Uranium Developer’s Chord Project Grounded by Federal Lawsuit Over Lakota Interpreter Dispute

A federal lawsuit over a missing Lakota interpreter stalls Nexus Uranium's summer drilling permit hearing in South Dakota, sending shares down 63% YTD.

Nexus Uranium’s hopes of kicking off a fully funded summer drilling program at its Chord project have hit an unexpected legal roadblock. A federal lawsuit lodged by project opponents forced the South Dakota Board of Minerals and Environment to adjourn a crucial permit hearing midway through proceedings, throwing the company’s timetable into disarray.

The hearing, held at the Mueller Civic Center in Hot Springs, was supposed to be the final state-level step before the board could grant a drilling permit. Instead, it was suspended after allegations that the board had failed to provide a Lakota interpreter during parts of the session, despite having promised one. Opponents argue this violated fair-participation rights, a charge that now forms the centrepiece of the legal challenge.

Nexus had been working toward a permit award as early as June 2026, with the 30-day issuance clock set to start only after a board vote in favour. That timeline is now in limbo. Without a rescheduled hearing and a positive decision, the company’s planned 38 exploration reverse-circulation holes—none requiring new road construction—will not break ground this summer.

To bolster its regulatory expertise ahead of the now-stalled process, Nexus recently brought in Mark Hollenbeck, P.E., a veteran engineer with more than 30 years of experience in in-situ recovery (ISR) permitting. Hollenbeck previously led the Dewey-Burdock uranium project in South Dakota for enCore Energy, navigating approvals from the Nuclear Regulatory Commission and the Environmental Protection Agency. Chord sits roughly three miles southeast of Dewey-Burdock, making his ISR know-how particularly relevant for a project that lies adjacent to that same recovery method.

The Chord area, about seven miles north of Edgemont near Craven Canyon, is culturally sensitive because of ancient rock art and its ongoing significance for Lakota ceremonies. Local opposition to uranium drilling there dates back to the 1970s. For Nexus, however, the project remains its flagship North American asset, hosting 2.75 million pounds of inferred U?O? at an average grade of 810 ppm over 8.5 feet.

The legal standoff has piled pressure on a stock already reeling from a broader market slump. On Friday, Nexus shares closed at €0.45 in Frankfurt, losing 7.96% on the day. That brings the seven-day decline to 22.77% and the year-to-date rout to 63.48%. The stock now trades just above its 52-week low and 75.36% below its annual high.

None of this is happening in a uranium vacuum. Spot U?O? last traded at $84.70 per pound, still 18.38% above year-ago levels after hitting a 2025 peak of $101.41 in late January. The market remains structurally short by roughly 50 million pounds annually, with demand projected to climb 28% by 2030 as AI data centres power up. Some forecasters see consumption doubling by 2040, yet new mines typically require 10 to 20 years to reach production—a gap that amplifies the cost of any regulatory delay.

On the policy front, the US Department of Energy has earmarked $2.7 billion for domestic enrichment, while the 2025 “One Big Beautiful Bill Act” extends nuclear-friendly tax credits and construction deadlines to 2033. The CME Group’s planned physically settled uranium futures contract could also boost commodity transparency. But for a small developer like Nexus, macro tailwinds offer little comfort when the immediate obstacle is a federal judge’s order.

All eyes now turn to the South Dakota board’s next meeting. Until the hearing is rescheduled and completed, the 30-day permit clock cannot start ticking. The summer 2026 drilling window, fully funded and ready to go, remains legally locked.