Now is a great time to be a uranium explorer or miner, with improved demand outlook that has seen prices hit about US$32/lb.
The newly created Sprott Physical Uranium Trust has begun trading on the toronto stock exchange – a move which is expected to increase buying pressure in the uranium spot market.
Plus, old mate Elon Musk said he is pro-nuclear – and reckons it could possibly be a clean solution for crypto mining.
@elonmusk is pro nuclear energy. #Uranium https://t.co/nomN9pUetw
— Peter Herman (@PeterHermanSG) July 21, 2021
Basically, the narrative is that nuclear will be an essential baseload power source in a green energy future, with the Biden Administration embracing nuclear energy as part of its goal to achieve a net-zero carbon economy by 2050 by establishing a national strategic uranium reserve.
There’s an opportunity here for ASX listed juniors like Valor resources (ASX:VAL), which today announced solid airborne geophysical survey results and plans to start drilling at its Hook Lake project in Canada in the December quarter.
Speaking with Stockhead, executive chairman George Bauk, the bump in interest in the sector comes back to clean energy, net zero and electric vehicles.
“People are wondering how friendly the stuff coming out of the wall socket to charge their electric vehicle is,” he said.
“Wind and solar are great but the wind doesn’t always blow, and the sun doesn’t always shine.”
“We need to make sure that we couple that with some baseload fuel sources – and uranium delivers fantastic outcomes.”
“All we need to do is get away from some of the concerns of the past and negative views and values about uranium and look at the positives.”
Targeting drilling in the Athabasca basin in Q4
Notably, the Hook Lake project is in the Athabasca basin – a known great producer of uranium at high grade.
“We feel like we’ve got an outstanding portfolio of assets in Canada, we’re in a great area and the people that work for the company have had success in delivering projects from exploration to production,” Bauk said.
The field crew will be mobilising to site tomorrow to follow up priority areas from the survey – and too hopefully verify additional targets for drilling.
The company has also gone through the lengthy approvals process to work on site but Bauk said while the process is longer than in other jurisdictions, it allows more flexibility on the ground and includes drilling.
“We have secured all permits that allow us to follow up on the ground, including drilling, which we are targeting for the December quarter,” he said.
“We’ve also done a radiometric survey which picks up the uranium anomalism on the surface from an aircraft – and those results should come out next week.”
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