Xcite Uranium is an early stage uranium explorer with projects near Uranium City in northern Saskatchewan. The flagship is the Don Lake project, which Xcite is earning up to 80% of from Eagle Plains. Its other projects are Lorado, Beaver River, Black Bay and Gulch, five in total. In this interview, I asked the CEO about the first Don Lake drill holes, what the assays need to show, the Eagle Plains option terms, funding and warrant exercises, and his goal of building a large uranium resource.

TL;DR

CEO JF Meilleur told me the first three Don Lake holes are a discovery, and he says they hit over 5 m, and 8 and 9 m, of continuous radioactivity. However, radioactivity is a count per second reading, not a uranium grade, and he agreed the lab assays decide it in the end. Assays are still pending, and he hopes for them within 8 to 10 weeks of drilling. He said metallurgy is a big unknown. His stated corporate goal is 500 million pounds of commercial resource and reserves in 24 to 60 months. On funding, he says warrant exercises are topping up the treasury, so he may not need to raise for about a year.

What have they done for shareholders lately?

Drilling at Don Lake started with a first phase of 1,500 m in 14 holes from six pads, and the first three holes hit anomalous radioactivity. He also said they stepped out 250 m northwest and southeast of the central hole. Radioactivity readings from those two other pads are still to come. A separate drill program at Lorado has started, with three holes totalling 1,200 m. He said they spent $1.6 million on ground geophysics this summer. Over the last couple of days, more than a million warrants were exercised at 20 cents. He also told me the last raise was in November, close to $7 million, mostly hard dollar units at 12 cents with a half warrant at 20 cents for four years.

How much money do they have and what are they spending it on?

I asked how much cash they have, and he said above $4 million, with warrants coming in every day. He expects about another $5 million from warrants. He also mentioned a “$5.6 million of warrants” figure and said he and Julian Treger own over 8 million of those. They are spending over $7 million this year and just approved more work. G&A, including marketing and listing costs, runs about $600,000 a year, and there is no digital marketing program. On the option, he listed Don Lake payments of 200,000 shares and $10,000 cash this year, then 250,000 shares and $20,000 next year, with about $2 million of exploration next year to earn the 80%. He also gave totals of $55,000 cash, 750,000 shares and $3.2 million of exploration, which do not fully match those pieces. Total exploration commitments across all projects are about C$19.2 million, and he said they are more than halfway and should be done by about September next year. Eagle Plains keeps a 2% royalty on each project and its 20% until feasibility. Insiders hold about 34% by his figure, with Treger the largest holder at 16 to 17 million shares, and Meilleur holds 6 or 7 million.

Upcoming catalysts

Technical: radioactivity readings from the other two Don Lake pads, then Don Lake assays, hoped for within 8 to 10 weeks of drilling. Drilling continues at Lorado, then Gulch, with Black Bay targeting being finalized and the campaign finishing at Beaver River, where he cited a trench with up to 36% uranium at surface. Total campaign is roughly 35 to 40 holes and above 6,000 m, maybe 6,500 m, all within about six months.

Operational: two drills, one at Don Lake and one elsewhere, going to three if there is a second discovery. He said a winter drill program from mid-January to February 2027 “might be” the plan.

Corporate: talks with Eagle Plains to reshape spending toward Don Lake, with nothing booked yet, and he says there will be no spin outs.

Risks

The main one is that the assays could disappoint, since only radioactivity has been reported so far and historic Don Lake intercepts were narrow and spotty. He said he cannot yet say how continuous the mineralization is, and metallurgy has no conclusion. He named dilution as the number one risk. Cash of just over $4 million sits against spending of over $7 million this year, so funding leans on warrant exercises, which depend on the share price. The Eagle Plains commitments still need to be amended to focus on Don Lake. CEO Meilleur also runs Soma Gold’s capital markets and chairs a Labrador iron ore project, though he says these take little time. Working with radioactive material and old workings has meant moving some pads, but he says no meaningful delays.

Xcite Uranium CEO Interview

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