NexGen Drill Results Continue Expansion

Source: The Energy Report 04/20/2017 Drill results from NexGen Energy’s A3 Zone of the Arrow project have significantly expanded the zone to the northeast and have discovered massive pitchblende. NexGen Energy Ltd. (NXE:TSX; NXGEF:OTCQX) released results from 18 holes from its winter drill program at the Rook I property in Canada’s Athabasca Basin in Saskatchewan. According to the company, hole AR-17-136c2 is marked by “dense accumulations of massive to semi-massive pitchblende mineralization and is the strongest zone of mineralization encountered in the A3 shear to date. This newly discovered area is open to the northeast.” Garrett Ainsworth, NexGen’s vice-president of exploration and development, stated, “Drilling has been very successful in significantly expanding mineralization at Arrow on several fronts. The discovery of massive to semi-massive pitchblende mineralization encountered in hole AR-17-136c2 in the A3 shear looks identical to that found in the A2 Sub-Zone.” The A2 shear zone also shows expansion. Step-out drilling 200 meters northeast of existing drilling has intersected “39.0 m of total composite mineralization including 1.65 m of total composite off-scale radioactivity.” A drill hole 255 meters northeast has intersected “18.5 m of total composite mineralization including 1.6 m of total composite off-scale radioactivity.” On the A2 shear, Ainsworth said, “Further step outs into the northeast gap of the A2 shear have returned additional high grade intervals, where we expect mineralization to continue further northeast and down-dip to drill hole AR-15-50. Scissor drill holes stepping out and within the A2 and A3 High Grade Domains continues to exceed … Continue reading

Jack Chan on What Bullish Sentiment Means for Oil Prices

Source: Jack Chan for The Energy Report 04/15/2017 Technical analyst Jack Chan charts a reversal in the oil markets and outlines his strategy. $OSX is on a major buy signal, which can last for months and years. Speculative sentiment, according to open interests in the Commitment of Traders report, suggests that current sentiment is too bullish to support overall higher prices. What appeared to be a breakout this week was promptly reversed, thus resulting in a trend that is well established on the downside. SummaryThe energy sector is on a major buy signal. A correction is in progress. We have taken profits from our long positions and shall now wait for the correction to complete. Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011. Want to read more Energy Report articles like this? Sign up for our free e-newsletter, and you’ll learn when new articles have been published. To see a list of recent articles with industry analysts and commentators, visit our Streetwise Articles page. Disclosure: 1) Statements … Continue reading

DNI Delivers Profitable Graphite

Source: Bob Moriarty for The Gold Report 04/13/2017 For Bob Moriarty of 321 Gold, the boom in demand for lithium ion batteries also means a boom in demand for graphite, and he is placing his bets on a junior he believes has nothing but blue sky ahead. A lithium ion battery is no more lithium than 6 k gold is really gold. Regulations require gold be the major component of jewelry to be called gold. 6 k gold is really copper and silver, not gold. Same same with batteries, a lithium battery increases the demand for graphite a lot more than it does for lithium. What is called a lithium ion battery contains 10–20 times more graphite than lithium. So a boom in lithium battery requirement is really a boom in graphite demand. Maybe we should start calling them graphite batteries with a little bit of lithium? But both the demand and price of graphite have shot up in recent years with the increase in demand for battery storage. A couple of years ago there were probably seventy-five Canadian juniors all claiming to be the next big thing in graphite. Alas, cold hard economics stopped most of them in their tracks. Canada has some great hard rock graphite projects but they all require a lot of money to get into production. With China being the world’s biggest supplier of graphite, they are quite willing to dump graphite at a moment’s notice. Those who fund mining projects want stable prices more … Continue reading

Fission Uranium Drilling Confirms High-Grade Zone at Patterson Lake South

Source: The Energy Report 04/13/2017 Drilling at Fission Uranium’s Patterson Lake South has confirmed the R1515W zone, and several analysts are expecting the resource to continue to expand. Fission Uranium Corp. (FCU:TSX; FCUUF:OTCQX; 2FU:FSE) announced that follow-up drilling on the R1515W zone of the Patterson Lake South (PLS) project in Canada’s Athabasca Basin region has confirmed the high-grade discovery that the company first announced on March 20. Fission has completed drilling two of the four follow-up holes, and they provide the strongest mineralization yet encountered at the high-grade, near-surface and land-based zone. Ross McElroy, president, COO and chief geologist for Fission commented, “PLS17-553 is the second strongly mineralized hole in the newly discovered zone and confirms the potential for significant widths and high-grade radioactivity. The R1515W is the western-most zone of high-grade mineralization on our Patterson Lake Corridor trend and expands the strike-length of our high-grade mineralized foot-print to 3.14km—the largest in the region. . .it is open in multiple directions and we look forward to the next two holes of our follow-up drilling.” David Talbot, an analyst with Eight Capital, noted on April 4 that the R1515W zone may see further expansion, writing that it is the “third land based zone, and occurs near surface (185m depth), potentially high grade, and open in several directions including along strike. R1515W zone is not included in current resources or PEA. Provides further upside for future economic studies.” He has a Buy rating and a target price of CA$2.25. Analyst Rob Chang … Continue reading

Torchlight Energy Inks Drilling and Development Agreement with University Lands

Source: The Energy Report 04/04/2017 An agreement that Torchlight Energy and its partner have signed with University Lands consolidates 192 existing leases in the Orogrande Basin project into one lease. Torchlight Energy Resources Inc. (TRCH:NASDAQ) announced that the company, along with operating partner Founders Oil and Gas, has signed a Drilling and Development Unit (DDU) agreement with University Lands for its Orogrande Basin project in Texas. University Lands manages the surface and mineral interests of 2.1 million acres of land across nineteen counties in West Texas for the benefit of the Permanent University Fund. According to Torchlight, “The DDU agreement allows for all 192 existing leases covering the 133,000 net acres leased from University Lands to be combined into one lease for development purposes.” The company has stated that “the agreement represents one of the largest DDU Agreements ever granted by the University Lands organization in the State of Texas, according to University Lands personnel.” “The significance of this agreement to Torchlight is tremendous,” stated John Brda, CEO of Torchlight Energy. “We have devoted significant time and effort to this DDU Agreement over the past year. Based on the sheer size of this play, its development by an independent under multiple leases would be nearly impossible. The DDU creation makes the Orogrande Basin Project manageable at reasonable cost and maximizes the attractiveness of the play to potential suitors in any future sale discussions.” Dallas Salazar, CEO of Atlas Consulting, wrote on April 3 that this was a “great day for … Continue reading

Millennial Lithium's Exploration Progressing Rapidly in the Lithium Triangle

Source: The Energy Report 03/30/2017 View Original Article Millennial Lithium, which closed a private placement of nearly $6 million and is resuming drilling at Pastos Grandes in Argentina, has set its sights on producing lithium within three years as lithium demand is projected to skyrocket. Millennial Lithium Corp.’s (ML:TSX.V; MLNLF:OTCQB) announcement on March 27 that it has closed a private placement of nearly $6 million and is commencing phase 2 drilling at Pastos Grandes in Argentina demonstrates that the company is moving ahead rapidly on the project. The company reported that “Montgomery and Associates has designed a program that includes 11 additional drill sites to define the resource. . .the holes will be drilled to 400 meters or deeper based on drilling conditions and brine content.” The company also stated that “all of the resource definition holes will be completed as monitoring wells. Selected sites will be drilled with larger bores suitable for construction of production scale wells, initial pumping tests, and for NI 43-101 resource compliance.” Kyle Stevenson, president of Millennial Lithium, told The Energy Report that the company is “focused on proving up a 43-101 resource at Pastos Grandes by the end of second quarter of this year. Once the 43-101 is completed we expect to have our Preliminary Economic Assessment done shortly after, by mid-summer. We are focused on being in production in three years.” Millennial Lithium is also moving rapidly to drill three other high-impact exploration projects, Cauchari East, Cruz and Pocitos West. Stevenson noted that … Continue reading

Major Supply Shortage: Critical Minerals Igniting Bull Market Mania

Source: Kenneth Ameduri for The Gold Report 03/24/2017 View Original Article Collapsing oil prices are only the beginning as fossil fuels are turning into a historic relic, says Kenneth Ameduri, chief editor of Crush the Street. He discusses two commodities whose demand he expects to skyrocket as the world shifts to cleaner energy. Elon Musk is at the forefront of this movement with his innovations that are turning fossil fuels into a historic relic. Some say oil’s true price per barrel with the “supply glut” that exists and the innovations in the battery space is $20 per barrel. Oil prices are destined to collapse in REAL TERMS. Sure, there are some inflationary and deflationary forces counteracting each other over the longer term. The fact is that oil is still a highly demanded commodity, and the world isn’t ready to be converted to 100% electricity TOMORROW. The power grid would not support this rapid shift. Cars haven’t fully gotten to the point YET where they are cost effective enough to be as practical as gas-powered vehicles. But believe me, it’s coming. Also, the Fed’s monetary policy and habit of printing trillions of dollars is going to put upward pressure on the price per barrel simply because there are more dollars chasing the same amount of goods. No doubt, the world is demanding clean air solutions and this is deflationary for oil because demand will ultimately continue to dwindle. …read more … Continue reading

As Uranium Price Turns, Insiders Stock Up on Energy Fuels

Source: The Energy Report 03/23/2017 View Original Article Analysts watching the uranium market agree that as prices for U3O8 turn around, Energy Fuels’ U.S.-based assets, including its conventional and in-situ recovery operations at the Canyon Mine and Nichols Ranch, respectively, make it a good bet for investors. The company’s management team and directors must agree because they have upped their share ownership. In a letter to shareholders that Energy Fuels Inc. (EFR:TSX; UUUU:NYSE.MKT) released on March 16, President and CEO Stephen Antony cited trends he believes bode well for uranium producers like Energy Fuels, including production cutbacks by major producers including Cameco in 2016 and Kazakhstan’s state-owned Kazatomprom in early 2017. “I would contend that when the World’s largest and lowest-cost uranium producers are feeling the pain of today’s prices, you know this current market pricing is categorically unsustainable,” Antony wrote. Other signs that uranium prices will soon turn around include increased demand for U3O8 as new reactors come on-line, the demand for clean energy sources, and the American desire for energy independence. Antony concluded his letter by noting that he and other members of the company’s management team and board of directors had recently purchased additional shares of Energy Fuels stock. “We believe in this company, we believe in a uranium price recovery,” he wrote. Though Rob Chang of Cantor Fitzgerald acknowledges the challenges Energy Fuels has faced in coping with depressed uranium prices, he states in a March 10 research report that “we continue to view Energy Fuels … Continue reading

Fission Uranium's Exploratory Drilling Hits Success Right Out of the Gate

Source: Ross McElroy for The Energy Report 03/23/2017 View Original Article With uranium up 40% off last year’s lows, a glimmer of optimism is returning to the uranium market, says Fission Uranium’s President, COO and Chief Geologist Ross McElroy. In this interview with The Energy Report, McElroy discusses the company’s latest drill results, its winter drilling plans and why he believes Fission could be on the cusp of a major discovery. The Energy Report: Uranium hit lows this summer before recovering somewhat, although the uranium price is still well below the highs of several years ago. Would you discuss the fundamentals for uranium and your predictions for the price over the next several years? Ross McElroy: We saw the spot price of uranium hit a multiyear low of about $18 per pound ($18/lb) in late November/early December 2016. But we’ve also seen, in the short period from the beginning of December up until currently in March, the spot price recover to close to $25/lb. That represents a price increase of about 40% over just a few months. Of course, $25/lb is still a very low price. At the low end, the major low-cost producers, primarily the Kazakhstan producers and Cameco Corp. (CCO:TSX; CCJ:NYSE), one of the world’s largest uranium producers, sent signals to the market—by reducing low-cost production and shutting in higher-cost production—that they’re not selling uranium any cheaper than that. Those are among the lowest-cost producers worldwide. It has gotten to a point where even they can’t make any … Continue reading

NexGen's Mineral Resource for Arrow Highlights 'Once-in-a-Career Type of Asset'

Source: The Energy Report 03/23/2017 View Original Article NexGen’s latest mineral resource estimate for the Rook I property has caught the attention of industry analysts. Earlier this month, NexGen Energy Ltd. (NXE:TSX; NXGEF:OTCQX) released an updated mineral resource estimate for the 100%-owned Rook I property in Canada’s uranium-rich Athabasca Basin. The estimate includes Indicated resources of 179.5 million pounds (179.5 Mlb) of U3O8 in 1.18 million tonnes (1.18 Mt) grading 6.88% U3O8, including the high-grade A2 core of 164.9 Mlb of U3O8 in 0.40 Mt grading 18.84% U3O8. The Inferred resource estimate is 122.1 Mlb in 4.25 Mt grading 1.30% U3O8. The company noted that the 2016 drilling has “converted 89% of the March 2016 Arrow Deposit Maiden Inferred Mineral Resource into the updated Indicated Mineral Resource category. This level of conversion is truly unprecedented, which continues to confirm the strong continuity of grade and thickness seen across the Arrow deposit converted.” Paradigm Capital analyst David Davidson noted in a March 7 research report that “NexGen’s discovery of the Arrow uranium deposit represents one of the larger and highest-grade discoveries in the Athabasca basin in decades. After only three years of drilling, the company released an updated NI-43-101 indicated & inferred resource of 5.5 Mt grading 2.5% U3O8 for a contained 302Mlb of U3O8. Additional drilling in all likelihood will expand the resource, which should allow for a potential development scenario.” Looking ahead, Davidson added, “NXE is well into its planned 35,000m 2017 winter drill campaign and we remain convinced … Continue reading