Uranium Exploration in Saskatchewan, But Can They Prove Continuity? | Xcite Uranium CEO Interview

Antonio (0:00)

This video is sponsored by Terrahutton, who makes the invisible, investible. Today on the CEO BBQ, early stage uranium exploration in Northern Saskatchewan, together with Xcite Uranium.

But if you're short on time, subscribe to our free newsletter, and once a week, we'll send you a five-minute summary of all interviews we put out, resourcetalks.com for a free weekly newsletter. Now, although this company has not paid us for the production of this video, you should still understand that we are not financial advisors, and this is not intended as financial advice. It is a broad, general, and in-personal piece of information intended only for those who know and understand the risks of junior mining, of which there are many. Before moving on, read the company's official filings on SedarPlus.ca and do your own due diligence. Pause the screen and read all the disclaimers I've shown you because your capital is at risk. If this isn't clear, go to the last section of this video for a longer explanation of the risks and biases, and do not consume this content if you don't agree with everything said therein. Moving on, the flagship for Xcite Uranium is an early stage uranium project that's very close to Uranium City. Again, it's in northern Saskatchewan. That project is called Don Lake Smitty. It used to be two packages, but now it's one contiguous package.

Xcite's currently earning up to an 80 percent interest there from Eco Plains.

The geological thesis is Beaver Lodge style basement-hosted uranium mineralization where pitch blend occurs in structurally controlled fractures and veins associated with faults and shear zones, which is actually an interesting type of uranium deposit for the basin, at least in and of itself. So we'll definitely talk about that later on. There's obviously, I mean, it is in the basin. It's close to a city that's called Uranium City. So as you can imagine, there's historical drilling and a lot of historical work that's happened, specifically Don Lake. They hit some high-grade uranium, though it was very narrow. While the adjacent Smitty area includes a past-producing uranium mine as well, all of which, of course, I'll be asking about later on. Again, this is early-stage exploration, though. So they've just started drilling in an effort to determine whether that historical mineralization has enough continuity and scale to become something larger. The first past program here is going to be small at dawn. So that's 1,500 meters, 14 holes. Those are going to be relatively shallow. They're going to do that from six different pads, and I'll ask more about it later on. The first three holes have already intersected anomalous radioactivity, but the actual uranium assays, they're still pending. They have a secondary project as well. So it's called Lorado, and it's about 20 kilometers south of Uranium City, where they just started a separate drill program. It's also relatively small. So it's just three holes, 1,200 meters. So again, these are deeper holes than the one at dawn.

And those holes are testing both that structurally controlled beaver lodge type mineralization that I mentioned earlier, as well as a basement-hosted unconformity style concept that is more familiar to the area around the past producing Lorado mine. So hopefully more about that later on. There's a few other holdings here. So Beaver River, Black Bay and Gulch, they remain part of the broader Uranium City portfolio that they have the option on.

They also have some historical uranium currencies, there's past workings, there's some smaller mines and whatnot. But they're not being worked actively right now, as far as I can tell. At least they're not being drilled right now. But maybe an update on them or on the longer term plan for those, if we have time left in the latter part of the conversation.

Now for some of the numbers in a bit of the details, Xcite is listed as XRI on the CSE, so that's the Canadian Stock Exchange, where the average daily volume over the last three months has been about 170,000 units. The 52-week high is 36 cents and a 52-week low is 10 cents. With 79.5 million shares outstanding and a $25 million market cap today, this is a 31-cent stock. Their 5.8 million options are outstanding and 28.5 million warrants, which collectively represent 34% of the 114 million shares on a fully diluted basis. The last time they raised capital was in November. It was close to $7 million financing, did that in multiple tranches. The majority of that was actually hard dollars, and those hard dollars were priced at 12 cents with a half a warrant at 20 for four years. How much money have they got left right now? What exactly are they going to buy with that money? How far does it get them? And when will they have to go back to the market? Those are of course questions that I'll be asking later on in the conversation. But for this to actually become a conversation though, I will have to shut up already. And Jean-Francois, I'll give you the word here, but first of all, thank you for sitting down with me today.