Terra Clean Energy/TCEC

1. Terra Clean Energy Corp. is a billboard sponsor of Streetwise Reports and pays SWR a monthly sponsorship fee between US$4,000 and US$5,000.
2. As of the date of this article, officers and/or employees of Streetwise Reports LLC (including members of their household) own securities of Terra Clean Energy Corp.
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Terra Energy Corporation (TT:TSX) said drilling has revealed a strong clay alteration in one of the holes at the South Falcon East Uranium Project in Saskatchewan, a "very good setup" for what the company is looking for, a "basement-hosted unconformity higher-grade uranium deposit."

"You have to have the clays, you have to have the faulting and the alteration to allow fluids to move the uranium, which is usually attached to a graphite or conductor down through the hole, and then we find where it gets trapped in the structure," new Chief Executive Officer Greg Cameron told Streetwise Reports.

He said they consulted with geologists at Skyharbour Resources Ltd., the company Terra Clean is optioning the property from, to look at the early results.

"They've never seen anything like what we saw in that hole, very new to the property and very encouraging, frankly," Cameron said.

Terra Clean has mobilized crew and equipment and is continuing an extensive winter drilling program at the project, which is just 18 kilometers outside the Athabasca Basin, known for hosting the world's highest-grade uranium deposits. South Falcon East's Fraser Lakes B Uranium deposit is also about 50 kilometers from the Key Lake uranium mill and former mine.

The program is consisting of up to 2,500 meters of drilling executed by Terralogic Exploration Inc. under the supervision of TerraLogic Project Manager Brett Lavigne and Terra Clean Vice President Exploration C. Trevor Perkins.

Cameron said initial probe results, including for the hole with the alteration, are expected any day.

'Overhangs' Have Been Addressed, Firm Says

Terra Clean Energy Corp. entered into an option agreement with SkyHarbour Resources Ltd. in 2022 to earn up to a 75% interest in the 12,234-hectare South Falcon East property. It has a historical Inferred resource of about 7 million pounds (7 Mlb) of U3O8 at 0.03% and 5.3 Mlb of thorium dioxide at 0.023% within 10,354,926 tons using a U3O8 cutoff grade of 0.01%.

Terra Clean's inaugural drill program last year confirmed the presence of uranium mineralized pegmatites and graphitic pelitic paragneiss along the Way Lake Conductor at South Falcon East, the company said.

The priority of the Winter 2025 program is to expand on the Winter 2024 program by extending the mineralized footprint associated with the Fraser Lakes B deposit and test nearby targets with prospective alteration and structure identified in historical drilling, Terra Clean said.

The field program consists of both infill drilling to confirm the presence and continuity of existing mineralization and step-out drilling looking to expand the current footprint of the deposit.

"Both infill and step-out drilling will culminate with the preparation of an updated NI43-101 compliant resource expected by this summer," wrote HoldCo Markets Inc. wrote in an updated research note on the company on February 18.  HoldCo set a 12-month price target for the stock at CA$.033, a 16% return over when the note was issued.

"Combined with a recently closed financing, share consolidation, debt settlement and management change, we feel that the numerous overhangs which plagued the company of late have now been addressed," the firm said. "We now see an unencumbered return to the primary objective of the company — drilling, de-risking and updating the Fraser Lakes B uranium deposit. We continue to believe that at the current microcap valuation, the risk remains on the upside, provided future drilling success."

HoldCo continued, "Turnaround should be relatively quick with assay results likely to be returned in Q2/2025 followed by an updated resource estimate expected by the summer. Seeing that the deposit remains open in most directions, additional work spend may lead to an increase in both grade and resource size."

'Best Place in the World' to Explore for Uranium

"The Athabasca Basin is the best place in the world to explore for uranium," Technical Analyst Clive Maund noted in a report on the company on January 13.

After big changes to the leadership of the company, Maund said its stock is "believed to have considerable upside potential from its current price."

Terra Clean's deposits in the Athabasca Basin "are at shallow depth and close to infrastructure, thus making them more economic to mine and in any case the ongoing exploration and very considerable exploration potential of the property will likely increase both the grade and the magnitude of the resource going forward," Maund wrote.

Maund continued, "For both fundamental and technical reasons, it thus looks likely that Terra Clean Energy will break higher into a new bull market soon, and it is rated an Immediate Strong Buy for all time horizons."

The Catalyst: Nuclear Renaissance Underway

A nuclear power renaissance is underway as countries around the world are building new reactors and recommissioning old ones, including Microsoft Corp.'s (MSFT:NASDAQ) recently announced deal with Constellation Energy Group (CEG:NYSE) to restart and buy all of the power from one of the shut-down reactors at its infamous Three Mile Island plant in Pennsylvania.

Driving the demand are ever-expanding data centers and resources needed for artificial intelligence (AI) applications, as such, "The largest tech firms are considering the use of nuclear power. That could be a boon for uranium prices," wrote Ben Hernandez for VettaFi ETF Trends on March 4.

"While demand is elevated, the necessary supply to meet said demand is another issue," he wrote. "Large tech firms are also starting to implement AI projects. Therefore, energy demands become even greater."

According to an October report on CarbonCredits.com, BMO Capital Markets projects a strong outlook for uranium demand. BMO projected it to grow at an annual rate of 2.9% through 2035, largely driven by China’s aggressive push to build new nuclear reactors and the potential for reactor restarts in North America. 

BMO Analyst Alexander Pearce emphasized the long-term demand outlook, noting that they foresee a potentially higher uranium demand over the medium to long term, CarbonCredits.com reported. This optimism is fueled by several factors, including geopolitical shifts, growing global demand for clean energy, and new nuclear technologies such as small modular reactors (SMRs).

Ownership and Share Structure

According to Reuters, management and insiders and other strategic investors hold about 1.5% of Terra Clean Energy, including former CEO Alex Klenman with 1.29%.

Strategic investors Planet Ventures Inc. holds 2%, Reuters said. The rest is retail.

Terra Clean Energy has a market cap of CA$9.41million and a 52-week range of CA$0.12 to CA$0.68.