AMW, FCU and NXE - Next big Athabasca discoveriesFrom Ryan Fletcher interview by The Energy Report:
TER: The Athabasca Basin is the hot spot for uranium plays today, and several juniors are exploring there. What is driving the interest?
RF: The Athabasca Basin has always been a hot spot for uranium investors as it hosts the highest-grade and richest uranium deposits in the world. In mining, grade is always king, especially when prices are low. The Athabasca Basin also has well established mining infrastructure, a stable investment environment and the presence of the majors, including Cameco Corp. (CCO:TSX; CCJ:NYSE), Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) and AREVA SA (AREVA:EPA).
While most of the exploration and mining activity in the Athabasca Basin has been centered on the eastern side, recently Fission Uranium Corp. (FCU:TSX.V) and its 50% partner Alpha Minerals Inc. (AMW:TSX.V) have made a significant discovery, Patterson Lake South (PLS), on the western end. This is driving a significant amount of interest back into the region.
The PLS discovery is one of the most intriguing finds in the basin in some time, and already it’s shaping up to be one of the most attractive uranium projects in the hands of juniors since Hathor Exploration’s Roughrider project, which was eventually acquired by Rio Tinto for $654M in 2012.
Fission and Alpha are currently in the midst of an 11,000 meter (11km) $6.95M drill program. So far the results have been spectacular. Three main zones of mineralization have already been identified within a strike length of about 800 meters (800m). The first few holes from this program have been some of the best to date, and the potential resource appears to be expanding quickly with additional drilling.
The main PLS conductor corridor runs for about 2km, giving the project a lot of immediate potential upside. This is significant, as uranium deposits in the Athabasca are usually confined to small areas. The Roughrider deposit, for instance, was largely contained within a 350m area. The discovery is both high grade and near surface, and has resource upside. This is music to the market’s ears, as well as to majors and other potential acquirers.
TER: What other companies in the Athabasca Basin are you following? Any new plays?
RF: NexGen Energy Ltd. (NXE:TSX.V) is a newly listed company that we are invested in and following. The company has great ground, a top-tier management team, money in the bank and drills turning. The company is run by Leigh Curyer, who was previously CFO and head of corporate development at Southern Cross Resources Inc. before it merged with Aflease Gold and Uranium Resources Ltd. to form Uranium One Inc. (UUU:TSX).
NexGen’s flagship projects, Radio and Rook I, are both located in great neighborhoods. The Rook I project borders PLS. NexGen acquired this project just before Fission and Alpha announced their discovery—it was fortuitous timing. The company plans to drill a minimum of 3,000m at Rook I beginning mid-August. This should be an exciting time for investors. The Radio project, on the other hand, is located on the same east-west corridor that is interpreted as hosting the Roughrider project. NexGen currently has a market capitalization around $34M, which would be dirt cheap if the company shows success on its drill programs.
Another company we are involved with in the Athabasca Basin is Lakeland Resources Inc. (LK:TSX.V). Over the last several months, the company has meticulously acquired a portfolio of properties in the basin, primarily in areas where the depth to targets are shallow and where there is a history of exploration, thereby increasing the potential chance of success. The company is backed by a seasoned technical team and advisory board, including Richard Kusmirski, past exploration manager for Cameco, and Thomas Drolet, a uranium and nuclear energy specialist with over 40 years in the energy sector. Lakeland’s key property is Riou Lake, which is located in the north end of the basin. Lakeland is a new entrant into the Athabasca Basin and has a micro-cap of ~$2M. This company is a relatively inexpensive way for investors to gain exposure to the Athabasca Basin.
Link to full interview: https://jutiagroup.com/20130815-ryan-fletcher-the-next-big-discoveries-in-the-athabasca-basin/