Covering about 100,000km2 of Canada’s northern Saskatchewan and a small portion of Alberta is the Athabasca Basin, home to roughly 20% of the world’s uranium production.

Some of the highest-grade uranium in the history of uranium production over the last 60 years is found here, grading up to 45% – twenty times the world average.

The region hosts 10 of the world’s top 15 highest grading uranium deposits including Cameco’s McArthur River and Cigar Lake mines, as well as recent world-class discoveries like NexGen Energy’s Arrow deposit and Fission Uranium Corp’s Tripe R deposit.

The newest ASX uranium play to enter the scene is Terra Uranium (ASX:T92), led by a board and management team who have many years of uranium experience covering exploration to development and production.

 

Substantial growth in the belief of uranium

The company is backed by executive chairman Andrew Vigar, the co-founder of several public listed companies including Alligator Energy (ASX:AGE) – a popular uranium play with projects in Australia’s well-known uranium province in the Northern Territory, Alligator Rivers, as well as in South Australia.

But the industry has changed enormously since Alligator Energy made its entrance on the ASX in 2011 around the time of Fukishima, Vigar says.

“Back then the Greens hated us, and nobody really wanted to know about nuclear.

“Coal was going flat out, everyone was happy with coal mines and here we are ten years later – nobody wants anything to do with anything that generates carbon and nuclear is considered a green energy source by the EU and the US,” he adds.

“There’s been a big change, a substantial growth in the belief of uranium and driving that demand is the reactors.

“Over the next five to ten years I believe we will see a big increase in small modular reactors as the technology is advancing very rapidly.”

 

Building a strategic position alongside the world’s largest uranium deposits

Terra Uranium has staked three projects (17 claims) within 80km of existing production infrastructure in the Athabasca region and major producers such as Camico, Denison and Orano. These include the HawkRock, Pasfield Lake and Parker Lake projects.

“Canadians not only produce uranium, but they also process it and they have nuclear power stations – they produce around 20% of their electricity from nuclear, so it’s a very friendly environment and has been for a long time,” he explains.

“Not only are they regulators but the public is fully supportive of what we are trying to do, that really does help a lot – it makes our job a lot easier.”

Once the company lists under the ticker T92, the renowned Cigar Lake and McAruthur River projects will be used as exploration analogues to lead the discovery and development of uranium resources.

“We are seeing good signs of uranium at surface and strong response from old geophysics, and we think they are highly prospective,” Vigar says.

“We are flying a new airborne geophysics survey straight after we list in September to explore major structures which have had very little exploration work since the 1980’s.

“The survey will target conductors about 400 to 800m under surface and once they have been identified we will then kick off diamond drilling around February next year.”

 

IPO details

Terra Uranium’s offer closed last week after raising $7.5 million at $0.20 a share in a heavily oversubscribed placement to sophisticated and professional investors.

Following its ASX listing in early September, Vigar says the funds will be used for exploration activities to test the viability of its projects as well as assess new strategic acquisitions and other resource opportunities to generate value down the track.

Peak Asset Management is the lead manager to the offer.