First Nations Group Allows Uranium Jr. to Explore Ancestral Lands

1. Terra Clean Energy Corp. and Skyharbour Resources Ltd. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Terra Clean Energy Corp. has a consulting relationship with Street Smart an affiliate of Streetwise Reports. Street Smart Clients pay a monthly consulting fee between US$8,000 and US$20,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terra Clean Energy Corp. and Skyharbour Resources Ltd.
3. Steve Soek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
4.  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. 

For additional disclosures, please click here.

Terra Clean Energy Corp. (TCEC:CSE; TCEFF:OTC; T1KC:FSE) has executed an exploration agreement with the English River First Nation, allowing Terra access to their ancestral lands hosting the South Falcon East property and the Fraser Lakes B uranium deposit.

Terra also has received the required permits from the Saskatchewan Ministry of Environment to conduct its winter exploration program on the South Falcon East Property. The permits are good for three years to conduct exploration activities like geophysical surveys and drilling.

"The winter 2025 drilling program is currently in the final planning and scheduling phase," Terra and partner Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) said in a release.

The project lies just 18 kilometers from the outside edge of the Athabasca Basin, known for hosting the world's highest-grade uranium deposits.

"While the Fraser Lakes B uranium deposit will remain a primary focus of early efforts on the property, Terra has ample additional drill-ready targets along the Way Lake conductor at South Falcon East," the release said. "This includes the T-Bone Lake area, just north of Fraser Lakes B."

The CA$1.5 million program is to start in late January or early February and will be done by Terralogic Exploration Inc. under the supervision of Laura Tennent, project manager with TerraLogic Exploration, and C. Trevor Perkins, consulting geologist for Terra Clean Energy Corp.

'Incredible Exploration Upside'

he 12,234-hectare South Falcon East property encompasses the near-surface Fraser Lakes Zone B deposit. It has a historical Inferred resource of about 7 million pounds (7 Mlb) of U3O8 at 0.03% and 5.3 Mlb of thorium dioxide at 0.023% within 10,354,926 tons using a U3O8 cutoff grade of 0.01%.

The remaining ground offers "incredible exploration upside," Terra Chief Executive Officer Alex Klenman has said.

Results from two drill holes at the property earlier this year also found mineralization of 0.02% eU3O8 over 5.6 meters, including 0.07% eU3O8 over 1.1 meters and a 0.2-meter interval grading 0.11% eU3O8. Further results included 0.03% eU3O8 over 4.1 meters, including 0.11% eU3O8 over 0.2 meters and 0.02% eU3O8 over 1.3 meters.

The company recently gained the attention of HoldCo Markets, which initiated coverage on it with a CA$0.13 per pre-consolidation share price target (the company completed a four-for-one share consolidation on December 4), the firm reported in a research note, noting that high uranium prices would benefit the stock further.

"From our conservative base US$4.50 per pound in situ valuation for the current Fraser Lakes B deposit, every about US$0.50 per pound increase to the valuation metric translates to a net asset value uplift of about 15%," the investment firm wrote.

HoldCo noted one of the factors making Terra an attractive investment is the fact that the South Falcon East has an existing resource.

"Though the South Falcon East deposit happens to be on the periphery of the Athabasca Basin," its proximity to infrastructure may improve the project's economics, added the investment firm. In the area are Skyharbour's Moore Lake project, Cameco Corp.'s (CCO:TSX; CCJ:NYSE) McArthur River mine and Key Lake mill, and Orano SA and Rio Tinto Plc (RIO:NYSE; RIO:ASX; RIO:LSE; RTPPF:OTCPK) projects.

Also notable about the South Falcon East project, HoldCo pointed out, is its relatively shallow depth and its Rossing-style uranium mineralization, associated with intrusive rocks such as granitic pegmatites and alaskite atypical for the Athabasca. Projects with this mineralization include the Rossing, Langer Heinrich, and Norasa mines in Namibia.

Skyharbour optioned the project to Terra. Under the earn-in agreement, Terra can get 75% interest by funding exploration totaling CA$10.5 million and paying Skyharbour CA$11.1 million in cash, of which CA$$6.5 million can be settled for shares in the capital of Terra over the five-year earn-in period.

With its new drilling program, Terra is aiming to expand the deposit footprint and update the resource model. It plans to integrate higher-grade results from previous campaigns into an updated National Instrument 43-101-compliant resource estimate.

The Catalyst: AI, EVs Need Untold Amount of Energy

With artificial intelligence (AI) and energy transition's electric vehicles (EVs) set to draw an untold amount of electricity in coming years, many experts are realizing that meeting that goal with clean energy will require nuclear power and uranium.

As 2024 draws down, uranium spot prices hit new lows for the year, recently dropping to around US$72 per pound, a significant decline from the 17-year high of US$106 per pound reached in February, according to reporting by NAI 500's Sunlight Xiang.

But John Ciampaglia, chief executive officer of Sprott Asset Management, predicts that uranium prices will rebound to the range of US$90 to US$100 per pound by June 2025," Xiang reported.

Sprott Asset Management operates the largest physical uranium investment fund globally, the Sprott Physical Uranium Trust (TSX: U.U, U.UN).

Factors expected to drive uranium prices higher include supply shortages, the strategic importance of nuclear energy, the possible energy policies of U.S. President Elect Donald Trump, and emerging global nuclear power strategies, according to Xiang.

Microsoft Corp. (MSFT:NASDAQ) announced a deal with Constellation Energy Group (CEG:NYSE) to restart and buy all of the power from one of the shut-down reactors at its infamous Three Mile Island plant in Pennsylvania and the Biden administration also announced a plan to restart the Palisades plant in Michigan.

Chris Temple, publisher of The National Investor, recently noted that with the Three Mile Island deal, "uranium/nuclear power is BACK!"

"I've watched as the news has continued to point to uranium being in the early innings of this new bull market," Temple wrote. "Yet the markets have been yawning . . . until now."

Ownership and Share Structure

According to Reuters, management and insiders hold 4.98% of Terra Clean Energy. Of those, CEO Klenman holds the most, with 4.72%.

Strategic Investors Planet Ventures Inc. holds 7.4%. The rest is retail.

Terra Clean Energy has a market cap of CA$2.18 million and a 52-week range of CA$0.12 to CA$0.82.