Categories: Mining Stocks
Topics: Uranium Stocks

Selecting the Right Uranium Stocks as Prices Go Ballistic

With uranium prices sharply on the rise, Kraken Energy Corp. (CSE: UUSA)(OTC: UUSAF) — currently trading around C$0.30 per share — has expanded its flagship, 100%-owned Apex uranium project by 2,400 acres, bringing the total to ~14,900 acres of contiguous claims. 

The Apex property, which is located 280 km east of Reno, Nevada, includes the Apex Uranium Mine — Nevada’s largest past-producing uranium mine. The mine produced 50% of the historical uranium output for the state of Nevada; ~106,000 lbs at an average grade of 0.25% U₃O₈. 

Importantly, the property has seen zero modern exploration, which means the Kraken Energy team is the first mining company to conduct exploration at Apex through the lens of modern mining and the technologies that come with it. 

The potential is clearly there. In a Nevada Bureau of Mines historical file, geologist Harry H. Hughes had this to say about the Apex Mine during its heyday:

“It’s not just a uranium mine, it’s THE uranium mine in continental United States. Orebodies in this Austin (Apex) property show width, massiveness and
consistency… that I have not seen in any other continental U.S. uranium
mine.”

Kraken Energy recently completed a soil sampling program at Apex to evaluate the surface extension of mineralization and the correlation of uranium with gold, silver, nickel, and copper. 

A total of 987 samples were collected over an area of approximately 1 km by 0.6 km with 91 samples returning results of 50 ppm U₃O₈ or greater plus anomalous precious and base metals values.  

Kraken Energy CEO Matthew Schwab — whom you’re about to hear from directly in our exclusive interview — commented via press release:

“As we continue to progress drill permitting at Apex, we are excited to explore the newly outlined targets on BLM ground immediately west of the historic Apex Uranium Mine. As we build on the work we’ve already completed, our team is very keen to be moving ahead with continued exploration plans at Apex.”

Exploration activities planned for Q4 will include prospecting, ground surveys, and additional airborne magnetic surveys to further delineate primary targets and target depths at Apex.

As part of the ongoing permitting process, the company will be completing additional baseline studies to satisfy requests from the US Forest Service ahead of a planned inaugural drill program for the Apex property.

In all, Kraken Energy is advancing three brownfield uranium exploration projects in Nevada — Apex, Garfield Hills, and Huber Hills — plus the newly-acquired Harts Point uranium project in Utah, with the longer-term aim of building out an eventual hub-and-spoke mining model in the western United States. And with uranium prices surging toward 16-year highs above US$65/lb, the timing could not be better. 

As promised, our own Gerardo Del Real of Junior Resource Monthly caught up with Kraken Energy CEO Matthew Schwab — who, by the way, is a former senior exploration geologist for C$4B NexGen Energy where he was instrumental in the discovery of the world-class Arrow uranium deposit in 2014 — to discuss next steps at the flagship Apex uranium project and more. Please enjoy! 

For more information on Vancouver-based Kraken Energy, be sure to contact the company’s IR department at 604-908-1695 or via email at info@krakenenergycorp.com. 

Sign up to receive updates directly from the company at the Kraken Energy corporate website.

Mike Fagan
Editor, Resource Stock Digest