Source: Streetwise Reports 10/04/2024

Baselode Energy Corp. BSENF has reported positive uranium assay results from three drill holes of the 2024 drill program at its Ackio prospect, located in the Athabasca Basin, Northern Saskatchewan. These results highlight the shallow depth and high-grade mineralization that continue to characterize the Ackio prospect.

Notably, drill hole AK24-119 intersected 0.28% U3O8 over 21.0 meters, including a high-grade section of 1.55% U3O8 over 1.5 meters at a depth of 141 meters. While drill hole AK24-118 returned 0.59% U3O8 over 8.5 meters, including 1.25% U3O8 over 1.5 meters at a depth of 153 meters.

CEO James Sykes commented in the press release, “These results strengthen our confidence in Ackio. It’s remarkable that, just over three years after discovering Ackio, we’re still achieving better-than-expected grades and widths.”

Baselode expects further assay results from the remaining 40 drill holes to be released after quality review and approval.

Looking At The Uranium Sector

The uranium market has experienced notable growth in recent years. As Kitco wrote on September 25, “Despite recent market corrections, uranium and uranium-related equities have outperformed other asset classes over the long term” with the U3O8 uranium spot price seeing significant rises in the last five years. The long-term fundamentals of the market remained strong, with Kitco noting that “global uranium supply lagging behind demand” could lead to higher prices as utilities are “forced to secure long-term contracts.”

Jeff Clark of The Gold Advisor expressed enthusiasm for the company in an October 3 update, stating that the results from the drill program were better than expected, with high-grade uranium intersected in two keyholes.

Chris Temple of The National Investor similarly commented on September 25, “Uranium and nuclear power are clearly back, with long-term demand increasing, driven by significant developments like the restart of nuclear facilities.”

He observed that the sector appeared to be moving past its consolidation phase. He advised, “Now is the time to rebuild exposure to uranium and nuclear power.”

The Financial Times, also writing on September 25, highlighted the impact of the ongoing geopolitical climate on uranium pricing, stating that “the conversion and enrichment prices are reflecting a much bigger supply squeeze due to the Russia-Ukraine war and other factors.” They also pointed to the increasing prices for nuclear fuel, suggesting that “higher nuclear fuel prices are likely to continue as existing conversion facilities face delays.”

Baselode’s Catalysts

The Ackio prospect remains a strong catalyst for Baselode Energy’s growth, as the shallow and high-grade uranium mineralization continues to yield favorable results. Baselode’s exploration strategy focuses on near-surface, basement-hosted uranium, which offers the potential for low-cost extraction.

As highlighted in the company’s investor presentation, the Ackio discovery includes nine uranium pods, with mineralization starting as shallow as 25 meters below the surface. The ongoing drilling campaign, which has completed over 30,000 meters since 2021, further enhances the company’s resource potential. With over US$20 million in the treasury, Baselode is well-funded to continue advancing Ackio and other projects, including the Catharsis project currently in drilling.

What Third-Party Experts Are Saying

David Talbot, Managing Director at Red Cloud Securities, noted in a September 17 report that drilling at Ackio has “continued to expand the mineralized footprint at Pods 1, 6, and 7” highlighting that “thirteen holes reported composite intervals of anomalous radioactivity between 11m and 42m in thickness.”

In his report, Talbot rated the stock as a Buy and further projected the potential for “8-10-12 million pounds of U3O8 at a grade of ~0.3% U3O8” which aligns with typical grades found in the southeastern part of the Athabasca Basin.

Additionally, Jeff Clark of The Gold Advisor expressed enthusiasm for the company in an October 3 update, stating that the results from the drill program were better than expected, with high-grade uranium intersected in two keyholes. Clark observed that “the stock popped on the news, on heavy volume, investors obviously liking the results.”

He also pointed out that Baselode’s shallow mineralization at Ackio could make future mining operations more economically viable, noting the project’s competitive advantage compared to deeper deposits elsewhere in the Athabasca Basin.

Ownership and Share Structure

According to Refinitiv, Baselode has institutions holding 23.26% with Alps Advisors holding the bulk of it with 17.94%, followed by Vident Investment Advisory LLC at 2.97%. Management and Insiders hold 1.59%. The rest is retail.

The company has a market cap of US$12.63 million, according to Market Watch, with 131.51 free float shares. It trades in the 52-week range between US$0.0778 and US$0.4491.

Important Disclosures:

1) James Guttman wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.

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