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About

Name: Nuclear Fuels
Tickers: 🇨🇦 NF 🇺🇸 NFUNF 🇩🇪 NF
Commodity: Uranium
Jurisdiction: USA
Stage: Exploration
Market Cap: $10M CAD

Nuclear Fuels is focused on its priority Kaycee Project, located in Wyoming’s Powder River Basin, our goal is to advance the project onto a path to production.  enCore Energy Corp., under certain circumstances, maintains the right to back-in to 51% ownership by paying the Company 2.5X its exploration expenditures and financing the project to production (recoverable from production).  With existing historic resources through a 33-mile trend, 110+ miles of mapped roll-fronts and 3,800 drill holes, Nuclear Fuels has secured the district under one company’s control for the first time since the early 1980’s. Nuclear Fuels also provides a unique model for development of our other uranium projects and has established a pipeline of future opportunities in well established uranium districts.

For further information, please refer to the Company’s disclosure record on SEDAR+ at www.sedarplus.ca.

Or read more about Nuclear Fuels at https://nuclearfuels.energy/.

Interview

This Nuclear Fuels CEO interview was recorded on the date noted in/on the video, as well as the YouTube video’s description.

Use the timestamps on the timebar to navigate to your desired interview, or read the interview summary below.

Quick recap

Mike and Antonio discussed shifting focus to a US-based uranium project due to shareholder preference, exploring joint venture opportunities while retaining interests. They delved into strategies for upcoming drilling, encompassing cost estimates, techniques, and targeting specific mineralized zones. Furthermore, they analyzed factors influencing mineralization, geological indicators for potential drill targets, and challenges in uranium production related to thickness and water management.

Shareholder Preference Shifts Project Focus

Mike informed Antonio that the focus had shifted from a potential project due to shareholder preference for US-based uranium development. They were seeking a new home for the project and were open to a joint venture with a retained interest. Mike explained that the decision was influenced by feedback from significant shareholders. They also discussed plans for the Jv project and the allocation of funds to nuclear fields shareholders. There were no additional plans to spend money on the Jv project this year, and their only focus was on Kaycee. They also mentioned plans to permit drilling at the Boot Hill, Heel, and Moonshine projects.

Arizona Land Usage and Encore’s Motivation

Mike explained to Antonio that most of the land for their projects in Arizona is either State land or private surface rights, requiring surface use agreements with landholders. Mike also clarified that Encore, the company led by Bill Sheriff, who is also the chairman of their company, is highly motivated to develop production and sees the potential for a robust resource at Kaycee, with a cutoff for production at 15 million pounds. Mike added that Encore has a track record of divesting assets, with Kaycee being the only one they have retained, indicating their commitment to development rather than exploration. Antonio expressed interest in further understanding this deal.

Managing Conflict, Balancing Time and Money

Antonio and Mike discussed the management of a potential conflict of interest in their business partnership and the unique structure of their deal. Mike explained the conflict resolution procedure, emphasizing the importance of transparency and swift decision-making. They also discussed the balance between time and money, with Mike noting the need for efficiency to maximize market value. Lastly, they touched upon the complexities of calculating the cost of acquiring a 51% interest in a specific project versus buying an entire company, with Mike avoiding offering a specific timeline for their goals.

Drill Permit Application and Uranium Deposits

Antonio and Mike discussed the strategy for the upcoming drill permit application for 600 drill holes. Mike explained their approach of utilizing affordable rotary mud drilling to reach an average depth of 200 meters, aiming to gain a better understanding of the resource and develop detailed plans by next year. The estimated cost for the drilling, including geology, actual drilling, logging, and remediation, was $60 per meter. They also discussed the use of gamma log assay for cost-effective uranium grade determination and the process of uranium deposition in sandstone-hosted roll front deposits. Mike further explained the use of an induced neutron activation tool for accurate location and measurement of uranium deposits.

Uranium Production Challenges and Solutions

Mike and Antonio discussed the challenges and potential solutions in uranium production, with a focus on the thickness of mineralization and the balance between water pumping and production efficiency. Mike emphasized the importance of ‘grade-thickness’ in mineralization, as well as the need for porous sandstones with adequate room for uranium accumulation and proper water management. They also discussed the use of oxygen to mobilize uranium from sandstone grains, which they believe is a more environmentally friendly technique. Antonio acknowledged the complexity and long-term nature of the investment, and they both agreed on the need for groundwater testing to ensure compatibility with uranium.

Geological Factors Influencing Mineralization

Antonio and Mike discussed the geological factors influencing mineralization, particularly focusing on uranium in the Bighorn Mountains. Mike explained that the white formation in the mountains was considered the primary source for uranium, noting the inward water flow towards the northeast as a good indicator of potential drill targets. He described the complexity of identifying pinching and swelling areas in geophysics and the importance of locating traces of uranium mineralization in a sandstone aquifer. Mike highlighted the role of drilling in specific directions based on geological topography and the presence of red hematite iron staining as the primary targeting tools. Antonio acknowledged these methods as crucial in their search.

Uranium Drilling Strategy and Challenges

Antonio and Mike discussed the process of drilling for uranium and its potential for targeting specific zones. Mike explained that by drilling multiple holes simultaneously, they can gather a variety of data including gamma readings to identify uranium deposits. Antonio expressed understanding and showed interest in the potential of drilling 32,000 meters to target a viable amount of ISR amenable, minable uranium. Mike acknowledged this as a viable strategy but cautioned that it’s difficult to predict the exact outcome from the drilling.

Saddle Zone Expansion and Uranium Market Update

Mike proposed a plan to connect the saddle zone with the spurs zone and shared updates on expanding the former towards Fort Union. He also clarified the company’s share structure and addressed concerns raised by Antonio regarding Larry’s share sales. Furthermore, Mike explained the company’s valuation, capital structure, and royalties related to a mining project. He also discussed the current state of the uranium market, emphasizing the long-term upward trend, despite a recent decrease in spot prices.