Explorer Identifies Premium Target for Uranium in Athabasca Basin

Source: Streetwise Reports 03/06/2025

Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE) says a recent discovery at the South Falcon East Uranium Project in Saskatchewan is exciting geologists as the company’s drilling program continues there in the Athabasca Basin. See why one firm says risk remains on the upside for investors.

Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE) said drilling has revealed a strong clay alteration in one of the holes at the South Falcon East Uranium Project in Saskatchewan, a “very good setup” for what the company is looking for, a “basement-hosted unconformity higher-grade uranium deposit.”

“You have to have the clays, you have to have the faulting and the alteration to allow fluids to move the uranium, which is usually attached to a graphite or conductor down through the hole, and then we find where it gets trapped in the structure,” new Chief Executive Officer Greg Cameron told Streetwise Reports.

He said they consulted with geologists at Skyharbour Resources Ltd., the company Terra Clean is optioning the property from, to look at the early results.

“They’ve never seen anything like what we saw in that hole, very new to the property and very encouraging, frankly,” Cameron said.

Terra Clean has mobilized crew and equipment and is continuing an extensive winter drilling program at the project, which is just 18 kilometers outside the Athabasca Basin, known for hosting the world’s highest-grade uranium deposits. South Falcon East’s Fraser Lakes B Uranium deposit is also about 50 kilometers from the Key Lake uranium mill and former mine.

The program is consisting of up to 2,500 meters of drilling executed by Terralogic Exploration Inc. under the supervision of TerraLogic Project Manager Brett Lavigne and Terra Clean Vice President Exploration C. Trevor Perkins.

Cameron said initial probe results, including for the hole with the alteration, are expected any day.

‘Overhangs’ Have Been Addressed, Firm Says

Terra Clean Energy Corp. entered into an option agreement with SkyHarbour Resources Ltd. in 2022 to earn up to a 75% interest in the 12,234-hectare South Falcon East property. It has a historical Inferred resource of about 7 million pounds (7 Mlb) of U3O8 at 0.03% and 5.3 Mlb of thorium dioxide at 0.023% within 10,354,926 tons using a U3O8 cutoff grade of 0.01%.

Terra Clean’s inaugural drill program last year confirmed the presence of uranium mineralized pegmatites and graphitic pelitic paragneiss along the Way Lake Conductor at South Falcon East, the company said.

The priority of the Winter 2025 program is to expand on the Winter 2024 program by extending the mineralized footprint associated with the Fraser Lakes B deposit and test nearby targets with prospective alteration and structure identified in historical drilling, Terra Clean said.

The field program consists of both infill drilling to confirm the presence and continuity of existing mineralization and step-out drilling, looking to expand the current footprint of the deposit.

“Both infill and step-out drilling will culminate with the preparation of an updated NI43-101 compliant resource expected by this summer,” wrote HoldCo Markets Inc. wrote in an updated research note on the company on February 18. HoldCo set a 12-month price target for the stock at CA$.033, a 16% return over when the note was issued.

“Combined with a recently closed financing, share consolidation, debt settlement, and management change, we feel that the numerous overhangs which plagued the company of late have now been addressed,” the firm said. “We now see an unencumbered return to the primary objective of the company — drilling, de-risking, and updating the Fraser Lakes B uranium deposit. We continue to believe that at the current microcap valuation, the risk remains on the upside, provided future drilling success.”

HoldCo continued, “Turnaround should be relatively quick with assay results likely to be returned in Q2/2025 followed by an updated resource estimate expected by the summer. Seeing that the deposit remains open in most directions, additional work spend may lead to an increase in both grade and resource size.”

‘Best Place in the World’ to Explore for Uranium

“The Athabasca Basin is the best place in the world to explore for uranium,” Technical Analyst Clive Maund noted in a report on the company in January.

After big changes to the leadership of the company, Maund said its stock is “believed to have considerable upside potential.”

*On March 6, the analyst updated to say that the company’s “charts present an exceptionally strong setup.”

“This year to date . . . we have seen much more dramatic and overt evidence that a major bull market is close at hand with increasingly aggressive ‘smart Money’ buying of stock that has driven the On-balance Volume line steeply higher,” Maund wrote. “All that has stopped the stock from really taking off higher already is the remaining weak holders being flushed out, symbolized by the 200-day moving average still falling — but it won’t be for much longer.”

“The conclusion is that Terra Clean Energy is on the cusp of a clear breakout into a major bull market,” the analyst said. “Holders should, therefore, stay long, and it is rated a strong buy here for all time horizons, and this is a good point to add to positions.”

The Catalyst: Nuclear Renaissance Underway

A nuclear power renaissance is underway as countries around the world are building new reactors and recommissioning old ones, including Microsoft Corp.’s (MSFT:NASDAQ) recently announced deal with Constellation Energy Group (CEG:NYSE) to restart and buy all of the power from one of the shut-down reactors at its infamous Three Mile Island plant in Pennsylvania.

Driving the demand are ever-expanding data centers and resources needed for artificial intelligence (AI) applications, as such, “The largest tech firms are considering the use of nuclear power. That could be a boon for uranium prices,” wrote Ben Hernandez for VettaFi ETF Trends on March 4.

“While demand is elevated, the necessary supply to meet said demand is another issue,” he wrote. “Large tech firms are also starting to implement AI projects. Therefore, energy demands become even greater.”

According to Jacob White of the Sprott Uranium Report on February 11, prices for the element were down 3.09% in January, finding support at around US$70 per pound.

“Despite January’s challenges, we believe that structural supply deficits, an increasing term price, and record nuclear generation expectations for 2025 reinforce a bullish long-term outlook for uranium,” wrote White. “Although there has been ample short-term volatility, the uranium market remains well-supported by rising global nuclear commitments and persistent supply constraints.”

But White said a “longstanding primary supply deficit and renewed interest in nuclear energy” should bring the market back into balance.

“With no meaningful new supply on the horizon for three to five years, we believe this bull market has further room to run. Some utilities are well covered from their inventories, while others have ignored the powerful market signals and failed to adapt their procurement strategies to the new market realities,” he wrote.

After the U.S. imposed major restrictions on uranium imports from Russia last year, Russian company Tenex, part of the state-owned nuclear corporation, Rosatom, resumed exporting low-enriched uranium to the U.S. in February, according to a report by The Insider. Special licenses were required by Russian authorities for the shipments. [OWNERSHIP_CHART-10935]

According to an October report on CarbonCredits.com, BMO Capital Markets projects a strong outlook for uranium demand. BMO projected it to grow at an annual rate of 2.9% through 2035, largely driven by China’s aggressive push to build new nuclear reactors and the potential for reactor restarts in North America.

BMO Analyst Alexander Pearce emphasized the long-term demand outlook, noting that they foresee a potentially higher uranium demand over the medium to long term, CarbonCredits.com reported. This optimism is fueled by several factors, including geopolitical shifts, growing global demand for clean energy, and new nuclear technologies such as small modular reactors (SMRs).

Ownership and Share Structure

Management and Insiders own approximately 8.3% of the company after the December private placement, with institutional shareholders participating for over half of the CA$3.4 million raised.

Terra Clean Energy has a market cap of CA$9.56 million with a strong balance sheet and shareholder base.

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Important Disclosures:

1. Terra Clean Energy Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terra Clean Energy Corp.
3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4. This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports’ terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.

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* Disclosure for the quote from the Clive Maund article published on March 6, 2025

1. For the quoted article (published on March 6, 2025), the Company has paid Street Smart, an affiliate of Streetwise Reports, US$3,000.
2. Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing the article quoted. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in the article accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed

Clivemaund.com Disclosures

The quoted article represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund’s opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund’s opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.

( Companies Mentioned: TCEC:CSE; TCEFF:OTC; T1KC:FSE, )

Source: https://www.streetwisereports.com/article/2025/03/06/explorer-identifies-premium-target-for-uranium-in-athabasca-basin.html