Uranium prices are on a roll, with demand shooting up worldwide. Last Thursday, uranium traded at a whopping $73,1 the highest seen since 2008 and pre-Fukushima nuclear disaster levels.
The surge in uranium prices over the past few months can be chalked up to the supply-demand dynamics in the industry. On one hand, the supply chain has been facing some hurdles recently.
Power utilities have historically relied on replenishing fuel stockpiles by purchasing additional uranium on the spot market, an option that is disappearing quickly and has become further complicated by unexpected political turmoil and production woes. Take France, for instance, which is grappling with geopolitical issues affecting its uranium supply from Niger, one of its primary sources.
At the same time, prominent uranium producers are sounding the alarm about reduced supplies. A big Canadian player, Cameco, recently cautioned that production at its Cigar Lake mine is set to drop, targeting 16.3 million pounds instead of the initial estimate of 18 million.2
Meanwhile, the appetite for uranium remains robust, as countries are beefing up their uranium reserves in response to rising geopolitical risks.
The US is betting big on nuclear energy with a $6 billion program to preserve nuclear reactors,3 including a hefty $1.1 billion grant to secure the continued operation of Californias only power plant, Diablo Canyon.
Germany has opted to extend the lifespan of all three nuclear power plants. France, a key player in the nuclear energy arena, is doing the same.
As clean energy sources like wind and solar face substantial challenges, nuclear energy may see even greater demand. Wind power is facing pressure due to higher interest rates, while solar companies like SunRun and Enphase Energy have taken a hit, signaling a drop in demand within the industry.4
The Heart of the Canadian Uranium Mining Sector
Renewed interest in nuclear power has made uranium mining a hot topic, all eyes are on the Athabasca Basin, the world's biggest and richest uranium region in northern Saskatchewan, Canada. This place is home to Cameco's massive McArthur River mine, which is the top high-grade uranium mine on the planet.
With the nuclear scene heating up, lots of exploration companies are flocking to the region to meet the rising demand. One of them is COSA Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FSE:SSKU), a newly-listed uranium explorer with an exceptional team that has made several discoveries in the Basin, and an underexplored land package located close to some major Athabasca discoveries.
Cosa Resources' team is renowned for its uranium exploration expertise in the Athabasca Basin. With a history of significant discoveries and developments in Saskatchewan, they bring decades of experience. President and CEO Keith Bodnarchuk, formerly of IsoEnergy and Denison Mines, has a solid track record in corporate development and geology.
Chairman Steve Blower, known as the 'Tom Brady' of the Basin, played a pivotal role in several major uranium finds, including IsoEnergy's Hurricane and Denison Mines' Gryphon. VP of Exploration Andy Carmichael, instrumental in the Hurricane discovery, previously served in a similar capacity at IsoEnergy.
Cosa Resources owns 10 uranium exploration properties, covering more than 161,000 hectares in the Athabasca Basin. The Ursa property is 57,000 hectares and sits about 45 kilometers west of Camecos McArthur River uranium mine, while Orion, is in a prime spot, about 34 km northwest of the McArthur River and right where the Larocque uranium corridor is thought to extend.
Cosa has planned for a busy 2024, with a recent geophysical survey highlighting nearly a dozen high priority areas of interest at the Ursa and Orion projects. The Ursa project specifically captures over 60 km of the Cable Bay Shear Zone, a geologically established and uranium fertile corridor with very little previous drilling.
Cosa Resources just announced completion of project-wide geophysics at their Ursa and Orion projects. Highlights of the release include:
More than 110 km of basement conductive trend defined, including over 100 km at Ursa and over 10 km at Orion.
Large, deeply rooted basement structures fundamental to the formation of Athabasca uranium deposits are interpreted to be present at both Projects.
Multiple km-scale, sandstone-hosted conductive anomalies suggest hydrothermal alteration zones characteristic of Athabasca uranium deposits.
Eleven initial target areas defined, none of which have been tested by historical drilling.
The company is actively pursuing follow up work including ground geophysics and diamond drilling.
By using MobileMT surveys, Cosa Resources quickly identified potential targets, steering clear of costly, broad exploration. The surveys revealed several zones similar to known uranium deposits in the Athabasca Basin, setting a direct course for focused exploration.
This development delineates a strategic path for targeted exploration, with the surveys findings bolstering confidence as they align with historical drilling data. With historical drilling at Ursa showing no overlap with these new targets, Cosa is set to advance its exploration with ground-based geophysics, followed by diamond drilling, in a bid to uncover the area's true potential.
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