North Shore Uranium Ltd. (NSU:TSX) announced that multiple samples from its maiden drilling program at its Falcon uranium project in Saskatchewan's Athabasca Basin returned anomalous uranium values greater than 300 parts per million (ppm) U3O8 and up to 572 ppm U3O8.
Three targets were drilled along a strong electromagnetic (EM) conductor system, with results that confirmed the earlier "encouraging" results of downhole gamma probe readings and geologic observations taken before.
Uranium mineralization was confirmed at targets P03 and P08, with the most significant intersection being at P08 — 316 ppm U3O8 over a 4.7-meter interval with a peak value of 572 ppm U3O8, the company said.
“We are very encouraged to have confirmed near-surface uranium mineralization at two of the first three targets drilled at Falcon during our maiden drill program," said President and Chief Executive Officer Brooke Clements. "These results affirm our belief that Falcon has great uranium exploration potential, emphasizing the importance of following up on these results as well as testing other compelling untested EM conductor zones that we have identified. We believe that we have just scratched the surface at Falcon, and we look forward to future exploration programs on the property.”
The news was expected to be a catalyst for the company. Earlier this month, Technical Analyst Clive Maund wrote that the case for buying the company's stock is "clear, simple, and STRONG."
"North Shore is a stock that we went for too soon," Maund wrote. However, "of particular note for investors is that drill sample results (from the March drilling program) are expected very soon. This could move the stock."
Maund said he was staying long and rated North Shore a Strong Buy for all timeframes.
The Catalyst: Mineralization at 2 Targets
At hole P03, the company said a blocky fracture zone and interpreted brittle fault with graphite-rich gouge was encountered near the projected location of the modeled EM conductor. Below this fault zone, from 196.6 meters to 209.0 meters, multiple samples had elevated uranium content, including two sample intervals with greater than 300 ppm U3O8, North Shore said.
A 4.7-meter interval in hole P08 between 42.3 meters and 47 meters returned 316 ppm U3O8 with one sample in the interval returning the highest reading from the program, 572 ppm between 42.3 meters and 42.8 meters, the company noted.
From 102.3. meters to 105.5 meters, a brittle pegmatitic and graphitic fault zone was intersected at the projected depth of the EM conductor.
"For a first program and a new area that we're just getting our feet wet (in), we feel really encouraged about the results from the field," Clements told Streetwise Reports while the assays were still out.
The news was expected to be a catalyst for the company. Earlier this month, Technical Analyst Clive Maund wrote that the case for buying the company's stock is "clear, simple, and STRONG."
Spurred on by the results, North Shore said it will look at options for further evaluating the uranium-bearing structures associated with targets P03 and P08, including drilling deeper and/or shallower and/or along strike of the interpreted EM conductor.
The modeled target at P12 was not reached, and North Shore said it was considering re-testing this target. In addition, multiple high-priority target zones that have been identified at Falcon have not yet been evaluated by drilling.
"The company is currently planning a field program to investigate the highest priority targets by mapping and prospecting and continues to prioritize targets for future drilling," North Shore said in a release.
In an updated research note in March, Red Cloud Securities analyst David Talbot wrote that Falcon is "prospective for Athabasca-style and pegmatite-hosted mineralization."
"The structures and alteration typical of basement hosted uranium mineralization was identified by this initial drill program," wrote Talbot, who did not rate the stock but noted that further exploration could warrant rerating.
Basin Provides More Than 20% of World's Supply
The Athabasca basin is a Tier 1 jurisdiction and "home to the world's highest-grade uranium deposits that provide over 20% of the world's uranium supply," Maund noted.
Nearby are Cameco Corp. (CCO:TSX; CCJ:NYSE) and Orano Canada’s Key Lake uranium mill and former mine and the Cigar Lake and MacArthur River projects, along with Denison Mines Corp. (DML:TSX; DNN:NYSE.MKT) and Orano Canada’s McClean Lake project.
"Since they are in the same belt along the east side of the Athabasca basin, the prospects for significant discoveries on North Shore's claims are clearly very good," Maund wrote.
Headquartered in British Columbia, North Shore is an "early-stage explorer with significant upside potential in the Athabasca basin," Talbot wrote. The company is focused on the basin's eastern margin, where it is exploring for economic uranium deposits. It is also evaluating opportunities to add more properties in the region to its portfolio.
Falcon comprises 15 mineral claims. North Shore owns four, covering 12,791 hectares (12,791 ha), and Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) owns the rest, spanning 42,908 ha. However, North Share has the option to earn an initial 80% stake on the rest, which it is working toward now, and to purchase the remaining 20% interest after the initial earn-in.
Talbot said the outlook for nuclear power and small modular reactors in the short and long term is positive, evidenced by "proactive government policies, public acceptance, better economics, climate change impacts and security of supply," he wrote.
Streetwise Ownership Overview*This improved attitude has led to increased uranium demand and higher uranium prices, he said. This bodes well for the uranium market and uranium companies looking for incentives to make discoveries and develop new mines.
Ownership and Share Structure
According to North Shore, there are 36,830,960 shares outstanding, and 45% of the shares are held by management, directors, and founding investors.
CEO Brooke Clements owns 3.34%, with 1.23 million shares.
The company told Streetwise, "Directors and founding investors took down 1.10 million of the 7.7 million shares in the initial financing, which closed on October 31, 2023, 14.3% of the offering. This is a sign of our commitment to building a strong company."
The company currently has a market cap of CA$4.78 million and trades in a 52-week range of CA$0.11 and CA$0.30.
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Important Disclosures:
- Skyharbour Resources is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000. North Shore Uranium Ltd. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
- As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of North Shore Uranium and Cameco Corp.
- Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
- This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company.
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Contributing Author Disclosure
- Author Certification and Compensation: [Clive Maund of clivemaund.com] is being compensated as an independent contractor by Street Smart, an affiliate of Streetwise Reports, for writing this article. Maund received his UK Technical Analysts’ Diploma in 1989. The recommendations and opinions expressed in this content accurately reflect the personal, independent, and objective views of the author regarding any and all of the designated securities discussed. No part of the compensation received by the author was, is, or will be directly or indirectly related to the specific recommendations or views expressed
Clivemaund.com Disclosures
The above represents the opinion and analysis of Mr. Maund, based on data available to him, at the time of writing. Mr. Maund's opinions are his own, and are not a recommendation or an offer to buy or sell securities. As trading and investing in any financial markets may involve serious risk of loss, Mr. Maund recommends that you consult with a qualified investment advisor, one licensed by appropriate regulatory agencies in your legal jurisdiction and do your own due diligence and research when making any kind of a transaction with financial ramifications. Although a qualified and experienced stock market analyst, Clive Maund is not a Registered Securities Advisor. Therefore Mr. Maund's opinions on the market and stocks cannot be only be construed as a recommendation or solicitation to buy and sell securities.
