Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE) will commence its largest drill program so far at the South Falcon East uranium project on the periphery of the Athabasca Basin in mid-June, reported HoldCo Markets in an April 30 research note.
"The stage is set with several key indicators present for higher grade, Athabasca Basin deposits: graphitic metasediments, brittle reactivated basement structures and both clay alteration and hematite alteration," HoldCo wrote.
Terra Clean Energy has an earn-in agreement with the project owner, Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE), for 51% interest by 2027, 75% by 2029.
"Our investment thesis remains intact," wrote HoldCo. "With Terra Clean Energy we see a microcap valuation leading to exposure to a pre-established, 6,900,00 pound Inferred shallow uranium resource situated near the needed infrastructure required for mining."
200% Return Potential
HoldCo reiterated its CA$0.33 per share price objective on the explorer, now trading at about CA$0.11 per share. From here, the target implies 200% upside.
"Given the robust near-term drilling plans, the risk remains on the upside for a material valuation rerate," wrote HoldCo.
Terra Clean Energy has 36.33 million shares outstanding. Its market cap is CA$4 million (CA$4M).
Building on Last Campaign
HoldCo reported that Terra's CA$2M, helicopter-supported summer program at South Falcon East will consist of seven to 10 diamond drill holes over 2,500 meters (2,500m). This will exceed the scope of the previous, 2025 winter campaign by about 500m.
The purpose of this program, explained HoldCo, is to test an area where various structures intersect: one north to northwest trending and brittle, one dipping north with strong clay alteration and mineralized pegmatites. The latter showed "hydrothermal hematite alteration hosted in graphitic pelitic gneiss."
This target area, highlighted in winter 2025, is about 120–150m north of four holes drilled in winter (SF0063, SF0065, SF0066 and SF0067) and slightly north of the Way Lake Conductor. The target area intersects an inferred northwest to southeast trending fault.
During the winter 2025 program, "successful on numerous fronts," according to HoldCo, Terra encountered wider intervals of mineralization than it did in 2024's winter program. Also year over year, more consistent and higher-grade spikes were hit, one for example being 0.16 eU308 (hole SF0065).
On The Horizon
Various catalysts for Terra are slated to happen this year. Drill results from the 2025 winter program are expected this month. Next month, the summer campaign will begin.
Subsequently, a resource estimate update is planned. It will include all drilling done in 2024 and in 2025. Completion of this is anticipated in Q4/25.
The Fraser Lakes B deposit's current NI 43-101 compliant, Inferred uranium resource is an estimated 10,350,000 tons of 0.03% U3O8 plus thorium. Mineralization remains open downdip and along strike, thus, further exploration spending and work could increase the grade and expand the resource.
"The relatively shallow, about 150m deposit would be ideally positioned for open-pit mining," HoldCo noted.
South Falcon East is 50 kilometers (50 km) east of Cameco's Key Lake uranium mine and mill and 7 km north of the line providing power to the operations.
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