Fraser Lakes B Uranium Deposit. We believe that the size and grade of the existing deposit can be increased and are confident we can discover new deposits in the vicinity. We anticipate several exciting years ahead as we advance the South Falcon East Project,”
Plus, emphasizing the strong belief that both the size and average grade of the resource can be increased as previous results established that higher grade uranium exists within the deposit, TCEC CEO Alex Klenman previously commented:
“Right now, nobody is getting much credit for those pounds in the ground. This will begin to change as we drill and earn our interest in the project. The initial phase one plan allows us to meet the early obligations of the earn-in with Skyharbour. We are hopeful our valuation will grow as a result, therefore reducing the barrier to entry for institutional support and giving us the opportunity to implement larger drill programs moving forward through 2024 and beyond.
Tisdales Position in the Uranium Market
TCEC provides a compelling story with an early-stage capital structure with 29 million shares out, a large amount which is locked up in recent placements.
Differing from other explorers, TCEC is going directly to the development of a historical resource with 7 million pounds delineated with an above-average grade at its South Falcon Uranium Project as part of the Fraser Lakes B Deposit.
With significant higher grade having been established to be present within the deposit following the intersection of two to two and a half meter runs of 0.16 and 0.172%, U-308, TCEC is focused on expanding the size and the grade of the deposit.
Attesting to their level of confidence, TCEC CEO Alex Klenman has consistently been buying on the open market and is nearing almost a million shares.
Posted on Behalf of Tisdale Clean Energy Corp.