Baselode Energy Betting Big on Athabasca 2.0 Uranium Strategy with Aggressive 4000-m Drilling

• Baselode Energy discusses the company's upsized $6 million financing and exploration plans
• Recent drill results are encouraging, finding the right alteration and fluid movement systems to potentially host uranium mineralization
• Baselode plans to drill 4,000 meters across 7-8 target areas with a $2.5 million budget to make a new uranium discovery
• Baselode's "Athabasca 2.0" exploration strategy, focused on shallow targets near the Basin margins
• Current market enthusiasm for uranium discoveries could lead to strong returns on exploration success

Athabasca 2.0

Baselode Energy Corp (TSXV:FIND) is an exploration company focused on making uranium discoveries in the Athabasca Basin of Saskatchewan, Canada. The company recently raised $6 million to fund an expanded drill program testing multiple shallow targets on the margins of the Basin. While the financing garnered some investor backlash, CEO James Sykes believes it was a necessary step to aggressively explore Baselode's project and make a potential discovery.

Encouraging Early Results

In a recent interview, Sykes discussed promising early results from the first three holes of the current drill program. The drilling confirmed the presence of key alteration and fluid movement systems needed to potentially host a uranium deposit.

"We found fluid movement that carries uranium," Sykes explained. "Without those you will never have a uranium deposit. So now that we've identified that in one target area, we're going to finish targeting that area, finish drilling off that area."

The drilling so far has proven the fertility of the project area for uranium mineralization. With the right geological indicators now confirmed, Baselode will conduct follow-up drilling along strike and down dip of the encouraging initial holes to vector in on potential uranium.

Shallow "Athabasca 2.0" Strategy

Baselode is employing an "Athabasca 2.0" exploration strategy - targeting shallow uranium mineralization on the margins of the Athabasca Basin rather than deep deposits in the Basin center. Sykes believes this gives Baselode a key advantage.

"We're looking for shallow mineralization, things that are shallower than 200m," he said. "We want to maintain that shallow focus because we know those types of deposits go into production much quicker."

Drilling shallow targets is cheaper and faster than the deep holes required in the central part of the Basin. This allows Baselode to drill more extensively to test a greater number of target areas for the same exploration budget.

Aggressive Upcoming Program

Allocating a $2.5 million budget, Baselode now plans to drill 4,000 meters across 6-8 target areas. The company will provide updates on the program every 2-3 weeks, with full assay results likely reported at the end of the program.

While exploration is high risk, Sykes believes Baselode's approach gives them a good chance of success. "It's high risk, high reward," he said. "If investors don't realize that then they shouldn't be investing. But I think we've got a great opportunity, a great idea. It's unique, it has proven itself, and we will continue to do what we do best."

Expanding Existing Discoveries

In addition to making a new discovery, Baselode also plans to expand on their existing ACKIO zone discovery at the flagship Hook project. A summer drill program will follow up on the promising uranium mineralization intersected there previously.

Sykes sees huge potential at ACKIO. "If you find an open-pittable McArthur River, it's beautiful stuff," he said, referencing Cameco's ultra-high-grade uranium mine. "So that's what we're looking for."

The Path to Success

Ultimately, Sykes acknowledges mineral exploration is a tough business and discovery success rates are low. But he believes Baselode's technical approach, utilizing geophysics and other targeting methods, improves their odds.

"Success in most industries in exploration, I've heard many times, is one out of 10 - 10,000 meters hits, or one out of 10 drill holes hits," Sykes noted. "It's a lot of meters, it's not easy. I'd like to believe that maybe our chances are better, maybe one in 10 target areas are going to hit."

With 7-8 target areas to be drilled in the current program, and more at ACKIO, Baselode will be busy in 2024 as they search for that elusive uranium discovery. Investors will be eagerly awaiting news of a drill hole that finally intersects the uranium that Baselode's geological work suggests could be hiding in the shallow depths of the Athabasca Basin margins.

The Investment Thesis for Baselode Energy

• Experienced team utilizing unique "Athabasca 2.0" exploration strategy focused on shallow uranium targets
• Cheaper, faster drilling allows for testing of numerous prospective target areas
• Promising early indications of uranium fertility from recent drilling
• Aggressive 4,000m program upcoming to make potential discovery
• Existing ACKIO zone discovery provides additional upside
• Current market enthusiasm for uranium discoveries could lead to strong returns on exploration success

Baselode Energy offers a compelling exploration story for uranium investors. The company's "Athabasca 2.0" strategy, while high-risk, provides the potential for a shallower, easier-to-develop uranium discovery on the margins of the Athabasca Basin. With a large drill program upcoming to test numerous targets, Baselode is well-positioned for potential exploration success in 2023. However, as with any early-stage explorer, investors must be willing to take on significant risk as there is no guarantee of a discovery being made.

Macro Thematic Analysis

The uranium market is experiencing renewed interest and optimism, driven by growing recognition of nuclear power's role in decarbonizing the global energy system. With aggressive emissions reduction targets being set by governments worldwide, many are turning to nuclear as a reliable, carbon-free source of baseload electricity generation.

This has spurred a resurgence in uranium prices and exploration activity, as market participants look to new discoveries to fill a looming supply gap as demand growth outpaces production. The Athabasca Basin is at the center of this exploration boom, with the region accounting for approximately 15% of global uranium output.

Summarizing the opportunity, Baselode Energy CEO James Sykes stated: "Everything was there [in the drill core]...The only thing missing was uranium. So we found the right fluid systems...now we just have to find if uranium was deposited in this one target area."