UEX Corp T.UEX

Message from Management in latest MD&A

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From Destinator   https://investorshub.advfn.com/UEX-Corp-TSX-UEX-17360/



Message from Management in latest MD&A 

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Meanwhile, our Company has been quietly but very busily preparing uranium exploration targets for the upcoming summer exploration drilling programs. After receiving the preliminary results from the winter/spring resistivity survey at Christie Lake, UEX is eagerly awaiting the commencement of thesummer drill program in mid-August with the objective of finding the next new uranium discovery on this prospective project. The resistivity survey highlighted a new anomaly 1.5 km to the west of the Paul Bay Deposit. This new anomaly is located up-dip of two existing historical mineralized holes, one of which encountered 0.25% U3O8, 2.05% Co and 2.32% Ni over 1.5 m approximately 50 m below the unconformity. Follow-up of comparable mineralization at similar depths by UEX in 2017 at Christie Lake led to the discovery of the Orora Deposit. The survey also outlined a prospective parallel conductive trend just north of the Orora Deposit that has never been drill-tested. 

This quarter, UEX received the last of the assay results from this winter’s drill program at the West Bear Cobalt-Nickel Deposit. The Company was able to triple the strike length of the Deposit during the winterprogram and determine the key exploration features that can be used to discover other cobalt deposits in the Athabasca Basin. The Company is currently re-interpreting the Deposit and have identified several high-priority cobalt targets across the property and evaluating opportunities across the Basin. 

Cobalt prices have continued to be depressed over the second quarter. However, the North American cobalt industry has been very active with mergers and acquisitions. Global EV sales continue to be strong and electric vehicle adaption rates are exceeding projections despite the removal of government subsidies in key jurisdictions such as China. Several new Gigafactory construction announcements have been made since the start of the year and experts still predict that cobalt demand to at least double over the next decade. In the short term, cobalt supply is in a very small surplus over demand due to the commencement of commercial production in a couple of new cobalt mines in the DRC. The surplus is expected to be short-lived as growth in EV adaption should easily shift the market into deficit in the coming year which should have a positive impact on cobalt prices.

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