Company Interview / GUE digs uranium

Andrew Ferrier, managing director of Global Uranium and Enrichment (ASX:GUE), elaborates on the most recent developments within the company. Andrew's primary focus is based in North America, with the Tallahassee Uranium project in Colorado currently undergoing intensive drilling. The project yielded impressive results with thick, high-grade uranium intercepts in the successfully concluded dual program. He further shares that the Tallahassee project is one of the biggest undeveloped uranium projects in the U.S. and GUE is keen on advancing it in the uc

In addition to Tallahassee, Andrew talks about initiating drilling on the Maybell Uranium project, also located in Colorado. Previous production figures from Maybell have peaked at over £5.3 million of uranium during the previous uranium boom. Andrew expresses his excitement about the project's potential. Currently, GUE's central project is Tallahassee, with a scoping study planned for release by the end of the quarter. Andrew hopes that this scoping study will showcase the project's positive attributes, and provide their shareholders with a vision for its future development.

Finally, commenting on their funding situation, Andrew is confident that they are well funded until the end of the year. He mentions having a capital of $4.6 million in their possession and is looking forward to upcoming milestones and announcements. When discussing the uranium market, he acknowledges its volatility. While he admits that an increase in production by the world’s largest uranium producer in Russia shook the market, he remains optimistic about the future, citing a structural supply desk as a positive factor for the next few years. Andrew also pointed out the ban on Russian uranium imports by the US Senate as a decisive factor for their North American focus. The company has also invested in New Barium, an enrichment company poised to take advantage of the changing uranium market landscape.

Full unedited transcript:

0:00

Well uranium Explore Global Uranium and Enrichment has released its quarterly update, reporting several key updates in its mining projects for the details and the results. We're joined by GE's managing director, Andrew Ferrier. Andrew, welcome. Thank you. Thanks for having me. All right. What are some of the highlights there? Because you're drilling currently at your Tallahassee uranium project in North America. In fact that's your focus at the moment, isn't it North America. Yeah I'm saying yeah. So globally we're only very focused on the North American market. Our main project is our Tallahassee Uranium project, which is in Colorado. We actually finished that dual program in the June quarter. It was a very successful program. We had some very thick, high grade uranium intercepts, which included, you know, 66m or 0.12% uranium. These are very high grade results in the Tallahassee district, which is a project that we have. You know, Tallahassee is one of the biggest undeveloped uranium projects in the US, and we're very excited about pushing that project forward over the coming quarter.

0:57

Aside from Tallahassee, what you have a couple of other projects in line as well. Mable in Colorado, also, you have a project in Canada. That's right. So maybe that's a really good one to bring up because we're just about to start another drill, a maiden drill program on our Maybelle Uranium project that's also in in Colorado. George, just just arriving to site, as we see. So it's a very, very exciting time for us. We plan on drilling 40 holes here over the next 4 to 6 weeks. We're very excited about getting those results out to the market. You know, Maybelle is an existing producer, produced over £5.3 million of uranium in the previous uranium boom. So we've pulled this project together over the last couple of years, and it's the first time we've been able to get a drill rig out to it. So I'm very excited about what the potential of that project could be. What's the most promising then, is the focus on Tallahassee and what's the timeline roughly? Are you giving there? Yeah, our focus is really Tallahassee. We've now completed that dual program, and what we're moving on to now is a scoping study, which we plan on getting out to the market by

1:57

the end of the quarter. So that's the end of September this year. And that scoping study will really show the key attributes, positive attributes to that project to the market. As I said, it's a very large project. We're excited about getting out to our shareholders what we think that project could be in the years to come. Drilling can be costly. Has your funding at the moment? Yeah, that was a great another good thing about putting out the cooler report. It shows that we're well funded until the rest of the year. We've got $4.6 million, so we've raised money earlier in the year. We're very blessed by that. And now we're just executing on the program which we've raised the money off, the back off. So that's that's a great thing for us. And we'll continue to have a lot more milestones and announcements coming out in the next couple of weeks to months. How do you view the uranium market at the moment? Of course, being extremely volatile just in the past couple of sessions, pretty much reflecting also what we're seeing more broadly on markets. But I gather part of that was triggered by what the world's largest uranium producer in Russia actually announcing it's going to ramp up production. Yeah. That's right. There was a bit of a shake

2:57

in the market where I've essentially what people were expecting was to be maybe a cutback in production actually saw that that would be increasing production. That was for this year. They still haven't provided guidance for 2025, which they will do in late August. So I think and what many people are expecting to see is that it's actually a lot harder to get uranium out of the ground, um, moving forward. And any cutback in production that will come out there will have a very positive impact for the market. So it's still very delicately balanced. Uh, there's a structural supply desk moving forward for the next couple of years. So we're still very favorable on the uranium market moving forward. Okay. Of course, broadly supported too, in the states where you're located, critically, um, as the US Senate recently passed that bill to ban Russian uranium exports, imports, I should say. Yeah, it was a it was a really important moment for us. And one of the reasons why we're so excited about being in North America is that, you know, the US uranium industry, US still has more nuclear reactors, and now the country

3:57

has become very long and rushing uranium over the last couple of decades. They've come out now and basically banned Russian uranium as of August this year coming into the US. So that sets us up very well. One, because we have undeveloped uranium projects in the US, they'll obviously look to source uranium moving forward from either domestically or friendly countries such as Australia and Canada. But we've also invested in new barium, which is an enrichment company, and what that that ban in the US is very particularly focused on was enriched uranium, not just yellowcake. So we're really well positioned on multiple fronts at global uranium to take advantage of this sort of, you know, the uranium market, sort of splitting it and becoming bipartisan moving forward.

4:38

It goes to that broader story, I guess. And clearly proximity is the key for you, given the US is such a large market for nuclear energy. Yeah, it is like where in Colorado? Um, it's a long history with mining. Uh, the sort of the key states in the US are sort of Texas, Wyoming and Utah. There's a conventional uranium mill in Utah, not too far away from both our Colorado projects. So, yeah, you know, location is very important. Um, and the US, you know, is going to need to see a lot more uranium produced moving forward.