Interview with Andrew J Vigar, Executive Chairman of Terra Uranium Ltd.

Our previous interview: https://www.cruxinvestor.com/posts/terra-uranium-t92-drilling-athabasca-for-high-grade-deep-deposits-3067

Recording date: 30th January 2024

*Major Uranium Discoveries Needed as Nuclear Power Expands*

Uranium exploration company Terra Uranium believes the global nuclear power industry is entering a new era of strong and sustained growth. Massive new reactor construction programs, especially in Asia, lay the foundations for higher uranium prices for years to come based on recurring historical patterns. Each major phase of nuclear electricity capacity additions has driven higher fuel prices for extended periods. With dozens of plants now under development, uranium stands at the early stages of another structural commodity bull market.

For investors, this translates into a paradigm shift and fundamental inflection point where beaten-down uranium equities find fresh interest after a lost decade since 2011's Fukushima disaster. Notwithstanding the challenging financing environment facing juniors, those making important new discoveries best leverage this thematic reallocation to nuclear. As Terra Uranium's Executive Chairman Andrew Vagra notes, "major discoveries are needed to fuel massive reactor capacity additions." So "it’s a special time in the market" for capital allocators positioning early in vehicles enabling outsized yet speculative gains as world-class assets emerge.

Terra Uranium targets giant deposits in Canada's uranium hotspot, the Athabasca Basin. This region accounts for over 20% of global production from less than 3% of reserves due to exceptionally high ore grades. Terra believes they have acquired the best available ground for major new discoveries deeper in the basin's relatively untested western side. The company entered the area in 2019 when it was virtually unoccupied. Early mover advantage let Terra snap up claims with blockbuster potential before competitors arrived.

But drilling deep exploration targets in the Athabasca Basin demands high upfront costs. As a small company, Terra lacks sufficient funds to drill out their large property portfolio alone. The company has been meeting with mining majors and commodities investors interested in a strategic partnership. The goal is to secure funding contributions to exploration costs in return for joint ownership of any future discoveries. Joint ventures allow small explorers to leverage external capital while larger corporations cost-effectively gain resources exposure.

Terra aims to launch initial drilling this summer at their Passfield Lake project, where interpretations reveal signature structures consistent with massive unconformity-type uranium deposits nearby. Demonstrating exploration success could set the stage for resource delineation and mine development over subsequent years. For risk-tolerant investors, backing drilling programs with transformational discovery upside can lead to phenomenal returns. But at this early stage, skepticism remains warranted until further tangible de-risking occurs.

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View Terra Uranium's company profile: https://www.cruxinvestor.com/companies/terra-uranium

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