F3 Uranium Corp

The JR zone hosts a relatively modest-sized, but exceptionally high-grade resource. We believe the Tetra discovery, and latest drilling results, suggest PLN could host multiple uranium deposits, offering significant resource growth potential. F3 is adding a second drill rig to follow up on the new target.

We have commenced due diligence on FUU, and plan to initiate coverage in the coming weeks. The company owns multiple uranium projects cross the Athabasca Basin, which hosts some of the world’s richest uranium deposits.

Uranium prices are up 30% YoY to $87/lb. Uranium has only reached these levels twice before; briefly in 2007, and again in late 2023. Since the beginning of the year, the Sprott Physical Uranium Trust (TSX: U-UN), the world’s largest physical uranium fund, has increased its holdings by ~10% to 81M lbs, signaling strong demand and bullish sentiment. The Trump administration is accelerating U.S. nuclear-sector approvals, while major tech companies are securing long-term nuclear power to support AI, and data center growth. We believe these factors will drive uranium demand, and strengthen investor sentiment, particularly amid ongoing supply-chain risks, with Russia controlling ~35% of global enrichment capacity.

F3 is run by one of the most successful uranium teams in North America. The team, led by CEO Dev Randhawa, has an exceptional track record of multiple uranium discoveries in the Athabasca Basin. Notably, Fission Uranium Corp., a uranium junior founded by Mr. Randhawa, was acquired by Paladin Energy for $1.59B in 2024. F3 has also received a $15M strategic investment from a major uranium player, Denison Mines.

F3’s flagship PLN project is located in the Patterson Lake Corridor, which hosts two of the world’s largest uranium deposits: NexGen Energy’s Arrow and Paladin Energy’s Triple R. This location is a major strategic advantage, significantly increasing the potential for another large high-grade discovery. PLN hosts the JR zone discovery with an independently verified (NI 43-101 compliant) indicated resource of 11.8M lbs U₃O₈ at an average grade of 4.39%, exceptionally high compared to typical global uranium mine grades of 0.02% to 0.10%. Higher-grade systems are highly sought after, as they generally support stronger project economics, through lower unit costs, and higher margins. Although the JR Zone’s tonnage is modest, we believe the recent discovery of the Tetra zone (located south of the JR zone) suggests F3 may be sitting on a larger, potentially interconnected mineral system.

The company is planning further drilling, and aims to complete a maiden resource estimate for the Tetra zone next year. In summary, we believe F3 offers exposure to a high-grade uranium exploration portfolio in one of the world’s most prospective uranium districts, backed by a proven management team. Our upcoming report will include a detailed analysis of F3’s portfolio, along with a fair value estimate.