Governments across the world, including the United States, Canada, China, the EU, and Japan, have created lists of critical mineral resources and enacted programs to encourage domestic and friendly supplies of them as a matter of national security. Uranium is on the list for Canada, Japan, China, and the United States (classified as a fuel mineral).
Uranium demand is skyrocketing due to increased nuclear energy development as countries try to decrease carbon emissions from fossil-fuel based energy sources. At the same time, geopolitical tensions have led democratic countries and utilities to seek more domestic and secure sources of the critical mineral. Kazakhstan, the former Russian republic and current authoritarian state, is the world’s top producer of uranium.
Canada isn’t far behind though, and Saskatchewan’s Athabasca Basin is home to the world’s richest uranium deposits as well as the world’s largest high grade uranium mine. If an explorer could choose an area to find the next big high grade uranium deposit, the Athabasca Basin would probably be the choice.
There have been some recent major discoveries that could turn into mines, but there are currently only two mines operating there. More sources are needed, and Canada’s governments are incentivizing further exploration both provincially and federally. Considering the background, now is a pretty good time for investors to consider uranium explorers.
One compelling company operating in the Basin is Stallion Uranium Corp. (TSX.V: STUD) (OTCQB: STLNF) (FSE: HM40). Stallion Uranium has assembled one of the largest land packages in the southwestern region of the Athabasca Basin, historically less explored than the more developed eastern area but home to several recent discoveries.
We recently had the opportunity to talk with Stallion Uranium’s CEO, Drew Zimmerman. In the first segment, Drew discusses the company’s rapid development over the past year which resulted in two name changes. The company was called Stallion Gold Corp., with flagship properties in Nevada and Idaho focused on gold exploration (Stallion still holds those properties). In January 2023 the company acquired a major chunk of its current claims in the Athabasca Basin, changing its name to Stallion Discoveries to reflect a broader focus on world-class discoveries regardless of the target mineral. This past fall the company settled on Stallion Uranium to reflect the growing efforts and focus on its Athabasca Basin claims as the scale of the potential discoveries there became more clear.
In January 2023, Stallion Uranium acquired about 304 square miles of prospective uranium claims in the Basin. One of the companies acquired in the deal was Hathor Exploration. The original Hathor Exploration, led by President and CEO Stephen Stanley, discovered and developed the Roughrider uranium deposit which holds approximately 58 million pounds of uranium. Based on that discovery, the company was sold to Rio Tinto in 2012 for $642 million. Mr. Stanley is now an advisor to Stallion Uranium as the company heads down a similar path.
In September 2023, Stallion announced a finalized agreement with ATHA Energy Corp. (CSE:SASK) that gives the company the option to acquire a 70% interest in prospective uranium claims covering another 855 square miles. Most of these lands are located in the western portion of the Athabasca Basin, an area that is historically less explored than the eastern region but is home to several major recent discoveries.
In January 2024, the company staked out another 50 square miles of 100% owned claims adjacent to its existing optioned holdings. All together, Stallion’s claims comprise the single largest exploration project in the region.
Here, Mr. Zimmerman talks about the company’s focus in the southwestern basin and the thought process behind assembling such a large land package.
The first steps are already being taken to explore the massive holdings and identify the most likely targets for prospective drilling. Stallion has done a comprehensive airborne magnetic and electromagnetic survey of its wholly owned lands. Target areas were identified and two areas tagged for further and immediate exploration: The Coffer and Gunter Lake Projects. The ground survey on the Coffer Project has been completed and Stallion awaits the results. The company is advancing the targets on the Gunter Lake Project as well.
Meanwhile, Stallion conducted an airborne magnetic survey of its jointly-held claims covering 855 square miles. Many of these lands have never been effectively explored, and the company is looking to identify the highest value targets for follow up and then drill testing. Results from the survey are currently pending..
In this segment, Mr. Zimmerman goes over Stallion’s exploration program as the company works toward an anticipated drill program commencing in the spring of 2024.
Overall, there is a good argument to be made that investors should be paying attention to uranium explorers in the Athabasca Basin. From a geological point of view, the Basin holds the world’s richest uranium deposits and is located in a nation that is highly motivated to develop those reserves. From a global perspective, uranium is in very high demand and forecasts call for uranium shortages to be exacerbated over the coming years as more nuclear energy projects come online in a constricted supply market.
There are recent explorer success stories in Stallion’s neighborhood that point to the potential for value creation should a discovery be made. In November 2022, F3 Uranium Corp. announced a significant find in what the company now calls the JR zone, about 13km due west of Stallion’s Coffer Project. That news, combined with some follow-up exploration, pushed the company’s market capitalization from CAD$28 million at the time of the announcement to CAD$148 million in mid January 2023.
In the final segment of the interview, Mr. Zimmerman talks about the potential for significant value creation through uranium exploration in the Athabasca Basin and why investors should be taking notes of developments there.
With Stallion Uranium Corp. moving through the initial exploration phases of the largest prospective uranium land package in the western Athabasca Basin, 2024 promises to be a pivotal year for the company. In the very near term Stallion expects to commence drilling on its most promising project areas while continuing to identify more zones of interest from incoming magnetic survey data. Investors are encouraged to keep an eye out for continuing news as Stallion hunts for the next major uranium discovery.
CFN Media (“We” or “Us”) are not securities dealers or brokers, investment advisers or financial advisers, and you should not rely on the information herein as investment advice. We are a marketing company and are paid advertisers on behalf of Stallion Uranium Corp. (“Stallion” or the “Company”) If you are seeking personal investment advice, please contact a qualified and registered broker, investment adviser or financial adviser. You should not make any investment decisions based on our communications. Pursuant to our Agreement with Stallion, we have been compensated in cash by Stallion.
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Forward-Looking Information
This document includes forward-looking information and forward-looking statements (collectively, “forward-looking information”) with respect to the Company. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases including, but not limited to, “expects”, “does not expect”, “is expected”, “anticipates”, “does not anticipate”, “plans”, “estimates”, “believes”, “does not believe” or “intends”, or stating that certain actions, events or results may, could, would, might or will be taken, occur or be achieved) are not statements of historical fact and may be “forward-looking information”. This information represents predictions and actual events or results may differ materially.
Forward-looking information may relate to the Company’s future outlook and anticipated events or results and may include statements regarding the Company’s financial results, future financial position, expected growth of cash flows, business and marketing strategy, commodity prices, budgets, receipt of governmental approvals such as permit approvals, results of mineral exploration programs, anticipated timeline for completion of the Company’s projects and exploration programs, projected costs, projected capital expenditures, taxes, plans, objectives, industry trends, and growth opportunities. Forward-looking information contained in this document is based on certain assumptions regarding expected growth, results of operations, performance, industry trends and growth opportunities of the Company.
While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. Forward-looking information involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the forward-looking information. The foregoing factors are not intended to be exhaustive.
Furthermore, it cannot be assumed that all or any part of resources, whether classified as proven, probable, measured, indicated, inferred or otherwise, will ever be upgraded to a higher category. In accordance with Canadian rules, estimates of inferred mineral resources cannot form the basis of feasibility or other economic studies. Investors are cautioned not to assume that any part of the mineral resources are economically or legally mineable.
Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. Forward-looking information contained in this document are made as of the date hereof and the Company and its directors, officers and employees disclaim any obligation to update any forward-looking information, whether as a result of new information, future events or results or otherwise. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, you should not place undue reliance on forward-looking information due to the inherent uncertainty therein.
All forward-looking information related to the Company is expressly qualified in its entirety by this cautionary statement. Forward-looking information and other information contained in this document concerning the mining industry is based on estimates prepared by management using data from publicly available industry sources as well as from market research and industry analysis and on assumptions based on data and knowledge of this industry which management believes to be reasonable. While management is not aware of any misstatements regarding any industry data or comparable transactions presented in this document, industry data and comparable transactions are subject to change based on various factors. The Company has not independently verified any of this data from independent third party sources.
Certain of the “risk factors” that could cause actual results to differ materially from the Company’s forward-looking statements include, without limitation risks relating to the following: risks related to the receipt of all necessary third party approvals, including environmental approvals; changes in project parameters as plans continue to be refined; fluctuations in prices of commodities, including uranium; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes, title disputes, claims and limitations on insurance coverage and other risks of the mining industry; delays in the completion of exploration, development or construction activities; health and safety risks; climate change risks; risks related to potential opposition from non-governmental organizations and public interest groups; changes in national and local government regulation of mining operations, tax rules and regulations, and political and economic developments in the United States; reliance on management and dependence on key personnel; competition in the mining industry; risks related to international operations; fluctuations in foreign currency exchange rates; substantial capital requirements and liquidity; uninsurable risks; litigation; risks related to and uncertainty associated with general economic conditions, actual results of current exploration activities, unanticipated reclamation expenses; and other factors beyond the control of the Company.
This document contains future-oriented financial information and financial outlook information (collectively, “FOFI”) as defined under Canadian securities laws, prepared by management about the Company’s reasonably estimated prospective results of operations, revenue, cash flows, and components thereof, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set forth in the above paragraphs. Readers are cautioned that FOFI are not guarantees of future performance, and should not be considered as such, since actual results may differ materially from those expressed in FOFI. The Company and its management believe that FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. The Company disclaims any intention or obligation to update or revise any FOFI contained in this document, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.
Third Party Information
Statements made are as of the date or this document. Delivery of this document does not at any time create an implication that the information contained herein is accurate as of any date subsequent to today’s date. This document includes market and industry data which was obtained from various publicly available sources and other sources believed by the Company to be true. Although the Company believes it to be reliable, the Company has not independently verified any of the data from third-party sources referred to in this document or analyzed or verified the underlying reports relied upon or referred to by such sources, or ascertained the underlying assumptions relied upon by such sources. The Company does not make any representation as to the accuracy of such information.
