Cluff Lake North uranium exploration begins as Mustang Energy targets Athabasca expansion

Why is Mustang Energy Corp. beginning field exploration at Cluff Lake North and how does it support its uranium growth strategy?

Mustang Energy Corp. (CSE: MEC, OTC: MECPF, FRA: 92T) has commenced an initial field exploration campaign at its Cluff Lake North Uranium Project in Saskatchewan’s mineral-rich Athabasca Basin. The June 26, 2025 announcement follows Mustang Energy Corp.’s recently executed option agreement with Thunderbird Resources Ltd., enabling it to acquire up to an 80 percent interest in the project. The fieldwork represents a strategic milestone in Mustang’s multi-asset uranium portfolio expansion and underscores its ambition to become a high-impact junior exploration player focused on underexplored structural corridors in northern Canada.

This program marks Mustang Energy Corp.’s first physical exploration activity on the Cluff Lake North claims, which are located approximately 12 kilometers northeast of the historic Cluff Lake uranium mine. Historically, this area produced over 60 million pounds of U₃O₈ and remains an attractive target due to its proximity to known mineral systems and favorable basement-hosted uranium geology.

In a statement, Mustang Energy Corp. Chief Executive Officer Nicholas Luksha said that the Cluff Lake North program reflects the company’s goal of applying data-driven methodologies to define high-potential drill targets. He emphasized that initial sampling will guide follow-up efforts as Mustang positions Cluff Lake North as a core component in its pipeline of early-stage uranium assets.

What exploration methods are being used at Cluff Lake North and what specific uranium targets are being evaluated?

The field campaign includes surface prospecting and detailed rock sampling over a 10-day period, focusing on identifying alteration zones and mineralization patterns across priority structures. This geochemical and geological groundwork will help delineate the next phase of drill targeting within the project area.

Technical inputs for the current program are guided by Thunderbird Resources’ prior 2024 MobileMT geophysical survey, which mapped multiple conductive zones within the Moose Lake region of the project. The survey highlighted three high-priority targets—ML-01, ML-02, and ML-03—based on overlapping electromagnetic, gravity, and structural anomalies. These anomalies are located along a north-northeast corridor that is interpreted to extend from the Cluff Lake mine area and mirror key features associated with high-grade uranium systems.

These targets are considered basement-hosted and unconformity-related—two styles that dominate Athabasca Basin uranium production. The prospective corridor’s structural complexity further enhances the exploration upside, particularly in a region that remains underexplored relative to the basin’s eastern rim.

How does the Cluff Lake North option agreement with Thunderbird Resources influence Mustang Energy Corp.’s project ownership timeline?

Under the June 2025 option agreement, Mustang Energy Corp. has secured the right to earn an 80 percent undivided interest in the Cluff Lake Project by completing staged payments, exploration spend, and equity issuance milestones. Initial consideration included a CAD 20,000 cash payment and the issuance of 425,531 common shares on June 16, 2025.

To earn a 60 percent interest (Stage 1), Mustang Energy Corp. must spend an additional CAD 1 million in exploration and pay another CAD 50,000 by June 3, 2027. For the final 20 percent (Stage 2), the uranium exploration firm will be required to invest an additional CAD 2 million in fieldwork and issue CAD 100,000 worth of equity within two years of completing Stage 1. Thunderbird Resources will retain a 2 percent net smelter return royalty on all mineral products extracted from the Cluff Lake Project once Mustang earns full control.

The terms mirror a separate option structure Mustang Energy Corp. also entered into for the Surprise Creek Project, further reinforcing its exploration alliance with Thunderbird Resources Ltd. across multiple zones in the Athabasca Basin.

What makes Cluff Lake North’s geological setting attractive for uranium exploration compared to other Athabasca targets?

The Cluff Lake North property consists of five mineral claims located in the basin’s western flank—an area often considered underexplored when compared to the prolific eastern districts that host world-class uranium deposits such as Cigar Lake and McArthur River. Geologically, the project sits atop a favorable basement complex where fault reactivation and fluid pathways create conducive conditions for uranium concentration.

Historical data and the recent MobileMT survey suggest strong potential for both unconformity-style and basement-hosted uranium mineralization. These are the two dominant models in the Athabasca Basin, where unconformity-hosted systems often yield exceptionally high-grade ore—sometimes in excess of 10 percent U₃O₈. Furthermore, the presence of known structural corridors and conductors increases the probability of successful discovery.

Institutional interest in the western Athabasca has grown in recent years as rising uranium prices, supply chain security concerns, and electrification mandates drive renewed exploration across Canada’s most storied nuclear fuel district.

What role does the Cluff Lake North project play in Mustang Energy Corp.’s broader land portfolio and regional expansion plan?

The Cluff Lake North project adds depth to Mustang Energy Corp.’s growing uranium portfolio, which spans over 147,000 hectares across several key zones in Saskatchewan. Other assets include the Ford Lake Project in the eastern basin (7,743 hectares), the Spur Project in the south (23,680 hectares), and the Yellowstone and Dutton Projects which expand the company’s footprint in the basin’s western and south-central areas respectively.

Mustang Energy Corp.’s exploration footprint covers multiple geologic terrains, including the Wollaston Group basement complex and uraniferous pegmatite systems. This asset diversification helps balance risk while aligning with the company’s strategy of focusing on shallow-depth, high-grade discovery models.

Institutional investors tracking junior uranium stocks have taken note of Mustang’s systematic approach, diversified asset base, and capital-light acquisition model. Analysts suggest that if early results from Cluff Lake North confirm target mineralization, the project could become a cornerstone for future drilling campaigns and attract larger exploration partners or financing rounds.

What are the next exploration milestones for Mustang Energy Corp. following the Cluff Lake North sampling program?

Following the surface sampling campaign, assay results will be analyzed to identify geochemical signatures consistent with uranium-bearing alteration zones. These findings will be integrated with structural and geophysical models to finalize the location of high-priority drill collars.

Depending on results, Mustang Energy Corp. may move into a drill permitting and mobilization phase within the next exploration window. Meanwhile, the company also holds active exploration permits for its Spur Project, where work could begin later this year. The broader goal is to advance at least two of its uranium targets toward drill-stage readiness by 2026.

Investors are likely to monitor how Mustang balances operational execution with ongoing obligations under its option agreements, particularly the CAD 3 million in staged exploration expenses needed to unlock full ownership at both Cluff Lake and Surprise Creek.

With uranium prices hovering at elevated levels amid growing nuclear demand and geopolitical energy shifts, Mustang Energy Corp. appears positioned to benefit from sustained investor interest in North American uranium exploration.

What is the investor sentiment around Mustang Energy Corp. following this project update and what does the market outlook suggest?

While Mustang Energy Corp. is still an early-stage junior, investor sentiment around uranium developers has broadly improved due to macro tailwinds supporting nuclear energy. Institutional investors are watching closely for early drilling success in underexplored Athabasca Basin zones like Cluff Lake North.

Mustang’s low upfront capital commitments, clean capital structure, and project diversity have positioned it as a compelling early-stage uranium exposure for speculative investors. Analysts suggest that confirmation of mineralization along the Moose Lake trend would likely elevate Mustang into the radar of more active uranium-focused funds.

Going forward, analysts expect the company to provide assay data and preliminary drill plans for Cluff Lake North while continuing permitting activities at its other Saskatchewan sites. Strategic updates around partner financing or royalty streaming deals could also shape market expectations in the coming quarters.