TD COMPANY UPDATE
HURRICANE SITE VISIT
THE TD COWEN INSIGHT
On April 25 and 26, IsoEnergy (ISO-TSXV) hosted a site visit to its flagship Hurricane project in the Athabasca Basin, which hosts the highest grade indicated resource in the world (48.6Mlbs at 34.5% U3O8). A key focus of the visit was to highlight the project's exploration upside discussed in this report. NexGen owns 32.8% of ISO's shares, which represents 4% of our NexGen NAV estimate.
Impact: NEUTRAL
Hurricane world's highest grade indicated resource — Hurricane is located within the wholly-owned Larocque East property on the eastern side of the Athabasca Basin,
within ~40km of the McClean Lake mill. The project hosts an unconformity style resource containing 48.6Mlbs U3O8 grading 34.5% in the indicated category. Importantly, the project is located at a relatively shallow depth of ~325m, opening up the potential to employ some innovative and lower cost mining methods including the SABRE method.
Exploration upside — Exploration to date has largely focused on the main Hurricane resource estimate located on the western portion of the deposit. The focus is now
shifting approximately 2kms to the east, including Zone A (Figure 4), where the IsoEnergy management team has employed Ambient Noise Tomography (ANT) to vector into favorable geological settings known to host uranium deposits. Exploration from the winter drilling season has defined a large hydrothermal system, which is typically associated with unconformity style deposits in the Basin. Further exploration is planned for the summer drilling season, with plans to drill between 12 and 20 holes (results dependent).
Continuity onto Cameco's Dawn Lake JV property — The highest grade zones at Hurricane border the Dawn Lake JV which is held controlled by Cameco and Orano. In February, Cameco announced that its 2023 exploration program at Dawn Lake expanded the footprint of known uranium mineralization with intercepts in excess of 60% U3O8 over several meters. Cameco plans to spend $7mm on brownfield and advanced exploration in 2024, much of which is expected to focus on Dawn Lake. IsoEnergy CEO, Phil Williams has said publicly that the two projects (Dawn Lake and Hurricane) 'belong together in some form', adding 'what that looks like is too early to say.' Both sides will need to do more drilling to determine the full extent of the mineralization trend.