Nexus Uranium at a Crossroads as South Dakota Hearing Determines Chord Drilling Fate

South Dakota regulators to decide on Nexus Uranium's exploration permit for Chord project by May 22, with stock down 53% despite strong uranium market tailwinds.

The coming days will decide whether Nexus Uranium's long-awaited summer drilling campaign at its Chord project moves forward or stalls indefinitely. From Monday, the South Dakota Board of Minerals and Environment will hear the company's application for exploration permit EXNI 453, with a decision expected by May 22. This marks the final regulatory hurdle in a permitting process that began in March 2024.

Strategic Hire Adds Local Weight Ahead of Decision

Just weeks before the hearing, Nexus strengthened its advisory board with the appointment of Mark Hollenbeck, an engineer with over 30 years of in-situ recovery (ISR) permitting experience. Hollenbeck, who joined on April 15, 2026, previously spent more than a decade steering the neighboring Dewey-Burdock uranium project through complex federal reviews with the NRC and EPA. His deep roots in the region — he served as mayor of Edgemont and owns a local ranch — could lend credibility to the company’s case before state regulators.

The Chord project sits about 11 kilometres north of Edgemont in Fall River County, where an advisory referendum in late 2022 saw 56% of voters oppose uranium mining. While the board makes its decision independently of such votes, the political climate remains tense.

Project Details and the Stakes

Nexus plans to drill up to 38 boreholes reaching a maximum depth of 210 metres (700 feet) without constructing new roads. The project hosts an inferred resource of 2.75 million pounds of U?O? equivalent at an average grade of 810 ppm, and the deposit is considered amenable to low-cost ISR extraction. The entire drilling programme is fully funded and, if the permit is issued, must be delivered within 30 days under state law.

The company’s hub-and-spoke strategy centres on Chord as the anchor. A green light would not only unlock the summer drilling but also revalue the broader land package in Fall River County. Rejection would leave Nexus in an indefinite exploration holding pattern.

Market Mismatch Weighs on Shares

Despite strong tailwinds in the uranium sector, Nexus stock has been under heavy pressure. The shares closed Friday at €0.58, down 53% since January and 68% below the 52-week high of €1.83. The 50-day moving average of €0.65 sits notably above the current price, signalling persistent selling pressure. With a market capitalisation of roughly €11 million, the stock is acutely sensitive to news flow.

Uranium itself is trading at around $86 per pound, more than 20% higher than a year ago. An annual supply deficit of about 50 million pounds is meeting accelerating demand, particularly from energy-hungry AI data centres, while new mine projects typically take decades to reach production. US legislation passed in 2025 has also boosted tax incentives for nuclear power and strengthened domestic uranium supply chains.

Binary Event Looms

The hearing runs through the full trading week, but no exact date for the verdict has been set. If the board approves the application, management expects the formal drilling permit in June 2026. Until then, the direction of the stock hinges entirely on the outcome of this binary regulatory event.