April 27, 2010

Uranium Spot Price Rises To US$41.75P/Lb.

Uranium Spot Up 25cents To US$41.75

According to the consultant, no less than five deals were successfully concluded during the week, causing some 600,000 pounds U3O8 to change ownership during the period.

In addition, notes the consultant, new demand has also become visible in the term market, though no deals have thus far been recorded.

The direct result of the increased willingness by buyers to accept higher prices has been for a small increase in TradeTech's spot price indicator by US25c to US$41.50/lb.

UxC Consulting now at US$41.75/lb.

TradeTech's mid-term price indicator has remained unchanged at US$50/lb as did its long-term price benchmark at US$60/lb.

April 24, 2010


CLICK Image below To Access
7th May, 2007 "Execution of Napperby Option Agreement"
Clickable Image

The legal framework for this agreement was 3 years,
and the legal binding date was from Announcement. 7th May, 2007
"Execution of Napperby Option Agreement".

Therefore, a decision WILL be made within the next few weeks from TOE management to further this project and purchase it from DYL.

Here are the Details As Per Announcement on 7th May 2007

* Should the area not be fully diverted to JORC standards by this time, 13.2 million pounds will be assumed.

* A reference against the spot price of 8% will be used OR capped between $6 pound and $4.5 pound. Current spot price by UxC is $41.50 and 8% of the spot price is $3.32. Therefore, if Toro choose to purchase this deposit they will still pay the lower bound of $4.5 per pound.

* The latest JORC from Toro which I could find was released on 3rd March, 2009 which equated to 7.39million pounds (using 200ppm cut-off)

* Therefore, under this agreement if TOE was to purchase Napperby they will need to pay for the 13.2million pounds at $4.50 per pound OR $59.4million. The agreement states this can be by any arrangement by cash or shares.

Early May 2010

Could be some good trading opportunity's Swing Trading DYL & TOE over the coming weeks .

April 23, 2010


Australia will ratify a nuclear agreement that allows the country to export uranium to Russia for energy purposes. “This will enable Australian uranium to be exported to the Russian Federation for civil, peaceful nuclear purposes,” said Foreign Minister Stephen Smith. The agreement is expected to strengthen cooperation on safeguards to protect exports as Australia and Russia “both stand firmly against terrorism and violent extremism”, he added.

Russia and Australia signed up to US President Barack Obama’s plan to secure all vulnerable nuclear material in four years earlier this month at a two-day summit in Washington that involved 47 countries.

Australia has the world’s largest known uranium reserves, according to estimates of the World Nuclear Association. Ten per cent of its uranium is found in Western Australia while BHP Billiton’s Olympic Dam mine in South Australia contains the world’s biggest uranium deposit. Energy Resources of Australia, controlled by Rio Tinto Group, supplies around a 10th of the world’s mined uranium.

April 21, 2010


Energy Resources of Australia Ltd (ERA) says the long-term outlook for the uranium market remains strong.

"Despite price weakening in 2009, the long-term outlook for the uranium market remains strong, with nuclear power recognised as a key element of the global energy solution," chairman David Klingner told the company's annual general meeting.

"While market prices have stabilised well below the historic highs reached in 2007, current prices are still significantly higher than for most of ERAs 30-year history, supporting investments to increase output," Dr Klingner said in a statement lodged with the stock exchange on Wednesday.

ERA reiterated that full year production and sales for 2010 were expected to be broadly in line with the levels of recent years.

Production and sales will be more heavily weighted towards the second half of the year.

Dr Klingner said the lower production, and consequent sales profile, during the first half is largely a consequence of mine sequencing and anticipated lower grades.

"We will continue to see higher expenditure on scheduled maintenance programmes, along with expenditure on ERAs significant development projects, during 2010.

"We expect that all of these factors will negatively impact earnings in the first half and for the full year."

Assuming that market prices remain slightly softer than during 2009, ERA expects the average realised sales price for the first half of 2010 and the full year to be broadly in line with 2009.

April 20, 2010


White Canyon has purchased 74 mineral tenements in Red Canyon, - Acquired tenements consolidate company's landholding at Red Canyon following recent purchases of tenements from Uranium One in Utah, USA, - Company now holds 90% of Red Canyon, containing in excess of 6,000m of buried river channels, the host lithology for roll front uranium deposits in the White Canyon district, and - Tenements hold extensions to existing mineralisation on existing Company owned projects.

Utah based uranium, White Canyon Uranium Limited /quotes/comstock/11v!wu (CA:WU 0.13, 0.00, 0.00%) (ASX: WCU) ("White Canyon" or "the Company") is pleased to announce that it has negotiated the purchase of 74 mineral tenements in the White Canyon district, referred to as the Yellow Parrot project, from a private prospecting syndicate.

White Canyon undertook an option over these tenements, announced on December 16, 2009 with a 60 day due diligence period. The Company successfully completed its due diligence on the project; however the acquisition was delayed by the sudden death of Mr Devern Dickerson, a member of the syndicate.

The purchase of the 74 tenements is a cash (US$40,000) and securities (690,024 ordinary shares) transaction for a combined value of US$200,000 and further consolidates the Company's project areas at Red Canyon (Daneros, Lark Royal, Radium King, Spook and Maybe). This acquisition increases the Company's landholding in Utah from 14,000 acres to approximately 15,500 acres with in excess of 1,450 additional acres at Red Canyon. The transaction is subject to the TSX Venture Exchange approval.

Combined with the recent purchase of 93 tenements from Uranium One (March 22) the Company has secured more than 90% of Red Canyon, containing in excess of 6,000m of buried river channels, the host lithology for roll front uranium deposits in the White Canyon district (Figure 2).

To view the Figure 2: Red Canyon map, please visit the following link: http://media3.marketwire.com/docs/wufig2419.pdf

An additional 2,000 to 4,000m of inferred river channels exist within the Radium King and Maybe tenements. Only 1,000m (approximate) of these channels have been drill tested and it should be noted that the mineralisation currently being mined at Daneros is only over a 500m length of river channel (Figure 1).

To view the Figure 1: Daneros Ore Body map, please visit the following link: http://media3.marketwire.com/docs/wufig419.pdf

The addition of the Yellow Parrot claims will allow the Company to expand its operations in the Red Canyon with the comfort of knowing that the extensions of the known mineralisation and the projected mineralisation in its area of operations has been secured under 100% ownership by the Company.

About White Canyon Uranium:

White Canyon is a US focussed uranium producer holding 100% interest in the advanced Thompson, Daneros, Lark Royal, Geitus, Blue Jay and Marcy Look Projects in south-east Utah, comprising of over 12,000 acres of mining claims and mineral leases. The projects contain historically defined high grade uranium deposits, however the deposits are not JORC or 43-101 compliant.

April 16, 2010


Mongolian government lean towards the decision to develop its largest untapped uranium resources in the eastern part of the country through a joint venture with Russians after it annulled license of Canadian firm.

Khan Resources said it received a notice from the Mongolian Nuclear Energy Agency stating that its 58%-owned Mongolian joint venture subsidiary Central Asian Uranium Company’s mining and exploration licenses have been invalidated.

Last July, an inspection team from the State Professional Inspection Agency concluded that Khan Resources have violated Mongolian law in respect of the mining license.

Khan said that it believes their operation was in compliance with all applicable Mongolian laws, including the Nuclear Energy Law. “Khan and its legal counsel intend to vigorously defend its rights and interests, and to pursue all available rights and remedies in the Canadian and Mongolian courts and, if necessary, in international arbitration,” company stated.

Martin Quick, President and CEO of Khan Resources, said: “We view the NEA decision to invalidate the Dornod licenses as without any legitimate or legal foundation and may be politically motivated. The Nuclear Energy Agency’s intention appears to be to invalidate our licenses, as well as potentially those held by other foreign companies operating in the region, with a view to transferring all of the mineral rights and interests in the entire Dornod uranium region to a ‘Dornod Uranium joint venture’ that is purportedly being established between the Russian and Mongolian Governments, with complete disregard to our rights and interests.”

April 12, 2010


Relative to most mining subsectors, listed uranium stocks have rendered a poor performance, for some years now, inviting examination as to whether this area is oversold. Commodity pricing here moves in a disjointed way, with little relation to variables such as the value of the dollar.

Spot uranium prices peaked at close to USD 140/lb in mid-2007 on the prongs of a three-headed mania: the end of Russian dumping, roaring apparent increases in demand from an energy-hungry world, and lots of liquidity via hedge funds and participation certificates, plus, factor four, the difficulty of valuing uranium stocks.

Over the past 12 months, the price has churned broadly between USD 55.00/lb and USD 40.00/lb, and is currently priced around USD 41.75/lb, according to UX Consulting; the latest peak was seen in mid-2009 at around USD 54.00/lb. Contract prices have been higher than spot prices for years, at closer to USD 70.00/lb, but have hardly been exciting for some months now, according to industry sources.

Canada's Cameco, the global bellwether in the relatively small uranium sector, saw its stock price fall from around CAD 60.00 in mid-2007 to close on CAD 15.00 towards the end of 2008. The stock is currently around CAD 27.00 a share, leaving buy-and-hold investors which bought the stock across 2006 and 2007 deeply in the red.

The Nuclear Energy Agency (NEA) of the Organisation for Economic Cooperation and Development paints a healthy growing demand for uranium, especially in the longer term, and the World Nuclear Association reckons that where mine supply was about 44,000 tonnes (about 20% each from Canada, Kazakhstan and Australia) in 2008, demand is likely to increase to 74,000 tonnes by 2015. Most, if not all, of the gap, would need to be filled by increased mine production.

This is all very well and cheery, but equity pricing indicates that investors are hardly happy with potentially fuzzy estimates, and the timeframes involved. On the contrary, investors have been taking uranium equities profits off the table, and pushing them into hotter near term stories such as coal and iron ore.

Pricing for Australia-listed Extract Resources peaked out in mid-2009, after its Rössing South discovery in Namibia proved to be the story of the year, or two. Namibia's more recent potential was startlingly highlighted by the August 2007 purchase by French transnational Areva for USD 2.5bn of Uramin, for the Trekkopje in-build mine.

At the time of the takeover, Ian Stalker was at the helm at Uramin; in November 2009 he moved from London-listed Niger Uranium to bourse companion Berkeley Resources, which currently ranks as one of the world's top performing uranium stocks. Berkeley has an impressive uranium oxide resource at its Spanish projects; analysts familiar with the company reckon the resources will potentially expand several fold in 2010 as Berkeley moves onto the Toronto Stock Exchange, and into production at around 2m pounds a year by 2012

Berkeley's Salamanca project would be the restart of an old mine, one shut down in 2000 by Spanish state company ENUSA following sustained low uranium prices. Relative to other projects with a similar deposit base, Salamanca rates as very low cost on capital expenditure, with operating expenditure likely to be around USD 30/lb.

There are also good performing stocks in Australia's Summit Resources, which, however, is also invested other areas such as vanadium, iron ore and phosphate resources, and Impact Minerals, with tenement holdings in Australia and Africa, a portfolio of six projects with the potential for economic deposits of nickel and significant deposits of gold and uranium.

And there are also Canada's Fronteer (whose various interests include 100% of Aurora Energy), and Mindax, but with a diversified portfolio of iron, uranium, gold and copper projects in Western Australia's Yilgarn Craton, and East Asia Minerals, where the main investor attraction appears to be in gold and copper, and London's Obtala, which is also diversified.

Uranium remains a big story in Namibia. Major miner Rio Tinto, which has long operated the original Rössing mine, has stakes in Extract, and also Kalahari Minerals, which holds 38.85% of Extract. Good stock price gains have also come from NWT Uranium, which holds 34.06% of Niger Uranium, which in turn owns 15.06% of Kalahari Minerals. Polo Resources has also taken a stake in Extract.

Paladin commissioned Namibia's Langer Heinrich in 2007 on time and on budget, and continues with the process of ramping production to what could amount to 6m pounds of uranium a year, at a cash cost of USD 25/lb, by the second half of this year. Further names active in Namibia include Australia- and Namibia-listed Deep Yellow, which has delivered one set of solid drilling results after another; Forsys, proceeding to the mining stage at Valencia; Bannerman, with Etango, Xemplar, West Australian Metals, Pitchstone Exploration, and Toro Energy.

Paladin owns 20% of Deep Yellow and 20% of NGM Resources, which holds agreements covering uranium exploration projects in Niger, and metal exploration projects in Madagascar. Mantra Resources holds a uranium resource in southern Tanzania, across the border from recentlyKayelekera mine in Malawi, owned and operated by opened Paladin.

April 8, 2010


  • April 08, 2010 9:35AM

SHAREHOLDERS in a clutch of junior explorers will today be watching events in the central Asian republic of Kyrgyzstan with great interest - or, possibly, with trepidation.

There has been severe political unrest in the capital, Bishkek, overnight with conflicting reports as to whether the government is still controlling the country. Certainly many people have been killed, possibly 100 or more.

Australian explorers have been keen on this country for some time - it is known to contain uranium (it being the first source of yellowcake when the Soviet Union went nuclear after World War II) and has great promise with gold, base metals, geothermal and hydrocarbon. And, it must be added, the uprising may be shortlived, a new government may well ensure that resources companies are unaffected and most of the projects are located well away from the capital and strife

But this surge of political risk couldn’t have come at a worse time for Kentor Gold which is on the brink of giving the green light to its Andash copper gold development.

Others affected include Caspian Oil & Gas which has a large acreage position around the Fergana Basin, an area which has been supporting oil production the early 1900s. In late February CIG announced that its joint venture partner in Kyrgyzstan,Santos, had decided to withdraw after spending $US16 million on the project. Caspian is now looking for a new JV partner.

And it was just last week that Manas Resources announced some very encouraging gold drilling results from its Shambesai project in the central Asian republic.

But there are a couple of juniors that will be thinking they dodged a bullet.

Panax Geothermal has effectively wound back work in the country while it awaits news on its application for World Bank financing, Ram Resources last year handed over its Kyrgyzstan interests in lieu of debt to its former Canadian partner, while Namibian Copper last year kicked the tyres on two uranium projects before deciding that Africa was a better bet.

April 2, 2010


Cameco's Recent Cigar Lake Project Report Can Be Accessed Below

213 Page Technical Report Released on Wed 31st March 2010
Covering all facets of Cameco's High Grade Cigar Lake Project

Requires Adobe Reader to access


* world's largest undeveloped high-grade uranium deposit.

* Remediation work is continuing to restore underground workings after water inflows in 2006 and 2008.

* proven and probable reserves of more than 226.3 million pounds U3O8 at an average grade of 20.7% (Cameco's share – 113.2 million pounds)
* construction began January 2005

* will employ up to 500 employees during construction.

* approximately 250 people will be employed permanently.

* just over half of Cigar Lake uranium will be trucked to Cameco's Rabbit Lake operation as a solution for final processing.

* expected to extend the life of Cameco's Rabbit Lake operation
* Cameco is the operator

Cameco Downgraded To Sell
Tuesday, April 06, 2010

The ongoing saga at Cigar Lake continues to haunt Cameco Inc. (CCO/TSX) investors.

Late on Thursday, the uranium miner released its long-awaited technical report on the Northern Ontario project, pictured below, revealing higher costs and a slower-than-expected rampup of production.

"While the company had recently disclosed a revised capital-cost estimate of around $1-billion and a revised startup timeline of 2013, the technical report disclosed higher than forecast life-of-mine cash operating costs of $23 per pound (up from $14/lb) and a relatively slow production ramp-up timeline (with full capacity not expected until 2017)," said Orest Wowkowdaw, a Canaccord Adams analyst.

Mr. Wowkodaw lowered his net present value for Cameco by 9.1%, resulting in a downgrade of the stock to "sell" from "hold." His new price target is $25, down from $28 previously. The stock rose 1% to $27.17 yesterday.

"While we remain bullish on the medium-to long-term fundamentals for uranium, we see limited upside in Cameco shares in the near term," he said.

UBS analyst Brian Mac-Arthur maintained his "buy" rating, but reduced his price target to $34 from $36. He said the extended mine rampup was expected, but cash costs were higher than his forecast.

Australian Uranium Investing


Public support for nuclear energy in the USA has reached a record high, with 74% of people saying they are in favour of nuclear energy, according to the results of a new poll.

The telephone survey of 1000 US citizens was carried out between 18 and 21 March 2010, by Bisconti Research in conjunction with GfK Roper on behalf of the Nuclear Energy Institute (NEI).

Surveys conducted by Bisconti have shown a significant change in the US public's view of nuclear energy over past years. Favourability has increased fairly steadily since 1983, when Bisconti's first poll showed that 49% of Americans supported the use of nuclear energy.

The latest poll found that 80% of US men and 68% of women favour nuclear energy. It also showed that those respondents who strongly favour nuclear energy (33%) outnumber those who are strongly opposed (10%) by more than three to one.

Some 87% of those questioned said they believe that "nuclear energy will play an important role in meeting the nation's electricity needs in the years ahead." In addition, 87% of people support "the licence renewal of nuclear power plants that continue to meet federal safety standards", while 84% think that "electric utilities should prepare now so that new nuclear power plants could be built if needed in the next decade."

In addition, 70% of respondents agreed that the USA should "definitely build more nuclear power plants in the future", compared with 28% who disagreed. When asked if it was acceptable for new reactors to be constructed at the nearest nuclear power plant site, some 77% said that it was and just 19% said it was not acceptable.

The poll also showed high support for the US government playing an active role in encouraging investment in clean energy technologies, including advanced-design nuclear power plants, to reduce greenhouse gas emissions. 72% of those questioned said they backed the government's provision of loan guarantees for such technologies.

Public confidence in the safety of existing nuclear power plants has also reached a record high. When asked to rate the safety of plants on a scale of 1 to 7, some 73% of people gave high ratings (5 to 7). This is over twice as many those who gave similar ratings in a survey conducted in 1984. In addition, 82% of those questioned said that existing US nuclear power plants are "safe and secure."

While most people (59%) said that used nuclear fuel could be safely and securely stored at plant sites until moved to a permanent disposal facility, around 80% of those questioned thought that the federal government should store used fuel at a secure storage facility away from the nuclear power plant sites until a permanent disposal facility is ready.

Some 79% of people also said they would support a US plan to recycle used nuclear fuel rods in order to generate more electricity and reduce the amount of waste to be disposed of. Just 16% would be opposed to this plan.

Ann Bisconti, president of Bisconti Research, commented: "This unprecedented support for nuclear energy is being driven largely by people's concerns for meeting future energy demand and environmental goals, but it coincides with statements by President Barack Obama and other national leaders who have voiced strong support for new nuclear power plants." She added, "The President's State of the Union speech and his subsequent announcement of federal loan guarantees for new nuclear reactors in Georgia clearly has elevated the issues in people's minds."

Last week, by the Gallup polling organisation published a public opinion poll that also found a record high support for use of nuclear energy in the USA.