Nuclear Fuels Inc. (CSE:NF|OTCQX:NFUNF) is a uranium exploration company advancing early-stage, district-scale In-Situ Recovery (“ISR”) amenable uranium projects towards production in the United States of America. Leveraging extensive proprietary historical databases and deep industry expertise, Nuclear Fuels is well-positioned in a sector poised for significant and sustained growth on the back of strong government support. Nuclear Fuels has consolidated the Kaycee district in Wyoming’s Powder River Basin under single-company control for the first time since the early 1980s. Currently executing its second drill program at the Kaycee Project, the Company aims to expand on historic resources across a 33-mile trend with over 110 miles of mapped roll-fronts defined by 3,800 drill holes.
The Company’s strategic relationship with enCore Energy Corp., America’s Clean Energy Company™, offers a mutually beneficial “pathway to production,” with enCore owning an ~18% equity interest and retaining the right to back-in to 51% ownership in the flagship Kaycee Project in Wyoming’s prolific Powder River Basin.
Wyoming is the USA’s leading uranium-producing state, home to the largest known uranium ore reserves in the US. Wyoming is also a jurisdiction that supports energy development, being among a handful of US states with an ‘Agreement State’ status, which provides for a “one-window” streamlined permitting program for new uranium projects.
Nuclear Fuel’s Kaycee project is potentially amenable for in-situ recovery (ISR) extraction technology, an environmentally responsible and economically superior uranium extraction process. Over 60 percent of all uranium extractions globally use this technology.
In addition to the Kaycee project, some of the company’s other assets include the Bootheel project in Wyoming (uranium) and the Moonshine project in Arizona (uranium). Through this portfolio of projects, Nuclear Fuels is confident it can contribute to the U.S.’ need to develop a safe, environmentally superior, and reliable source of domestic uranium, thereby reducing foreign supply dependence and ultimately contributing to the global energy transition.
Nuclear energy is a clean and carbon-free energy source. It is the largest source of carbon-free electricity in the US, as it generates electricity without harmful pollutants such as nitrogen oxide, sulfur dioxide, particulate matter, or mercury. In addition, nuclear energy has a small land footprint meaning it can produce relatively large amounts of power using small land mass. Typically, a 1,000-MW nuclear plant requires around 1 square mile to operate. In comparison, wind farms require 360 times more land area to produce the same amount of electricity, and solar photovoltaic plants require 75 times more area, according to the Nuclear Energy Institute. Nuclear fuel is also extremely energy dense. For perspective, a half-inch-tall uranium pellet creates as much energy as 17,000 cubic feet of natural gas, 120 gallons (about 454.25 L) of oil, or 1 ton of coal. Lastly, the nuclear power industry has a strong safety culture; delivering power safely and efficiently, especially so in comparison to coal-fired power plants.
To produce large amounts of nuclear energy, the US needs domestically produced uranium fuel. Currently, the majority of uranium is imported from foreign producers such as Russia, Kazakhstan and China. To reduce dependence on foreign uranium supply, the US is seeking to strengthen its domestic supply sources. Nuclear Fuels is well positioned to become a leading domestic uranium exploration company with a potential pathway to production with enCore Energy, with the Kaycee Project in Wyoming.
Wyoming is a proven and effective uranium permitting jurisdiction. Its status as an Agreement State ensures permitting and advancing uranium projects are more efficient and streamlined compared to most other states. It is also important to note that most uranium production in Wyoming, especially in the Powder River Basin, involves the ISR extraction method. Wyoming hosts at least 10 ISR operations that have produced more than 45 Mlbs of U3O8.
In-situ recovery (ISR) offers a minimally intrusive, eco-friendly and economically competitive approach to mineral extraction. It’s been proven a successful technique for mining uranium, especially from lower-grade deposits that might not warrant conventional open pit or underground mining due to costs. Unlike traditional mining, ISR doesn’t involve open pits, waste dumps or tailings, making it more environmentally friendly. This method also streamlines the permitting, development, and remediation processes. With ISR, uranium is extracted without disturbing the surface, and once the process is complete, the land is restored to its original state and purpose.
Since its development in the 1960s, ISR technology has evolved significantly. Today, it’s a controllable, safe and benign uranium production method that is highly regulated in the US. ISR currently accounts for about 70 percent of global uranium production. Some nations, like Kazakhstan and Australia, still employ strong chemicals like sulfuric acid for extraction. Many companies operating in the US opt for a mix of oxygen and sodium bicarbonate in the local groundwater, which extracts uranium with minimal environmental impact and at a near-neutral pH.
With ISR, uranium extraction is accomplished in liquid form through injection and recovery wells. Oxygen is injected with water and no toxic chemicals are used. Compared to conventional mining, it saves a significant amount of water. The use of this technology leads to minimal surface disruption, no tailings and no waste piles. Land and water revert to the original use category once the extraction is completed.
The Kaycee project is the company’s flagship asset. It is the largest ISR exploration project in Wyoming’s Powder River Basin (PRB) and covers a 33-mile mineralized trend with over 110 miles of identified roll fronts and over 42 square miles of mineral rights. The project comprises three historically productive sandstone formations – Wasatch, Fort Union and Lance – that are mineralized and potentially amenable to ISR extraction. For the first time since the 1980s, the Kaycee Project is now held by a single company.
With over 3,800 drill holes, historic drilling has confirmed uranium mineralization in all three historically productive sandstones within the PRB, occurring over more than 1,000 feet of vertical section. The majority of the project is not well-explored, with drilling concentrated on approximately 10 percent of the area. The company’s Phase 1 drilling program, conducted in 2023, focused on the Saddle Zone which hosts a historic resource of 519,000 lbs. The initial results from the first 12 holes were encouraging. High-grade mineralization was encountered in five holes with grade thickness (GT) ranging from 0.441 to 0.908. The highest-grade intercept is 3 feet of 0.240 percent e U3O8. Five holes have a GT of >0.3 which is considered suitable for inclusion in a wellfield.
Phase 1 drilling during 2023 successfully confirmed and expanded historic resources returning grades ranging from trace to 6.5 feet at 0.187 percent U3O8 (Gamma log) with a grade thickness of 1.216; Phase 2 of the drill program, commenced on April 29, 2024, to expand historic uranium mineralization at depth and expand mineralization along trend and on other high-priority targets identified with an additional 700 permitted drill holes.
Nuclear Fuels acquired this project from enCore Energy, which, upon Nuclear Fuels establishing a minimum of an NI 43-101 compliant resource of 15 Mlbs U3O8, retains a back-in right for 51 percent of the project by paying 2.5 times the exploration costs and financing the project to production. This provides a clear path to production in case of major discovery at Kaycee.
The Bootheel project in Southeast Wyoming consists of roll-front mineralized zones identified in three distinct, stacked sandstone formations. Historic metallurgical testing has indicated better-than-average uranium recovery kinetics and aquifer rehabilitation. A historic NI 43-101 report in 2007, includes an indicated resource of 1.443 million (Mt) @ 0.038 percent U3O8 for 1.089 Mlbs U3O8, and inferred resource of 4.399 Mt @ 0.037 percent U3O8 for 3.249 Mlbs U3O8.
This project is located in the Shirley Basin, 25 miles south of Casper, Wyoming in Albany County. The Shirley Basin is a proven and prolific producer of uranium credited with over 84 million pounds produced between 1959 and 1992 from producers including Getty Oil Company, Texaco, Pathfinder Mines Corporation, and Cogema Mining. Moreover, the Shirley Basin is home to the first commercial use of the ISR technique to extract uranium from sandstone-host deposits.
The Moonshine Springs project is in Mohave County, Arizona. The project comprises approximately 1,000 acres, including 23 owned lode mining claims along with seven lode mining claims and 320 acres of fee land held under lease. This property was earlier explored during the 1970s and 1980s by Exxon Corp and later by Pathfinder.
This project consists of at least three stratigraphic zones, where the sandstone-hosted uranium occurs. The upper two zones lie at an average depth of 170 feet and are considered open pit candidates with the lower zone lying at a depth of 760 feet. The project is amenable to ISR with a historic resource of 2.4 Mlbs grading 0.16
This project is in the Lisbon Valley Uranium District in Southeast Utah and covers approximately 2,211 acres. The project has two claim blocks – LS and JB. The LS claim group is located southeast and adjacent to the Lisbon mine, which was operational between 1972 and 1988, producing approximately 22 Mlbs of U3O8. Historical drilling at LS claim dating back to 2007 reported uranium mineralization amounting to 17.5 feet grading 0.11 percent U3O8.
William Sheriff is the founder and presently serves as the executive chair of enCore Energy Corp., a leader in ISR uranium production. He was a pioneer in the uranium renaissance as co-founder and chairman of Energy Metals, which was acquired by Uranium One for $1.8 billion and owns the largest domestic uranium resource base in US history.
Gregory Huffman brings more than two decades of mining analysis and equity finance experience with a focus on uranium and other energy-related metals. Huffman’s diverse background includes roles in mining specialty sales, fund management, and equity research in the metals and mining sector. In his career, he has been instrumental in leading cross border coordination in global mining financial matters, including his work as a mining analyst focused on uranium from 2004 to 2007. His most recent experience, from 2016 to 2024, was as the global head of mining sales at Canaccord Genuity where he employed his broad range of geological and financial skills to evaluate mining companies exploring, developing, and producing precious, base and energy-related metals, including uranium. Huffman is known for his insightful industry publications, the “Canaccord Genuity High Grade Mining Minute” and “Huffer’s High Grade Nuggets.”
Eugene Spiering is a registered geologist with more than 30 years of experience and recently served as VP of exploration for Quaterra Resources, where he led the discovery of the only two uranium deposits in Arizona. He also worked on the Kaycee Uranium District in the early 1980s.
Larry Lahusen holds a BSc in geology from the University of New Mexico (1969) and has been active as an exploration geologist for more than 30 years. He began his career exploring for uranium deposits in the Colorado Plateau region in the US. He has directed and designed exploration programs that resulted in the discovery and subsequent development of the two uranium deposits located in the Lisbon Valley District, Utah.
Brahm Spilfogel is an award-winning financial executive with over 25 years of experience in resource portfolio management. He recently retired from RBC Global Asset Management where he served as managing director and senior portfolio manager, co-managing a number of portfolios including the RBC Global Precious Metal Fund, RBC Global Resources Fund, and the RBC Small and Mid-Cap Resources Fund, with assets exceeding $2 billion. As one of Canada’s most well-regarded resource portfolio managers, Spilfogel has actively engaged with corporate boards, offering strategic insights and contributing to governance, safety, and sustainability discussions. His deep expertise in the resources sector extends to financial analysis, mergers and acquisitions, and capital markets.
Monty Sutton brings more than 35 years of experience in public markets, corporate governance, senior administration and accounting and has served on the management teams and boards for many private and publicly traded companies. Sutton has held positions as senior management accountant for MacMillan Bloedel, investment advisor, insurance specialist, corporate development manager and most recently chief financial officer.
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