The Thelon Basin is a strategic area for uranium development in the well-known Athabasca area. In that vein, Generation Uranium Inc. (the “Company or Generation (TSXV; GEN) offers a promising investment opportunity. This combination of an outstanding junior with an exemplary uranium property is a potential goldmine for investors interested in a uranium proxy or a direct investment.
Let’s get to the Thelon Basin. Generation’s Yath Project (“Yath”) is located in the Thelon Basin mining jurisdiction, which exhibits strategic land positioning and is situated along the trend from the 43 million lbs Lac 50 uranium deposit being advanced by Latitude Uranium, which ATHA Energy Corp is currently acquiring.
The chart shows some fascinating action, both in share price and volume. The shares have moved from CDN0.10 in February 2024 to CDN0.40 currently, a significant increase four times in about six months. I wish my stocks would do that well.
The Thelon Basin is smack in the middle of the Athabasca.
One exciting development is that the Company has attracted significant media interest. In point form over the last few months:
- Generation Uranium to Begin Exploration Program On Its 100% Wholly Owned Yath Project in Nunavut, Canada
- Generation Uranium Significantly Expands Flagship Yath Uranium Project in Nunavut, Canada
- Canada Poised to Reclaim Title as World’s Largest Uranium Producer
- GEN is positioned to contribute significantly to Canada’s uranium production growth, with its Yath Project located in the prolific and under-explored Thelon Basin in Nunavut.
- The company announced that it has expanded its project portfolio by strategically acquiring the Yellow Frog and Pink Toad projects on the Angilak Trend in the Yathkyed Basin, Nunavut Territory, Canada.
These acquisitions not only expand Generation Uranium’s Yath Uranium Project to the east and west but also increase the project’s land coverage by over 45%, bringing the total area to 123.45 km². The expanded project now stretches due north to within three kilometers of the district-scale uranium project being developed by Atha Energy Corp.
The Yath Project is uniquely positioned at the confluence of two sub-basins, the Yathkyed Basin & Angikuni Basin.
- Historical high-grade mineralization was recorded at the surface, and the geological components produced 9.81%, 3.95%, and 2.14% U3O8 in surface boulders.
- Angilak Project historical resource contains 43.3M lbs U3O8 @ 0.69% (2.8 MT U3O8)*1
- The Thelon Basin is an unconformity basin globally recognized for its proven economics: Athabasca, Saskatchewan; McArthur, Australia; Thelon, Nunavut.
- The 85km2 project is contiguous, with a known uranium project being advanced.
- Drilling to overlay clay alteration along the unconformity has proven several strong gravity anomalies that warrant follow-up (GEN Website).
So, GEN is expanding its footprint in an excellent resource neighborhood, as reflected in the quadrupled share price. It has since softened to about 30 cents. Company Presentation
I would be remiss not to summarise the uranium market. Global uranium production is projected to reach over 75,000 tonnes by 2030, up from around 65,000 tonnes last year. Uranium prices have multiplied five-fold since 2016, heavily driven by China’s ballooning demand (though they have cooled recently). While that seems a lot, identified uranium resources total 5.5 million metric tons, and an additional 10.5 million metric tons remain undiscovered—a roughly 230-year supply at today’s consumption rate in total.
The growth is with the number of reactors built and planned. The world’s power reactors, with a combined capacity of about 400 GWe, require some 67,500 tonnes of uranium from mines or elsewhere each year.
I’ll leave the almost last word to GEN’s CEO; “Our 100% wholly owned Yath Project is located in the prolific and under-explored Thelon Basin in Nunavut, Canada. Situated along the trend from the 43 million lbs Lac 50 uranium deposit being advanced by Latitude Uranium, a company currently being acquired by ATHA Energy Corp for an all-share acquisition valued at CAD 64.7M. “(Corp Website)
Now that’s interesting. As I have said before, GEN is a reasonably priced proxy based on position, share price, and the almost innate growth of nuclear power as the world progresses past the entire fossil regime.
We can all agree that nuclear power development is just starting. Don’t believe me? How about Bill Gates: I contributed over a billion, and I’ll contribute billions more.
You go, Bill.
Bob Beaty
For over 30 years, Bob Beaty has been explaining concepts and companies to the global investment community. One of the original writers for Jim Cramer’s Thestreet.com, he also wrote for AOL (Can/US), the Globe and Mail, and the Huffington Post. Over that period, he illuminated small-cap companies to investors with wit and pith but mostly opinion and facts. Investing should be fun. Pedantic, staid content is no fun.
Before embarking on his writing career, Bob had a successful international journey in the finance industry. He served as a broker, derivatives product manager, and a Director of London's Credit Suisse subsidiary. His career spanned across major financial hubs including Toronto, Vancouver, and the UK, giving him a unique global perspective. (He is still fondly remembering those English client lunches.)
Other than everything Groucho Marx and George Carlin ever said, Bob lives by a simple credo;
‘Never do anything the person standing in front of you can't understand.’ Hunter S. Thompson.
Let’s go.
