Gearing up to join the ranks of uranium stocks on the ASX on June 7th is UVRE (ASX:UVA), which plans to hit the ground running at its East Canyon project in Utah.
The project is prospective for both uranium and vanadium, two minerals anticipated to play a key role in the generation and storage of low-carbon energy.
And MD Peter Woods says the dual focus means the company is highly leveraged to exploration success.
“As the world gears up for decarbonisation and cleaner technologies for electrification of the economy, companies such as UVRE with critical minerals associated with this technology, battery storage and emission-free power, present an excellent opportunity for growth,” he said.
Uranium has a role to play in zero carbon emissions
Woods says there is a lot happening in the uranium sector right now.
“Uranium is the fuel for nuclear energy, which has a critical part to play for a greener, zero carbon emission source of energy and power, helping address climate change,” he said.
“There is currently a supply demand imbalance and an inherent disconnect between current price of uranium and price level that new supply can be incentivised to come online.
“Add the current geopolitical environment which is putting pressure on security and supply of energy, new market participants that are buying and storing physical uranium taking pounds out of market circulation, new reactors coming online and under construction, and the lack of investment in the sector for around a decade, all signs are pointing towards expected strong growth in the coming years for uranium.”
Vanadium redox flow battery demand to grow
While vanadium has traditionally been used as an alloy in steel, to make it lighter and stronger, UVRE believes that future demand will be for vanadium redox flow batteries (VRFBs).
“VRFBs and associated technologies will be the most reliable, safe, and stable solution for the storage of on grid power and off grid renewable energy (wind/solar),” Woods said.
“Compared to li-ion batteries, VRFBs are industrial size batteries, more efficient over a longer lifespan, simpler, safer and non-flammable.
“We expect the demand for such technologies to be strong in the coming years.”
Maiden drilling kicking off asap
The company will have a low enterprise value of around $2m, and its fully funded to kick off maiden drilling at East Canyon having just raised $6m at IPO.
The drilling will follow an underground mapping and sampling program by previous owners of the asset, Red Dirt Metals (ASX:RDT) in 2020 – which identified extensive historical workings at the None Such and Bonanza prospects.
“Visible uranium-vanadium mineralisation was observed and sampled throughout both prospect’s workings, which returned high grade assays,” Woods said.
“UVRE intend to follow up this work and explore the rest of the project area to define other priority drill targets.”
The project is smack bang in the Colorado Plateau region, which has been an important source of uranium and vanadium in the US for more than 100 years.
Right next door to White Messa Mill
Woods stressed that while there is currently no relationship or arrangement between UVRE and the White Messa Mill (owned by Energy Fuels), it’s an added bonus to have the only conventional fully operational and licensed uranium/vanadium mill in the US just 50km away.
Not to mention the fact that White Messa has historically accepted third party ore.
“Energy Fuels is a leading US producer of uranium, vanadium and an emerging producer of rare earth (REE) products,” Woods said.
“UVRE believe this area and mill will become a very important and strategic hub for the US over the coming years as it supplies EV, renewable energy and other technology manufacturers critical minerals.”
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