Something monumental is taking place across the globe right now.
We are on the cusp of an energy revolution that will completely change how we power our world.
It’s not solar or wind power.
Nor is it about electric vehicles.
We’re talking about nuclear power… the backbone of the clean energy revolution.
Earlier this year, world leaders declared an energy crisis and agreed that the only feasible solution to combat climate change was nuclear energy.
The problem now is obtaining enough uranium to power these nuclear plants.
The 10-year bear market in uranium led to significant underinvestment in mining projects, causing global uranium production to decline by 25% between 2016 and 2020.1
Now, the uranium bull market is about to kick into overdrive this summer once the US ban on Russian uranium imports kicks in on August 11.2
At the same time, the rise of AI and new data centers being built is further fueling the uranium market.
Nuclear power provides the consistent energy supply required to power this new technology.
Mark Zuckerberg thinks energy constraints will be the biggest bottleneck in AI advancements and cited nuclear energy as a clear answer.3
It’s no surprise that tech giants are jumping on the nuclear bandwagon to secure power supply, by investing into the market.4
As the market continues its upward momentum, investment banks and hedge funds are positioning themselves to reap the benefits by buying both physical uranium and undervalued uranium stocks.5
All of this is positioning uranium mining stocks for significant upside potential this year, especially junior exploration companies like Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU), which owns a substantial land package in Canada’s Athabasca Basin aka the world’s largest, high-grade uranium district.6 Some even refer to it as the “Saudi Arabia of uranium”.
Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is actively establishing its presence in this prolific region.
This company has a portfolio encompassing eleven uranium exploration properties totaling over 209,000 hectares in the Athabasca Basin and a leadership team with an almost unmatched track record of major discoveries in the region over the past 15 years, at both the technical and corporate level.
As the uranium market continues its remarkable rise, we believe companies like Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) are destined for big things in 2024 and beyond.
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Uranium is Gearing Up For its Third Bull Market and the Market is Seizing it By The Horns
Uranium prices are already up over 3X over the past 3 years, even after this pullback, and was one of the strongest-performing commodities in 2023.
But major US banks expect uranium prices to rise even higher over the next two years.
Bank of America sees prices growing by at least 17% to $105 per pound in 2024 and by an impressive 28% to $115/lb next year,7 while Citibank is forecasting an epic 68% increase in 2025.8
Why?
Demand for uranium is is rising at an unprecedented rate as nuclear energy already generates 10% of the world’s electricity.9
Net-zero goals and a global nuclear renaissance are further expanding the sector.
Investments are pouring into extending the lifespans of existing plants and building new reactors, including Small Modular Reactors (SMRs) that are easier and cheaper to construct.
Consequently, demand for uranium in nuclear reactors is projected to nearly double by 2040.10
Add to that the supply squeeze caused by physical investment. Sprott Physical Uranium Trust (TSX: U.UN) (OTC: SRUUF) is the world’s largest publicly-listed physical uranium fund.
They’ve more than doubled their uranium holdings in the last 2 years to reach 62.6 million pounds11 with a Total Net Asset Value of $5.119 billion.12
There are also new physical uranium funds being launched, including Zuri-Invest’s Physical Uranium AMC13 and Yellow Cake PLC, which held 18.8 million lb of physical U3O8 as of March 2023.14
But don’t expect Sprott to slow down any time soon. Their CEO, John Ciampaglia, thinks this uranium bull market will last several more years.15
There are still more reasons uranium prices are expected to keep climbing:
- Nuclear power is looking even more attractive due to rising natural gas prices (24% YoY increase expected for 2024).16
- The world’s 2 largest uranium producers – Cameco and Kazatomprom – are currently sold out until 2027.17
- Cameco recently announced 2.7 million pounds of cuts to uranium production for 2023.18
When you add it all up, uranium miners and explorers have the most to gain, especially when their stock price has a lot of room for growth, like Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU).
After all, uranium miners have historically outperformed the commodity during bull markets.19
It’s already happening.
The North Shore Global Uranium Mining Index (URNMX), which tracks companies involved in the mining, exploration, development and production of uranium, is up over 60% in the last year.20
But the market is still waking up to the nuclear resurgence and demand is only expected to rise, meaning plenty of room for growth for companies like Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU).
Proven Discoverers in a Proven Region
As we mentioned briefly earlier, Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is led by a proven management team with a ton of experience working in Canada’s prolific Athabasca Basin over the past 15 years, at both the technical and corporate level.
That includes extensive involvement with the likes of IsoEnergy (Market Cap: US$512M), Denison Mines (Market Cap: US$1.97B), and NexGen Energy (Market Cap: US$4B).
Cosa’s Chairman, Steve Blower, was VP Exploration of IsoEnergy when they discovered their Hurricane Deposit in 2018 (Indicated Mineral Resources: 48.61M lbs uranium at a blistering grade of 34.5% U3O8).21 Then in 2021 he helped 92 Energy discover their GMZ zone.22 Before that, was at Denison Mines for the discovery of the Gryphon deposit.
Now he’s looking to make the next big uranium discovery, so he’s reassembled former IsoEnergy all-stars to create the team at Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU).
That includes Keith Bodnarchuk as President & CEO. During his time at IsoEnergy managing corporate development, their stock rose from ~$0.30 to $6.00.
Andy Carmichael, VP of Exploration, meanwhile, was VP of Exploration at IsoEnergy when they announced their initial resource in 2022, with the highest grade indicated resource in the history of the Athabasca Basin at 34.5% U3O8.
Now that team has assembled Cosa Resources Corp.’s (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) gigantic land package, offering a steady pipeline of potentially high-upside projects that are 100% owned.
Better yet, they’re right in the heart of the Athabasca Basin‘s nearly $1-billion-a-year uranium industry that made Canada the world’s second-largest producer in 2022.23
This is a team that’s raised over $700 million in capital since 2017, including Cosa Resources Corp.’s (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) C$6.5 million bought deal private placement in February 2024 that was largely taken down by uranium funds.
That means the Company is easily funded through 2024.24
The timing couldn’t be better. With uranium at the beginning of a long-term bull market, Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is a fresh new uranium exploration story led by a team of pros with a proven ability to find uranium, and who know how to generate significant value for shareholders.
Press Releases
- Cosa Resources Announces Summer Exploration Plans For Athabasca Basin Uranium Projects
- Cosa Enters into Agreement to Acquire the Titan Uranium Project, Athabasca Basin, Saskatchewan
- Cosa Announces Commencement Of Ground Geophysics And Access Trail Establishment At The 100% Owned Ursa Uranium Project In The Athabasca Basin, Saskatchewan
- Cosa Completes Acquisition Of The Aurora Uranium Project, Athabasca Basin, Saskatchewan
- Cosa Acquires The Aurora Uranium Project, Athabasca Basin, Saskatchewan
9 Reasons
Cosa Resources Could be the Next Breakout Uranium Stock
1
Encouraging Results and Upcoming Work: Initial drilling in winter 2024 generated follow up drill targets and identified a large zone of structure and hydrothermal alteration. Follow up work starts as early as May.
2
Track Record of Discovery: Technical and corporate contributions by Steve Blower, Keith Bodnarchuk and Andy Carmichael, all formerly with IsoEnergy, toward major Athabasca Basin discoveries
3
Premium Land Package: Pipeline of 100% owned high-upside projects in Athabasca Basin near industry leaders like Cameco (TSX: CCO | Market Cap: $17.72B)
4
Under-Explored Holdings: Past work has only explored a fraction of their massive land portfolio while modern technologies offer a new lens on exploration
5
Strategic Relationships: Access to capital due to past industry successes and raising over $700 million through the Inventa group since 2017
6
Fully Funded: With C$8.1 million in cash, Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is well-funded for continued exploration
7
Reassuring Ownership: High ownership by management and advisors (~24%) and funds and strategic investors (~21%) is a major vote of confidence for investors to note
8
Hot Market Outlook: Uranium prices are expected to continue climbing due to long-term zero-carbon goals driving surging demand and supply being squeezed for the foreseeable future, which has been further exacerbated by the US bill banning the import of Russian uranium
9
Significant Upside Potential: Low stock price has room to increase through uranium discovery success and further land acquisitions
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Canada’s & Cosa’s Answer to Growing Demand & Supply Constraints
Canada’s response is Saskatchewan, where all of the nation’s uranium is produced. 25
It’s also home to the Athabasca Basin, the world’s most prolific area for uranium exploration, with the world’s highest-grade deposits.
The basin includes the world’s 2 highest-grade uranium mines, both operated by Cameco (TSX: CCO):
-
-
- McArthur River – the world’s largest high-grade uranium deposit26: Produced 535M lbs uranium to date; Proven and Probable Reserves of 275M lbs U3O8 (Cameco’s share)27
- Cigar Lake Mine: Produced 105M lbs uranium to date; Proven and Probable Reserves of 84.4M lbs U3O8 (Cameco’s share)28
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The Athabasca Basin is also where Cosa Resources Corp.’s (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) land portfolio is located.
When you combine their ideally-located land portfolio, proven team and lower share price, it’s understandable how Cosa Resources Corp.’s (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) stock has outperformed year-to-date compared to their neighbors in the Athabasca Basin despite them all having the advantage of established Resource Estimates:
-
-
- Cosa Resources: up 82%
- Cameco: up 67%
- Uranium Energy Corp: up 51%
- NexGen Energy: up 41%
- Denison Mines: up 36%
- IsoEnergy: up 29%
-
It makes you wonder what Cosa Resources Corp.’s (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) stock will do when they begin work following up exciting results from a recently completed winter drill program.
Robust Capital Structure with Substantial Insider and Strategic Investor Ownership
Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is well capitalized (C$8.1M in cash) and has a very tight share structure.
It also offers assurance to investors in the form of management and advisors having significant stakes (~23% of ownership) with funds and strategic investors recognizing the value and potential of the Company’s team and projects (~31% of ownership).
The Next Logical Trend in the Athabasca Basin
The map below shows how Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) has locked up 100% ownership of many well-located uranium exploration properties in the prolific Athabasca Basin region totaling over 200,000 hectares (>494,368 acres).
The map also shows the pattern of the region’s high-grade uranium discoveries: the long northeast-trending uranium corridors down the eastern side of the basin.
The eastern side contains all the current producing mines, including Cigar Lake and MacArthur River, and a tremendous amount of infrastructure and access. But it’s also extensively explored, making new elephant-sized discoveries less likely.
That’s why Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is focusing on the Cable Bay Shear Zone, a promising but underexplored area.
Cosa has already managed to find something worth chasing by using modern geophysics and an updated drilling strategy.
In March 2024, Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) completed its first drill program at the Ursa Project, uncovering a large zone of alteration in the sandstone—an essential indicator of uranium deposits in the region.34
Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) gained control over 60 km (37 miles) of the Cable Bay Shear Zone by piecing together its flagship Ursa Project, which is 45 km (28 miles) west of the McArthur River Mine and covers an area roughly the equivalent of Cigar Lake down to McArthur River.
Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) plans to conduct a seismic survey over 27 km of the Ursa Project to identify large alteration zones related to the recent winter results.
This survey aims to pinpoint anomalies similar in size to Cigar Lake or McArthur River, setting the stage for potential significant discoveries during the expanded summer drill program.
In April, the company successfully completed the drill program at Ursa, and produced a compelling follow up target within only the first three holes on the Project.35
Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is simultaneously advancing its Orion Project, believed to be a continuation of the Larocque trend, home to the Hurricane deposit, extending down from the northeast.
Orion is 45 km (28 miles) from McArthur River and 29 km (18 miles) from Cigar Lake. It covers an extension of the uranium corridor where IsoEnergy discovered the high-grade Hurricane Deposit in 2018, with Indicated Mineral Resources of 48.61M lbs uranium.36
Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) completed airborne geophysics (MobileMT) on Orion and has identified a very exciting target area.
This summer, the company will complete cutting-edge seismic surveys at both Ursa and Orion using Ambient Noise Tomography (ANT), a new method in the Athabasca Basin that has been successful in identifying structure and hydrothermal alteration at depth.
In short, Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is strategically positioned to make a name for itself in the Athabasca Basin with advanced exploration techniques and significant discovery potential.
Advanced Technology & Upcoming Exploration Plans
The historical drilling on Cosa Resources Corp.’s (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) Ursa property missed key targets due to the lack of modern geophysics technologies.
Cosa is now leveraging advanced airborne MobileMT electromagnetic (EM) technology to avoid repeating these mistakes and identify anomalies pointing to significant uranium deposits.
Key Points:
- Modern Geophysics Integration: Utilized advanced airborne MobileMT EM technology at Ursa and Orion projects imaging to identify anomalies reflective of uranium deposits akin to Cigar Lake, MacArthur River, or Hurricane.37
- Successful Winter Drill Program: Completed ground-based geophysics and a winter drill program at Ursa in March 2024, identifying a compelling follow-up target in the first three holes drilled, with results announced on April 24th.38
- Future Plans:
- Implement ANT (Seismic) surveying at Ursa and Orion to build on drilling results and generate new targets.
- Conduct airborne gravity and VTEM surveys at the Orbit and Aurora projects to expand the pipeline of high-potential drill targets in their uranium exploration portfolio.
Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) is strategically harnessing cutting-edge technology to revolutionize its exploration efforts, poised to uncover significant uranium deposits and drive the future of energy.
Track Record of Value Creation
As we’ve already seen, Cosa Resources Corp.’s (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) leadership team has made significant technical and corporate contributions toward building successful mining companies and making major uranium discoveries in the Athabasca Basin.
Here’s more about the achievements of the team’s top members.
9 Reasons
Cosa Resources Could be the Next Breakout Uranium Stock
1
Encouraging Drilling Outcomes: Winter 2024 drilling revealed promising targets and extensive hydrothermal alterations, with follow-up work beginning in May.
2
Athabasca Uranium Discovery Vets: Key discoveries in the Athabasca Basin were made by team members Steve Blower, Keith Bodnarchuk, and Andy Carmichael.
3
Strategic Land Holdings: Operates high-potential projects near industry leader Cameco (TSX: CCO) in the Athabasca Basin.
4
Untapped Potential: The vast, under-explored land portfolio offers new prospects with advanced exploration technologies.
5
Strong Financial Backing: Established relationships have facilitated over $700 million raised through the Inventa group since 2017.
6
Financial Stability: With C$8.1 million in the bank, Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU) can fund exploration through 2025.
7
Confident Ownership: Management and advisors hold about 24%, with funds and strategic investors holding 21%, reflecting strong confidence.
8
Uranium Market Prospects: Expected uranium price rise due to long-term demand for zero-carbon energy and reduced supply, exacerbated by US bans on Russian imports.
9
Growth Opportunities: Low stock price with potential for significant gains through discovery success and further acquisitions.
With the new uranium bull market just getting started, it’s an exciting time for Cosa Resources Corp. (TSXV:COSA) (OTCQB:COSAF) (FRA:SSKU).
Keep a close eye on the Company’s stock as the market starts to learn more about this relatively new story with its best-in-class team, ideally located land package, and upcoming exploration results.
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