Canada’s Top Ten base metals and uranium companies

The green energy revolution is driving unprecedented demand for sustainable sources of base metals and uranium which is increasingly seen as an acceptable form of baseload power generation.

Here’s a list of the top ten Canadian-headquartered base metal and uranium juniors with no production. The ranking is based on the companies’ market capitalization as of June 9, as compiled by Mining Intelligence.

1 NexGen Energy

Market Cap: $3 billion

NexGen Energy’s (TSX: NXE; NYSE: NXE) market cap has increased more than 10% from last year, pushing it from second to first place in this year’s top ten rankings. The exploration and development company’s valuation has been boosted as the spot price for uranium edged higher in March to pass US$58.20 per lb. and comes after several years in which uranium was trading in the US$25-30 per lb. price range.

The company is focused on developing uranium projects in the southwestern part of the Athabasca Basin of Saskatchewan and Alberta, one of the world’s leading sources of high-grade uranium oxide used in nuclear power reactors. NexGen holds just under 2,000 sq. km of land, which includes the largest development-stage uranium deposit in Canada, its 100%-owned Rook 1 project. It hosts the Arrow deposit and the South Arrow, Harpoon, Bow and Cannon discoveries.

NexGen released a feasibility study for Rook I in February 2021. The study envisioned an underground mine and a mill with a mine life of 10.7 years. The Arrow deposit at Rook 1 has measured and indicated resources of 256.7 million lb. uranium oxide in 3.8 million tonnes grading 3.1% U3O8. The initial capital costs for the project are pegged at $1.3 billion.

Following the successful completion of the Rook I feasibility study in 2021, NexGen has transitioned into the next stage of project development with the advancement of FEED, scheduled to be completed in the third quarter.

NexGen has reached a significant milestone in the advancement of regulatory approvals for Rook I, with the submission of the project’s draft environmental impact statement. In June, the provincial and federal regulatory authorities, the Saskatchewan Ministry of Environment and the Canadian Nuclear Safety Commission confirmed the commencement of their respective EIS reviews.

2 Filo Mining

Market Cap: $2.9 billion

Filo Mining (TSXV: FIL) has seen its market cap soar, pushing it from fourth place on last year’s list to second this year. Part of the Lundin Group of companies, Filo’s key focus is its wholly-owned Filo del Sol copper-gold-silver deposit in South America, a high-sulphidation epithermal deposit associated with one or more large porphyry copper-gold systems.

The project comprises two properties that straddle the border between Argentina and Chile in the Andes Mountains. The Filo del Sol asset is in Argentina’s San Juan province, and the adjacent Tamberias asset is in the Atacama region of northern Chile’s Region III. Combined, the two properties span about 140 sq. km. The assets have indicated resources of 425 million tonnes grading 0.33% copper, 0.32 gram gold per tonne and 10.7 grams silver per tonne for 3.1 billion lb. copper, 4.4 million oz. gold, and 147 million oz. silver.

Most recently, the ongoing drilling at Filo del Sol resulted in the discovery of a new porphyry copper-gold centre along the Filo trend, about 2 km northeast of the Breccia 41 zone.

Drill hole FSDH060 was drilled to a final depth of 1,070 metres and intersected 738 metres at 0.39% copper, 0.14 gram gold per tonne and 1.4 grams silver from a depth of 332 metres. This hole is interpreted to have intersected a new porphyry centre, named the Bonita zone, along the Filo del Sol corridor, further confirming that the property hosts a multi-kilometre alignment of overlapping porphyry-centred hydrothermal systems.

3 Denison Mines

Market Cap: $1.3 billion

Denison Mines (TSX: DML; NYSE-AM: DNN) is focused on exploring and developing uranium projects in the Athabasca Basin and remains in third position this year.

Denison’s portfolio is concentrated in the eastern part of the Athabasca Basin and covers about 2,800 sq. km. The company’s flagship asset is its 90%-owned Wheeler River project, the largest undeveloped uranium project in that portion of the basin. The project hosts two high-grade deposits: Phoenix and Gryphon. Probable reserves at Phoenix are 59.7 million lb. U₃O₈ in 141,000 tonnes grading 19.1% U₃O₈, while Gryphon contains 49.7 million lb. U₃O₈ in 1.26 million tonnes grading 1.8% U₃O₈.

Other assets include the McLean Lake deposit and mill, in which Denison retains a 22.5% interest. The mill at McLean Lake processes ore from the Cigar Lake uranium mine operated by Cameco (TSX: CCO; NYSE: CCJ).

Earlier in June, Denison entered into a participation and funding agreement with Kineepik Métis Local #9 (KML) to express their mutual commitment to the co-development and advancement of the in situ recovery (ISR) uranium mining operation proposed at the company’s flagship Wheeler River project.

KML represents the Métis rights holders who live and practice traditional activities in the vicinity of the project and the municipality of the Village of Pinehouse, which is located 225 km south of the Key Lake mill.

The project is 95% owned by Denison, with JCU (Canada) Exploration holding the remaining 5%.

A prefeasibility study in 2018 considered developing the Phoenix deposit as an ISR uranium operation that would produce 109.4 million lb. uranium oxide over a 14-year mine life. Initial capital costs would be $1 billion, but it would generate an operating cash flow of $4.3 billion. The after-tax net present value, with an 8% discount rate, would be $755.9 million and the internal rate of return 32.7%.

4 Solaris Resources

Market Cap: $1.2 billion

Solaris Resources Inc. (TSX: SLS; OTCQB: SLSSF) is advancing a portfolio of copper assets in the Americas, focused on its Warintza project in Ecuador. The project features a broad cluster of outcropping copper porphyry deposits anchored by a large-scale, high-grade open-pit resource inventory at Warintza Central.

Ongoing efforts are focused on rapid resource growth and further discovery drilling.

The company offers additional discovery potential at its portfolio of projects: Capricho and Paco Orco in Peru, Ricardo via joint-venture with Freeport-McMoRan (NYSE: FCX) and Tamarugo in Chile, and a 60%-interest in the La Verde joint venture with Teck Resources (TSX: TECK.A/TECK.B; NYSE: TECK), in Mexico.

Solaris published a new resource estimate for the Warintza Central deposit in April that expanded inferred tonnage by seven times, included a first-ever indicated resource, and outlined a potential starter pit.

The property now has indicated resources of 579 million tonnes grading 0.47% copper, 0.03% molybdenum and 0.05 gram gold per tonne for 2.7 million tonnes of copper, 150,000 tonnes of molybdenum and 930,000 oz. of gold. Inferred resources add 887 million tonnes grading 0.39% copper, 0.01% molybdenum, 0.04 gram gold for 3.5 million tonnes of copper, 130,000 tonnes of molybdenum and 1.1 million oz. gold.

The Warintza project covers about 268 sq. km. and is located about 60 km north of Lundin Gold’s (TSX: LUG) Fruta del Norte gold mine, which produced 428,514 oz. of gold in 2021, and about 30 km north of the Mirador copper-gold mine, which began production in 2019.

The latest update includes a potential starter pit of 180 million indicated tonnes grading 0.67% copper and 107 million inferred tonnes grading 0.64% copper.

5 Foran Mining

Market Cap: $628 million

Copper-zinc development company Foran Mining (TSXV: FOM) moves up five places from last year’s list to the fifth spot this year. The company’s flagship project is the McIlvenna Bay project in the Hanson Lake volcanogenic massive sulphide (VMS) district of east-central Saskatchewan, part of the Flin Flon Greenstone belt. Foran also has several other regional assets, including Bigstone, Balsam, a separate Hanson Lake project, and interests in several other nearby properties.

The company released a prefeasibility study for its 204-sq.-km McIlvenna Bay project in February 2022. The report highlights a robust, long-life operation with an average annual production of 72.8 million lb. copper equivalent over the first 15 years of mine life. By individual metal, this equates to 38.8 million lb. copper, 63.6 million lb. zinc, 20,000 oz. gold and 486,000 oz. silver. The study pegged the initial capital cost at $368 million.

The life of the mine is 18.4 years, based on probable mineral reserves of 25.7 million tonnes at 2.51% copper equivalent.

Based on current metal prices, the study gave the project a net present value of $1.5 billion and an internal rate of return of 46% (both figures after-tax, at a 7% discount rate), with a payback period of 2.2 years. The base case economics showed a pre-tax NPV of $678 million and an IRR of 26%.

Life-of-mine copper cash costs are expected to average US26¢ per lb. (net of byproduct credits), and all-in sustaining costs to average US90¢ per lb. at base case prices. At current commodity prices, this translates into $4 billion in EBITDA and $2.3 billion in free cash flow over the current life-of-mine.

Foran says that McIlvenna Bay is the world’s first carbon-neutral copper development project hosting a significant resource.

Foran has also received initial permits for developing an exploration decline as part of its pre-development program at McIlvenna Bay, which is expected to de-risk the timeline and capital costs to first production.

6 Fission Uranium

Market Cap: $438.5 million

Rising from tenth place in the rankings for 2020 and 2021 to sixth this year, Fission Uranium’s (TSX: FCU; US-OTC: FCUUF) main project is the Patterson Lake south asset, which hosts the Triple R deposit – a large, high-grade and near-surface uranium deposit. Located in Saskatchewan’s Athabasca Basin, the property includes 17 contiguous claims totaling 31 sq. km.

The company aims to complete a feasibility study for the project by the end of 2022. In April, Fission completed the field work for geotechnical, hydrogeological, and metallurgical purposes. Detailed engineering studies and planning of the proposed mine design are in progress.

Based on a prefeasibility study completed in 2019, the project has a post-tax net present value (using an 8% discount rate) of $702 million and an internal rate of return of 25%. The payback period for the $1.2-billion initial capital investment would be 2.5 years. Construction will take an estimated three years and mining would continue for a further seven years.

The project contains 102.4 million lb. uranium oxide in 2.2 million indicated tonnes grading 2.1% U₃O₈. Inferred resources add 32.8 million lb. U₃O₈ in 1.2 million tonnes grading 1.22% U₃O₈. About 80% of the property has yet to be explored.

Fission signed an offtake agreement with CGN Mining in 2016, which states that CGN will purchase 20% of Fission’s annual U₃O₈ production with an option to purchase up to an additional 15%.

Fission aims to begin construction in 2026 and start producing in 2029.

7 Arizona Metals

Market Cap: $467.7 million

Arizona Metals (TSXV: AMC; US-OTC: AZMCF) owns about 13.3 sq. km. of claims that cover and surround the past-producing Kay mine in Yavapai County, Ariz, and is looking to advance the project that it named after the mine.

A historical reserve estimate for Kay defined 6.4 million tonnes grading 2.2% copper, 3.03% zinc, 55 grams silver per tonne and 2.81 grams gold per tonne at the volcanogenic massive sulphide deposit. Based on available data, the mine produced about 296,000 lb. of copper, 13,000 lb. of lead, 2,700 oz. of silver and 150 oz. gold in the 1900s.

In its first drill program in 2020, the company encountered massive sulphides in 19 out of the 20 holes, which helped it better understand the geological model of the deposit and identify high-priority targets.

The company is conducting a phase 2 expansion drill program, likely to finish in the second half of 2022. Highlights of drill results from the project, released in April, included 125.3 metres grading 2.4% copper, 0.9 gram gold per tonne, 1.29% zinc, 18.7 gram silver and 0.13% lead starting from 736.7 metres depth in hole KM-22-57B; and 93.3 metres grading 1.36% copper, 5.65 grams gold, 3.25% zinc, 32.6 grams silver and 0.34% lead starting from 554.7 metres in hole KM-22-60.

The company also owns the early stage Sugarloaf Peak gold project, which covers 44.1 sq. km and is located in Arizona.

8 enCore Energy

Market Cap: $390.8 million

U.S.-based enCore Energy (TSXV:EU; US-OTC: ENCUF) controls historic resources totalling 90 million lb. of uranium across its portfolio of projects.

EnCore aims to become a uranium producer by 2023 by restarting its Rosita plant, located about 95 km from Corpus Christi in Texas. With an 800,000 lb. uranium capacity, the plant will act as the central processing site for the Rosita extension, Rosita South extension, and the Upper Spring Creek Uranium project initially.

The company is also working to advance its Dewey Burdock uranium project in South Dakota which has a measured and indicated resource of 6.7 million tonnes grading 0.116% uranium for 17.1 million lb. of the mineral. Inferred resources add 645,546 tonnes grading 0.055% uranium for 712,624 pounds of uranium.

Based on a preliminary economic assessment in 2019, the project is estimated to have a 16-year life with annual production of 1 million lb. uranium oxide. The total cost per pound of uranium oxide produced would be US$28.88.

The project’s pre-production capital was pegged at US$31.6 million. The project was estimated to have a 16-year life with annual production of 1 million lbs. uranium oxide.

After taxes, the Dewey Burdock project has a net present value with an 8% discount rate of US$147.5 million and an internal rate of return of 50%. Currently, the company is working on sorting out the remaining permits to advance the project.

On June 28, the company said that it had secured its third uranium sales agreement. The deal, signed with a U.S.-based nuclear power company, will cover up to 600,000 lb. of uranium based on market pricing and will begin in 2025. In 2021, the company announced two supply agreements to secure sales totalling 2.7 million lb. uranium from 2023 to 2027.

The company has also started the initial permitting work to advance its Gas Hills uranium project in central Wyoming as an in-situ recovery operation. The project is currently in its PEA stage.

9 NGEx Minerals

Market Cap: $363.9 million

NGEx Minerals (TSXV: NGEX; US-OTC: NGXXF) is a Vancouver-based copper and gold exploration company with projects in Chile and Argentina. Its flagship project is the Los Helados copper-gold deposit, located in the Andes Mountains of the Atacama Region in Chile. The company is looking to advance the project through further drilling this year.

On June 12, the company said that it had discovered a third high-grade zone at the project, which was named the Alicanto zone, as it released new drill results. Highlights included 100 metres grading 1.1% copper starting from 844 metres and 340.8 metres grading 0.67% copper starting from 700 metres in drill hole LHDH078.

The other two zones, Condor and Feniz, were discovered in May.

The project hosts indicated resources totalling 2.1 million tonnes grading 0.38% copper, 0.15 gram gold per tonne and 1.37 grams silver for 17.6 billion lbs. of copper, 10.1 million oz. of gold and 92.5 million oz. of silver. Inferred resources add 827 million tonnes grading 0.32% copper, 0.1 gram gold and 1.32 grams silver for 5.8 billion lb. copper, 2.7 million oz. gold and 35.1 million oz. silver.

NGEx holds about 67% of the project and is the majority partner subject to a joint exploration agreement with Nippon Caserones Resources.

The company also owns the Valle Ancho copper-gold project in Catamarca, Argentina. In March, it concluded an eight-hole, 3,060-metre drill program in the area that focused on three high-priority targets. The highlight of the assay results was the discovery of a new copper-gold porphyry system at the La Quebrada target with an intersection of 596.5 metres grading 0.23% copper starting from 4 metres in hole VADH003.

10 IsoEnergy

Market Cap: $331 million

IsoEnergy (TSXV: ISO; US-OTC: ISENF), a uranium exploration and development company with projects in the eastern Athabasca Basin in Saskatchewan. The company is focused on advancing its 100%-owned Larocque East property, which includes the high-grade Hurricane zone.

In April, the company announced that it had completed its winter drilling at Larocque East, which included 30 diamond drill holes totalling 12,147 metres.

The drilling mainly followed up on mineralization intersected during the summer 2021 drill program, such as hole LE21-101 (0.6% uranium oxide over 4.5 metres, starting from 324.5 metres, including 3.1% uranium oxide over 0.5 metre), which was open on both the east and west sides. The assay results are still pending. The drill hole also explored the Larocque Lake conductive trend, which extends for about 8 km east of Hurricane.

The Larocque East property consists of 33 mineral claims covering 167.8 sq. km. The project’s Hurricane zone, discovered in 2018, saw 29 holes drilled in 2019, 48 drill holes in 2020, and 16 drill holes in 2021. Its dimensions are currently 375 metres along strike, up to 125 metres wide, and up to 12 metres thick. The zone is open for expansion along strike to the east and to the north and south on some sections. The best intersection to date is 38.8% uranium oxide over 7.5 metres in drill hole LE20-76.