Nexus Uranium’s Chord Project Hangs in the Balance as South Dakota Hearing Gets Underway

South Dakota board decision on exploration permit could unlock summer drilling, but local opposition and federal review add uncertainty. Stock down 54.5% YTD.

The next few days will determine whether Nexus Uranium can kick off its fully funded first drilling campaign at the Chord project this summer. A public hearing before the South Dakota Board of Minerals and Environment opened on Monday in Hot Springs, running through May 22 at the Mueller Civic Center. The board’s decision on the exploration permit — which must be issued within 30 days if approved — could unlock a programme that has been in regulatory limbo since March 2024, when the company first filed its exploration notice with the state’s Department of Agriculture and Natural Resources.

The application details up to 38 exploration boreholes using reverse-circulation drilling, reaching a depth of approximately 210 metres (700 feet). The company has previously outlined plans for up to 50 holes on state land about 11 kilometres north of Edgemont. No new roads are required. The project already carries an inferred resource of 2.75 million pounds of U3O8 equivalent, and the initial programme is designed to verify and expand that base.

Yet the path to a permit is far from smooth. On the first day of the hearing, local residents and environmental groups dominated proceedings with hours of opposition testimony. Concerns centred on potential impacts to the Craven Canyon area and local aquifers. Under South Dakota law, the board can deny a uranium exploration permit if negative effects on historic, archaeological or recreational values outweigh the benefits — a provision that gives opponents real leverage. Nexus counters that all preparatory steps are complete and that neither the canyon nor water resources are at risk.

Adding another layer of complexity, part of the Chord project sits on federal land managed by the U.S. Forest Service. That agency launched a public scoping process under the National Environmental Policy Act in January 2026, with its decision expected by June 2026 — running parallel to the state hearing. For Nexus, the dual-track regulatory calendar makes timing tight. A state green light followed by the 30-day issuance window could still allow a summer drilling start, but only if the federal piece falls into place on schedule.

In a move that underscores the regulatory sensitivity of the project, Nexus brought Mark Hollenbeck onto its advisory board on April 15. Hollenbeck brings more than three decades of experience, particularly in permitting for in-situ recovery operations. His previous work on enCore Energy’s Dewey-Burdock project in South Dakota — where he navigated years of federal and state environmental reviews — makes his appointment especially relevant for Chord’s ongoing approvals.

The market has priced in the uncertainty. Nexus shares traded around €0.56 on Tuesday, down 3.1% on the day, extending a year-to-date decline of 54.5%. The January high of €1.83 now looks distant. Over the past 30 days the stock has shed another 11.1%. The company positions itself as a supplier to the surging power demand from data centres and AI infrastructure, with a portfolio of U.S. uranium assets including high-grade targets in the Arizona Strip. But for now, all eyes are on Hot Springs — the hearing wraps up on Friday, and then the board will decide.