The spot price for uranium was quoted at $81.32 USD per pound in February 2024, representing a nearly 97% Y0Y increase from $41.31 a year ago. The World Nuclear Association’s Nuclear Fuel Report anticipates a 27% increase in uranium demand over the 2021-2030 period, driven by a 16% increase in reactor capacity alongside a recovery in electricity demand post-pandemic. This forecasted growth underlines the strategic value of Ashley Gold Corp’s (ASHL.C) acquisition of a uranium property, positioning the company to capitalize on the expanding market and the anticipated rise in demand for uranium.
President and CEO, Darcy Christian, joined Equity Guru founder, Chris Parry, in a recent interview to break down this pivotal moment in the company’s strategic direction that could very well add substantial value for investors and accelerate the timeline for revenue generation.
Ashley Gold Corp’s Strategic Acquisition
Ashley Gold Corp, traditionally focused on gold exploration, has made a strategic entry into the uranium sector with the acquisition of a uranium property that came as a serendipitous opportunity from one of its larger shareholders. The junior signed a non-binding Letter of Intent (LOI) to enter into an Option Agreement for the 100% acquisition of the Sahara Uranium-Vanadium Property located in Emery County, Utah. The property is located 12 miles away from the town of Green River, Utah where Western Uranium and Vanadium (WUC) is in the process of permitting a processing facility for its San Rafael and Sunday Mine complex resources as well as third party processing. First ore processing for the facility is expected in 2026. The Company is looking to rapidly advance the asset to provide future feed to the new proposed processing facility.
Christian commented on the proposed transformative transaction, “This is an excellent opportunity for both existing and new shareholders of Ashley. We all know how gold exploration projects are not being valued in the current market. This acquisition should allow us to continue to advance our gold assets in a less dilutive way while providing the opportunity for cashflow in the next few years. Historically a 500,000 lbs non-compliant uranium reserve was defined on the Sahara Property by Energy Fuels with recent modelling of historic drilling suggests this number is significantly larger. It will be our goal in the first stage of the Option agreement to confirm historic drilling and bring in a compliant resource we can work towards permitting for production.”
Value Addition for Investors
The Sahara Property is located 12 miles southwest of Green River, Utah and consists of over 400 claims totalling over 10,000 acres. The region has produced 4,000,000 lbs of Uranium and 5,000,000 lbs of Vanadium with some historical production occuring on the Property until 1980. The Project is located one mile off of the I-80 and is accessed by all weather gravel roads. Water wells are located on the property and power is located less than a mile away to the northeast. In addition, a nearby telecommunicaions tower and fibre optics at the property provide internet and phone access.
The property has over 900 historical drill holes over the Sahara, Jessies Twist and Acheson discoveries. Mineralization occurs in the Salt Wash Member of the Morrison Formation within fluvial sandstones. Additional targets have been identified with surficial gamma-ray spectrometry readings across the property. In addition, bulk tonnage targets have been identified for drilling as well as the hydrodynamic conditions for roll-front blue-sky potential.
Conclusion
Ashley Gold Corp’s forward-looking strategy aligns with global energy trends and market demand for uranium. As the company embarks on this new journey of diversification and value enhancement, it demonstrates the junior explorer’s strategic agility and market insight in the ever-evolving mining industry.
