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By Faith Ashmore, Benzinga

2024 is off to an interesting start as uranium prices jumped to a 16-year high, a trend that started in mid-2021. After almost a decade of dormancy following the Fukushima nuclear accident, uranium prices have sky-rocketed 250% since 2021, when COVID disruptions started impacting price increases.

While resistance to nuclear power still exists, the need to cut commissions and decreased animosity towards nuclear power is partly responsible for the rising demand. However, the growing demand is coupled with a decrease in supply and a wariness to purchase uranium from Russia. Biden has faced scrutiny for continuing the policy of importing uranium from Russia, which accounts for approximately one-third of the uranium used in the U.S. Additionally, other historical producers and supply are being disrupted; Kazakhstan’s lead uranium producer Kazatomprom (OTCMKTS: NATKY) announced recently that it may have to cut production in 2024 due to difficulties with sulphuric acid availability.

Uranium suppliers are clearly a hot commodity at the moment. Recognizing this, Sienna Resources Inc. (OTCMKTS: SNNAF), a company focused on exploring and developing mineral resources, has gotten into the uranium market. Sienna Resources has recently expanded its portfolio in the Athabasca Basin of Saskatchewan, adding the "Uranium Town Project" and the "Dragon Uranium Project" to its collection. The Athabasca Basin region is renowned for its rich uranium deposits, and Sienna's acquisitions provide a sizeable land area spanning over 21,000 acres. The Uranium Town Project covers an area of 10,357 acres adjoining ∫ (NYSE: DNN), while the Dragon Uranium Project spans an impressive 10,845 acres bordering Cameco Corporation (NYSE: CCJ) – the world's largest producer of uranium.

The Fraser Institute has ranked Saskatchewan as the third-most attractive mining jurisdiction globally, adding to the potential of these newfound projects. Adding these projects bolsters Sienna Resources' presence in the valuable Athabasca Basin region and potentially sets the stage for exciting exploration opportunities, in addition to the company's existing lithium and graphite projects.

Jason Gigliotti, President of Sienna shared, “Uranium prices have hit a 16-year high this week and management feels that diversifying into uranium while keeping our lithium focus makes sense. Establishing a large footprint in the most prolific uranium address on the globe bordering the biggest name in uranium, Cameco, provides Sienna and Sienna shareholders with exposure to the best-performing sector in mining in the past year. Management continues to try to add projects that are accretive to the growth of Sienna and we have enough cash on hand to forward these projects.”

Uranium is having a moment on the demand side and as the U.S. looks to decrease reliance on Russian importers, companies like Sienna Resources could stand to become industry leaders. Not to mention, uranium’s connection to greener energy makes it a valuable asset in the race to decrease carbon emissions.

Benzinga is a leading financial media and data provider, known for delivering accurate, timely, and actionable financial information to empower investors and traders.

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