North Shore Uranium Ltd. (NSU:TSX) provided an update on its exploration plans at its Falcon property in North Saskatchewan. The company has identified multiple high-priority uranium targets on the 55,699-hectare property, which is located at the east of the Athabasca basin. It's fully financed to drill several of these targets during Q1 of 2024.
North Shore's planned 2023-2024 exploration program at Falcon will consist of three parts. The company will continue interpreting geophysical and geological data, both historical and new, which will enable it to prioritize targets for more detailed exploration.
The company will also instigate a maiden drill program in Q1 of 2024 that will focus on several high-priority targets. Prospecting, mapping, and sampling of high-priority targets will take place next summer in order to prepare for drill programs in the future.
President and CEO of North Shore, Brooke Clements, noted, "It's a great time to be exploring for uranium in the Athabasca basin, a Tier 1 jurisdiction for uranium exploration, development, and mining. The uranium spot price has recently surged past US$85 per pound, the highest we've seen in more than 15 years. We have identified a number of high-priority targets on our Falcon property and are excited to move forward with our exploration program and get the drill turning in Q1 2024."
North Shore's Falcon property is a highly prospective property. It has a limited exploration history and is located in an area of the Athabasca basin that's enjoyed recent discoveries and increased exploration activity.
In 2021, Baselode Energy Corp. (FIND:TSX.V; BSENF:OTCQB) and 92 Energy Ltd. (NTELF:OTCMKTS) made significant grassroots uranium discoveries 40 kilometers north, demonstrating the area's potential for new basement-hosted discoveries.
In 2022, fixed-wing gravity-magnetic-radiometric surveys, which collectively covered more than 80% of Falcon, were completed. Reinterpretation of previously compiled data, in addition to the recently acquired geophysical data, will allow the company to identify priority targets that have not been tested by drilling up to this point.
North Shore is a uranium exploration company that "aims to become a major force in exploration for economic uranium deposits at the eastern margin of Saskatchewan's Athabasca Basin."
As well as the project on its Falcon property, the company controls the West Bear property, which includes five claims totaling 4,511 hectares.
Uranium Demand Set To Soar
On December 4, Stockhead reported that uranium prices had reached a 15-year high and commented that "with inflation, experts think higher prices will be necessary to incentivize new producers." This price is only exacerbated by the dwindling uranium supply.
"The existing uranium supply shortage will only get worse in the coming years, and anybody who makes a new discovery in uranium, especially in Saskatchewan's world-class Athabasca Basin, will be well-positioned to capitalize," President and CEO of North Shore, Brooke Clements, stated.
This aligns with figures released by Katus Research earlier this month. "The World Nuclear Association is predicting nearly a 100% increase in uranium demand by 2040," the report said, noting that "the run on the uranium bank has begun."
This increased demand is a result of governments looking to use increased nuclear power capacity to meet zero-carbon targets, according to an article by McAlinden Research.
Interest in nuclear power has also increased since Russia invaded Ukraine, with many nations keen on finding alternatives to Moscow's energy supplies. A key component in the move toward a carbon-free future, it's hoped that replacing fossil fuels with nuclear energy will play a big part in fighting climate change.
Why North Shore?
The company has stated that the Athabasca Basin is the "best jurisdiction in the world for uranium exploration and mining." The company's recent exploration work on its two properties at the eastern margin of the basin has revealed "compelling" targets that have not yet been tested.
It describes itself as "a new fresh face" with "ambitious plans" and "a dynamic and experienced team."
North Shore's drill program commencing in Q1 2024 offers "great potential for a new uranium discovery." The company's stock has traded off since completing its qualifying transaction and concurrent financing on October 31.
Multiple Upcoming Catalysts
The company has initiated an ambitious marketing campaign that aims to introduce the new company and its team to the public.
Streetwise Ownership Overview*
North Shore Uranium Ltd. (NSU:TSX)
| Strike Price | Number | Expiry Date |
|---|---|---|
| $0.10 | 465,000 | 03/22/2024 |
| $0.30 | 210,014 | 10/26/2025 |
The Q1 2024 drill campaign and its lead-up will also provide the company with an opportunity to lay out its plans for both existing and potential investors.
Finally, the company hopes to use the increasing awareness among the general public about the importance of nuclear power in the future and the upturn in the uranium market to draw more attention to the uranium exploration sector and to North Shore.
Ownership and Share Structure
Headquartered in White Rock, British Columbia, North Shore Uranium Ltd. has a market cap of CA$5.7 million. It has 36,805,960 shares and 465,000 warrants at CA$0.10, set to expire on March 22, 2024. It has 210,014 warrants at CA$0.30 set to expire on October 26, 2025, and 1,185,000 options.
On November 1, 2023, the company reported that it had approximately CA$2.3 million in the bank, with a monthly burn rate of less than CA$100,000 per month. This excludes any exploration spending.
According to the company, 50% of North Shore is owned by management, insiders, and strategic investors. CEO Brooke Clements owns 3.21%, with 1.18 million shares.
The rest is in retail.
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Important Disclosures:
- [North Shore Uranium Ltd.] has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of [North Shore Uranium Ltd.].
- [Lauren Rickard] wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an independent contractor.
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