Categories: Energy / Mining Stocks
Topics: General Energy / Uranium Stocks

Tisdale Clean Energy Corp. (CSE: TCEC)(OTC: TCEFF) CEO Alex Klenman on Discovery Drilling During a Healthy Uranium Consolidation

 

Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the CEO of Tisdale Clean Energy, Mr. Alex Klenman. Alex, how are you?

Alex Klenman: I'm good. Your intros always make me smile, so thanks for that.

Gerardo Del Real: Well, look, I appreciate the kind words, by the way, but I'm excited. Look, I'm an optimist by nature, but we have ourselves what I think is a commodity super cycle that's kicking up on all fronts. I think copper deficits are materializing. We have gold at new all-time highs. We have silver surging over 2% today. And we have lithium looks to have bottomed and looks to be turning back up again. And we have uranium, which ran really quickly from 70 to 110 and now seems to have put a new base right around the 85, 86, 87-a-pound level. Which I think one, is healthy, and two, an indicator that the next leg higher is probably going to surge past that 110 level pretty convincingly. Which is perfect for companies like Tisdale that have drills turning and are advancing the model, which is why I wanted to have you on.

So before we touch on the Tisdale news, I want to get your take on the uranium space. You and I are both speculators in the space. We write checks. We wear multiple hats, so I'd love your take on it.

Alex Klenman: Well, you hit it on the head there, too. I mean, this little retracement that we saw is healthy. I was reminded by some very sharp people recently that between 2003 and 2007, when spot ran from seven dollars to 140, there were six different incidents in there where commodities backed off 25 to 60%. So these little retracements aren't unheard of, and they are healthy. You need to rebase. Again, you saw: It went from 70 to 110 pretty quick, as you mentioned. So the new base here in the 80s is solid, and we'll move from here.

And you mentioned a commodity super cycle. We're just kind of at the beginnings of that. What we really need here is interest rates to come down, and that's, by all indications, going to happen later this year, and when that starts, I think there's going to be a lot more money flooding into the commodity market, into the equities. And right now, there's still a lot of sideline money. We get hints of it, and it's a little frustrating. Yeah, $2,000 gold, the highest spot price in a decade. Copper surging, but we're not seeing the volumes that you typically see when these commodities take off like that. And I think that has everything to do with the broader economic issues, but again, I think the catalyst we're all waiting for is interest rates coming down.

Gerardo Del Real: No, and look, I think the markets, the overall indices, the major indices here in the US, are starting to force that action. I don't think that you're the only one that believes that, and I don't think it's a coincidence that the major indices are down some 2 to 3% over the last couple of days.

Let's get into Tisdale, specifically. You positioned the company well to take advantage of this uranium bull market, which I think we both believe has a whole heck of a lot of runway. Talk to me about Tisdale on those first two holes that you just drilled at the South Falcon East Uranium Project.

Alex Klenman: I would love to do that. So we picked up the project because we had a unique, compelling opportunity to get right into the development of a deposit. So many companies have joined the uranium rush in the last year, but how many of them have, at our market cap, anyway, sub-five-million-Canadian market cap, have the ability to back their valuation, eventually, with pounds in the ground? They're looking for it; we have it. And I think that's a compelling start to the story.

So what we wanted to do here was get in and just get into the historical zones that Sky Harbor ran into in 2015. They ran into some good grades. The overall grade of the deposit is 0.03%, so that's low grade. It's still higher than the world average, which is 0.02, but again, as we were talking earlier, if you lower the cutoff or you change the cutoff grade a little bit, you bump it up. Our numbers get better.

So we know there's some high-grade zones in this deposit that's still open in almost every direction, and we really just wanted to start the process by going in and starting to confirm that mineralization. That's the main first step to first of all, confirming the historical numbers, but also being able to expand what's there, both in size and grade.

So we were happy to do that. We drilled 442 meters, 221, and two holes in each. We got grades up to 0.11% uranium and some 13, 14-meter runs of mineralization. So a good start and again, well on our way to what we wanted to do, which was establish the historic resource, bring it compliant, and begin to build on it, both in pounds and in grade.

Gerardo Del Real: What comes next for Tisdale, Alex?

Alex Klenman: Well, mainly, I think we're going to spend some time here. We're still waiting for the geochem analysis of the core. The numbers I was giving you are equivalent U308. That's done through Gamma probe, and basically, until we get the full suite back, we really won't know the extent of what we drilled and how we drilled it, in terms of what other indicator minerals are there and what kind of clays we're running into. Those are all really relevant things we need to know.

So the next step is we're going to sit tight for the next little while. We're going to get back in the ground here later in the spring. We're going to continue the drill program. The nice thing is we can drill year-round, almost 12 months of the year there. Our permits are valid. We can go back in any time, so we really think probably May, June will be the next drill program. We'd like to get three or four holes done at that point. Again, I think they'll be similar to what we just did, insofar as drilling into known zones. I don't think we're ready to start stepping out and testing other zones, although that will come when there's more funding and, I think, concern in a different place.

Obviously, that's the goal over time. We're going to have to expand it by testing some of these other zones, but in the immediate future, we'll get back on the ground here in the next eight to 12 weeks and pop a few more holes down into the mineralized area.

Gerardo Del Real: Excellent. Looking forward to that. Looking forward to having you back on. I appreciate it.

Alex Klenman: Yeah, thanks so much.

Gerardo Del Real: All right.

Alex Klenman: Always a pleasure. Thank you.

Gerardo Del Real: Cheers, Alex.

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