Connected Minerals Ltd (ASX:CML) earlier this week shared details on its exploration activities and outlook following its recent relisting. The company, led by managing director and CEO Warrick Clent, focuses on uranium projects in Namibia and multi-mineral assets in Western Australia.
The company recently reported rock chip results from its Etango North-East project, part of three Namibian licences. Clent highlighted that uranium grades exceeded 2,000 ppm, describing the results as "mind-blowing" and emphasising their significance for upcoming exploration programs.
Connected Minerals also operates projects in Western Australia targeting copper, gold, lead, zinc and rare earths. These projects complement its uranium focus, ensuring diversification within its portfolio.
The company anticipates strong growth for uranium due to the global shift toward nuclear energy.
Clent noted increased nuclear reactor builds and recommissioning, as well as growing corporate interest from major players. Despite recent price fluctuations, he expects demand to outstrip supply by 30% by 2030, supporting a bullish long-term outlook for uranium.
With strong early exploration results and drilling plans for early 2025, Connected Minerals believes it is well-positioned for growth. The company has carefully selected its projects, which Clent described as "fantastic", and is set to leverage its first-mover advantage in Namibia.
Highlights
- Relisting: Connected Minerals is a newly relisted company focused on uranium exploration in Namibia and multi-mineral projects in Western Australia.
- Namibia uranium projects: Three licences, with one (Etango North-East) already granted. Adjacent to Bannerman's Etango project with promising results over 2,000 ppm uranium.
- Western Australia projects: Focus on copper, gold, lead, zinc and rare earths.
- Uranium market outlook: Growing demand due to nuclear energy expansion. Supply-demand gap of 30% expected by 2030.
- Investor case: Strong early exploration results, a strategic asset portfolio, and plans for drilling in Q1 2024.
Diversified company
Tylah Tully (TT): Warrick, thanks for joining us today.
Warrick Clent (WC): Thanks for having us, Tyler.
TT: To start, can you talk to us about the company and its projects?
WC: Certainly. Connected Minerals is a relisted company. We've been on the boards now for just under four weeks.
We've already been quite active in the field on our major projects, primarily our uranium projects in Namibia. We have three licences there—one already granted, the Etango North-East project, and two more under application.
We also have three projects in Western Australia, focused on copper, gold, lead, zinc and rare earths potential.
TT: You recently released some rock chip results from Etango North-East. Can you share the highlights and the potential you see there?
WC: Absolutely. At Etango North-East, we are adjacent to Bannerman's Etango project, which is significant, containing 116.0 million tonnes at 220 ppm uranium.
We promised investors we would be active right after relisting, and we've delivered on that. Within days of relisting, we had a team conducting fieldwork.
The results, which we released on Monday, are fantastic. To put it in perspective, getting 300 to 400 ppm uranium in early exploration would usually be exciting. But our results came back over 2,000 ppm, which is just mind-blowing at this stage. It sets us up for an exciting exploration program moving forward.
Uranium outlook
TT: As a uranium explorer, what's your outlook on the commodity, and what are your thoughts on supply and demand?
Warrick Clent: When we were planning to relist, we looked at future-facing commodities. Uranium stood out because of its role in addressing the world’s energy needs. Nuclear power is essential for baseload energy, and we're seeing growth in nuclear reactor builds and recommissioning.
Major players like Google and Amazon are also entering agreements related to nuclear energy. With our projects in Namibia, we’re well-positioned to capitalise on these trends.
While uranium prices have fluctuated—we saw $105.00 per pound earlier this year, down to $76.00 recently—the supply-demand curve is clear. By 2030, demand will outstrip supply by about 30%, creating a strong growth story for uranium.
TT: Before we end, can you outline your investor case? Why should investors be interested in Connected Minerals?
WC: We have the right people, the right projects, and the right timing. We’ve spent years selecting our assets carefully. With our Etango North-East results being so strong, we’re now set up for drilling in Q1 next year. It’s an exciting time for the company.
TT: Warrick, thanks so much for joining us today.
WC: Appreciate that very much, Tyler. Thanks very much.
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