Mining

Stallion Is Poised To Deliver Uranium For Tomorrow’s World

Did you know that Canada is home to the best uranium grades in the world? What if we told you that a company valued at only $20M holds the largest contiguous area where the average grade is 20 times higher than normal?

Marc Zerbola Challande
September 12, 2023
5
 min read

Article Highlights

  • Canada's Rich Uranium Deposits: Canada, particularly the Athabasca Basin in Northern Saskatchewan, boasts the world's highest uranium grades, with exceptional levels of up to 20% uranium oxide (U3O8), far surpassing the global average of 0.1% to 0.2%.
  • Stallion Discoveries' Potential: Stallion Discoveries, despite its modest market cap of $20 million, possesses the largest continuous land package in the southwestern Athabasca Basin, an area that has seen recent high-grade discoveries and promising projects in development. This strategic advantage positions Stallion for significant growth potential.
  • Investment Opportunity: Investing in uranium exploration companies in the Athabasca Basin is appealing due to the growing global demand for nuclear energy as a low-carbon alternative. Stallion's strong share structure, a dedicated team led by experienced professionals, and positive stock price momentum make it an attractive opportunity for investors looking to enter this promising market.

Did you know that Canada, and more specifically the Athabasca Basin in Northern Saskatchewan, is home to the highest uranium grades in the world? What if we told you that a company valued at only $20M holds the largest contiguous land package in the southwestern Athabasca Basin, home to the most recent high-grade discovery and two projects moving into development. There are several companies at the exploration stage, but very few possess strong management expertise and a large asset base offering numerous opportunities for a major discovery. 

Nuclear energy plays a vital role in the global pursuit of achieving net-zero emissions, working hand in hand with other low-carbon alternatives. It forms an integral part of a sustainable energy system designed to decarbonize both electricity and non-electric energy production. Uranium exploration and development of related processing infrastructure is vital to a sustainable future. 

Nuclear Energy Is a Strong Asset for 2050 Zero Net Emissions Target

Nuclear power possesses a remarkable advantage that seamlessly integrates with the anticipated substantial growth of renewable energy generation. While renewable energy sources play a pivotal role in curbing carbon emissions, their intermittent nature presents a challenge.

In recent years, the global pursuit of sustainable and low-carbon energy solutions has propelled the significance of nuclear power to the forefront. Within this evolving energy landscape, Canada has firmly established itself as a key player in the production of nuclear energy, with its abundant uranium reserves and cutting-edge technologies. At the heart of this nuclear renaissance is the role played by uranium exploration companies, which are vital to ensuring a continuous supply of this essential fuel for nuclear reactors. In this context, nuclear power has emerged as a dependable and readily available energy source, ensuring a consistent supply of electricity. 

Safely extending the operational lifetimes of existing nuclear power plants is crucial to maintaining a resilient, low-carbon energy infrastructure. These plants have already made significant strides in reducing carbon emissions, and by prolonging their lifespan, we can continue reaping the benefits of their clean energy output. Furthermore, to satisfy the mounting global energy demand while minimizing carbon emissions, experts estimate that approximately 550 GW of new nuclear capacity will be necessary by 2050 (in 2019, nuclear power plants around the world produced about 2,657 terawatt-hours (TWh) of electricity.). As countries across the globe increasingly embrace nuclear energy, it becomes an indispensable tool in meeting their climate objectives. 

The Athabasca Basin, The New Uranium Rush

The Athabasca Basin, located in northern Saskatchewan, Canada, has gained worldwide recognition as a treasure trove of uranium deposits. Renowned for its exceptional uranium grades, the Athabasca Basin has captured the attention of the major uranium players and has generated significant value for investors. 

The uranium deposits found in the Athabasca Basin are predominantly of the unconformity type, characterized by a unique geological setting. These unconformity-type deposits are known for their exceptionally high-grade uranium concentrations. Uranium grades in the Athabasca Basin often range from 2% to 20% uranium oxide (U3O8). To put this in perspective, the global average uranium grade typically hovers around 0.1% to 0.2%. 

Athabasca Basin, Canada - Power Metal Resources plc (LON: POW)

Worldwide-leading companies are already aggressively exploring the area, with major discoveries or advancements significantly increasing the Basin's growth. Here are a few examples:

  • Orano Canada, a subsidiary of the French National company boasts an impressive track record of over 55 years in the field of uranium exploration, mine development, and uranium concentrate production. As a prominent player in the industry, this esteemed company has Canadian headquarters in Saskatoon, Saskatchewan.
  • Cameco stands as a prominent leader in the global market. The company boasts ownership of the renowned Cigar Lake mine, renowned as the world's premier source of high-grade uranium. Since its establishment in 2014, this extraordinary site has successfully yielded an impressive 105 million pounds of uranium (based on 100% ownership). Notably, commercial operations commenced in May 2015, solidifying Cameco's commitment to meeting the world's energy needs with integrity and efficiency. 
  • NexGen is deeply committed to the optimal advancement of the Rook I Project, with the ultimate goal of transforming it into the largest globally operational uranium mine with minimal costs. This pursuit is closely intertwined with the highest standards of environmental and social governance. 

Stallion Discoveries Has The Largest Continuous Project In The Western Basin

As an investor, one might expect Orano and Cameco to own the largest assets in the area. The company leading the charge is actually Stallion Discoveries. With a market cap of only $20 million, the value of the opportunity within the company’s massive land package is not likely reflected in the company’s share price. This can create even more upside for the investor as they progress their exploration plan this year.  Stallion is a neighbour of Orano and Cameco, as well as NexGen Energy Ltd., Denison Mines Corp., and F3 Uranium Corp. Such a vast scale, coupled with the strategic location of the asset base, is expected to unlock numerous high-potential target zones along several major trends. This strategic move empowers Stallion to strengthen its exploration efforts and positions the company for remarkable growth and success.

Why We Believe Stallion Discoveries (TSXV: STUD, OTCQB: STLNF, FRA: HM40) Is A Promising Stock Right Now

  • Canada is home to the best uranium grades in the world, and the Athabasca Basin in Northern Saskatchewan is recognized for its exceptional uranium deposits with grades 20 times higher than the global average.
  • Investing in uranium exploration companies in the Athabasca Basin is attractive due to the increasing global demand for nuclear energy as a low-carbon alternative and the need for approximately 550 GW of new nuclear capacity by 2050.
  • Major companies like Orano Canada and Cameco are already exploring and producing in the Athabasca Basin, but Stallion Discoveries, valued at $20M, holds the largest contiguous area in the southwester basin. 
  • Stallion has enlisted the expertise of Geotech and Condor to enhance its exploration efforts, using advanced geophysical survey systems and data analysis to identify key target areas and potential drill targets.
  • The company's share structure includes 91M shares issued and outstanding, with insiders and significant insiders accounting for almost 39% of the share structure. 
  • The stock price has shown positive momentum, making it an opportune time to invest in Stallion.

Stallion has made great strides to progress its exploration plan on its land package. Having successfully completed the data acquisition phase of the geophysical survey, Stallion's team eagerly anticipates the subsequent processing and interpretation phase. During this critical stage, the company will prioritize key target areas and potential drill targets based on the valuable insights gleaned from the survey data. 

Darren Slugoski Will Lead Explorations For Stallion In Canada

To ensure successful operations, the company welcomed the arrival of Mr. Darren Slugoski as the newly appointed Vice President of Exploration, Canada. Mr. Slugoski brings to the table an impressive academic background, holding a B.Sc. Honours degree in Geological Sciences from the esteemed University of Saskatchewan. With a wealth of expertise spanning over a decade, he boasts an extensive track record in the realm of mineral exploration. Notably, his primary focus has revolved around uranium exploration within Saskatchewan's renowned Athabasca Basin. f Mr. Slugoski’sexperience was with  Purepoint Uranium's highly acclaimed Spitfire deposit situated in the Western Athabasca Basin. This accomplishment serves as a testament to his invaluable contributions and profound understanding of the field.

Largest contiguous package, check. Strong expertise, check. 

Combined with a strong cash position from a $4M private placement in February, the share structure is not left out. 91M shares are issued and outstanding, with 101.3M shares fully diluted, in which insiders and significant shareholders account for almost 39% of the share structure. While we have mentioned several exciting milestones achieved by Stallion, the stock price offers a great entry opportunity as it looks to have based and is now slowly picking up steam, mostly because of the macro environment. Over the last 52 weeks, Stallion's stock price has fluctuated between $0.08 and $0.51, which represents a wonderful time to join a company full of promise.

Where To Find Stallion Discoveries & Learn More About The Company

Stallion Discoveries trades on the TSXV under the symbol $STUD, the OTCQB under the symbol $STLNF, and the FRA under the symbol $HM40.

You can learn more about $STUD on their website at: https://www.stalliondiscoveries.com/

To contact them, you can reach out using the information below: 

Stallion Discoveries Corp. 

Suite 700-838 W Hastings Street, Vancouver, BC, V6C 0A6

Phone: +1 778.686.0973

Contact name: Lisa Stewart

Email: info@stalliondiscoveries.com

Disclaimer

The article titled "Stallion Is Poised To Deliver Uranium For Tomorrow’s World" featured above is provided as a voluntary showcase of the company's achievements and endeavours. Stallion Discoveries, a valued social media client of First Phase Capital, maintains a month-to-month retainer agreement at $4,000.00 CAD per month for their comprehensive marketing needs. The article in question was conceived, written, and reviewed in-house by First Phase Capital's editorial team, with no formal contractual obligation for its creation. Stallion Discoveries had the opportunity to review the content solely for accuracy and factual correctness before its publication. Any claims, statements, or representations within the article reflect the view of the publication and not necessarily that of Stallion Discoveries.

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These companies play a crucial role in the nuclear energy industry, as uranium is the primary fuel used in nuclear reactors. The uranium market faced significant challenges following the 2011 Fukushima nuclear disaster, which led to concerns about the safety of nuclear reactors. Combined with excess supply, these factors caused uranium prices to plummet. However, in recent years, several developments have brought hope to the industry, including supply cuts, geopolitical tensions, and the reentry of major players into the market. As a result, uranium prices have started to rise, prompting investors to consider entering the market. Investing in Uranium Stocks Investing in uranium stocks provides an opportunity for investors to gain exposure to the potential growth of the uranium market. While the path to investing in uranium stocks may not be as straightforward as investing in other commodities like gold, there are several options for Canadian investors to explore. 1. Top Uranium Mining Companies Beginner investors may want to start their journey by considering the world's largest uranium mining companies. These companies often provide stability and have a significant presence in the industry. Some of the prominent uranium heavyweights include: Cameco (TSX:CCO, NYSE:CCJ) BHP (NYSE:BHP, ASX:BHP, LSE:BHP) NexGen Energy (NYSE:NXE, TSX:NXE, ASX:NXG) Kazatomprom (LSE:KAP) While these large mining companies offer a solid foundation for investors, there are also mid-tier and junior uranium exploration companies worth exploring. Conducting thorough research on TSXV- and TSX-listed stocks and ASX-listed uranium stocks can provide valuable insights into potential investment opportunities. 2. Understanding Uranium Production To make informed investment decisions, it is crucial to have a clear understanding of the countries that produce the most uranium. The top three uranium-producing countries are Kazakhstan, Namibia, and Canada. These countries play a pivotal role in the global uranium market and can directly influence uranium prices. Investors interested in uranium stocks should closely monitor developments in these countries and their impact on market dynamics. 3. Investing in Uranium ETFs For investors who prefer diversification and exposure to a basket of equities rather than individual stocks, exchange-traded funds (ETFs) focusing on uranium can be an attractive option. While the selection of uranium-focused ETFs is relatively limited, there are a few options available for Canadian investors: Global X Uranium ETF (ARCA:URA): This ETF tracks a basket of mining firms, including both American and international uranium miners and producers. VanEck Uranium+Nuclear Energy ETF (ARCA:NLR): This ETF follows a market-cap-weighted index of companies in the uranium industry. Horizons Global Uranium Index ETF (TSX:HURA): Designed to provide exposure to the rebounding uranium industry, this ETF features Canadian uranium stocks. It is important to thoroughly research and assess the specific holdings and investment strategies of these ETFs before making any investment decisions. 4. Future Potential: Sprott Uranium Miners ETF One of the most recent additions to the uranium ETF landscape is the Sprott Uranium Miners ETF (ARCA:URNM). This international uranium fund includes companies from Kazakhstan, Canada, and the US. The ETF tracks producers, explorers, and holders of physical uranium, providing investors with direct exposure to the uranium market. Notably, the Sprott Physical Uranium Trust, a fund investing solely in physical uranium, is one of the holdings of this ETF. The Sprott Physical Uranium Trust has gained popularity for its role in boosting uranium prices. 5. 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Various factors contribute to this bullish sentiment, including supply cuts, increased demand for nuclear energy, and growing prospects for uranium prices. John Ciampaglia, CEO of Sprott Asset Management, highlights the bullish scenario for uranium, emphasizing the improved position of uranium companies in negotiating sales to utilities. Chris Temple, founder, editor, and publisher of the National Investor, is equally confident in a coming bull market for uranium, predicting a price of $100 per pound within the next two years. Looking at the broader picture, nuclear energy currently accounts for 10% of the world's electricity generation, and this figure is expected to increase to 12% by 2050. As the need for clean energy intensifies and uranium oversupply diminishes, the demand for this energy fuel is likely to grow, presenting an opportunity for investors in uranium stocks. Conclusion Investing in uranium stocks can be an appealing option for Canadian investors seeking exposure to the potential growth of the uranium market. By considering top uranium mining companies, understanding uranium production dynamics, exploring uranium ETFs, monitoring uranium futures, and recognizing the bullish case for uranium, investors can make informed decisions about their investment strategies. As the demand for clean energy continues to rise, an increase in uranium prices is expected to have a positive impact on the stock market. However, it is crucial to conduct thorough research, evaluate risk factors, and consult with financial advisors before making any investment decisions. By staying informed and remaining vigilant, investors can position themselves to potentially benefit from the future growth of the uranium industry. References: Investing News Network: The Price of Uranium Investing News Network: Uranium Energy in North America

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