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Uranium Explorer Shares First Results From Athabasca Drilling

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Tisdale Clean Energy Corp. has completed the first two drill holes of its exploration at the South Falcon East project outside the edge of the Athabasca Basin. One analyst says a new bull market for the company is incubating.

Tisdale Clean Energy Corp. (TCEC:CSE; TCEFF:OTCQB; T1KC:SE) announced the completion of the first two drill holes into the Fraser Lakes B uranium deposit at the South Falcon East project outside the edge of the Athabasca Basin.

Tisdale entered into an option agreement with Skyharbour Resources Ltd. (SYH:TSX.V; SYHBF:OTCQX; SC1P:FSE) in 2022 that enables it to earn up to a 75% interest in the property by exploring and developing it.

The initial drilling this year is scheduled to complete up to 1,500 meters of drilling in two phases as the company looks to confirm existing mineralization.

The first phase included 442 meters over two holes, SF-0059 and SF-0060. SF-0059 was sunk near a historical hole drilled by SkyHarbour in 2015 that hit multiple zones of mineralization and intersected 0.02% U3O8 equivalent (eU3O8) over 5.6 meters, including 0.07% eU3O8 over 1.1 meters and 0.11% eU3O8 over 0.2 meter.

"We're pleased to see uranium values comparable to the grades of the known resource in the first two drill holes completed on the property in nearly a decade," Tisdale Chief Executive Officer Alex Klenman said. "This is what we need to see as we confirm then pursue expansion."

The historical hole, FP-15-05, had returned multiple zones of mineralization over a 14-meter interval nine years ago, including 6 meters of 0.10% U3O8 (including a 2-meter interval of 0.165% U3O8) and 2.5 meters of 0.172% U3O8.

That hole had to be abandoned due to steel rods left in the hole, leaving SF-0059 2 meters forward from it. Other new results from SF-0059 include 0.03% eU3O8 over 4.1 meters, 0.11% eU3O8 over 0.2 meter, 0.05% eU3O8 over 0.2 meter, and 0.06% eU3O8 over 0.2 meter.

Hole SF-0060 returned 0.02% eU3O8 over 1.3 meters and 0.05% eU3O8 over 0.1 meter.

"We are starting with a historical resource of nearly 7 million pounds of uranium contained in a shallow deposit," Klenman said of the site. "The opportunity we have here is exceptional, certainly unique for a company with our market cap, and we believe we're just scratching the surface in terms of what can be achieved at South Falcon East."

Tisdale said drilling at South Falcon East will resume sometime this spring, and it will announce details once they are confirmed.

The Catalyst: Confirming, Expanding Mineralization

Tisdale has the option to earn a 51% stake in South Falcon East and potentially increase it to 75% by exploring and developing the project. The agreement calls for Tisdale to spend about US$10 million advancing South Falcon East and to pay Skyharbour about US$11 million in cash and shares. Tisdale has fulfilled the required obligations so far.

The Fraser Lakes B deposit contains an Inferred resource of 6,960,000 pounds (6.96 Mlb) of 0.03% U308 at a cutoff grade of 0.01%, according to an estimate prepared in 2012. Also present at the same cutoff grade are other elements Tisdale may be able to monetize. They are 5.3 Mlb of thorium and rare earth elements: 1.62 Mlb of yttrium, 895,000 pounds (895 Klb) of cerium, 681 Klb of lanthanum, and 305 Klb of ytterbium.*

The results of earlier drilling by Skyharbour were not incorporated into the existing resource, and the deposit remains open in all directions, as the company has noted. However, confirmation of existing mineralization is a "necessary first step" to expanding the Fraser Lakes B deposit, said Tisdale consulting geologist Trevor Perkins.

"We are encouraged to be intersecting the expected mineralization near the previous drilling at South Falcon East," Perkins said.

South Falcon East is on the perimeter of the Athabasca basin, in an area known for unconformity-style deposits and where mineralization is near surface. Klenman has pointed out it is a "very high rent district" given the major players nearby, including Rio Tinto, Uranium Energy, Orano, NexGen, Denison, and Cameco.

A Favorable Entry Point

In a February 9 research report, Red Cloud Securities analyst David Talbot said Tisdale's drilling at the project was an important step for the company.

"The confirmation drilling should help in eventually making the historical resources current, with [the] potential to expand the resource base if the results of extension and regional drilling are positive," he wrote.

Technical Analyst Clive Maund wrote in a January report that Tisdale's stock was at a favorable entry point and offered great upside potential, in large part because its float is low.

He explained, "The bullish volume pattern and continuing uptrend in the accumulation line are most auspicious and suggest that a breakout into a major new bull market is incubating." 

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Tisdale Clean Energy Corp. (TCEC:CSE; TCEFF:OTCQB; T1KC:SE)

*Share Structure as of 3/18/2024

Tisdale looked attractive and "worth going overweight on while it is still at a low price," he wrote. At the time, the stock was trading at about CA$0.17 per share; it is trading even lower now.

Ownership and Share Structure

Tisdale provided a breakdown of the company's ownership and share structure, where CEO Alex Klenman owns 3.6% of the company with 1.136 million shares.

Planet Ventures Inc. owns approximately 12% of the company, with 3.88 million shares, while Skyharbour Resources owns approximately 3.5%, with 1.11 million.

There are 31.5 million shares outstanding, while the company has a market cap of CA$2.39 million and trades in the 52-week period between CA$0.13 and CA$0.57.

*The historical resource is described in a technical report on the Falcon Point uranium project, Northern Saskatchewan, dated March 20, 2015, and filed on SEDAR by Skyharbour Resources Ltd. Tisdale is not treating the resource as current and has not completed sufficient work to classify the resource as a current mineral resource. While Tisdale is not treating the historical resource as current, it does believe the work conducted is reliable, and the information may be of assistance to readers.

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Important Disclosures:

  1. Tisdale Clean Energy Corp. and Skyharbour Resources Ltd. are billboard sponsors of Streetwise Reports and pay SWR a monthly sponsorship fee between US$4,000 and US$5,000. In addition, Tisdale Clean Energy Corp. has a consulting relationship with an affiliate of Streetwise Reports, and pays a monthly consulting fee between US$8,000 and US$20,000.
  2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Tisdale Clean Energy Corp. and Skyharbour Resources Ltd.
  3. Steve Sobek wrote this article for Streetwise Reports LLC and provides services to Streetwise Reports as an employee.
  4.  This article does not constitute investment advice and is not a solicitation for any investment. Streetwise Reports does not render general or specific investment advice and the information on Streetwise Reports should not be considered a recommendation to buy or sell any security. Each reader is encouraged to consult with his or her personal financial adviser and perform their own comprehensive investment research. By opening this page, each reader accepts and agrees to Streetwise Reports' terms of use and full legal disclaimer. Streetwise Reports does not endorse or recommend the business, products, services or securities of any company. 

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