While many companies in the junior mining space have slowed down in anticipation of the summer doldrums, excitement continues to ramp up for our top uranium pick, F3 Uranium (TSXV:FUU)(OTC:FUUFF). With so many positive near-term catalysts to look forward to, the timing could not be any better for an investment into F3.
Before we jump into the details, let’s go over why now is the perfect time to be investing in uranium stocks as a whole.
Uranium, once shrouded in misconceptions and fear, is experiencing a remarkable shift in public perception.
We all know that nuclear power has been given a bad rep since the Chernobyl and Fukushima disasters, and the media has played a huge role in convincing people that nuclear energy is evil — but this couldn’t be further from the truth. Nuclear energy is actually one of the safest, cleanest and most efficient energy sources available. It produces less carbon emissions than solar, it’s as safe as wind power, and it can power entire cities.
In an era marked by the urgency of sustainable energy solutions, uranium stands out as a clean, efficient, and reliable power source. Its ability to generate vast amounts of electricity with minimal environmental impact is gaining recognition, making it an indispensable resource for combating climate change.
It seems the general public is finally waking up to this reality and support from influential figures like Elon Musk further solidifies this shift in perception.
Major economies worldwide are also announcing plans to increase nuclear power capacity to strengthen energy security and lower carbon emissions, solidifying expectations of strong uranium-buying activity for decades to come. Consequently, the price of uranium has been steadily rising, recently reaching multi-year highs at $58/lb.
A GROUNDBREAKING DISCOVERY
Now let’s turn our attention back to F3 Uranium, one of the most exciting early-stage uranium exploration companies on the planet right now.
F3 Uranium (formerly Fission 3.0) is focusing on projects in the most prolific uranium region on the planet, the Athabasca Basin, which is home to some of the world's largest high grade uranium discoveries and also home to industry giants like NexGen Energy, Cameco, Orano, and more.
In November of last year, F3 Uranium made a groundbreaking discovery at their Patterson Lake North Property (PLN). The 5.5m @ 18.6% U3O8 discovery hole put PLN on the map as the next big shear-hosted discovery in the Athabasca and sent shockwaves through the junior mining sector, causing the stock to skyrocket from $0.08 to $0.51—an impressive 600% increase. The discovery hole has drawn comparisons to significant uranium finds, such as NexGen Energy's Arrow discovery and ISOEnergy's Hurricane discovery, both renowned for their off-scale levels of radioactivity and extensive widths.
A comparison of F3's discovery hole with others in the region reveals its significantly higher CPS count reading, even surpassing NexGen Energy's Arrow discovery.
It's crucial to remember that F3 Uranium is still in the early stages of exploration, as demonstrated by the stock charts and timelines of similar discoveries like NexGen's Arrow Deposit and ISO's Hurricane Deposit. See below.
When NexGen made their initial discovery, the stock ran from $0.30 to $3.00 over a 1-2 year time span. The same thing happened to ISOenergy's stock when they made their Hurricane discovery, from $0.40 to $4.00 in less than two years.
These cycles take time to unfold, and it has only been six months since F3’s initial PLN discovery.
Today, the market cap of NexGen Energy is sitting around $3 billion, while IsoEnergy has a market cap of around $300 million. F3’s market cap is currently sitting around $110 million, indicated huge potential for growth.
A HIGHLY SUCCESSFUL WINTER DRILL PROGRAM
Following the initial discovery at PLN, F3 conducted a follow-up 21-hole (10,000m) winter drill program to gain more valuable insights as to the true size and grade of the deposit. The drill program was HIGHLY SUCCESSFUL, revealing more high-grade intervals of uranium mineralization and extending the strike length to over 105m— with some holes returning as much as 65% U3O8.
The photo below is an example of one of F3’s successful drill holes - Hole PLN23-060.
This hole intersected 3.82m of off-scale (>65,535 cps) radioactivity. The assay analysis for PLN23-060 returned one continuous 14.5m interval averaging 9.4% U3O8 including an ultra-high-grade 5.0m interval averaging 26.7% U3O8, which further includes a 2.5m interval which assayed 45.6% U3O8. These are incredibly high uranium grades and are further evidence of a large, high-grade uranium deposit on F3’s PLN property.
Without a doubt, this is already a major discovery - with experts estimating around 15Mlbs of U3O8 just based on the drill holes to date. Moving forward, if the company is able to successful hit down dip, it is likely that PLN could grow to 50-100Mlbs very quickly.
With each new drill result, F3 Uranium has demonstrated its potential by combining both size and grade, essential factors for an economic deposit. Furthermore, the company continues to gain valuable insights into the deposit's geology with every hole drilled which will help the exploration team zero in on where to drill next.
Today, F3 currently sits around $0.30 ($110M valuation) with only one follow-up drill program completed which has hinted strongly that the company is tracking a MAJOR uranium deposit. In order to find out more, the company will need to do some more drilling, which is exactly what they plan to do over the upcoming summer months.
AN EXPLOSIVE SUMMER DRILL PROGRAM NOW UNDERWAY
Just a few weeks ago, F3 closed a $12M financing round just in time for their highly anticipated summer drill program. With a war chest filled with cash and multiple rigs turning on the property, F3 is on mission to prove that Patterson Lake North might just be the next biggest uranium discovery on the planet.
The extensive 30-hole summer drill program will expand on the successful winter program with one drill continuing JR Zone step-out drilling and a second drill exploring for new zones of mineralization.
Remember, this is a highly-experienced team with a track of record of MAJOR success in uranium exploration and with all of the vital information gained from the last successful round of drilling, as well as the consistently high-grade uranium results they have been getting over the last program, the chances of success are now better than ever.
Raymond Ashley, President, commented:
"We are very glad that the summer program is underway. The technical team is not only eager to continue to establish the size potential of the JR zone, the newest high grade uranium discovery in the Athabasca Basin, but also excited that the scope of the summer program includes exploration drilling for new zones of uranium mineralization as well as property-wide geophysical exploration to develop new exploration drill targets.”
Undeniably, this upcoming summer drill campaign stands out as the most thrilling uranium exploration endeavour of the summer. If F3 can continue to intersect high-grades of uranium over significant widths >5.0m… we should expect to see large jumps in the share price as a result.
The publisher of this report was paid a fee of ten thousand Canadian dollars by F3 Uranium for the publication of this and other reports regarding the Issuer for a period beginning on or about July 1st, 2023 and set to end on or about October 1st, 2023. The purpose of this compensation was to cover the author's time, research, and expertise in analyzing the company. It is important to note that the payment received may create a potential conflict of interest, as the author may be influenced by the compensation received. Readers are advised to consider this disclosure when evaluating the credibility and objectivity of the information provided in the article. While the author has made reasonable efforts to ensure the accuracy and reliability of the content, readers should conduct their own research and analysis and seek independent financial advice before making any investment decisions related to the small cap company mentioned.The compensation received by the author does not guarantee or imply any specific outcome or recommendation regarding the small cap company's investment potential. This disclosure is intended to provide transparency and assist readers in understanding the context in which the article was written. From time to time,the author of this report,the publisher, and the publisher’s directors, officers, and other insiders may purchase or sell securities of the Issuer.