Basin ready to power into uranium exploration following ASX listing
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Australia’s newest uranium play is poised to start trading on the ASX this afternoon after successfully raising $9m through a heavily oversubscribed IPO priced at 20c per share.
Strong support for the IPO was received from Australian and North American specialist resource and energy funds.
This should come as no surprise given the growing realisation that nuclear energy is necessary for energy security and could support the shift to net zero emissions.
This positive outlook for nuclear is coupled with Basin Energy’s (ASX:BSN) suite of highly prospective assets located within the world-class Athabasca Basin in Saskatchewan, Canada, which is widely acknowledged as the highest-grade uranium district in the world.
With the influx of capital from the IPO, the Company is now well funded to kick off surface mapping and sampling, geophysical data review and target generation work across its North Millennium, Geikie and Marshall projects, with drilling at Geikie expected to commence in the first quarter of 2023.
Managing director Pete Moorhouse said the Company was delighted with the strong demand for its IPO and believes the quality of its assets and executive team is reflected by the calibre of its investors.
“Basin identified and gained interests in three projects located in the southeast corner of Canada’s world class uranium mining district, the Athabasca Basin,” he added.
“Each project has a clear exploration pathway defined, with work now underway to allow targeted exploration drilling to be completed at all three projects throughout 2023.
“The pedigree of the Athabasca Basin speaks for itself, being home to the highest grade and some of the largest uranium deposits globally.”
North Millennium is 40km southwest of McArthur River just 7km south of and within an interpreted extension of the Mother Fault that hosts Cameco’s major Millennium Deposit (104.8 Mlb U3O8 @ 3.76%) in the heart of the Athabasca Basin.
Basin’s JV partner CanAlaska (TSXV:CVV) is exploring next door along strike in a joint venture with Cameco, releasing exploration success last week at their West McArthur project intersecting 9m at 2.4% U3O8 including 6m @ 3.5% U3O8.
Two priority targets have been identified along a 5km corridor for initial exploration.
Geikie, located on the Eastern fringe of the Athabasca Basin, boasts shallow targets ripe for rapid exploration in what is an overlooked part of the district.
Historical surface geochemistry demonstrates the presence of uranium and pathfinder elements (grading as high as 0.225% U3O8 and 0.18% U3O8), with existing geophysics providing walk up targets.
Highlighting the prospectivity of the area, the project is situated adjacent to two projects with recent remarkable exploration success;
Finally, Marshall is centred on a strong magnetic and conductive structure interpreted as a significant unconformity-type uranium target only 11km west of the Millennium Deposit.
This article was developed in collaboration with Basin Energy, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.