Nuclear sentiment shift spurs uranium player Basin Energy into action
The Canadian summer exploration season is almost upon us, and so is Basin Energy’s maiden drill program at its Geikie uranium project.
Located in the highly prospective Athabasca Uranium province, underexplored Geikie is in close proximity to 92 Energy’s Gemini Mineralised Zone and Baselode Energy’s ACKIO projects and has favourable conditions to host shallow yet high-grade uranium mineralisation.
The company recently completed a series of airborne geophysics on the Geikie project which it says has been largely overlooked for uranium exploration since the initial phase of work which concluded in the early 1980s.
With mobilisation set to begin in the second week of June, the initial program will consist of a 2,000m diamond drilling program for a minimum of 8 drill holes, with proposed depths up to 250m.
Basin Energy (ASX:BSN) MD Pete Moorhouse said this is a significant milestone for Basin, being the initial phase of the first exploration drilling completed by the company and represented the start of an exciting 2023 summer field season.
“Our efforts to date have generated a compelling pipeline of regionally significant drill-ready uranium targets at shallow depths,” Moorhouse said.
“As this drilling commences, Basin continues to develop the secondary targets identified, whilst bolstering North Millennium and Marshall targeting criteria.”
It’s a great time to be a uranium-focused miner with a real shot at proving up a highly sought-after commodity.
Uranium is back in-vogue lately, largely due to a global shift in energy policy around nuclear energy, as well as the drying up of Russian supply due to sanctions over the war in Ukraine.
There are further positives for uranium, as Japan announced plans to restart 17 nuclear power plants in a bid to reach net-zero carbon emissions by 2050; the EU voted in favour to allow nuclear power plants to be marketed as sustainable investments; and for the first time there was a focus on nuclear energy at COP27 as a potential ‘low emission’ energy source instead of renewables.
“We are seeing a very positive sentiment in the uranium space emerging, and Basin is extremely well positioned to capitalise on this through the exploration of its projects in the world-class Athabasca Basin.” Moorhouse said.
“We look forward to providing further updates as the season develops.”
The $8m market cap company has an interest in two more highly prospective projects in Canada’s Athabasca basin, including North Millennium which is 7km north of Cameco’s Millennium deposit which contains 104.8Mlb U3O8 at 3.76% and Marshall which is 10km from the Millennium deposit.
BSN wrapped up the quarter ending 31 March with a cash balance of $7.3m which will fund 2023’s exploration campaign.
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.