Lithium Pause Risks Delay as Pioneer Focuses on Uranium Amid Market Slump

• Rock chip assays up to 1240 ppm U3O8 at Skull Creek, Colorado
• Ongoing multiphase soil sampling program underway at Skull Creek
• Land access and stakeholder engagement progressing at Warmbad, Namibia
• Lithium exploration paused at Root Lake and Benham due to price slump
• Completed $320,000 capital raising to fund uranium exploration activities

Exploration Momentum Builds at Skull Creek

Pioneer Lithium Ltd has reported encouraging progress in its uranium exploration efforts at the Skull Creek project in Colorado. Rock chip samples collected during initial reconnaissance returned uranium grades as high as 1240 parts per million U3O8, a significant indicator of mineralisation potential. This peak grade was found within the Sego Sandstone, a lithological horizon noted for its high porosity and suitability for in situ recovery methods.

The company has embarked on a two-phase soil and regolith sampling program designed to delineate uranium anomalism along a 17-kilometre prospective strike. Phase 1, involving 100 soil samples, aimed to test the responsiveness of soils to uranium mineralisation and has been completed with results pending from ALS Laboratories. Phase 2, currently underway, is expanding the sampling footprint to cover broader strike extents beneath the soil layer.

Strategic Focus on Uranium Amid US Policy Tailwinds

Pioneer’s intensified focus on uranium exploration aligns with recent policy shifts in the United States. The Trump administration’s executive orders signed in May 2025 aim to accelerate nuclear power development and reduce reliance on foreign uranium imports, potentially boosting domestic uranium demand. This geopolitical backdrop enhances the strategic value of Pioneer’s Skull Creek project, positioning the company to capitalise on a revitalised US nuclear energy sector.

Progress and Partnerships in Namibia

Meanwhile, at the Warmbad uranium project in Namibia, Pioneer has made headway in securing land access and building relationships with local communities. The company reports strong support from the Karasburg and Warmbad communities and is actively working with the Namibian Ministry of Mines and the Resettlement Committee to obtain necessary approvals for exploration activities. This groundwork is critical for advancing on-the-ground exploration in a jurisdiction with promising uranium potential.

Lithium Projects on Hold as Market Conditions Weigh

In contrast to uranium, Pioneer has paused exploration activities at its Root Lake and Benham lithium projects in Canada due to a significant downturn in lithium spot prices and subdued shareholder appetite for further expenditure. Despite this pause, the company maintains that these projects remain highly prospective and will be retained for future development should market conditions improve. Additionally, Pioneer has allowed its Verde Valor rare earths and LaGrande lithium projects to expire, focusing resources on core uranium and lithium assets.

Financial Position and Capital Raising

To support its exploration ambitions, Pioneer completed a $320,000 capital raising at 20 cents per share, primarily directed towards advancing the Skull Creek and Warmbad uranium projects. The company ended the quarter with a cash balance of $880,000 and exploration expenditure of $205,000. Payments to directors and associates amounted to $45,000 during the period. Pioneer continues to seek strategic opportunities to complement its portfolio but notes no certainty of imminent acquisitions.

Bottom Line?

With uranium exploration gaining momentum amid favourable US policies, Pioneer Lithium’s next assay results and Namibian approvals will be pivotal for its growth trajectory.

Questions in the middle?

• What will the phase 1 soil sampling results at Skull Creek reveal about uranium distribution?
• How quickly can Pioneer secure full exploration approvals and commence drilling at Warmbad?
• Will lithium market recovery prompt Pioneer to reactivate its paused lithium projects?