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Standard Uranium sees potential bull market in uranium on rising clean-energy demand

Snapshot

The Vancouver-based explorer was created in 2017 with the sole intention of making a high-grade discovery at its flagship Davidson River property in the Athabasca Basin region of Saskatchewan

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Quick facts: Standard Uranium

Price: 0.195 CAD

TSX-V:STND
Market: TSX-V
Market Cap: $17.15 m
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  • Focused on its Davidson River flagship project in Southwest Athabasca Uranium District in Saskatchewan
  • Phase II 4,500-metre drill program currently up and running the project
  • Now trading on TSX Venture Exchange as more investors eye uranium industry 

What Standard Uranium does:

Standard Uranium Ltd (CVE:STND) (OTCQB:STTDF) is a Canadian uranium exploration company looking to make the next big discovery in the Athabasca Basin region of Saskatchewan where it holds five high-quality projects comprising 56,411 hectares in 36 mineral dispositions.  

The Vancouver-based company is focused on its Davidson River flagship project in the Southwest Athabasca Uranium District. Standard Uranium was created in 2017 with the sole intention of making a high-grade discovery at Davidson. More than 400 million pounds of uranium deposits have been discovered in the district in recent years. 

The company completed its inaugural 5,607-metre (m) Phase I drill program on the 25,886-hectare Davidson River property in September 2020. It drilled 13 holes - in addition to more than 1,300 holes already drilled by other miners - across the Warrior Trend of the project. A Phase 2 drill program is currently up and running. 

The next notable company project is the 100%-owned Sun Dog Uranium Project in the northwestern Athabasca Basin. Several high-priority target zones have been identified on the 17,309-hectare property. The target is high-grade, basement-hosted unconformity-style uranium mineralization. Moreover, the company suspects that there is also significant gold and platinum-group potential on the property. 

The last three projects are in the Eastern Athabasva Basin - Atlantic, Canary, and Ascent. Together, the 100%-owned claims total 13,215 hectares and boast several technically strong exploration targets with discovery potential.

The company also controls the Clearwater domain that is thought to be the potential source of uranium or the source of the hydrothermal system related to uranium deposits in the Southwest Athabasca Basin. Exploration corridors to the east of the Clearwater domain have had several recent major uranium discoveries.

How is it doing: 

In 2020, Standard Uranium achieved a major milestone when it started trading on the TSX Venture Exchange - a move that coincided with what the company, hedge funds, and Wall Street see as a potentially emerging bull market in uranium - with the current price at around $30 a pound - given the US’s new push for more clean-energy generation and net-zero emissions over the next 30 years. 

In the US, for example, around 20% of electricity is currently already nuclear-generated. But further sources of uranium will be needed if the US starts building more nuclear power plants. The global supply of uranium, however, is dominated by the world's largest producer Kazakhstan (40%), with the rest divided up among Canada (13%), Australia (12%), and Namibia (10%).

In the time since joining the exchange and benefitting from higher exposure to a much wider investor base, Standard Uranium has raised nearly $8 million in capital financing via two prospectus offerings to help fund drilling at Davidson River, among other things. 

In fact, the company started 2021 by launching its Phase II winter drill program at Davidson River. The program will consist of about 4,500m of diamond drilling in nine holes, with the objective of making a basement-hosted, high-grade uranium discovery. 

Standard Uranium noted that its project is located 25-30 kilometres to the west of Fission Uranium’s Triple R and NexGen’s Arrow deposits and encapsulates the Warrior corridor.

The program includes follow-up drilling on the Warrior corridor with vectoring information gained during Phase I.  And it will explore the new Bronco and Saint corridors through drill testing offsets and flexures in wide conductive corridors, searching for radioactivity, alteration, structure, and graphite-rich and sulphide-rich shear zones.

Inflection points:

  • Increase geological knowledge and discovery potential at Davidson River
  • Launch 1,350 metres of drilling in 4 holes at Davidson during 2021 summer
  • Start Sun Dog ground gravity program in March 2021

What the boss says:

“It is great to see the drills turning again on our Davidson River Project and to have the Aggressive Drilling team working with us once again,” Standard Uranium CEO Jon Bey said recently. “Their experience with our Phase I drilling program, and in this region, will go a long way to help us in making a high-grade uranium discovery."

Contact the author: patrick@proactiveinvestors.com

Follow him on Twitter @PatrickMGraham

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Standard Uranium continues drill program at Davidson River Uranium Project

Standard Uranium (CVE: STND- OTCQB: STTDF) CEO Jon Bey joined Steve Darling from Proactive after he returned from their Davidson River Uranium Project in Saskatchewan. Bey said the drill program is on track and progressing. Bey also shared with Proactive his thoughts after a media story...

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