Could Strathmore Plus Uranium (TSXV: SUU, OTC: SUUFF, FRA: TO3) become the new rocket stock? The company’s stock price witnessed a steady uptrend, and SUU is in all investors’ mouths. Indeed Strathmore is well-funded, with a lot of cash in the bank, and the share structure could help boost the company’s valuation. After Hypercharge Networks, Strathmore Plus Uranium could become the next trendy company.

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Why is Uranium Important, and Benefits of Uranium in Wyoming

Nuclear power is a clean energy source with no emissions. Without emitting the toxic byproducts that fossil fuels do, nuclear power uses the heat from fission to produce steam, which then drives a turbine to produce electricity. In 2020, the United States prevented more than 471 million metric tons of carbon dioxide emissions, according to the Nuclear Energy Institute (NEI). A typical 1,000-megawatt nuclear plant in the US requires more than 1 square mile to run. According to NEI, solar photovoltaic plants need 75 times the amount of space, whereas wind farms need 360 times more land to generate the same quantity of power. To put it into perspective, more than 3 million solar panels or 430 wind turbines would be required to generate the same amount of energy as a conventional commercial reactor.

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In Wyoming, uranium mining used to be a lot bigger industry than it is now. The most significant known uranium ore deposits of any state in the United States still exist in Wyoming, which historically had many active uranium mines. The state had estimated reserves at the end of 2008 that varied depending on price: 1,227 million pounds at $100 per pound and 539 million pounds of uranium oxide at $50 per pound.
Wyoming has produced 84,000 tonnes of uranium in total, and from 1995 to 2015, it ranked first in the US for production. As of 2015, total reserves were still 141,000 tonnes at 0.065% grade. Nevertheless, the in situ leach process has been used for this manufacturing since the early 1990s.

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Company Overview

Strathmore Plus Uranium (TSXV: SUU, OTC: SUUFF, FRA: TO3) is a uranium exploration company holding 3 projects in Wyoming. The company benefits from solid leadership thanks to CEO Dev Randhawa’s management. He won several awards in Canada’s mining industry and was behind Waterbury and Triple R uranium discoveries in the Athabasca basin, Canada. 

The first project is the Night Owl project. This project returned uranium between the late 1950s and early 1960s, producing 93 tons at 0.24% U3O8. The only reason why production stopped there was because of the low uranium price. Strathmore has carefully staked the main producing region for Night Owl and its surroundings. With contemporary exploration methods, the Night Owl region has yet to be well investigated.

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July to October 2023

 -Submit Exploration Permit Application to US BLM & WDEQ-LQD (Jan. 2023)

- Complete airborne radiometric/magnetic surveys at new claims/state lease.

 -Exploratory Trenching (5-10 sites) 

-Proposed drilling of 1,000 feet @ 10 sites. 

- Budget estimate of ~$200,000 (~$10 per foot drilled) • 2022 – Geophysical Survey located several radiometric anomalies (claimed/leased)

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“The Shirley Basin is a very well-known area, with probably the best ISR potential in the USA. While host rocks are a little different, I see similarities in the Arizona breccia pipes from that standpoint that the voids in the host rock create excellent mineralization traps. Night Owls limestone host rock seems to have created these pockets to support uranium deposition and it looks like there is significant potential for shallow, high-grade uranium”.

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The Agate property comprises 52 wholly-owned lode mining claims covering 1,075 acres. The uranium mineralization is found in typical Wyoming roll fronts in the arkosic-rich Eocene Wind River Formation. 55 million pounds of uranium have been mined from the Shirley Basin through open-pit, underground, and the first successful in-situ recovery effort in American history in the 1960s. The uranium mineralization on the site is shallow, ranging in depth from 15 to 150 feet, and much of it is below the water table, making it suitable for in-situ recovery. According to the historical gamma logs, the typical thickness ranges from a few feet to tens of feet, with grades that range from 0.02% to 0.18% eU3O8.

The company declared it had been granted drilling and exploring permission by the Wyoming State. With this permission, a 15,000-foot total of 100 holes will be drilled this summer. Drilling is intended to extend mineralization into previously underexplored regions and validate existing results.

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May to September 2023 

- Submit Exploration Permit Application to US BLM & WDEQ-LQD (Dec. 2022) 

- Proposed drilling of 15,000 feet @ 100 sites. 

- Budget estimate of ~$250,000 (~$10 per foot drilled) 

- 2022-2023 Interpretation of historical data (gamma logs, roll-front model)

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The final company's project is Beaver Rim. The project has 131 lode mining claims covering 2,706 acres in total. The claims were placed strategically in regions that drilling had previously shown as very likely to contain uranium mineralization. The claim groups are south of and close to Cameco's Gas Hills Uranium Project, which has been granted full permission for in-situ recovery. Historical and modern studies indicate that the Gas Hills still contain 50–100 million pounds of uranium deposits, with major finding potential in the less-explored regions to the south, in the Beaver Rim area. Exploration and drilling permission has been granted to the corporation.

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July to October 2023 

-Exploration permit approved by US BLM, WDEQ-LQD, WY Game & Fish (Oct. 2022)

- Proposed drilling of 30,000 feet @ 50 sites.

- Budget estimate of ~$500,000 (~$12 per foot drilled)

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Share Structure / Financials

The company has a strong balance sheet and share structure. As of April 05, the company had $2.17M in cash for no debt. For the three months ending January 31, 2023, the highest expenses were accounted for consulting fees representing 691.9k, and office & administration expenses ($230k). 

About the share structure, only 39.1M shares are issued and outstanding, 6.7M warrants, and 6M options. Strathmore Plus recently granted 1.7M options to certain officers, directors, and consultants. These options have an exercise price of $0.63 and are subject to a 2-year vesting period. 

Regarding the stock price, it is on a solid uptrend. SUU is at its all-time high ($0.82 on April 12) and gained momentum since March 21. More significantly, it is far from its 52-week low of $0.175. 

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What We Like About Strathmore Plus Uranium

-The most significant known uranium ore deposits of any state in the United States still exist in Wyoming, where the company’s projects are; 

-Several catalysts will happen for each project within 2023; 

-Strathmore Plus is well-funded in cash and has a substantial share structure;

-Many investors believe it could be the next Hypercharge Networks trend. 

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