Mining Firm Advances Critical Uranium Projects in Athabasca Basin

Source: Streetwise Reports 03/27/2025

Mustang Energy Corp. (MEC:CSE; MECPF:OTC; 92T:FRA) announced it has completed an aerial electromagnetic survey over its 100%-owned Dutton project in Saskatchewan’s southern Athabasca Basin. Read why one analyst says it’s a good time to buy the stock.

Mustang Energy Corp. (MEC:CSE; MECPF:OTC; 92T:FRA) announced it has completed an aerial electromagnetic survey over its 100%-owned Dutton project in Saskatchewan’s southern Athabasca Basin.

The Xcite TDEM, or time-domain electromagnetic, survey started in February. It covered the eastern portion of the claims, which had not been previously surveyed for electromagnetic conductors.

“We are pleased to have now completed our geophysical program at our Dutton project,” said Chief Executive Officer Nick Luksha. “This marks another important step in our path to developing drill targets across much of our highly underexplored portfolio of prospective uranium projects. We thank the field crew for a safe and efficient program and look forward to receiving results.”

The company said Xcite is a new generation of helicopter-borne TDEM systems developed by New Resolution Geophysics (NRG) and Axiom is an exclusive provider of the service in North America.

“The system utilizes a patented inflatable transmitter loop with a diameter of approximately 20 meters, suspended about 30 meters below the helicopter,” Mustang said in a release. “The Xcite system offers exceptional signal clarity, enabling the detection of subtle subsurface features. It features a programmable waveform with a fast turn-off time, allowing for flexibility in data acquisition and improved resolution of both shallow and deep targets.”

Mustang is actively exploring properties in the Athabasca Basin, including its flagship property, Ford Lake, which covers 7,743 hectares in the prolific eastern basin. Its Cigar Lake East and Roughrider South projects span 2,901 hectares in the Wollaston Domain, which also contains the 914W project. Mustang has also established its footprint in the Cluff Lake region of the Athabasca Basin with the acquisition of the Yellowstone Project and further expanded its presence in the south-central region of the Athabasca Basin with Dutton.

Spur Project Also Will Be Surveyed

Earlier this month, the company engaged Axiom for another Xcite TDEM with radiometrics survey over its Spur project, located south of the basin.

Mustang said it anticipates that the Spur survey will start in early May and encompass the portion of the claim package that has not been covered by modern-day electromagnetic survey techniques.

“This being so, and with the uranium price looking set to turn up after its substantial correction of the past year back to support, this looks like a good time to buy Mustang,” Maund noted.

“The airborne survey aims to precisely locate EM and radiometric anomalies, and aid in geological interpretations on the property advancing exploration targeting,” the company said in a March 21 release.

Mustang said it also has applied for exploration permits on the Spur and the 914W projects for ground-based mineral exploration activities such as trail construction, line-cutting, ground geophysical surveys and diamond drilling.

“Subject to obtaining the required permits and approvals, Mustang plans to initiate exploration activities aimed at further assessing the viability of these projects, as well as to continue consultation with local communities,” the company said.

Analyst: Potential for ‘Multiple Significant Discoveries’

Technical Analyst Clive Maund wrote on March 24 on CliveMaund.com that “with big uranium companies such as Cameco Corp. (CCO:TSX; CCJ:NYSE) and Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) as neighbors, the chances of multiple significant discoveries being made (by the company) are high.”

“This being so, and with the uranium price looking set to turn up after its substantial correction of the past year back to support, this looks like a good time to buy Mustang,” Maund noted.

The company’s stock has been building out a “probable base pattern” since December that “approximates to a Head-and-Shoulders bottom,” the analyst said. “If this interpretation is correct, then we are currently close to the Right Shoulder low which is a very good place to buy. Volume indicators have been somewhat weak but are now improving with substantial upside volume showing up late last week.”

Maund continued, “With the potential for multiple significant discoveries within its wide range of sizable properties in the prolific Athabasca Basin, Mustang is viewed as a buy here for an advance out of what is believed to be a base pattern.”

The Catalyst: Providing Power for the Future

As the fuel for nuclear power, uranium is one of the most important elements for the energy transition. However some worry U.S. President Donald Trump’s tariff threats could raise prices since the U.S. gets more than a quarter of its uranium from Canada, reported Justine Calma for The Verge on March 7.

“It’s too soon to know what the exact impact would be on the U.S.’s nuclear energy industry if tariffs move forward,” Calma wrote. “It could play into efforts to build up a domestic uranium supply, which has gotten bipartisan support and interest from major tech companies. But in the near term, the U.S. still relies on its northern neighbor to keep reactors running.”

The spot uranium price flirted with US$100 per pound at the start of 2024 but has since retreated to the US$60s, according to Cameco.

“But here’s the rub,” Barry Fitzgerald wrote for Livewire on March 20. “While the spot price has let the side down, the term or contract price for uranium has remained at multi-year highs (US$80/lb average in February). That really does matter as it is the term price that better reflects the long-term fundamentals of the uranium market.”[OWNERSHIP_CHART-11203]

High-tech and artificial intelligence (AI) companies are looking for more carbon-free power sources going forward. Microsoft just announced a 20-year deal with Constellation Energy to buy all of the power from the potentially reopened Three Mile Island plant, site of the worst nuclear disaster in U.S. history, to use for AI. The reactor in question closed five years ago and could be revived in 2028, depending on Nuclear Regulatory Commission approval.

Ownership and Share Structure

According to Refinitiv, about 0.15% of Mustang is owned by Insiders and Management, and the rest is retail. Top shareholders include Toby Lim with 0.15%.

It has 68.07 million shares outstanding, 67.97 free floating shares, and has a market cap of CA$17.34 million. It trades in a 52-week range of CA$0.15 and CA$0.50.

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( Companies Mentioned: MEC:CSE; MECPF:OTC; 92T:FRA, )