PUREPOINT URANIUM GROUP INC. MONTHLY ATHABASCA BASIN EXPLORATION UPDATE
October 2021
70 years of global uranium production by country
Source:Visual Capitalist
Uranium was discovered just over 200 years ago in 1789, and today, it's among the world's most important energy min- erals. Throughout history, several events have left their imprints on global uranium production, from the invention of nuclear energy to the stockpiling of weapons during the Cold War. The above infograph- ic visualizes over 70 years of uranium production by country using data from the Nuclear Energy Agency.
The first commercial nuclear power plant came online in 1956. Before that, uranium production was mainly dedicated to satisfying military requirements. In the 1940s,
most of the world's uranium came from the
Shinkolobwe Mine in the Belgian Congo. During this time, Shinkolobwe and Canada's Eldora- do Mine also supplied uranium for the Manhattan Project and the world's first atomic bomb. However, the end of World War II marked the beginning of two events that changed the uranium industry-the Cold War and the advent of nuclear energy.
Between 1960 and 1980, global uranium production increased by 53% to reach an all-time high of 69,692 tonnes.Several factors drove this rise in production, including the heat of the Cold War and the rising demand for nuclear power. For example, the U.S. had 5,543 nuclear warheads in 1957. 10 years later, it had over 31,000, and the USSR eventually surpassed this with a peak stockpile of around 40,000 warheads by 1986. Additionally, the increasing number of reactors worldwide also propelled uranium production to new highs. In 1960, 15 reactors were operating globally. By 1980, this number increased to 245. What's more, after the Oil Crisis in 1973, nuclear power emerged as a viable alternative to fossil fuels, and the price of uranium tripled between 1973 and 1975. Although the increase in uranium production was less dramatic, high prices made mining more profitable. However, several nuclear accidents in the world such as the Three Mile Island reactor meltdown in the U.S. in 1979 and the Chernobyl disaster in Ukraine in 1987 brought a stop to the rapid growth of nuclear power. Furthermore, following the end of the Cold War, military stockpiles of uranium were used as "secondary supply", reducing the need for mine production to some extent. As a result, uranium production declined sharply after 1987.
Uranium producers have changed considerably over time. Since the economic viability of uranium deposits often depends on the market price, many countries have dropped out due to lower uranium prices, while others have entered the mix.
Kazakhstan has been the world's leading uranium producer since 2009. In 2019, Kazakhstan mined more uranium than Canada, Australia, and Namibia combined, making up 42% of global production. It's also worth noting that Kazakhstan, Uzbekistan, Russia, and Ukraine-four countries that were formerly part of the USSR-made it into the top 10 list. Canada was the world's second-largest producer of uranium despite production cuts at the country's biggest uranium mines. Australia ranked third with just three uranium-producing mines including Olympic Dam, the world's largest known uranium deposit.
Overall, the top 10 countries accounted for 99% of global uranium production, and the majority of this came from the top three. However, global production has been on a downward trend since 2016, with a slight bump in 2019.
The uranium market is at an inflection point, with tightening supply and rising demand. As of 2020, mine production covered only 74% of world reactor requirements, and analysts expect the market deficit to continue through 2022. Although secondary sources have historically filled the gap between demand and supply, recent developments in the uranium market have driven prices to six-year highs, which could also affect uranium production.
UxC Consulting Spot Price
(US$)
August 31, 2021 | $34.59/lb U3O8 |
September 30, 2021 | $42.75/lb U3O8 |
Change of +$8.16/lb U3O8
UxC Consulting Long-Term Price
(US$)
August 31, 2021 | $33.50/lb U3O8 |
September 30, 2021 | $40.00/lb U3O8 |
Change of +$6.50/lb U3O8
Key Basin Announcements
09-07-2021: Azincourt Energy completes radiometric Survey and updates plans for the East Preston Uranium Project
09-09-2021: Forum provides update and plans for Q1-2022
09-09-21: CanAlaska - Denison Mines JV to dDrill Moon Lake South
09-14-2021: Skyharbour intersects high grade uranium mineralization at Maverick East Zone
09-15-2021: CanAlaska Options Key Extension Uranium Project
09-22-2021: Denison Announces Decision to Advance Wheeler River to Feasibility Study Stage
09-23-2021: CanAlaska deals three uranium projects in the Athabasca Basin
09-29-2021: Baselode announces encouraging results at Hook Uranium Project
09-29-2021: Purepoint Uranium commences Drilling at 100% Owned Henday Lake
09-30-2021: ALX aquires McKenzie Lake Uranium Project
In addition, the shift towards clean energy could provide a boost to uranium demand, especially because of the advantages of nuclear power. With countries like China embracing nuclear energy and others planning for complete phase-outs, nuclear's evolving role in the global energy mix will likely shape the future of uranium production.•
Monthly Athabasca Basin Exploration Update
Month over Month Uranium Stock Performance
(as of September 30, 2021)
Producing, Development & Advanced Exploration Companies
Fission Uranium
Peninsula Energy
Laramide Resources
Average 19.30%
Cameco
Denison Mines
UEX
Nexgen Energy
0.00% | 10.00% | 20.00% | 30.00% | 40.00% | 50.00% | 60.00% | 70.00% |
Athabasca Basin Exploration Companies
ALX Resources
Baselode Energy
Fission 3.0
Azincourt Energy
Skyharbour Resources
Average 39.3%
CanAlaska Uranium
Standard Uranium
Forum Energy
IsoEnergy
PUREPOINT URANIUM
0.0% | 10.0% | 20.0% | 30.0% | 40.0% | 50.0% | 60.0% | 70.0% |
October 2021
Monthly Athabasca Basin
Exploration Update
Presented by Purepoint Uranium Group Inc. (TSXV: PTU/OTCQB: PTUUF), the Monthly Athabasca Basin Exploration Update is a monthly newsletter that gathers information on what's happening with uranium exploration companies in the Atha- basca Basin, including its monthly exploration news, stock performances as well as the spot- and long-term uranium prices.
Purepoint Uranium Group Inc.
TSXV: PTU/ OTCQB: PTUUF
Purepoint Uranium Group Inc. is a uranium exploration company focused on precision exploration of its projects in the Athabasca Basin.
Its flagship project is the Hook Lake, a joint venture with two of the largest producers in the world, Cameco Corporation and Orano Canada.
Together with its flagship project, the Company operates 12 projects across approximately 175,000 hectares of claims throughout the Athabasca Basin.
For more information, please visit: www.purepoint.ca.
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Disclaimer information:
All information provided in this newsletter is based upon sources that Purepoint Uranium Group Inc. (Purepoint Uranium) believes to be reliable. Purepoint Uranium does not guarantee their accuracy or completeness. Any and all statements as of the date of this newsletter are subject to change without notice. All information provided on this newsletter must be understood as information presented for discussion only and not investment advice. Purepoint Uranium advises all readers and subscribers to seek advice from a registered professional securities representative before deciding to trade in stocks featured on this newsletter or any stocks for that matter. All statements and expressions of the companies featured are not meant to be a solicitation or recommendation to buy, sell, or hold securities. Purepoint expressly disclaims any obligation to update or revise any such forward-looking statements.
Copyright ©2021 Purepoint Uranium Group Inc. All rights reserved. | Page 2 |
Monthly Athabasca Basin Exploration UpdateOctober 2021
Purepoint Uranium Commences Drilling at | ||||
Market Cap | Price as of | 52-Week | 52-Week | |
100% Owned Henday Lake | 09/30/21 | High | Low | |
TSXV: PTU | ||||
$38.92MM | $0.125 | $0.195 | $0.035 | |
09-29-2021 | ||||
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) ("Purepoint" or the "Company") announced the commencement of its Fall drill program within the northeastern margin of Saskatchewan's Athabasca Basin in Canada.
"The focus of the drill program is our 100% owned Henday Lake project that we have been eager to advance for some time now." Scott Frostad, Purepoint's VP of Exploration stated. "This will be Purepoint's first drill program on the project following our airborne electromagnetic and ground gravity surveys that were completed to ensure the optimal targets are tested".
Highlights:
- Purepoint is planning three initial diamond drill holes at an average depth of approximately 400 metres each.
- The targeted electromagnetic conductor lies within an east-west trending magnetic low, considered to represent pelitic basement rocks, a typical host rock for economic uranium mineralization.
- The Huskie Uranium deposit, discovered by Denison in 2017, is due west of the Henday Lake project and is associated with an east- west trending magnetic low.
- Depending on initial results and timing, Purepoint can extend this drilling program if appropriate.
- Work to date on the project is outlined in detail in an NI 43-101 compliant technical report which can be found on the Company's website.
Henday Lake
The 100% owned Henday Lake property is 1,029 hectares in size and consists of 2 claims. This property is located nine kilometres northwest of Orano's Midwest Lake deposit (41 million lbs. U3O8) and ten kilometres west of Rio Tinto's Roughrider Deposit (57 million lbs. U3O8).
Only one drill hole is known to have been drilled on the property. Hole HLH8-71 was drilled by Cogema Resources (now Orano Resources Canada Inc.) in 1998 and encountered a steeply dipping, strongly graphitic fault gouge at the bottom of the hole. The claims rest within a magnetic low believed to represent pelitic basement rocks, a typical host rock for economic uranium mineralization. The depth to basement is locally less than 350 metres.
Denison's recently discovered Huskie deposit is located approximately 10 km due east along strike from Henday Lake. A NI43-101 technical report dated October, 2018 estimates the inferred resource of the Husky deposit to be 5.7 million Ibs. U3O8.
The Henday Lake property falls within the Mudjatik-Wollaston Tectonic Zone, a northeast trending structural zone along the eastern margin of the Basin. The Mudjatik-Wollaston Tectonic Zone is the NE trending high strain tectonic zone marking the boundary between the Ar- chean gneisses and granitoids of the Mudjatik Domain to the west and Archean gneisses, metasediments, and pegmatite intrusions of the Wollaston domain to the east.
About Purepoint
Purepoint Uranium Group Inc. (TSXV: PTU) (OTCQB: PTUUF) actively operates an exploration pipeline of 12 advanced projects in Canada's Athabasca Basin, the world's richest uranium region. Purepoint's flagship project is the Hook Lake Project, a joint venture with two of the largest uranium suppliers in the world, Cameco Corporation and Orano Canada Inc. The Hook Lake JV Project is on trend with recent high- grade uranium discoveries including Fission Uranium's Triple R Deposit and NexGen's Arrow Deposit and encompasses its own Spitfire discovery (53.3% U3O8 over 1.3m including 10m interval of 10.3% U3O8). Together with its flagship project, the Company's projects stretch across approximately 185,000 hectares of claims throughout the Athabasca Basin. These claims host over 20 distinct and well-defined drill target areas with advanced geophysical surveys completed, and in some cases, have had first pass drilling performed.
Scott Frostad BSc, MASc, PGeo, Purepoint's Vice President, Exploration, is the Qualified Person responsible for technical content of this release.
Copyright ©2021 Purepoint Uranium Group Inc. All rights reserved. | Page 3 |
Monthly Athabasca Basin Exploration Update
Azincourt completes radiometric survey and updates plans for East Preston
TSXV: AAZ
09-07-2021
October 2021 | |||||
Market Cap | Price as of | 52-Week | 52-Week | ||
09/30/21 | High | Low | |||
$27.66MM | $0.08 | $0.18 | $0.02 | ||
Azincourt reported the completion of the airborne radiometric survey and provide an update on preparations for the upcoming 2021-2022 drill program at the East Preston uranium project, located in the western Athabasca Basin, Saskatchewan, Canada.
Terralogic Exploration Inc. was contracted to facilitate an airborne radiometric survey over the previously unsurveyed southern portion of the property and conduct field investigations of resulting anomalies. Special Project Inc. (SPI) of Calgary, Alberta conducted the survey using a fixed wing aircraft to complete the airborne radiometric survey, which consisted of 2,514 km of survey lines flown at a low minimum altitude and 50 m line spacing to ensure good data collection and a high survey resolution. The survey commenced on August 4th and was completed by August 14th.
Upcoming program will consist of approximately 7,000 meters in 30-35 drill holes. Preparations are set to begin in early December. Target selection is ongoing and will be refined based on the ground-basedfollow-up of anomalies identified from the recently completed airborne survey.
Forum provides update and plans for Q1-2022
TSXV: FMC
09-09-2021
Market Cap | Price as of | 52-Week | 52-Week |
09/30/21 | High | Low | |
$70.24MM | $0.475 | $0.57 | $0.11 |
Forum provided an update on current exploration activities and plans for the next six months:
Northwest Athabasca JV (39.5% Forum; 28% NexGen; 20% Cameco; 12.5% Orano)
- Forum has submitted a permit application for a 3,500 metre drill program in Q1/2022 and will be the Operator and sole funder of the program. With the $1.3 million proposed budget, Forum expects to increase its interest to 47% in the project with the dilution of the partners' interests.
Fir Island (Orano Canada Option to Earn 70%)
- Forum has recommended to Orano a resistivity survey to be conducted in December, 2021 to the north of drilling completed this past winter on Fir Island, followed by drilling of any anomalies detected from the survey. Timing of this program is dependent on Orano's budget and permitting.
Other Uranium Projects
- The gravity survey announced April 7, 2021 on the Wollaston project located 10km south of Cameco's Rabbit Lake uranium mill and immediately east of the all-weather road to Orano's McClean Lake uranium processing plant will be completed in Q4/2021.
Canalaska - Denison Mines JV to drill Moon Lake South
TSXV: CVV
09-09-2021
Market Cap | Price as of | 52-Week | 52-Week |
09/30/21 | High | Low | |
$54.29MM | $0.70 | $0.84 | $0.185 |
CanAlaska announced that J V partner Denison Mines Corp. will be starting a 2,400 metre summer drilling program at the Moon Lake South JV project. The project is operated by Denison and the 2021 drilling program is scheduled to begin around September 10th. CanAlaska holds a 25% ownership in the project and will fund the Company's share of the 2021 exploration program.
Copyright ©2021 Purepoint Uranium Group Inc. All rights reserved. | Page 4 |
Monthly Athabasca Basin Exploration Update
Skyharbour intersects high grade uranium mineralization at Maverick East zone
TSXV: SYH
09-14-2021
October 2021 | |||||
Market Cap | Price as of | 52-Week | 52-Week | ||
09/30/21 | High | Low | |||
$87.28MM | $0.61 | $0.88 | $0.145 | ||
Skyharbour announced the initial set of diamond drill results from its 2021 summer diamond drilling program at its 100% owned Moore Uranium Project, located approximately 15 kilometres east of Denison Mine's Wheeler River project and proximal to regional infrastructure for Cameco's Key Lake and McArthur River operations in the Athabasca Basin, Saskatchewan.
Drillhole ML21-03 intersected additional high grade, basement hosted uranium mineralization at the Maverick East Zone. This hole returned 2.54% U3O8 over 6.0 metres including 6.80% U3O8 over 2.0 metres. Furthermore, drilling on the regional Grid 19 target identified several prospective geological features that are indicative of uranium mineralizing systems.
The mineralized intercept in hole ML21-02 occurs in a broad zone that returned 0.19% U3O8 over an 11.7 metre interval from 271.8 to 283.5 metres down- hole. This mineralization straddles the unconformity, with most of the interval within basement rocks comprised of sheared, clay-altered to -replaced felsic intrusives. The intercept confirms continuity within the central portion of the Maverick East Zone.
Final assay results are pending for seven more drill holes. Additional drilling of 1,500 to 2,000 metres in four to five holes has commenced at Moore.
CanAlaska options Key Extension Uranium Project
TSX: CVV
09-15-2021
Market Cap | Price as of | 52-Week | 52-Week |
09/30/21 | High | Low | |
$54.29MM | $0.70 | $0.84 | $0.185 |
CanAlaska announced it has entered into a Letter of Intent with Durama Enterprises Limited, a private company, to allow CanAlaska to earn up to 100% interest in Durama's 100%-owned 17,665 hectare Key Extension Project in the Athabasca Basin region, Saskatchewan, Canada.
CanAlaska may earn up to a 100% interest in the Project by undertaking work and payments in a single stage over a four year period. In order to meet conditions of the four year earn-in, CanAlaska will make total cash payments of $50,000, issue 300,000 common shares in the Company subject to approval of the TSX Venture Exchange, and complete work totalling $850,000 as outlined in Table 1. In addition, a 1.5% Net Smelter Return (NSR) royalty will be granted to Durama to complete the earn-in. CanAlaska will retain the right to bring in third-party funding to complete the option requirements.
Denison announces decision to advance Wheeler River to Feasibility Study
TSX: DML
09-22-2021
Market Cap | Price as of | 52-Week | 52-Week |
09/30/21 | High | Low | |
$1,388.21MM | $1.84 | $2.29 | $0.405 |
Denison reported that the Wheeler River Joint Venture has approved the initiation of an independent Feasibility Study for the In-Situ Recovery mining operation proposed for the Phoenix uranium deposit. The Company also announced the selection of leading global consulting and engineering firm Wood PLC to lead and author the FS in accordance with Canadian Securities National Instrument 43-101.
The completion of the FS is a critical step in the progression of the Project and is intended to advance de-risking efforts to the point where the Company and the WRJV will be able to make a definitive development decision. Key objectives of the Study are expected to include:
- Environmental Stewardship: Extensive planning and technical work undertaken as part of the ongoing Environmental Assessment, including applicable feedback from consultation efforts with various interested parties, is expected to be incorporated into the FS project designs to support aspiration of achieving a superior standard of environmental stewardship that meets and exceeds the anticipated environmental expectations of regulators and aligns with the interests of local Indigenous communities;
- Updated Estimate of Mineral Resources: Mineral resources for Phoenix were last estimated in 2018. Since then, additional drilling has been completed in and around the Phoenix deposit as part of various ISR field tests, including drill hole GWR-045 (22.0% eU3O8 over 8.6 metres, and exploration drill- ing. The updated mineral resource estimate will form the basis for mine planning in the FS;
- Mine Design Optimization: FS mine design is expected to reflect the decision to adopt a freeze wall configuration for containment of the ISR well field, as well as the results from multiple field test programs and extensive hydrogeological modelling exercises, which have provided various opportunities to optimize other elements of the Project - including well pattern designs, permeability enhancement strategies, and both construction and production schedules;
- Processing Plant Optimization: FS process plant design is expected to reflect the decision to increase the ISR mining uranium head-grade to 15 g/L, as well as the results from extensive metallurgical laboratory studies designed to optimize the mineral processing aspects of the Project; and
- Class 3 Capital Cost Estimate: The FS is also intended to provide the level of engineering design necessary to support a Class 3 capital cost estimate (AACE international standard with an accuracy of -15% /+25%), which is expected to provide a basis to confirm the economic potential of the Project highlighted in the PFS completed in 2018.
Copyright ©2021 Purepoint Uranium Group Inc. All rights reserved. | Page 5 |
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Purepoint Uranium Group Inc. published this content on 01 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 01 October 2021 15:51:11 UTC.
