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- White Cliff Minerals (ASX:WCN) secures a uranium project in Canada
- The project in question is the Radium Point iron oxide copper gold uranium play
- It’s located in a historical mining province
- The move comes as uranium prices see a bull run continue into 2024
- Expect many microcap explorers to move into uranium while prices are high
- Shares are up 40 per cent, trading at 1.4 cents at 11:03 am AEDT
White Cliff Minerals (ASX:WCN) has acquired uranium acreage in Canada – likely the first of many microcaps this year to acquire uranium prospects as the commodity enjoys a bull run.
While lithium prices continue to tank along with many other commodities – a situation where Benchmark Minerals Intelligence expects lithium prices to stay low for five years – uranium is going the other way.
Since hitting pre-Fukushima levels last year, the commodity has climbed to US$92.5/lb, a record level as far as the 21st Century goes.
World’s largest supplier faces issues
Right now, it’s at a 16-year high. But that price could run further.
Not only is nuclear power uptake continuing to be developed by a number of countries, Kazakh producer Kazatomprom – the world’s largest producer of uranium – sees supply and output issues.
In this context, White Cliff has “secured” Radium Point – after selling off its Abraxis lithium project in September last year.
As for what WCN means by “secured?” Licence applications have been submitted to the relevant state and federal authorities.
What has WCN acquired?
White Cliff’s new Radium Point play is the site of significant historical production – 13.7 million pounds of uranium oxide in total, according to the company.
Copper and silver have also been produced in history with “gold credits”, as well as lead, nickel, and cobalt.
The question shareholders will be trying to figure out across the coming months – and geotechs – is how much is left underground, of what, and how deep.
According to WCN, Radium Point – located in the Northwest Territories region of Canada – has been highlighted as the area with the “highest potential for IOCG-Uranium style mineralisation in Canada.”
This claim is based on geotectonic analyses of data by the regional geoscience office, the company added in a footnote.
“We have assumed control of a massive database of information which we are working on validating however even a initial cursory review suggest many high-grade, vein fill and IOCG-U style anomalies exist throughout the licence holdings,” WCN chief Roderick McIllree said.
“The project area covers a significant portion of the highly productive Echo Bay stratovolcano complex located within the Great Bear Magmatic Zone in northwest Canada.”
WCN shareholders are likely to support the new uranium play, in the current context of commodity prices – while YTD returns are up 11.11 per cent; one-year returns are down -23 per cent.
WCN shares were up 40 per cent, trading at 1.4 cents at 11:03 am AEDT.
