Myriad Uranium Expands U.S. Uranium Portfolio With Red Basin Acquisition
Myriad Uranium: High-grade U.S. uranium projects, proven management, lean model. Poised to benefit from nuclear energy growth and rising uranium prices.
- Myriad has two high-quality uranium projects in the U.S.: Copper Mountain in Wyoming with a 15-30 million pound historical resource and big exploration upside, and the recently acquired high-grade Red Basin project in New Mexico.
- The company is systematically validating and expanding the historical resources at both projects through targeted, low-cost exploration.
- Recent drilling has confirmed high-grade mineralization and Myriad has significantly increased its land position at Copper Mountain, picking up to host an additional 10-20 million pounds of uranium.
- The uranium market fundamentals are very favourable, with demand expected to outpace supply in coming years as nuclear energy plays a key role in decarbonization. Higher uranium prices will benefit producers.
- Myriad trades at an attractive valuation relative to peers and is well-positioned to re-rate as it delivers on its resource expansion strategy. The company offers significant leverage to the uranium price with potential to become a leading U.S. producer.
Uranium, the key fuel for nuclear power plants, has seen renewed interest in recent years as countries look to reduce carbon emissions and ensure energy security. The United States, which has the world's largest fleet of nuclear reactors, is heavily reliant on uranium imports. However, there is a growing push to revive domestic uranium production. This presents an opportunity for investors to participate in the resurgence of the U.S. uranium industry.
U.S. Uranium Assets Expansion
Myriad is a uranium exploration and development company with two high-potential projects in the United States: the Copper Mountain project in Wyoming and the recently acquired Red Basin project in New Mexico. The company's strategy is to rapidly expand its uranium resource base through efficient and targeted exploration.
Myriad is led by CEO Thomas Lamb, a seasoned mining executive with a track record of success. Under Lamb's leadership, Myriad has assembled a strong technical team and has been making steady progress in advancing its projects.
Interview with CEO Thomas Lamb
Copper Mountain Project
The Copper Mountain project is Myriad's flagship asset. It hosts a historical uranium resource of 15 to 30 million pounds, with significant exploration potential. The project has seen extensive historical exploration and development work by major companies such as Union Pacific and the U.S. Department of Energy.
Myriad has been systematically validating and expanding the historical resource at Copper Mountain. The company recently completed a 34-hole drill program at the main Canning deposit area, with impressive results. The drilling confirmed the presence of high-grade uranium mineralization, with intercepts of up to 8,000 ppm of uranium. These results have given Myriad's technical team increased confidence in the quality of the historical data and the potential to expand the resource.
Importantly, Myriad has also identified significant exploration upside at Copper Mountain. The company has more than doubled its land position, staking new claims covering several promising prospects in the periphery of the main deposits. These prospects, identified by historical drilling, could host an additional 10-20 million pounds of uranium. Myriad plans to systematically explore these areas to further grow its resource base.
Another exciting development at Copper Mountain is the potential for deeper, high-grade uranium mineralization. Historical drilling at the project was mostly focused on shallow depths (less than 500 feet). However, Myriad's recent drilling has intersected uranium mineralization at depths of up to 1,600 feet, suggesting the potential for a much larger mineral system. Lamb notes:
"If the uranium is linked footprint-wise, it could be very exciting. This is why Neutron Energy, who held part of our project area from 2006-2012, has said that we have the potential for large-scale discoveries that are very exciting at Copper Mountain."
Red Basin Project
In addition to Copper Mountain, Myriad recently acquired the Red Basin uranium project in New Mexico for $525,000 Canadian ($275,000 in cash and $250,000 in stock). Red Basin hosts a historical uranium resource of 1.5 to 6.5 million pounds, with grades ranging from 1,700 to 3,100 ppm of uranium. Notably, the uranium mineralization at Red Basin is at or near surface, which could allow for low-cost, open-pit mining.
The Red Basin acquisition is part of Myriad's strategy to opportunistically acquire high-quality uranium projects at attractive valuations.
Red Basin was extensively explored in the 1970s by major companies, with approximately 600 to 700 historical drill holes on Myriad's new property. This gives Myriad's technical team a wealth of data to work with as it looks to validate and expand the historical resource. The company plans to carry out targeted exploration to upgrade the Red Basin resource to current standards.
Conclusion
Myriad Uranium Corp is an emerging player in the U.S. uranium sector with two high-quality projects in Wyoming and New Mexico. The company's experienced management team is focused on efficiently expanding its resource base through targeted exploration and opportunistic acquisitions. With a lean corporate structure, high-grade resources, and significant exploration upside, Myriad is well-positioned to create value for shareholders as the uranium market recovers.
For investors looking for exposure to the uranium sector, Myriad presents an attractive opportunity. The company's projects have the potential to host large-scale, high-grade uranium deposits in stable U.S. jurisdictions. As Myriad continues to deliver on its strategy, it has the potential to become a leading U.S. uranium producer and deliver significant returns for investors.
The Investment Thesis for Myriad Uranium
Myriad presents a compelling investment opportunity in the uranium sector for several reasons:
- High-quality U.S. uranium projects: Myriad's Copper Mountain and Red Basin projects are located in two of the most prolific uranium-producing states in the U.S. - Wyoming and New Mexico. Both projects host significant historical resources with excellent exploration upside.
- Proven management team: Myriad is led by a highly experienced management team with a track record of success in the mining industry. CEO Thomas Lamb and his team have a deep understanding of the uranium market and a clear strategy to create value for shareholders.
- Efficient business model: Myriad has a lean corporate structure and a disciplined approach to capital allocation. The company is focused on efficiently expanding its resource base through low-cost exploration and opportunistic acquisitions. As Lamb notes:
"We are extremely efficient with money. We don't pay ourselves a lot. There's a lot of equity incentive - that's the foundational sort of incentive for us as management. We want to build up a company as efficiently as we can, with lots of uranium, so that when the liquidity event happens, when the market gets moving again, we have the big upside and really move, especially relative to our peers."
- Favourable uranium market fundamentals: The long-term fundamentals for the uranium market are highly favourable. Nuclear power is a critical component of the global clean energy transition, and uranium demand is expected to grow steadily in the coming years. At the same time, supply is constrained due to years of underinvestment in the sector. This supply-demand imbalance is expected to drive uranium prices higher, benefiting producers like Myriad.
- Attractive valuation: Myriad currently trades at a discount to its peers on a resource basis. As the company continues to derisk and expand its projects, there is significant potential for a re-rating in its stock price. Myriad's low-cost business model and high-grade resources position it to deliver robust returns even at current uranium prices.
Macro Thesis Analysis
The uranium sector is poised for a strong recovery in the coming years, driven by growing demand for nuclear power and constrained supply. Nuclear energy is a critical component of the global clean energy transition, providing reliable, low-carbon baseload power. As countries look to meet ambitious decarbonization targets, nuclear power is expected to play an increasingly important role.
At the same time, uranium supply is constrained due to years of underinvestment in the sector. Many uranium mines were shuttered or placed on care and maintenance during the prolonged bear market of the 2010s. While some production has come back online, there is a significant supply gap looming in the mid-2020s as demand outpaces supply.
This supply-demand imbalance is expected to drive uranium prices higher in the coming years. As Myriad CEO Thomas Lamb notes,
"The long-term contracting price is much higher, in the 80s, and that price has to be higher if we're going to produce the amount of uranium that the world needs."
For investors, the uranium sector offers an attractive opportunity to participate in the global energy transition while also benefiting from a cyclical recovery in commodity prices. Companies like Myriad, with high-quality U.S. uranium projects and experienced management teams, are well-positioned to create significant value for shareholders as the uranium market strengthens.
Analyst's Notes
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