Toronto, Ontario – June 22, 2020 – Baselode Energy Corp. (“Baselode” or the “Company”) (FIND:TSXV) is a brand new uranium exploration company led by James Sykes and is pleased to publish its investment thesis:
Investor focus is back on the Uranium market and Baselode offers excellent exposure to the upcoming Uranium Bull Market.
6 REASONS TO INVEST IN BASELODE ENERGY:
WHO IS BASELODE?
Baselode (FIND : TSXV) is focused in the Athabasca Basin area with a mission to discover high-grade, near-surface uranium deposits. We are exploring for a specific type of deposit while using a unique methodology to achieve our goals. Everything we do will be geared towards maximizing our ability to make a discovery using our Athabasca 2.0 hypothesis.
We are looking in areas that others have overlooked by capitalizing on the lessons learned from James Sykes multiple uranium discoveries. Baselode is leveraging this knowledge of the Athabasca to quickly find basement-hosted uranium deposits – the type of deposits that are truly economic and easily mineable.
Baselode has an extremely tight share structure with less than 29 Million shares outstanding.
James Sykes: 550,000,000 pounds of uranium – and growing
James is a renowned uranium geologist in the Athabasca Basin, who has helped discover over 550,000,000 pounds of uranium. He is determined to FIND another massive uranium orebody for Baselode using our Athabasca 2.0 hypothesis.
How much is 550M Lbs? In dollar terms, this is equal to $19.25 billion, at $35/lb U3O8.
How does Baselode stand apart?
Others may have uranium resources, but Baselode is looking for Uranium Deposits – two very different things. If you do not know where you are going, all roads will get you there. Hence, Baselode has set a clear objective and has charted the interim steps. Our destination? The discovery of a large tonnage, basement-hosted and high-grade uranium deposit within a safe jurisdiction.
Athabasca 2.0: Back to the Future – Our new way of looking for uranium
Baselode’s Athabasca 2.0 is the concept of exploring for high-grade uranium deposits outside of the traditional unconformity-type exploration model. Instead we are focused on the basement rocks that do not pose the challenges that companies face in the traditional Athabasca 1.0 model.
Characteristics related to Athabasca 2.0 are:
Athabasca 1.0 – The old model is flawed
Since the discovery of McArthur River and Cigar Lake, the highest-grade deposits in the world, focus has shifted away from the basement-hosted deposits that were easily mineable (pre-1970s), towards the very high-grade deposit styles within the Athabasca Basin beneath thick layers of sandstone. The focus changed from what can be mined to how high of grades can be found? Of the +40 uranium discoveries since the 1970s, only 6, or less than 15% have reached the production stage, and only 2 have been mined (albeit with challenges) with over 100 metres thickness of the sandstone layer. The thick sandstone layer is the ultimate challenge in developing a mineable uranium deposit due to its high water content.
Why the Athabasca Basin area?
WHY URANIUM? ITS MACROECONOMIC CASE
The Choice is Nuclear or Fossil Fuels for baseload needs
Uranium is one of the few energy sources which does not need to be shut down for refuelling and is able to supply a constant minimum amount of energy required to consistently power the grid, this is called ‘baseload power’. Renewables are not enough, and fossil fuels come with its own challenges in pollution and emissions. Hence, in a policy era of low to no carbon footprint, with renewable power being simply unable to meet baseload needs, the choice is clear – Uranium/Nuclear or Fossil Fuels.
Nuclear power is Clean, Green & Cost Effective – No carbon emissions
Nuclear energy is extremely safe, cleanest and one of the cheapest forms of energy production. Nuclear energy is better than the alternatives because it:
“Nuclear is ideal for dealing with climate change, because it is the only carbon-free, scalable energy source that’s available 24 hours a day,” – Bill Gates, co-founder of Microsoft Corporation
Uranium pricing – contract vs spot
Utility companies (“Utilities”) acquire uranium as the major input for nuclear power generation. Utilities acquire most of their uranium requirements via long-term contracts, while purchasing the rest of their needs in the spot market. Many uranium investors evaluate uranium prices based on the spot market, but long-term contracts entered by the utilities provides a “forward-looking” perspective of the uranium market.
Uranium demand – higher now than ever (pre-Fukushima & pre-uranium boom)
As global electricity generation demand continues to grow and as the world moves towards a cleaner source of energy, nuclear energy is the only practical alternative to fossil fuels.
There are 55 reactors currently under construction, 100 reactors on order or planned, and 300 more reactors proposed. This capacity increase is led by China. Nuclear demand and use are the highest it has been since the inception of nuclear power generation and will continue to grow.
Uranium supply is vulnerable: 55% taken offline overnight due to covid-19
Over 30% of global uranium supply has come offline. These mines include McArthur River, Cigar Lake, Rossing and Husab. Additionally, production cuts by Kazatomprom, the world’s largest uranium producer, announced 20% production cuts extending to at least 2021. Uranium supply deficit will be increasing over the next few years. The global uranium landscape is dominated by Australia, Kazakhstan, Russia, Canada, South Africa, Niger, Namibia, and China. Of these countries, Canada stands apart as the Athabasca Basin hosts the highest-grade uranium deposits in the world.
Energy Nationalization – United States Section 232 –
In April 2020, a plan was put in place to revitalize the US nuclear energy industry while supporting domestic uranium mining. Part of the recommendations was to directly purchase 17 – 19 million pounds of U3O8 to establish a uranium reserve. This bodes well for Canada, and specifically Saskatchewan given the high-grade nature of uranium in the Athabasca basin, as well as the country’s general political stability and continued relationship with the US.
The 2007 Uranium boom
The 2007 Uranium boom saw prices reach $140/lb. Penny stocks turned into dollar stocks and investors that were opportunistic of the low prices prior to 2007 saw exponential gains. It is impossible to know when we are at the top or bottom of the cycle, but timing the market is key. Several key fundamentals that led to the 2007 Uranium boom are being experienced today.
Future growth of energy production – Small Modular Reactors
Small modular reactors (“SMRs”) are smaller than the conventional, capital intensive reactors. SMRs are manufactured at a factory and assembled at the site, reducing capital cost for construction and increasing safety. Ultimately, the introduction of SMRs will increase global demand substantially. As the world moves towards a more nuclear future, the less we pollute the environment.
Uranium junior market is small
There are very few junior uranium exploration companies. This means that once Uranium prices increase like in 2007, investor capital will once again flood into the junior market, allowing for the implementation of massive exploration and drill programs. Companies with unique exploration strategies, such as Baselode’s Athabasca 2.0, led by management with a successful Athabasca uranium track-record, are poised to see the most attention from investors.
WHY BASELODE’S SHADOW PROJECT?
Because Shadow exhibits very similar structural and geophysical features recognized amongst the “best-of-the-best class” of Athabasca high-grade uranium deposits, such as McArthur River and Arrow deposits. Shadow has:
Baselode’s flagship Shadow Project spans 42,000 hectares and checks all the boxes for a possible Athabasca 2.0 deposit. The property lies outside of the Athabasca Basin and was staked along one of the largest and most prominent structural corridors in northern Saskatchewan—the Virgin River Shear Zone (VRSZ), which presently hosts at least 3 uranium occurrences. Cameco’s Centennial deposit, located in the basin, is also structurally controlled by the VRSZ and the deposit has a +700 metre sandstone cover; again, posing significant development challenges compared to our Athabasca 2.0 model. These deposits show that the structure is fertile for uranium.
Evaluating property geophysics, Shadow is situated atop an area where northeast and northwest geophysical trends converge, possibly creating an ideal structural set up for uranium mineralization.
Recent discoveries including Arrow, Triple R and an older discovery Eagle Point—which entered production in the 1990s—have a combined resource of ~600 million pounds of U3O8. This is the type of deposit Shadow potentially hosts.
For more information on Baselode:
About Baselode Energy
Baseload is a uranium exploration company less than 29 million shares outstanding only 9.8 million shares in the float. Baselode is focused on discovering a uranium orebody in the Athabasca basin in Saskatchewan, Canada.
For further information, please contact:
Baselode Energy Corp.
FIND on the TSXV
James Sykes, President and CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain information in this press release may contain forward-looking statements. This information is based on current expectations that are subject to significant risks and uncertainties that are difficult to predict. Actual results might differ materially from results suggested in any forward-looking statements. Baselode Energy Corp. assumes no obligation to update the forward-looking statements, or to update the reasons why actual results could differ from those reflected in the forward looking-statements unless and until required by securities laws applicable to Baselode Energy Corp. Additional information identifying risks and uncertainties is contained in filings by the Company with Canadian securities regulators, which filings are available under Baselode Energy Corp. profile at www.sedar.com.
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