HoldCo Markets has initiated coverage on Tisdale Clean Energy Corp. (TCEFF), a uranium explorer, with a bullish outlook and a CA$0.13 per share price objective. This optimistic view is driven by Tisdale’s potential to earn a significant stake in the South Falcon East property, a uranium-thorium project located in the Athabasca Basin of Saskatchewan.
The South Falcon East property stands out because it already boasts an existing resource, differentiating Tisdale from other explorers in the space. The current resource, solely from the Fraser Lakes B deposit, comprises an Inferred resource of 6.9 million pounds (6.9 Mlb) of uranium oxide (U3O8) and 5.34 Mlb of thorium dioxide (ThO2). While the U3O8 grade is lower than the Athabasca Basin average, it’s comparable to uranium projects in the U.S. employing in situ recovery methods and even to some of the world’s largest open-pit uranium mines, such as Rossing and Langer-Heinrich in Namibia.
HoldCo points to several attractive features of South Falcon East, including its proximity to existing infrastructure, which can enhance the project’s economics. The project also benefits from its shallow depth and unique Rossing-style uranium mineralization, associated with intrusive rocks like granitic pegmatites and alaskite.
Beyond the existing resource, South Falcon East offers substantial exploration upside. The resource remains open in various directions, and Tisdale’s 2024 drilling phase one has revealed potential for expansion and grade improvement.
HoldCo identifies potential catalysts for Tisdale’s stock price. These include possible amendments to the earn-in agreement with Skyharbour Resources Ltd. (SYHBF), the initiation of phase two drilling at South Falcon East, and successful drilling results at nearby projects, including Skyharbour’s North Shore Uranium and Russell Lake projects.
The company’s management team boasts significant experience in the mining and uranium sectors, led by CEO Alex Klenman, who has a long history in business development and the junior mining space.
With a current micro-cap valuation of CA$2.4 million, HoldCo believes the risk-reward profile for Tisdale is skewed towards upside potential, particularly if drilling proves successful and the earn-in agreement is finalized. For investors seeking exposure to the uranium sector, Tisdale presents a compelling opportunity with the potential for substantial returns.
