Newly trading company North Shore Uranium Ltd. (NSU:TSX), with projects near mills and mines that produce 100% of the uranium in Canada, is looking to become a "major force" in the exploration of the important deposits in Saskatchewan's Athabasca Basin.
The company plans to start drilling for the important nuclear fuel on its Falcon and West Bear projects next year as analysts call for a supply-demand deficit and uranium prices hit their highest levels since 2008 — US$74.38 a pound on Friday.
"There's a supply shortage coming and anybody who makes a new discovery in uranium, especially in a place like Saskatchewan has Athabasca basin where there's a couple of active mills, and where our two properties are near infrastructure, … those become very, very valuable assets," noted North Shore President and Chief Executive Officer Brooke Clements, a geologist with more than 35 years' experience in the industry.
According to a recent report by the World Nuclear Association, demand for uranium for nuclear reactors is expected to climb 28% by 2030 and nearly double by 2040 as governments work toward meeting zero-carbon targets.
"From the beginning of the next decade, planned mines and prospective mines, in addition to increasing quantities of unspecified supply, will need to be brought into production," the report said.
In general, global nuclear power-generating capacity is expected to rise 82% to 792 gigawatts by 2050 as the world transitions from fossil fuels, the International Atomic Agency said.
"Uranium is the one energy source that could satisfy every Millennial and Gen-Xer on the planet; zero pollutive impact anywhere and a reliable cost-effective means of heating the planet and recharging Elon Musk’s vehicles," industry observer Michael Ballanger wrote. "Handled properly, nuclear power is truly the alternative for coal and oil and natural gas."
The Catalyst: With Neighbors Like These
North Shore's projects abut the eastern edge of the Athabasca Basin, next to Cameco Corp.'s Cigar Lake and McArthur River projects and the two mills that serve them.
McArthur River and Key Lake are the world's largest high-grade uranium mine and mill, Cameco said, producing 535 million pounds of ore. Cigar Lake is the world's highest-grade uranium mine and has produced 105 million pounds of uranium since 2015.
The company also compares itself to two other neighbors in the Athabasca Basin that have made high-profile uranium discoveries: 92 Energy Ltd.'s Gemini and Baselode Energy Corp.'s ACKIO deposits.
“Results to date highlight the possibility of uncovering other additional mineralized zones," Noted 92 Energy Managing Director Siobhan Lancaster. "The Gemini project covers a vast area, much of which remains virtually unexplored, and there is clearly immense growth potential in several directions.”
Drilling at Gemini intersected thick zones of mineralization with assay results including 17.5 meters at 0.38% U3O8, including 2 meters at 0.82% U3O8 and 0.5 meters at 0.94% U3O8.
Baseload's results at ACKIO included 10.5 meters at 0.28% U3O8, 3.6 meters at 0.69% U3O8, and 7.5 meters at 1.67% U3O8, including 5 meters at 2.45% U3O8.
North Shore controls more than 60,000 hectares in its Falcon and West Bear projects. Holes drilled at Falcon in 2008 showed elevated uranium values up to 0.235% U3O8, according to the company. However, the company is focused on evaluating high-quality targets that were not previously drilled.
"We've got lots of geophysical data, and we've defined a lot of conductors," Clements told Streetwise Reports. "We're working hard with our consultants … to optimize our first drill program drilling the best possible spots."
More than 30 targets have been selected using geophysical data and publicly available electromagnetic (EM) and geological data.
"This is a property with well-defined EM conductors that have not been tested," Clements said.
Nuclear Power Resurging
Uranium from mining is used primarily as fuel for nuclear fission in power plants, but it is also used in the medicine, food production, and space industries. There are currently about 440 nuclear reactors operating worldwide, according to the World Nuclear Association. In 2022, they provided about 10% of the world's electricity.
The sector suffers from stigma surrounding the risk of radiation and accidents — like those at Chernobyl and Three Mile Island — and the element's use to power nuclear bombs. However, new studies that show other energy producing sectors are more dangerous than nuclear energy. In fact, the coal industry accounts for as many as 120 deaths per year compared to less than 0.01 deaths per year in the nuclear industry, according to the World Nuclear Association.
Investors are hoping nuclear power will have a resurgence as governments attempt to turn away from fossil fuels.
Countries closed dozens of reactors after 2011's earthquake and tsunami destroyed the Fukushima Daiichi nuclear power plant in Japan, the world's worst nuclear disaster since Chernobyl, according to Reuters.
Global uranium production dropped by a quarter between 2016 and 2020 to 47,731 tonnes before recovering to 49,355 tonnes last year, Reuters reported.
Streetwise Ownership Overview*Ownership and Share Structure
Insiders and management account for about 17% of North Shore's shares, according to the company. The CEO Clements owns 9.28%, Doris A. Meyer owns 6.54%, Tseren Tsend owns 6.54%, and Alain Fontaine owns 5.91%, Reuters said.
Terra Capital Green Metals Fund is the only institutional investor with nearly 1% of shares.
About 32% of the company is owned by strategic investors, including Alex Molyneux with 9.8%, Andrew Stewart with 9.4%, and Eoin Saadien with 8.1%.
The rest, about 50%, is retail.
North Shore's market cap is CA$5.7 million, with 11.85 million shares outstanding. It trades in a 52-week range of CA$0.30 and CA$0.13.
Sign up for our FREE newsletter
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.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- The article does not constitute investment advice. Each reader is encouraged to consult with his or her individual financial professional. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. This article is not a solicitation for 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. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company mentioned on Streetwise Reports.
For additional disclosures, please click here.
