Forum Energy Metals (CVE: FMC | OTCMKTS: FDCFF) has begun a gravity survey on its Wollaston uranium project, it revealed Wednesday, with a very promising outlook for this important element.

The project is located in Saskatchewan, Canada and is excellently situated. Wollaston is just 10 kilometres (“km”) from Cameco’s (NYSE: CCJ | TSE: CCO | FRA: CJ6) Rabbit Lake uranium mill. The project is also immediately east of an all-weather road to the McClean Lake uranium processing plant owned by Orano Canada.

Forum staked its claims on Wollaston less than a year ago and is already seeing great things. So far historic drilling, geophysics, and prospecting have outlined more than 30km of prospective conductive trends. These efforts have also found a number of “unexplained uranium boulder trains on surface” plus various drill targets, which have yet to be tested.

Ken Wheatley, the company’s vice president of exploration, explained that the gravity survey has been “designed to detect areas of alteration within north-south bends along a number of electromagnetic (“EM”) conductors on the project.”

Wheatley said alteration halos can be formed when uranium deposits are created along EM conductors. He added that, as Wollaston is just outside the Athabasca sandstone basin, “alteration halos will be limited to the basement lithologies”. The result of this will be “a much tighter target for drilling”.

The Athabasca basin itself is the globe’s most valuable uranium real estate, containing all the world’s highest grade and richest uranium mines. Saskatchewan itself supplies more than 20% of total yearly uranium mine production.

The company intends to take around 2,000 readings at 100 metre by 100 metre spacings on two priority grids. The target mineralisation at Wollaston is “shallow, basement-hosted uranium” like the Rabbit Lake site’s Eagle Point deposit.

The Rabbit Lake mine site is located 25km from Wollaston, with its Eagle Point deposit containing 140 million pounds of uranium.

Uranium prices are set to climb, with Morgan Stanley having forecast a rise to $48 per pound by 2024, from $28.50. The pandemic hurt supply more than demand and, as inventories shrink, the price is set to increase.

In 2020, global nuclear power capacity shrank by 2.7 gigawatts (“GW”), but Morgan Stanley expects a net gain of 8GW in 20201 thanks to new plants coming online.

China, especially, is aiming to ramp up its nuclear energy capacity to 70 GW in 2025 from 2020’s 48GW.

Moreover, an expert panel has recommended that the EU class nuclear power as a green investment, an excellent sign for the element’s future – and a great sign for Forum too.

With the future of nuclear looking bright, and Forum’s Wollaston so full of promise, the company looks to be on the path to success.

Author: Anna Farley

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