Growing demand pushes Uranium prices to new rallye

Despite the volatility among uranium reserves, the value has continued to rise among explorers and developers and producers in 2020, hitting highs of over 100% and 30%, respectively, which are higher than 2019, and everything indicates that these indices will continue to rise when resource prices rise again. Why is uranium so popular?

Its energy content is about three million times higher than that of fossil fuels. When it comes to moving large-scale industry to renewable and greener carbon-free energy sources, it is an important issue not only for resource and industrial companies but also for the average population across North America. Uranium is a vital component of nuclear power because the facilities use nuclear fission, in which neutrons collide with uranium atoms and when they split, release large amounts of heat and radiation energy, releasing more neurons. About 10% of the world's electricity generation comes from nuclear energy.

So if the world is to switch to greener alternatives and reduce carbon emissions while maintaining performance, then nuclear energy production must increase. Nuclear power is also essential to the US economy. 19.5% of the country's electricity comes from nuclear power and supplies electricity to around 23 million households (twice as many as in California alone). Investors don't just have to keep their eyes on big names in this space like Cameco Corp. (TSX: CCO) and NexGen Energy Ltd. (TSX: NXE), but also to juniors and small exploration companies.

Activity has picked up across the board, and companies with more solidly established uranium discoveries have anticipated rising share prices better than others as the broader market showed signs of weakening. This is particularly true of the integrated uranium exploration and development company Azarga Uranium Corp. (TSX: AZZ, OTCQB: AZZUF, Forum). AZZ controls 10 uranium projects and prospects in the United States, including South Dakota, Utah, Colorado and Wyoming. It was in Wyoming that AZZ announced in June 2020 that it had identified additional uranium mineralization on its Gas Hills uranium project.

This newly identified second area of ​​high-grade uranium mineralization complements the additional uranium mineralization announced by the Company in April on its Gas Hills project and was identified through ongoing analysis of its own historical data set. The gamma log readings for 82 mineralized holes corresponding to a cutoff grade of 0.2 degrees and a width of 0.2 or greater with a cutoff grade of 0.02% with an average U308 grade of 0.205 % and an average thickness of four feet were announced in June 2020. Upon completing the initial analysis of the Gas Hills historical data set, Azarga's team identified significant additional uranium mineralization on the Gas Hills project, indicating extensive potential to complement existing uranium resources.

In a press release, John Mays, the company's Chief Operating Officer, explained these results to investors, stating that all of the uranium mineralization identified during the initial analysis occurs in sandstone with roll fronts below the water table, suggesting the potential for in- situ extraction (ISR) indicates.