What’s up everyone, so in this video, I bring you update on one Canadian uranium stock which
has started the year with a bang but before we jump in, here’s why uranium us really important
and why it could transform your portfolio performance even in this uncertain times.
Over the last year, we have seen Russia leveraging and pressuring Europe by
cutting off their natural gas supply as a consequence to their support for Ukraine.
This has resulted in most European governments reconsider the reliance on Russian energy and move
to other clean energy sources mainly nuclear. So U-turns on policy by these governments has
ignited a uranium bull market which drove 100% and 200% moves in 2022 alone which you can see here.
The price of uranium has eased off those highs and is currently trading at $48/lbs
but still much higher than where it was trading in 2021. So what we can see here
is what seems like a permanent shift in the price of uranium since the war in Ukraine.
So we are are seeing here is nuclear power is staging a strong comeback of epic proportions,
providing energy security amid a jarring backdrop of geopolitical turmoil. And because it can be
mined, produced, and processed domestically, countries don't have to rely on global markets
and bid up prices. We can also see here how quickly governments are beginning to adapt nuclear
energy as the go-to clean and alternative power source. We can see here the governments of Japan,
Sweden, Slovakia, France, Germany, you name it are all turning on their nuclear reactors.
And one major advantage for nuclear which is making it really attractive is that its land
footprint is small. So despite producing massive amounts of carbon-free power,
nuclear energy produces more electricity on less land than any other clean-air source.
A typical 1,000-megawatt nuclear facility in the United States needs a little more
than 1 square mile to operate. Whereas wind farms require 360 times more land area to
produce the same amount of electricity and solar photovoltaic plants require 75 times more space.
The one standout player here to bear in mind is China, which is fast becoming
a nuclear powerhouse. It operates the world’s third-largest fleet and is aggressively building
nuclear reactors. At the current pace, China will have the largest nuclear reactor fleet by 2030.
So with this in mind where can you find value with Uranium right now.
That’s is North America. This is because Canada, is actually the world’s second-largest uranium
producer and accounts for around 13% of the total global uranium output.
And if you think about the US being one of the biggest consumers of uranium but not mining any,
the deficit is just too massive and creates plenty of opportunities.
So make sure you stick around to the very end so you get the latest from this uranium
gem and why they starting 2023 already sprinting and pushing towards new highs.
So please drop a quick like on the video and hit the bell, so we can get on with it with and talk
about Traction Uranium Corp (OTC: TRCTF) which is now sitting at 32 cents per share with a market
cap $24m. Traction has been on a bull run lately and ending the week here on a high and being up
23% on the day. And when you look at it over a month horizon, it doesn’t feel like it’s a one off
as the momentum has being going since December and it is up 53% from its lows of 21 cents per share,
which is a very decent return. But even more interesting is that this rebound is from its
annual lows so this bounce could still have a long way to go if they have to get back towards
their previous highs of 80cents per share. And having just seen the outlook of uranium and long
term demand, hitting and surpassing 80cents per share is very possible given where they operate.
So as we always aim to buy low and sell high, there couldn’t be a better time to have Traction
on your watchlist considering the value the commodity presents and if you like their story.
So let’s find out what Traction is about and what they’ve been up to
which you need to be aware of which is really getting the market excited right.
Traction Uranium (Traction) is a Canadian exploration company focusing on the development
of discovery prospects in Canada. Traction’s strategy is to generate or acquire early-stage
exploration opportunities and advance them towards development stage activities
by their experienced team or by business partnerships and joint venture arrangements.
Traction’s current focus is exploring on their three uranium projects in the Athabasca Basin
of Saskatchewan. They recently announced their membership to the Saskatchewan Mining Association
(SMA), further integrating Traction Uranium into the Saskatchewan exploration and mining landscape
and enabling Traction to be at the forefront of policy frameworks and regulatory changes
affecting mining and exploration companies in Saskatchewan. This is important because,
the SMA is the voice of the exploration and mining industry in Saskatchewan, like the Union.
Refining mills are in operation in close proximity to their properties, minimizing
transport costs. Infrastructure, equipment, expertise and an experienced workforce are all
in the area, the result of decades of uranium mining in the region. The region also has major
uranium producers including Cameco, Denison, NexGen, Fission Uranium, UEX, and lots more.
But let’s kick the tyres on their projects in the Renowned Athabasca Basin or home of uranium, which
is often described as the Saudi Arabia to oil. So this is really where anything that matters most in
Uranium is happening. This is because, the Athabasca basin region is home to 10 of the 15
highest grade uranium deposits in the world, with about 20 times the international average purity.
And you can begin to see the location of some of their key projects there,
the Key Lake South project and Lazy Edward Bay in the south and Hearty Bay in the north.
The Key Lake South project has Uranium, Rare Earths, Nickel & Cobalt covering about 1,794.
A major advantage of this mill is that it is about ~5 km to Key Lake Uranium Mill,
within vicinity of modern state-of-the-art uranium mining infrastructure.
The Key Lake Uranium Mill is The Largest Uranium Production Centre in the World
according to the International Atomic Energy Agency, 2020.
Cameco Key Lake was the third-largest uranium deposit in the Athabasca Basin and is home to
the largest uranium mill in the world! So you couldn’t possibly ask for a better location.
And then comes additional mineralisation with critical ev battery metals in nickel
and cobalt Sediments show up to 840 ppm Nickel and 115 ppm. Too early to
tell but one to watch as further exploration activities progress.
Hearty Bay Located in the northwest side of the Athabasca Basin in the Beaverlodge /Uranium City
district, Hearty Bay hosts a Uranium boulder field .
Lazy Edward Bay is made up of 11 claims totalling 1,828 ha. It is located in the
south-eastern margin of the Athabasca Basin, halfway between the historic Key Lake Mine and
Cameco’s Centennial deposit. The Key Lake operation, ~50km to the east, was one of
the largest and most significant uranium deposits in the Athabasca Basin.
They have a diverse management team led by Lester Estaban who is an experienced
mining executive with 15 years’ experience in the mining, chemical and industrial markets.
Also worth calling out is Boen Tan, the company's technical advisor,
who was instrumental in the 1975 discovery of the Key Lake uranium deposit in Saskatchewan.
As the chief geologist, he was in charge of the delineation drilling of the deposit with
reserves of 200 million pounds! So a huge talent on their team as they begin their exploration.
They have strong institutional shareholder backing, among which are Sprott Capital,
Canaccord Genuity, and Research Capital which comprises of 30% of the ownership stake,
but the most powerful part is that founders and strategic partners own an additional 55%,
which makes it one of the tightest and most closely-held companies you need to be aware of.
And this really means that the people who believe in them are actually their shareholders.
And here’s what I feel has grabbed the markets attention on this stock lately, which is what
has been driving the momentum run we are seeing here, which is that at the end of last year,
TRACTION URANIUM RELEASED ANALYTICAL RESULTS FROM THEIR KEY LAKE SOUTH “BLACK SOIL” SAMPLE
CONFIRMING HIGH GRADE URANIUM MINERALIZATION FOUND IN THE NEAR-SURFACE OVERBURDEN.
They received assay results from the Geoanalytical Laboratories for till samples from the recently
completed Phase 1 ground program at their Key Lake South (KLS) property
and confirmed that samples derived from the radioactive “Black Soil” contained
high grade uranium mineralization, along with high levels of cobalt,
nickel and other pathfinder elements in the near surface overburden.
They said if volume is promising, the extremely high concentration of uranium and cobalt in the
“Black Soil” found within overburden will open up a new exploration concept as “overburden-hosted”
uranium mineralization at Key Lake South. Further work is required to determine volume and extent
of the occurrence at shallow depth, however the proximity of the project to Cameco’s Key Lake Mill
is advantageous in mining and milling compared to unconformity-hosted or basement-hosted uranium
deposits typically found in the Athabasca Basin. To unearth the potential, different drilling
methods will need to be employed at the location of the “Black Soil” and surroundings to determine
the extent of the “overburden-hosted” uranium and cobalt mineralization.
Lester Esteban, Chief Executive Officer, added that “What makes the results exciting is that,
this is not the first-time radioactive soil has been discovered at Key Lake.
It was first encountered in the early 70’s sitting on top of one of the first deposits
to make up the Key Lake discovery – fast forward to 2022 and we are following the same narrative 50
years later by encountering the radioactive soil once again to generate high priority drill targets
for their upcoming winter diamond drill program. In addition, having uranium mineralization in the
till, within the over-burden, at near surface presents a compelling blue-sky opportunity to
pursue as their team explore the potential for an “overburden-hosted” uranium mineralization
that also contains cobalt, nickel and various rare earth elements which further solidifies Key Lake
as their flagship project in the Athabasca Basin. So some exciting prospects ahead for this stock.
So in summary, the Athabasca Basin is known as the world’s leading source of high-grade
uranium with about 20x the average international purity. Traction Uranium employs a novel uranium
vectoring technique in their field programs. In the ‘70s, the Key Lake deposit encountered
radioactive black soil as well, which led to the discovery of the prolific deposit. This is an
early indication that Traction could potentially be on the verge of something big as well!
How very exciting?? So some really interesting prospects ahead for this uranium penny stock,
but only consider getting in if the price is right for you and if you fully understand the risks.
This video is not financial advice, a buy or a sell recommendation, but is meant to bring
some new and exciting penny stocks to your attention for you to do your own research..
As always I would love to hear from you, so please let me know your thoughts on these top penny
stocks in the comments section below and what other penny stocks are catching your eyes lately.
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Thank you so much for being here and I look forward to have you in my next video. Thank you