4:30 pm Pacific, April 7

BullMarketRun.com

Achieving True Energy Independence For America 

The theme of American “energy independence” is going to be front-and-centre in the U.S. election campaign, along with open borders and of course affordability issues thanks to inflation that soared to a 40-year high under the current administration.

There are immediate money-making opportunities for investors with respect to the energy independence issue.

Below are some important facts to consider, plus a great video to watch and learn from.

• Nuclear energy is America’s workhorse, providing a steady and reliable source of clean energy across the country;
• Approximately 20% of America’s electricity, and more than half of its emissions-free electricity, comes from Nuclear Power;
• Nuclear Power’s ability to provide consistent and large amounts of carbon-free baseload power around the clock (24-7) makes it a critical component of the energy mix, doing what wind and solar cannot do while at the same time helping to reduce greenhouse Gas emissions;
• According to the EIA, Nuclear Power plants produce 93% of their listed capacity vs. just 34% for wind turbines and 25% for solar panels;
• With the United States rapidly moving into advanced reactor technology and small modular reactors (SMR’s), the demand for Uranium will be greater than ever in the years ahead.

Now, also consider this:

What a clear majority of Americans are agreeing on is the common sense strategy of ramping up Nuclear Power capacity – it’s clean, efficient and reliable energy. But it takes a lot of Uranium and apart from Canada and Australia, America is ridiculously dependent on some risky regimes for most of its Uranium supply.

That needs to change – and it will. Utah, Wyoming, New Mexico, Colorado – they’re all great domestic sources of Uranium, and the race is on to exploit existing deposits and make new discoveries in the American West.

Drill, baby, drill – and that’s something Trump is going to insist on if he wins back the White House as expected.

In the Uranium boom of the 1950’s, Salt Lake City was known as the “Wall Street of Uranium”. Today, in 2024, Utah is 1 of the reddest of red states in America – pro-business, pro-resource, pro-Trump. It’s unquestionably 1 of the best places to do business in the entire USA.

An energy powerhouse in Utah right now, and in the Western U.S. in general, is Energy Fuels. In fact, it’s the undisputed leader in U.S. Uranium mining, having produced about two-thirds of all U.S. Uranium for the past several years. The company posted a record annual net income of $99.76 million (U.S.) in 2023, achieving a gross margin of 54% on its Uranium sales at an average realized price of $59.42 per pound.

Those so-called “low-grade” Uranium mines in the Western U.S. (0.20% to 0.30% U3O8) can be highly profitable. Costs to mine are so much lower than in the Athabasca Basin.

At Friday’s $6.55 close on the TSX (EFR), and $8.92 on the NYSE (UUUU), Energy Fuels offers investors the possibility of new decade highs in 2024. We’ve correctly been bullish on this stock for the past few years and its best days are yet to come in our view.

Check out this video from Energy Fuels – it’s a MUST-watch piece for any investor interested in the Uranium sector.

Click on the arrow to view.

Energy Fuels Long-Term Chart 

This is an amazing chart (EFR, TSX) in terms of its consistency and direction.

Note the key breakout above the critical 1,000-day EMA in late 2020 and how that long-term exponential moving average reversed to the upside and has provided rock-solid support ever since.

Watch for a potential near-term test of this important EMA just below $8 per share on the TSX.

John’s 10-year monthly chart on EFR, first posted in late 2022, also shows Measured Fib. support at $8 with all signs leading to a Measured Fib. resistance level of $21.38 (at a minimum) during this Uranium bull cycle.

Venture Junior Consolidates Prolific Utah District

If you’re more inclined to play for bigger percentage gains with a junior company (current non-producer), but 1 that’s also quickly moving up in the U.S. Uranium space, look no further than Sassy Gold (SASY, CSE).

This, too, is a fascinating story. Kyle Kimmerle, a star in Utah mining circles who’s now on Team Sassy, also happens to be underground mining contractor for Energy Fuels‘ Pandora mine.

Energy Fuels still has significant capacity at its White Mesa mill, so it has commenced an ore buying program from 3rd party miners in the region – Sassy’s Independence Mine would be a near-term candidate (in the Green River area where Independence is located, Western Uranium and Vanadium – WUC, CSE – is building its own processing facility).

Late last year, Kimmerle was connected with Sassy CEO Mark Scott, formerly Vale Canada’s Head of Nickel Operations for Manitoba, and the 2 of them forged a bond that led to a recently announced deal for Sassy to acquire Kimmerle’s long-held Utah and Colorado Uranium assets while Kimmerle will join the Sassy team to provide his Uranium expertise and local knowledge and logistical/operational support.

It’s a “Sassy” combination that has injected new life into this nearly 4-year-old company on the CSE – and the potential for very explosive additional gains. Another Gold play, C2C Metals (CTOC, CSE), recently jumped into the Utah Uranium scene with the stock surging from pennies to 26 cents a share for a market cap of $36 million.

Sassy is just getting going and its market cap is currently only $7 million for an overall land package, to be acquired from Kimmerle and his group, that is truly extraordinary:

• Pounds In The Ground: 15 known deposits including 14 past producers
• Two-Thirds Control of the Prolific Lisbon Valley: This is a 16-mile long Uranium district in Utah which accounted for 78 million pounds of the state’s historical U308 production between 1948 and 1988 (9% of total U.S. production during that period) and currently features robust new discovery potential in the Cutler Formation
• Near-Term Production Path: Independence Mine in Utah is permitted for small-scale underground extraction and surface disturbance

The above is deserving of a major re-rating of this stock, far beyond what has already occurred in recent sessions.

With Uranium currently at $90 a pound, with some price forecasts calling for $150 a pound in the next 12 months, Kimmerle sees huge potential in this new partnership with Sassy.

New District Play 

The deal between Kimmerle Mining LLC and Sassy has created a major new district-scale capital markets play that controls most of the Lisbon Valley, Utah’s most famous Uranium mining district with exceptional potential for new discoveries in the under-explored Cutler Formation.

This will attract additional new players into Sassy – heavy hitters in the market + fresh expertise on the Uranium exploration/mining side.

Historically, according to the Utah Geological Association, 77.9 million pounds of Uranium was produced in the Lisbon Valley between 1948 and 1988 at an average ore grade of 0.30% U308.

As the saying goes, the best place to find a new mine is near an old mine.

This is a Sassy Sweep of almost the entire Lisbon Valley District.

Sassy Long-Term Chart

SASY is breaking out powerfully after finally bottoming out at 3 cents in early 2024.

Think big here because not only have Sassy and Kimmerle carved out a niche for themselves in Utah, but Sassy also still has a significant footprint in British Columbia’s most prolific Gold district – the rich Eskay Camp – where the company has made an early-stage Gold-Silver discovery at its 100%-owned Foremore Gold-Silver-Copper Project where 36 drill holes have now been completed.

If you can drill 36 holes in the Eskay Camp and not kill a project, you’ve got something (just about every Sassy hole hit significant Gold values). Either a large porphyry at depth is driving this or there’s a bunch of Gold under the glacier adjacent to the Westmore discovery – 2 distinct possibilities. In any event, Westmore will be a deserving and interesting follow-up in this increasingly hot precious metals market.

Barriers to entry in the Eskay Camp are high, so Sassy certainly has an opportunity to unlock value here through a potential spinout or strategic alliance as the Gold boom intensifies while the company focuses on its Uranium acquisition.

SASY closed at 9 cents Friday, up 38% for the week. Momentum is strong. We’re hoping for a minor pullback which we’re ready to embrace.

The value of the company’s Eskay Camp asset and its holdings in 3 other juniors, including 2 Gold plays, more than justify the current market cap in our view with bullion at new record highs.

Which makes the Uranium deal with Kimmerle Mining LLC a no-brainer reason to accumulate Sassy before the masses catch on.

Note: John, Jon and Daniel hold share positions in SASY. Jon also holds a share position in EFR.

Disclaimer:

This report is independent BullMarketRun.com (BMR) content and neither BMR nor any of its personnel were compensated directly or indirectly by Sassy Gold or any other entity for the creation and distribution of this report.

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