About Premier American Uranium (TSXV: PUR) (OTCQB: PAUIF)
Premier American Uranium Inc. is focused on consolidating, exploring, and developing uranium projects in the United States. One of PUR’s key strengths is its extensive land holdings in three prominent uranium-producing regions in the United States: the Grants Mineral Belt of New Mexico, the Great Divide Basin of Wyoming, and the Uravan Mineral Belt of Colorado. There is much technical information about the PUR projects. I will attempt to hit the highlights. That will likely be enough for the mining data folks to peak investor interest.
First, The Cyclone Project
- Drilling underway
- 25k acres
- 45 miles from Rawlins, Wyoming
- 15 miles from Sweetwater Uranium Mill
- 1061 claims
- Seven state leases
Exploration drilling underway
Recent Cyclone Drilling Results
It is best to quote Colin Healey of PUR. Colin Healey, CEO of PUR, commented, “The inaugural exploration program at Cyclone is off to a solid start, achieving multiple critical objectives.
First, we have successfully confirmed the presence of uranium mineralization of significant grades proximal to historic intersections at the Rim target. Second, with strategically positioned exploration holes designed to gather data about the geological features that influenced the deposition of uranium mineralization, we continue to enhance our understanding of the geological setting of the Cyclone Rim Target, which we believe will aid in future drill program design and improve the efficiency of exploration of the Rim target. We remain confident that with this systematic exploration approach, we are in the best position to move towards locating and delineating uranium resources at the Rim target. We are pleased with the progress and results and look forward to continuing to understand the potential of the nearby Osborne Draw target next summer.”
Uranium mineralization at PUR’s Cebolleta project is the northern extension of the Jackpile-Paguate trend of uranium deposits, one of the world’s largest sandstone-hosted uranium endowments. Cebolleta is an advanced uranium exploration project with a Mineral Resource (April 2024 Technical Report) of Indicated Resources containing 18.6 million pounds of U3O8 (6.6 M tons @ 0.14% U3O8). Inferred Resources are estimated to contain 4.9 million pounds of U3O8 (2.6 M tons @ 0.10% U3O8).
Uravan Mineral BeltThe Uravan Mineral Belt of southwestern Colorado has a rich history of uranium and vanadium exploration and production. The mines within the Mineral Belt have produced nearly 80 million lbs of U3O8 and more than 400 million lbs of V2O5 since 19451. Colorado ranked 5th of 62 jurisdictions in the Investment Attractiveness Index of the Fraser Institute Annual Survey of Mining Companies 2022
Visual Assets;
Several recent and previous PUR PRs detail dPR’sing and exploratory work, making that progress easy to understand and unique among mining companies. The Company is almost too good—if possible, giving out information relevant to investors, mining geeks, or both.
Considering the fundamentals are the strongest in a decade, ownership in the market, either directly or through a proxy, is equally savvy.
Note this: PUR was listed on the TSXV on December 1, 2023. Since then, the price range has been CDN1.24 to CDN3.29, a 2.5x rise. Shares currently CDN1.66. While it appears that uranium mining and use are complex, they aren’t. Uranium is used for nuclear energy. The mined uranium and thorium values will likely increase if demand increases. As with most minerals, people prospect more and find more as demand increases.
Uranium Supply is not the issue. Mining and exploration are the issues.
Finally, the investor’s goal is to be the smartest person in the room/party; here are the basic uranium facts. Also, you should know what is the difference between a nuclear reactor and a breeder reactor.
Whereas a conventional nuclear reactor can use only the readily fissionable but more scarce isotope uranium-235 for fuel, a breeder reactor employs uranium-238 or thorium, of which sizable quantities are available. Uranium-238, for example, accounts for more than 99 percent of all naturally occurring uranium.
- Total world energy consumption of primary energy in 2019 was about 584 exajoules (BP Statistical Review of World Energy 2020)
- A modern light-water reactor can pull an average of 60 MWd/kg out of its 4.8% enriched nuclear fuel (AP1000 docs)
- One kg of 4.8% enriched uranium requires 9.5 kgU natural uranium input to the enrichment plant (and 7.8 SWU) (any old SWU calculator)
- A breeder reactor with a recycling fuel cycle can pull about 900 MWd/kg out of non-enriched nuclear fuel (natural or depleted uranium or thorium)
- There are 6.1 million tonnes of uranium in reasonably assured deposits (World Nuclear Uranium)
- There are 6.3 million tonnes of thorium in reasonably assured deposits (World Nuclear Thorium)
- Uranium exists in seawater at an average concentration of 0.003 ppm (also World Nuclear Uranium)
- There are about 332 million cubic miles of water on Earth, 96.5% of it is in the ocean (USGS). At a density of 1 gram/cm33, this comes out to 1.4 yottagrams of water or 1.4e21 kg)
- At 0.003 ppm, there are about 4000 million tonnes of uranium in seawater.
- The average crustal concentration of uranium is about 2.8 ppm (World Nuclear Uranium)
- About 6.5e13 tonnes (65 trillion) of uranium is in the crust, continuously replenished in seawater through erosion, runoff, and plate tectonics.
- Thorium requires a breeder reactor, so it is to be included only once breeder reactors are assumed.
Party on.
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.
