The junior explorer Cosa Resources Corp. (TSX-V: COSA) (OTCQB: COSAF) has added a substantial 16,896 hectares to its uranium exploration package in the Athabasca Basin.
On Monday, the company announced the acquisition of the Aurora project. It was acquired from an unnamed vendor in exchange for C$20,000 cash and 150,000 common shares.
The project is situated on the southeastern edge of the mining jurisdiction, about 16 kilometres from the Key Lake mill and past-producing Key Lake mine run by Cameco Corporation (TSX: CCO) (NYSE: CCJ).
The Key Lake mine produced 209.8 million pounds of yellowcake uranium between 1983 and 2002.
“As discoveries in districts across the Basin have historically begun at the edges and progressed inward, this highly underexplored piece of ground is an excellent addition to our portfolio of uranium exploration projects in the Basin,” said Cosa’s Vice President of Exploration, Andy Carmichael.
Cosa says the Aurora project is vastly underexplored; the company plans to conduct a series of surveys to identify drill targets there in Q2 and Q3 next year. Earlier this month, Cosa obtained an exploration permit from Saskatchewan’s government for its neighbouring Ursa project.
“Having recently demonstrated the value of modern and comprehensive geophysical coverage at our Ursa project, we believe that underexplored lands like Aurora can be significantly upgraded with the same approach and we look forward to advancing this project toward drill testing,” said President and CEO, Keith Bodnarchuk.
Cosa’s Athabasca Basin properties. Image via Cosa Resources
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The eastern Athabasca Basin: an abundant uranium resource
Other companies like Purepoint Uranium Group Inc. (TSX-V: PTU) (OTCQB: PTUUF) have been expanding their mining footprint in the eastern section of the region as well. The junior expanded its Tabbernor project there by 8,865 hectares early last month.
Overall, the Athabasca Basin is one of the world’s top uranium mining jurisdictions. It hosts the highest-grade uranium operations on Earth.
The share prices of leading companies operating in the Basin like Cameco and NexGen Energy Ltd. (TSX: NXE) have been rising significantly in recent days and the price of uranium has been rising exponentially as well. It is currently worth over US$80 per pound, representing a 15-year high, and some analysts have predicted that it could be valued at more than US$100 by the end of the year.
Cosa’s share price has shot up by nearly 50 per cent in the past month too, they are currently valued at $0.49.
Explorers like ATHA Energy Corp. (CSE: SASK) (FRA: X5U) (OTCQB: SASKF) have been conducting vast surveys in the region to identify new drill targets and capitalize on the revenue-generating potential of the world’s current uranium cycle.
The rising demand for the metal prompted by increasing rates of nuclear reactor construction, decarbonization initiatives and adoption of nuclear power throughout the globe has led to an enhanced focus on the Basin among various companies.
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rowan@mugglehead.com
