Baselode Energy (FIND) - $9.2M to Continue High-Grade Drilling Hits

Morgan Leighton
December 15, 2021

Matthew Gordon had a chance recently to talk with James Sykes, CEO, President and Director at Baselode Energy. Sykes spoke about some recent press releases and other activities at its uranium exploration projects in the Athabasca Basin. 

Company Overview 

Baselode Energy was founded in 2020 and headquartered in Toronto, Ontario, Canada. The company engages in the acquisition and exploration of uranium and other mineral properties, principally in the Athabasca Basin of northern Saskatchewan. The Athabasca Basin area hosts the highest-grade uranium deposits in the world.  

The company has a market capitalization of about $70 M. It trades on the TSXV and the OTC.

Baselode Energy (FIND) - $9.2M to Continue High-Grade Drilling Hits

Management at Baselode Energy

In addition to Sykes, management consists of Kevin Canario, CFO; and Cameron MacKay, Vice-President, Exploration & Development. The board of directors is made up of Stephen Stewart, Chairman; Michael Mansfield; Charles Beaudry; as well as Sykes, who was recently added to board membership. 

Baselode Energy (FIND) - $9.2M to Continue High-Grade Drilling Hits

Baselode’s Projects

The company has a 100 percent interest in three Athabasca Projects collectively comprising some 227,000 hectares. These are the Shadow Project, the Hook Project, and the Catharsis Project. 

Baselode Energy (FIND) - $9.2M to Continue High-Grade Drilling Hits

Recent Capital Raise

Baselode announced recently that it has raised CAD $9.2 M in a bought deal placement. This raise consists of hard-dollar money with no flow-through commitments. The company already had about $11 M in the bank. Now it is fully “cashed up” and ready to forge ahead in 2022. 

Baselode Energy (FIND) - $9.2M to Continue High-Grade Drilling Hits

Update on the ACKIO Discovery at the Hook Project

On December 6, 2021, Baselode announced high-grade assay results from a significant discovery at the ACKIO prospect on the Hook Project.  Highlights include: 

·         Multiple uranium intersections occurring over 200 m of drill hole length 

·         Primary mineralized zone measuring 15.5 m of 0.13 wt. % U3O8 starting at 134.3 m 

·         1.29 wt. % U3O8 over 0.5 m at 138.8 m and 0.66 wt. % U3O8 over 0.5 m at 142.3 m

The company is looking to work at ACKIO quite hard in 2022 with two drill programs, one each in the winter and the summer, both aiming to have at least a minimum of 10,000 m of diamond drilling. If results are better than that, it will drill even more.  

Sykes and the rest of the Baselode team think that ACKIO is going to turn out to be a big deposit. The company saw visible uranium in the core as well as having the high assay values. If the drilling proves it, they want to move it to a NI 43-101 (National Instrument for the Standards of Disclosure for Mineral Projects within Canada) resource as quickly as possible. And this is why the private placement came in. 

Sykes believes that having demonstrated pounds in the ground for Baselode will elevate it to a whole new level, and that's where he wants to take the company. So management asked one another, is 20,000 m enough to really get to a resource? Probably not, they concurred. What if double that was required? Assuming CAD $400/m for drilling, then the company was looking at about CAD$16M, just to explore ACKIO and try to get to that NI 43-101 resource. 

Baselode then talked with PI Financial and the deal came together very quickly. If the company doesn't have to drill 40,000 m at ACKIO to get to a resource, then that would be fine too. It will just have more money in the bank to explore all of its projects even further without diluting shareholdersIt will just have more money in the bank to explore even further.  

Baselode Energy (FIND) - $9.2M to Continue High-Grade Drilling Hits

Comparison to Other Big Athabasca Deposits

The press release indicated that the ACKIO deposit could be on par with NexGen’s Arrow Deposit and Denison’s Gryphon project, two other recently-evaluated big uranium occurrences in the Athabasca region. Sykes provided his reasoning on why these comparisons are justified. 

First, the cores with visible uranium at ACKIO are visible similar to those from Arrow and Gryphon. This suggests that ACKIO too is an example of basement-hosted mineralization.

Then there are the assay results. According to Sykes, the drill hole that led to the Gryphon discovery had 7.7m at 0.18% U308. At ACKIO, Baseload has just announced 15.5m at 0.13%. At Arrow, NexGen used a cutoff grade of 0.01% U308 on their discovery drill hole. At ACKIO, Baseload already surpassed that, using a cut-off of 0.045% U308. There are assay similarities to Arrow as well. 

Sykes indicated that Baselode clearly has something robust at ACKIO. The company can develop a lot of targets and prioritize its drilling going forward. 

Green Metals Included in the Discovery

ACKIO also has associated copper, nickel and cobalt in association with the U3O8. These metals are clearly important in the green energy revolution.

An analog deposit may indeed be UEX’s West Bear Deposit, on trend northeast of ACKIO. Baselode is seeing comparable grades to the West Bear resource grades, both for cobalt and nickel. The drill work at ACKIO is not yet finished, so the actual amounts of these metals remain to be seen. But the main value at ACKIO is the uranium according to Sykes, with the other metals adding by-product value. 

How the $20 M Capital Infusion Will Be Used

Sykes will spend about $16 M at ACKIO, hopefully pushing forward to a 43-101 resource. That money will largely be used for drilling. It will be simple grid drilling over a 1 km long length and 500 m wide breadth. The grid drilling will include the previously identified Jupiter anomaly. 

In addition, the company will probably spend about $1.5 to 2.5 M at the Catharsis project. It may also pay some attention to Shadow and Hook Southwest, sites that it has staked. 

The Winter Drilling Program

Sykes has been forecasting just how long the winter drilling season may last. The previous few winters have been very short. People have been lucky to get drilling in early January and are very lucky to be exploring past March 15th. 

He has been following NOAA (the National Oceanic and Atmospheric Administration) to help in forecasting. They're calling for another early spring thaw, somewhere between late February and early March. Given that, the company isn’t banking on having a large drilling window. So it has decided to continue on with helicopter exploration. That will allow it to explore for much longer in the year, because it won’t be operating solely on the ground. Instead, the crews will be picking up material and plopping it on the ground without having to clear away much, if any, vegetation. That's what will allow Baselode to drill for much longer during the winter campaign. 

The helicopter program is supported by the government and by First Nations. The company wanted to have less impact on the ground. It's part of Baselode’s overall ESG (environmental, social and governance) philosophy. Furthermore, it is not that much more expensive than a ground-only operation, only CAD $50/m more, all-in cost. 

Baselode Energy (FIND) - $9.2M to Continue High-Grade Drilling Hits

Other Big Accomplishments and Snags in 2021

Looking back on the year indicates that it was a busy time for Baselode. There was a bit of a snag at the Shadow project. Overall, it is pleased with the drilling, not only at ACKIO, but also at Beckett. The company wanted to get a start on drilling at Catharsis, but, for obvious reason, ACKIO took precedence. 

Coming up in the fourth quarter, Baselode will have some news releases coming out. 2022 is going to be a big year for the company.

Closing Message

At the time of this conversation, there were three additional holes with results pending at ACKIO. Stay tuned for the drilling and geochemical results with those. Then it will be onward and upward into 2022. 

To find out more, go to the Baselode Energy Website