ATHA Energy Corp. (TSX-V: SASK) (OTCQB: SASKF) (FRA: X5U) is completing its most significant exploration program to date this year. In addition to its vast land package in the Athabasca Basin, ATHA will be undertaking drilling, sampling, testing and mapping initiatives at its newly acquired Angilak project in Nunavut.
The uranium prospector gave an update on its 2024 exploration program on Wednesday. ATHA also announced that its acquisition of 92 Energy Limited (ASX: 92E) (OTCQX: NTELF) is expected to close by Apr. 11.
This year, the company’s goal in Nunavut will be deposit expansion and discovery. ATHA acquired Angilak and Labrador’s Central Mineral Belt (CMB) operation through its acquisition of Latitude Uranium in early March.
A 10,000-metre drill program will commence at the northern site in June followed by airborne electromagnetic surveys (EM) and other work aimed at identifying top-tier targets. The Lac 50 deposit at Angilak is estimated to hold 43.3 million pounds of yellowcake uranium (U3O8) at an average grade of 0.69 per cent.
“ATHA will be leveraging the expansion potential of one of the highest-grade uranium deposits globally outside of the Basin,” chief executive Troy Boisjoli said.
Latitude reported uranium drill hole intersections there with grades of up to 7.54 per cent U3O8 in 2023.
Angilak maps: ATHA Energy
Read more: ATHA Energy closes acquisition of Latitude Uranium, obtains Nunavut and Labrador properties
Read more: ATHA Energy receives approval for TSX Venture listing; Latitude shareholders authorize acquisition
April acquisition will enhance Saskatchewan portfolio
ATHA will further advance its nine wholly-owned projects in the Athabasca Basin through ground and airborne geophysical surveys. This will enhance the company’s geological understanding of the sites, thereby increasing the likelihood of significant discoveries. The work will build on 17 EM surveys completed during the maiden campaign in the Basin last year, which covered 3.8 million acres.
Through the knowledge obtained, ATHA will be able to allocate working capital more strategically during future drilling campaigns in the region.
The company’s portfolio in Saskatchewan will be augmented even more once it acquires 92 Energy’s Gemini operation next month. The project will become a major focus for ATHA during this year’s program once the acquisition has concluded.
The explorer now has a land position spanning over 7.1 million acres in some of the world’s best uranium mining jurisdictions. The company also holds a 10 per cent carried interest on Athabasca Basin projects run by NexGen Energy Ltd. (TSX: NXE) (NYSE: NXE) and IsoEnergy Ltd. (TSX-V: ISO) (OTCQX: ISENF).
ATHA has raised several million dollars to forward its mining endeavours since it went public 11 months ago.
“Our objective through 2024 is to continue to advance and develop our uranium assets within the world’s most prospective, highest-grade uranium jurisdictions,” Boisjoli said.
“ATHA has a unique opportunity to leverage a strong balance sheet to invest at scale in a large number of early-stage exploration projects,” Vice President of Exploration Cliff Revering added, “while also providing significant exploration upside through advancement of our known uranium deposits and discoveries.”
All in – including the capital raises and cash from acquisitions – we have raised $65.62 million since our public listing in April 2023.
This is a testament to the strength of our team and our mission to build Canada’s premier uranium exploration company $SASK.V $SASKF #uranium pic.twitter.com/W1RAJP867y
— ATHA Energy Corp $SASK.V $SASKF (@athaenergycorp) March 18, 2024
Read more: Oberon Uranium closes sale of uranium property to Forty Pillars in Athabasca Basin
Read more: Stallion Uranium completes extensive geophysical survey on ATHA Energy joint venture property
Uranium market poised for continued growth, supply challenges
The current state of the uranium market continues to intrigue companies, government officials, hedge funds, explorers and others looking to diversify their investment portfolio with valuable commodities.
The bull market shows no signs of slowing and the price of uranium continues to ascend above heights not observed since the late 2000s. Within the past year, its value has shot up by over 100 per cent.
A recent report from the British analytics firm GlobalData predicted that annual global uranium production would rise by nearly 12 per cent this year.
The data analytics expert Wood Mackenzie recently said that US$176 billion will be required to complete the various small modular reactor projects in development throughout the globe.
With the rising price of the commodity and anticipated production, a significant supply deficit has become a concern. NexGen Energy recently estimated that there would be a 200-million-pound annual uranium shortage by 2040.
Continued acceleration of exploration among juniors and production among majors will be necessary to fill this void.
ATHA Energy is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
