Importantly, the project is close to the West Mesa uranium mill which was mothballed several years ago. More recently however, local producer Energy Fuel Resources bought the mill and set about refurbishing it. Consequently, the owner is now taking expressions of interest from small miners interested in toll treating their ore there, representing a significant opportunity for Uranium American.

The actual mineralisation at Stateline is deposited in two distinct horizons within the Canyonlands section of the Colorado Plateau which features the 20-mile long La Sal Trend, one of the most contiguous channel saltbush sandstone deposits in the region for uranium and vanadium.

The six leases there have seen more than 30 historic exploration holes drilled into them and contain 19 historic uranium and vanadium mines within their boundaries grading an average of 1.5 per cent vanadium and more than 2000 parts per million (ppm) uranium – both of which are impressive grades in their own right.

Recent sampling has also picked up readings of more than a massive 10,000ppm or 10 per cent uranium.

Next on the priority list for Uranium American is the Sky project in Wyoming’s Gas Hills District where more than 160 historic reverse circulation holes totalling 39,000m were drilled across the lease between the 1960’s and the 1980’s. At that time a resource of 822,000lbs of uranium grading 1170ppm was struck. The inventory was subsequently upgraded to one million pounds in 2007.

The north-south trending mineralisation at Sky is typical of a Wyoming roll-front deposit and importantly lies inside two thick sand bands which are enclosed within impermeable clay lenses. Consequently, the deposit, which shows consistency throughout is considered very suitable for in-situ mining. In-situ mining is achieved by injecting leaching agents into the orebody and extracting the mineral-laden brines without moving any overburden material.

Uranium American’s third project is its Marysvale hard rock play in Utah. Originally accessed through adits in the 1950’s, more than 1.35mlbs of uranium was produced by 10 separate mining operations. 127 historic holes were then drilled between 1997 and 2007 by various exploration companies to define a non-JORC compliant resource of 2.9mlbs of uranium within 90m and 150m.

Although the resource at Marysvale is bigger than both Sky and Stateline, accessing the metal will initially be more time-consuming leaving Stateline as the likely front runner for production.

Once the JAG acquisition is completed, the next step will be to draw up a two-year plan to define the resource and complete feasibility studies with the dual ambition of building its uranium resource base and achieving sustainable production by the end of 2026.

As the world marches towards sustainable energy, nuclear power is emerging as a critical part of the solution by offering low-carbon baseload power that complements renewable sources like solar and wind, helping to ensure consistent and reliable energy.

As part of the US Inflation Reduction Act (IRA) legislation which will see a massive US$783 billion (AU$1.2 trillion) spent addressing climate change, the United States is increasingly turning to small modular reactors (SMRs) as an added alternative clean energy solution.

The advanced reactors, which promise lower capital costs, scalability and enhanced safety features, are being championed through public and private investments, including initiatives led by TerraPower, a venture backed by Bill Gates.

SMRs are well-suited to integrate with renewable energy sources, offering emission-free, reliable power that can be deployed in both urban and remote areas.

Despite generating more than 30 per cent of the world’s nuclear energy and with demand set to rise dramatically, the United States still only hosts one per cent of global uranium resources, creating a strategic vulnerability.

Historically, it has depended heavily on imports for its uranium supply, with significant quantities sourced from Russia stockpiles and Kazakhstan.

However, recent shifts in the geopolitical landscape—including a U.S. ban on Russian uranium and political instability in other uranium-rich regions such as Niger—have strained the uranium supply chain.

The uranium price, which has boomed fourfold in the past four years to as high as US$105 a pound before settling a little lower at US$75 a pound has benefitted from the geopolitical uncertainties as well as the evolving trade policies and demand from the sustainable energy sector.

It has been transformed from an unloved post-Fukushima commodity to an in-demand strategic resource underscoring the urgency of promoting home grown production.

Uranium American Resources now appears set to leverage into those favourable market conditions with its newly minted portfolio of uranium projects across the U.S where it is aiming to be in production by 2026, thereby muscling its way into a growing domestic nuclear energy supply chain.

Is your ASX-listed company doing something interesting? Contact: mattbirney@bullsnbears.com.au