Myriad Uranium - Upcoming Drilling Program to Revive Wyoming Uranium Project

Interview with Chief Executive Officer, Thomas Lamb

Historical Significance & Resource Potential

The Copper Mountain project's history adds considerable weight to its potential. Union Pacific Railway invested heavily in the project during the 1970s, spending approximately $117 million in today's dollars. The project was on the verge of becoming an operational mine when the Three Mile Island accident in 1979 led to a drop in uranium prices, halting development.

Union Pacific's extensive work included over 2,000 drill holes and a feasibility study for a large-scale conventional uranium mine. Their internal estimates suggested a resource of 15-30 million pounds of uranium for their six-pit mine plan, with potential for over 65 million pounds across the entire project area.

Lamb elaborates on these historical findings:

"Union Pacific had a six-pit mine plan. We now see they had a feasibility study to build a large-scale conventional uranium mine, which was just aborted before construction in 1979 with the Three Mile Island accident drop in the uranium prices. So they had a six-pit mine plan, and they had different categories than we have now under 43-101. This is for their internal engineering and planning purposes, they estimated between 15 and 30 million pounds for their mine plan."

It's important to note that these historical estimates are not compliant with current NI 43-101 standards and should be treated with appropriate caution. However, they provide a compelling starting point for Myriad's exploration efforts.

New Geological Understanding & Exploration Potential

Myriad's team has identified additional exploration potential beyond the historical work. While previous drilling focused on horizontal pods near the surface, new geological interpretations suggest high-grade mineralization may exist in near-vertical faults within the granite.

This new understanding opens up possibilities for significantly expanding the resource. Lamb states:

"New understanding tells us that the high grade lies in these near-vertical faults in the granite that host high grade. So we think we can go there, we have good chances of going well beyond these pounds and getting quite a bit more high grade going deeper and getting a lot more high grade."

The company believes this could substantially increase both the size and grade of the resource, potentially making Copper Mountain one of the largest uranium projects in Wyoming.

Upcoming Exploration Program

Myriad has designed an exploration program to verify and potentially expand upon the historical resource. The company plans to drill approximately 83 holes, including 56 reverse circulation holes and the remainder as diamond drill holes.

The program will focus initially on the Canning deposit, which was central to Union Pacific's six-pit plan and could contain up to 20 million pounds of uranium. Notably, Myriad plans to drill deeper than Union Pacific did, targeting the vertical structures that may host high-grade mineralization.

Lamb outlines the strategy:

"We're going to go straight there and start at the high-grade zone within the Canning deposit. We are going to drill about 83 boreholes. We've applied for the drill permits already in Wyoming. We're going to drill about 56 RC holes, and the rest diamond holes. And whereas Union Pacific drilled again to 183 meters, we have a lot of holes planned down to a thousand feet to intersect these vertical structures."

This approach could not only verify the historical resource but also significantly expand it, particularly if high-grade mineralization is encountered at depth.

Financing & Strategic Investors

To fund its exploration program, Myriad has announced a $5 million private placement. The company has already closed the first tranche of $2.9 million and reports continued interest from investors.

Notably, the financing has attracted specialist uranium investors who have conducted extensive due diligence on the project. Lamb mentions:

"We have some expert investors, specialist uranium investors who are very well known. They got quite interested in our project. They did a bit of a put their toe in our data room to take a look, and their expert out of Denver, Doug Christopherson, got fairly very keenly interested out of the gate and has spent the last two months doing a deep dive into our data room."

The involvement of these knowledgeable investors provides an additional layer of validation for the project's potential.

Wyoming: A Strategic Jurisdiction for Uranium

Wyoming's significance in the uranium sector cannot be overstated. The state has a long history of uranium production and is currently experiencing renewed interest and investment in the sector.

Recent high-profile investments, including those by Bill Gates' TerraPower, underscore Wyoming's strategic importance in the U.S. nuclear energy landscape. The state benefits from strong bipartisan political support for uranium production, from mining through to fuel rod manufacturing.

Lamb emphasizes this point: "We're in the best possible jurisdiction in the world, I believe. Wyoming is inside the United States. Politicians are very conscious in the U.S., bipartisan support for uranium, up and down from production all the way to making the fuel rods. It's all going to happen in the U.S. There's a lot of money, and there's going to be money already pouring into Wyoming."

This favorable jurisdictional setting enhances the attractiveness of Myriad's Copper Mountain project.

Market Dynamics & M&A Potential

The broader uranium market is showing signs of a potential upswing. Major financial institutions are forecasting significant price increases for uranium in the coming years. Bank of America, for instance, has projected uranium prices could reach $115 per pound in the near term, with further increases possible.

These market dynamics, coupled with the strategic importance of domestic uranium production in the U.S., create a favorable environment for consolidation in the sector. Myriad believes its Copper Mountain project could be an attractive target in this landscape.

Valuation Considerations

Despite the significant potential of the Copper Mountain project, Myriad Uranium's market capitalization remains relatively low at around 10 million Canadian dollars. This valuation appears to be a legacy of the company's previous early-stage exploration in Niger and may not fully reflect the potential of the Copper Mountain asset.

Lamb suggests that as the company advances its exploration program and communicates its results, there could be a significant revaluation:

"I think we could have an order of magnitude market cap adjustment in fairly short order because you can do back-of-the-envelope calculations, and that's well within an easy and sensible range to get to, and that's just advancing a bit."

While such projections should be viewed cautiously, they highlight the potential for value creation as Myriad advances the Copper Mountain project.

Near-term Catalysts & Outlook

Investors can look forward to several near-term catalysts that could drive interest in Myriad Uranium:

1. Completion of the current private placement
2. Commencement of geophysical surveys in the coming weeks
3. Receipt of drill permits
4. Initiation of the 83-hole drill program in late summer or early fall
5. Results from the drill program, potentially verifying and expanding the historical resource

These milestones should provide a steady stream of news flow and potentially value-creating events for the company.

The Investment Thesis for Myriad Uranium

• Significant Historical Work: Over $117 million (in today's dollars) invested by Union Pacific, including 2,000 drill holes and feasibility studies.
• Large Resource Potential: Historical estimates suggest 15-30 million pounds of uranium, with potential for over 65 million pounds.
• High-Grade Exploration Potential: New geological interpretations suggest high-grade mineralization in vertical structures, potentially expanding the resource.
• Strategic Jurisdiction: Wyoming is a key uranium jurisdiction in the U.S., with strong political support and increasing investment.
• Undervalued Relative to Potential: Current market cap of ~C$10 million may not reflect the full potential of the Copper Mountain asset.
• Near-term Catalysts: Upcoming drill program could verify and expand the historical resource, potentially driving revaluation.
• Strong Market Fundamentals: Forecasts suggest rising uranium prices, which could drive M&A activity in the sector.
• Experienced Management and Strategic Investors: The team has attracted specialist uranium investors who have conducted extensive due diligence.

Macro Thematic Analysis

The uranium sector is experiencing a renaissance driven by several macro factors. Global efforts to decarbonize energy systems have led to increased interest in nuclear power as a reliable, low-carbon energy source. This shift is reflected in policies worldwide, with countries like China, India, and even some European nations expanding their nuclear energy programs.

In the United States, there's a growing recognition of the strategic importance of domestic uranium production. This has led to bipartisan political support for revitalizing the U.S. uranium industry, from mining through to fuel fabrication. Wyoming, with its rich uranium mining history and favorable regulatory environment, is at the forefront of this resurgence.

In this context, companies like Myriad Uranium, with potentially significant resources in strategic locations, are well-positioned to benefit from these macro trends. Myriad CEO Thomas Lamb notes:

"M&A is coming. Of course, Wall Street banks forecast uranium price rises next year, year after. You got Bank of America saying $115 a pound soon and higher the year after, etc. So M&A, high uranium price, we're in the center of Wyoming, huge amount of historic work at Copper Mountain, so we're feeling really good."

The macro trends are driving increased interest in uranium exploration and development projects, particularly those in stable jurisdictions like Wyoming. They're also fueling expectations of industry consolidation, as larger players seek to secure future supply through acquisitions. The supply-demand dynamics in the uranium market are shifting. Years of low prices led to underinvestment in new production, creating a potential supply gap as demand increases. This has led to forecasts of significantly higher uranium prices in the coming years, with some analysts projecting prices could more than double from current levels.