The Athabasca Basin, an area spanning 100,000 square kilometers in northern Saskatchewan and a small part of Alberta in Canada, produces about 10% of the world’s uranium.
The region contains the largest high-grade uranium deposits in the world, with grades ranging from 10 to 100 times greater than the average grades of deposits located elsewhere.
As geopolitical shifts and climate concerns have prompted a resurgence in nuclear energy projects, demand for uranium is expected to increase 28% by 2030 and nearly double by 2040, according to a 2023 report from the World Nuclear Association.
This supply tightness has seen the uranium price soar to a 16-year high of $106 per pound in early February 2024.
Given these market dynamics, the Athabasca Basin is seeing renewed interest from major players and junior miners alike.
The Basin hosts the world’s largest high-grade uranium mine and mill, Cameco Corporation (TSX:CCO)'s McArthur River/Key Lake operation. Cameco in 2022 reopened the McArthur River mine after placing it in care and maintenance in 2018 due to unfavorable market conditions. It is expected to achieve production of 18 million pounds of uranium in 2024.
Another major mine in the area is Cameco’s Cigar Lake uranium mine the ore of which is processed 70 kilometers to the northeast at the McClean Lake mill. This facility is also expected to produce 18 million pounds of uranium in 2024.
In terms of up-and-coming uranium mines, Denison Mines Corp (TSX:DML) is developing its Wheeler River project located along the eastern edge of the Basin which hosts two high-grade uranium deposits Pheonix and Gryphon.
And at the southern boundary of the region, Nexgen Energy Ltd (TSX-V:NXE, NYSE:NXE, ASX:NXG) holds a 190,000-hectare land package and is advancing its Rook I project, which includes the high-grade Arrow deposit.
Meanwhile, dozens of junior mining companies are also exploring the potential of their highly prospective land holdings in the Athabasca Basin. Proactive has selected some of the most interesting projects in the Basin to watch as uranium demand increases.
Standard Uranium
Standard Uranium Ltd (TSX-V:STND, OTCQB:STTDF) on February 1, 2024, announced that it is increasing its footprint in the region by adding the Cable Bay Southwest, Ox Lake, and Brown Lake projects to its portfolio. With the addition of these properties, Standard Uranium has an ownership interest in 10 projects spanning 196,300 acres in the Athabasca Basin.
Its flagship project, the 33,737-hectare Davidson River project in the southwest Athabasca region, is located on the inferred extension of the structural trend hosting Fission Uranium Corp. (TSX:FCU, OTCQX:FCUUF)'s Triple R deposit and NexGen Energy's Arrow deposit.
During 2024, Standard Uranium will carry out a drill campaign at the project following up on prospective results from 2022 and to test new high-priority targets.
This year the company also plans to undertake initial exploration and geophysical programs at its newly acquired Rocas and Corvos projects in addition to drill campaigns at the Canary, Ascent, and Atlantic projects.
Global Energy Metals
Global Energy Metals Corp (TSX-V:GEMC) has also added uranium projects in the Athabasca Basin to its portfolio through a recently announced royalty and option agreement with Fulcrum Metals.
The company secured a 0.5% royalty on net smelter returns on Fulcrum’s Charlot-Neely, Fontaine Lake, Snowbird and South Pendleton projects. and the option to acquire up to a 19.9% stake in the projects.
Initial exploration by Fulcrum demonstrated the potential of the projects, located along strike from historic uranium mines. Samples have returned uranium grades of up to 6.22% at Charlot-Neely and 1.44% at Fontaine-Lake.
ATHA Energy
In addition to an impressive exploration package of 17 projects across 3.8 million acres in the Athabasca Basin, ATHA Energy Corp (CSE:SASK, OTCQB:SASKF) also holds a 10% carried interest portfolio of claims being operated in the region by two successful developers, Nexgen Energy Ltd (TSX-V:NXE, NYSE:NXE, ASX:NXG) and IsoEnergy Limited (TSX-V:ISO).
The company has conducted large-scale electromagnetic surveys across its project areas, resulting in 291 kilometers of conductive lineaments and the identification of 25 prospective targets across the North Rim, East Rim and Cable Bay districts.
The results from several projects are still being processed and will be integrated with geophysics and regional geochemistry programs expected to be completed in the first quarter of 2024 to further define prospective targets across ATHA’s portfolio.
Baselode Energy
Baselode Energy Corp (TSX-V:FIND, OTCQB:BSENF) holds 100% control over its 264,000-hectare land package including the Bear, Catharsis and Hook (ACKIO) projects in the Athabasca Basin.
It has committed $12 million to its 2024 exploration plan which includes four drill programs across its portfolio.
It plans to expand on its discovery of near-surface uranium zones at the ACKIO deposit in addition to targeting the deposit at depth for the first time. It plans to use a ground-based, satellite-connected ambient noise tomography (ANT) survey before conducting 12,000 meters of drilling across 35 to 50 drill holes.
Power Metal Resources
London-listed Power Metal Resources PLC (AIM:POW), through its wholly-owned Canadian subsidiary, owns 17 projects spanning 100,514 hectares in and around the Athabasca Basin.
Exploration across the portfolio to date has confirmed these projects are highly prospective for uranium mineralization, with trenching at the Thibault Lake project returning samples of 1.09% triuranium octoxide (a compound of uranium) over 10.7 meters, grab samples of up to 3.54% triuranium octoxide at the Cook Lake project and soil samples up to 13,200 parts per billion uranium at the Tait Hill project.
The company in December 2023 announced that results for its unmanned aerial vehicle magnetic geophysics surveys covering the Clearwater and Cook Lake projects have highlighted several high-priority targets for future exploration.
Header photo courtesy of Standard Uranium President and VP Exploration Sean Hillacre