• 7 min read • Author: Fabian Dawson • Print • Privacy & Disclaimer

Follow the ‘yellowcake’ road with CanAlaska Uranium

Investor Breakout Spotlight: CanAlaska Uranium Ltd. (TSX-V: CVV | OTCQX: CVVUF | Frankfurt: DH7)

Investor Breakout Spotlight:
CanAlaska Uranium Ltd.

TSX-V: CVV | OTCQX: CVVUF

It’s time to talk uranium, in particular CanAlaska Uranium.

But first, let me relate a mild case of geographical whiplash I encountered when researching the company.

CanAlaska is a moniker that screams Klondike, polar bears and frozen tundra. The company, however, does not have projects in Alaska (at least not yet) as it is focussed on a treasure trove of minerals in Canada. Now that we have addressed this geographical identity crisis, let’s move on from the name's ironic charm.

As the global shift towards clean energy solutions gains significant momentum, nuclear power is projected to play a key role in the transition. This is amplifying the demand for ‘yellowcake’ - the powdered uranium concentrate produced from mined uranium ore, needed to power nuclear reactors.

In other words, it is a good time to be in Canada’s Athabasca Basin, the world’s most prolific uranium jurisdiction and a key area for new discoveries.

The Athabasca Basin in northern Saskatchewan covers approximately 100,000 square kilometers, an area roughly the size of Iceland, and currently provides between 15% and 20% of the global supply of uranium.

With the World Nuclear Association predicting demand for uranium to increase 28% by 2030 and nearly double by 2040, several junior mining companies have begun exploring the potential of their land holdings in the Athabasca Basin aka “The Saudi Arabia of the uranium world."

Spot and long-term uranium prices

Source: Cameco

CanAlaska Uranium, a project generator, stands out in this regard with interests in approximately 500,000 hectares in the Athabasca Basin that has already attracted major international mining companies, including Cameco, a world leading uranium producer.

CanAlaska is currently working with Cameco on the West McArthur JV project and Denison on the Moon Lake South JV project in the Eastern Athabasca Basin.

“We have built a world-class portfolio of uranium projects in the Athabasca Basin to provide shareholders with multiple discovery opportunities,” said veteran geologist Cory Belyk, CEO of CanAlaska.

CanAlaska Share Structure

💰
$90M
Market Cap
🔷
155M
Shares
🏆
$0.50
Picked

A CEM Top Pick

CanAlaska Uranium has been generating significant buzz in the investment community, with the company being selected as a "Top Pick" at two recent high-profile capital markets events.

The company’s track record and trajectory were front and centre at the recent CEM Scottsdale Capital Event, where it was selected as a ‘Top Pick’ in a gathering of 60 potential investors, who had come together for the event’s signature Investor Breakout Exchange.

CanAlaska was also a ‘Top Pick’ at CEM’s Whistler Capital Event earlier this year.

Why CanAlaska Uranium got the ‘Top Pick’ accolades

  • Investors in the uranium space have highlighted CanAlaska as an undervalued uranium stock with strong growth potential, especially given its project portfolio and the current supply crunch in the uranium market.
  • CanAlaska's flagship West McArthur project is located near major uranium producer Cameco's McArthur River mine, and Cameco is a joint venture partner on the project. The company has also announced a very aggressive 2024 drill program.
  • The next Uranium Bull Market is here. The International Atomic Energy Agency projects that by 2040, the world will require over 100,000 metric tons of uranium annually – that’s more than twice the amount currently being mined and processed around the world. Fueling market excitement is the significant increase in uranium prices, which reached a 15-year peak in January 2024.

Last week, I caught up with Cory Belyk to ask him why investors should follow the ‘yellowcake’ road with CanAlaska Uranium.

Tell us a little bit about CanAlaska Uranium

CanAlaska is a junior explorer with clearly defined targets in the Athabasca Basin of Saskatchewan. It’s in an area where you will find large Tier One Athabasca-type uranium deposits. The region is a huge production center for uranium with its vast and high-grade deposits. We have been focused since 2004 on the Athabasca Basin, really looking for that Tier One asset. Given the growing demand for uranium today we are in a great market, the fundamentals have never been better. I've never seen anything like it in my 30 years in the nuclear space. Now is the time to go and make a discovery. That's exactly what we've done. We've found extremely high-grade uranium mineralization at our West MacArthur project just 12 kilometers from Cameco’s McArthur River Mine, the world’s richest uranium mine. Over $25 million of work has successfully identified 7 Target Areas on this project and we have multiple exploration targets remaining on the property.

Why should I invest in the uranium sector now and why CanAlaska Uranium?

We are in the very early stages of a uranium bull market given the global consensus that nuclear power will play a pivotal role in the energy transition process. This global acceptance of nuclear power means that you're going to get new nuclear build-outs, and it's going to be led by Small Modular Reactors. (Small modular reactors or SMRs generate between 200 and 300 megawatts — enough to power about 300,000 homes as compared to conventional nuclear reactors that generate about 1,000 megawatts of energy).

This is not new technology. This is old technology being applied for civilian use, and it is happening here in Canada in places like Darlington in Ontario. Other jurisdictions like Saskatchewan and Alberta are also looking at SMRs to meet their clean power needs.

This is going to happen on a global scale. And, and what this really means is that we're going to need more uranium and more uranium deposits to be found.

We recently reported very encouraging new drill results that will help expand the Pike Zone at our West McArthur joint venture uranium project with Cameco.

It is extremely rare to intersect uranium mineralization of this grade and width anywhere in the world, including the Athabasca Basin. This is a significant outcome for the West McArthur JV and CanAlaska shareholders. The geologists have been laser-focused on determining the geological controls in a clear and methodical approach, and the results of this fantastic work are now achieving outcomes for our shareholders. Tier 1 uranium deposits always occur as ‘pearls on a string’ and we have now found a pearl. And we're well positioned to take advantage of this scenario.

And what should I keep my eye on moving forward? 

This could be a very special summer for CanAlaska shareholders as we are drilling in a very high-grade zone. We're waiting on assays from the lab right now to confirm the uranium mineralization at West MacArthur and these are from brand-new, high-grade holes. After we get that out to market, we're going to be out there drilling in about five to six weeks at what we're calling the ‘Pike Zone’, right near McArthur River. We're gonna be starting drilling there in early June, and that'll vary through the entire summer. It's gonna be about $4.5 million dollars of work and will generate a lot of news flow.

Our View

Overall, CanAlaska's strong track record, strategic project portfolio, and favourable uranium market dynamics have positioned the company as a highly attractive investment opportunity.

The company has also announced a very aggressive 2024 drill program, further fueling investor excitement.

The location of CanAlaska's flagship West McArthur project in such close proximity to Cameco's world-class McArthur River mine is a major strategic advantage that has attracted significant investor interest in the company's growth prospects.

CanAlaska closed an oversubscribed financing in December 2023 for $12MM. Over 24 million shares were issued between non-flow-through (NFT) @ 0.36/unit and flow-through units @ 0.425/unit. All these units were issued with a 0.56 warrant with a 24-month duration. The 4-month hold came off mid-April for the private placement units. A combination of free trading units in the money as well as warrants in the money is creating a temporary overhang which is being absorbed by the market in a healthy manner.

The Investor Breakout Advantage

As you already know, our Investor Breakout newsletter is based on the top picks and performers at CEM’s conferences, which are held seven times a year. These invite-only conferences serve as the meeting ground for North America’s most influential investors and industry-leading issuers, who attend a day-long series of one-on-one meetings.

At the end of each event, after over 1,000 meetings have taken place, investors meet in the Breakout Exchange forum and identify their top picks.

CanAlaska Uranium was one of the top 5 picks at the CEM event in Scottsdale and placed in the top 10 in Whistler as well.

Upcoming Events

Mark your calendars and check your inboxes –CEM will be staging the 1st annual Bermuda Capital Event at the Fairmont Hamilton Princess & Beach Club. This event will be in place of our annual Montreal Event and will take place on June 7-9th, 2024. It introduces growth-stage companies (Resource, Technology, Biotech, Special Situations) to active top-level capital finance individuals through a day of scheduled one-on-one meetings.

Following that, CEM will be hosting the 5th annual TSX Venture Growth Capital Event at the Delta Grand Okanagan Resort in Kelowna starting on July 19th, 2024. This event is an exclusive, private opportunity for companies on the TSX Venture Exchange to meet with active and engaged investors in the venture market space. It includes tailored one-on-one investor meetings, networking activities as well as golf and wine tours.

Register on CEM

Warm Regards and Happy Investing,
Fabian Dawson

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