The resource market has boosted our Canadian economy
over the past year. With the end of the year coming, we plan
on going out with a boom! Only 2 months left, and 2 profiles
to go! Are you ready to make some more money?
Date: 2006-11-20
Symbol: SUV
Year High/Low: $0.89 / $0.29
Profile Price: $0.59
Our Target Price: $1.30 - $1.90
Sector: Uranium, Diamonds, Base Metals
Star Uranium Corporation is a Canadian based resource company focused on the
strategic acquisition and development of uranium, diamond and precious metal
properties on a worldwide basis.
Star Uranium holds a consolidated position in 4 sectors we are highly bullish on.
After Brilliant performances like Nova Uranium and Strathmore, you better believe we
Would bring you another Junior to get excited over!
Uranium is one of the more common elements in the Earth's crust - it is more common
than tin, about 40 times more common than silver and 500 times more common than
gold.
Uranium is a metal like gold or silver unique for
its physical properties that give it the potential to
generate incredible amounts of energy through
nuclear power. The energy stored in the nucleus
of a Uranium atom released through fission,
fusion, or radioactivity creates nuclear energy.
Presently most electricity is produced by coal, oil, or natural gas fired plants. The cost of
these commodities has soared in the last few years and in the case of oil and natural
gas, the world's societies will likely be forced to ration usage or find alternatives.
Furthermore, oil and specifically coal are long known to be instrumental in damaging the
world's ecology due to their various carbon and other harmful emissions.
Nuclear power is not only more economically viable but it is also one of the most
environmentally friendly power sources as it does not release greenhouse gas
emissions that contribute to global warming. Nuclear power also produces 17% of
global electricity and is the world's fourth largest source of electricity. Over the last three
decades, uranium has been an important Canadian energy resource used in nuclear
power reactors for the production of clean electricity.
Nuclear power is the most inexpensive major form of power generation at the least damage
to the environment however above ground governmental and private uranium stockpiles
have been consumed and the shortage is growing.
Uranium spot prices have risen from a low of $7/lb USD to over $60.00/lb USD
Star Uranium holds 3 strategically positioned Uranium properties located in
Saskatchewan, Canada. Saskatchewan is home to the Athabasca Basin, which
beds the highest graded Uranium deposits in the world.
Black Lake, Stony Rapids - Saskatchewan, Canada
Star Uranium owns 100% interest in a group of seven claims near the town of Stony
Rapids, along the northern edge of the Athabasca Basin. Stony Rapids is services
by provincial highway 905 and regular air service is connected to the provincial power
grid. The Black Lake properties were acquired after UEX Corp. announced a new
discovery in the area in late 2004. For the first time, unconformity-type uranium
mineralization was encountered in this area of the basin. Deposits of this type are
found at mines in other parts of the basin.
A program of surface geology and sampling on Star Uranium’s properties produced
favourable results from both boulder samples and soil samples. Strongly chloritic
sandstone boulders from one area have anomalous geochemistry in uranium, lead,
boron and arsenic. Soil samples from a second area were anomalous in uranium,
cobalt, nickel, thorium, copper, molybdenum, arsenic, tungsten and yttrium. These
associated elements are important indicators in other deposits in the basin.
Both of the areas of interest also are near geophysical conductors, and both will be
drill-tested in 2006.
Collins Bay, Wollaston Lake - Sakatchewan, Canada
Star Uranium has a 100% interest in a 4000-acre mineral claim immediately to the east of
Cameco Corporation’s Eagle Point Uranium Mind.
Also in the vicinity are three other Uranium deposits:
1. Collins Bay 2. Rabbit Lake 3. McClean Lake
The property hosts two northern-trending conductive zones which have never been
drill-tested. Geophysics has been conducted on these targets and they will be drilled
when ice conditions allow, as they are situated on Wollaston Lake.
Star Uranium recently acquired a 100% interest in a 5917 hectare property at Waite Bay
on Cree Lake, Saskatchewan. The property sits on the Cable Bay fault and hosts a
series of known conductors. An airborne survey will be flown over the property in April
to further define the conductors, to be followed by a summer ground grogram. Other
properties in the Cree Lake area are held by CanAlaska Ventures, JNR Resources,
Cogema and Cameco Corporation.
On October 16th the company announced the following:
October 16, 2006 -Saskatoon, Saskatchewan – Star Uranium Corp. (SUV – TSX Venture)
Star Uranium Corp. is pleased to announce that it has acquired by staking 8 mineral claims totaling over 100,000 acres in the area of JNR Resources Inc.’s recently announced discovery (up to 48% U3O8)
contained in surface bedrock samples from their recently completed summer work program at Hook Lake, part of their Way Lake project.
Six of the new claims adjoin JNR Resources Inc.’s Way Lake project and are located south of the discovery. Star Uranium has named these six claims the Alexander Lake project. The remaining two claims, known as the Pardoe Lake property, are to the east of the new discovery and are contiguous to JNR’s Yurchison Lake project to the north and the JNR / International Uranium Pendleton Lake project to the south. Please refer to the Star Uranium Corp. website at www.staruranium.com to view the map indicating the proximity of the properties to one another.
Star Uranium intends to commence exploration work on the properties within the next 60 days. Portions of the newly acquired claims cover regional E.M. conductors identified by airborne surveys. These conductors are present on both JNR Resources Inc.’s properties and Star Uranium Corp.’s properties. There will be at least two drill programs operating in the area this winter and Star Uranium will share logistics wherever possible.
The Shore-Gold Dispute
Star Uranium Corp. expects to win the on-going dispute against Shore Gold on November
20th, we expect them to win too!
Why This Stock Can Achieve Instant Growth At Any Point Overnight!
One of the major reasons we like this company is because of the outstanding lawsuit
against Shore Gold. The talk on the street is that Shore Gold has no case, and that this is
a guaranteed win for Star, who holds video evidence disputing Shore Golds claim. These
diamond properties are significantly VALUABLE and will change Star Uranium overnight
once this case Is closed. In fact, these properties could form a company on it’s own,
and are under the watchful eye of many of the major diamond producers in Canada.
Here is a brief overview of the lawsuit.
Star Uranium and United Carina (50/50) applied to the government of Saskatchewan for
mineral rights to 25 claims totaling 33,196 hectares. The government was in the process
of issuing certificates to Pine Channel (Former Operating Name) and United Carina when
Shore Gold Inc (SGF.TSX) protested to the Department of Energy and Mines and to the
Minister of Mines. Both protest were rejected, and Shore then went to civil court to try to
prevent the government from issuing title to Pine Channel and United Carina.
The Department of Energy and Mines then stated that they would await the outcome of the
civil court case. After many delays, the case will finally be heard by the court in September
2006. The basis of Shore’s protest is that they claim that Rick Walker conspired to depriv
them of their right to claim the lands, and used force, violence and committed assault
and battery.
Up until very recently, mineral rights that had lapsed and reverted to the Crown were
re-staked by lining up at the door to Energy and Mines offices – much like a land rush
in the old Wild West. The door was opened at 8:30 a.m. on the first business day of
each month and it was first come-first served. In this particular case, Walker had hired
men to live in a tent in front of the door for three weeks. At 2:30 a.m., three nights before
the first business day, a security company hired by Shore had two men show up and
stand in front of the tent. By opening morning, a crowd of 20-25 people were jockeying
or position under the watchful eye of three Regina policemen, whose presence Mr. Walker
had arranged. When the door opened, Walker managed to get in first and had his
paperwork time stamped and processed first. Shore was unwilling to accept the out come
and made their protests.
A video of the event exists and plainly refutes Shore’s charges. The properties in question
are scattered throughout the Fort a la Corne area, some more strategic than others, but all
have magnetic anomalies on them that could be caused by kimberlites. The largest and
at this time, the most important claim involved is a 12 km north-south by 5 km east-west
block which is about 8 km of Shore Gold’s Star kimberlite. This property also is contiguous
to Forest Gate’s Dizzy kimberlite pipe and about 5 km north-east of the 140/141 pipe owned
by DeBeers and Shore Gold. This pipe contains in excess of 500 million tones of kimberlite.
Canada: A Diamond-Producing Nation
For many years, the thought of finding diamonds in Canada was little more than a
prospector’s dream. But that dream became a reality following the discovery, in the
1990s, of several world-class diamond-bearing deposits in Canada’s north.
Diamond exploration began in Canada as early as the 1960s but major kimberlite
discoveries were not made until the 1980s. In 1991, the first economic diamond deposit
was discovered in the Lac de Gras area of the Northwest Territories. Canada became a
diamond producer in October 1998 when the Ekati diamond mine opened about 300
kilometres northeast of Yellowknife. By April 1999, the mine had produced one million
carats.
Canadian Diamond Industry
Canada’s diamond industry has now become an industry worth more than $2.0 billion
with all indicators pointing to potential for future growth. Canadian diamond production
in 2003 was about 11.6 million carats and in 2004 was 12.6 million carats.
Diavik, Canada’s second diamond mine, began production in January 2003. During its
projected 20-year life, average diamond production from this mine is expected to peak
at six to eight million carats a year — about five percent of the world’s total supply. Ekati’s
average production over its projected 20-year life is expected to peak at three to five
million carats a year — four percent of world production by volume.
Another three mines are scheduled to open by 2008: one at Snap Lake, about 220
kilometres northeast of Yellowknife, N.W.T.; Victor, near James Bay in Ontario; and
Jericho in Nunavut. These mines will consolidate Canada’s position in world diamond
production by value, third after Botswana and Russia.
Peace River, Buffalo Hills - Alberta, Canada
The Peace River – Buffalo Head Hills Diamond Play is located 350 km north of the City
of Edmonton, Alberta. United Carina Resources & Star Uranium Joint Venture (JV) lands
are located 70 km SW of the Ashton Mining JV holdings which hosts K252 kimberlite
pipe and an additional 37 pipes of which 25 are diamondiferous. The UCA/STU
exploration program has consisted principally up until now of the collection of heavy
mineral sampling for kimberlitic and diamond indicators supplemented by analysis
of airborne geophysics. Recent sampling had been able to distinguish between at
least two till sheets, which cover the property. The indicator mineral suite found to date
is similar in composition to that found by Ashton, which is not comparable to the classical
model for diamondiferous kimberlite with the associated G10 garnets.
The kimberlitic indicator suite is
dominated by other mantle derived
indicators from within the diamond
stability field. The craton which
underlies the Peace River – Buffalo
Head Hills area is obviously not the
same as other more conventional
plays but still hosts 25 diamondiferous
kimberlitic pipes.
The next planned stage of exploration is to follow up on kimberlitic indicators found in
overburden near circular geophysical targets. Several of the drill targets are accessible
from new all weather roads. The program is expected to be underway once planning is
completed and drilling equipment becomes available from winter programs. The original
land holding of 320,000 acres will be cut back soon to hold only the highest potential land
(about 40,000 acres). The property is owned 50/50 by Star Uranium and United Carina.
Ashton Mining is the biggest player in the area but a large number of juniors also hold land
in the area.
Fort A La Corne, Prince Albert - Saskatchewan, Canada
Star Uranium has been involved in the Saskatchewan diamond play for many years,
having spent about $5 million to date on acquisition and exploration of properties.
Currently, the Company is a 10% partner with Entourage Mining Inc in 32 claims which
all host magnetic anomalies and are being currently explored by Entourage. In
partnership with United Carina, the Company also owns a 50% interest in seven diamond
claims in the Fort a la Corne area of Saskatchewan. One of these claims hosts a
kimberlite pipe on which the partners have drilled five holes. To date, only one hole
had been tested for diamonds, yielding two micro diamonds. Now that the Company
had funding to pay for further tests, more samples will be submitted to laboratory
facilities in Saskatoon, Saskatchewan.
Though we probably won’t see such fantastic results we seen in our profile on Aurelian
(ARU), we do like this story, because anytime there is work done in the gold/copper area,
there is always room for speculation and price movement. Those of you familiar with past
mining operations know the significance of the Anglo Rouyn as well as the potential of
continued mining success with past operating mines.
La Ronge - Saskatchewan, Canada
The Anglo Rouyn Project, which is owned by Star Uranium & Uranium Carina Resources
in a 50/50 koint venture is located on the northwest shore of Lac La Ronge approximately
35 to 40 kilometers northeast of La Ronge, Saskatchewan. It comprises two claims
totaling 555 hectares and was staked by Star Uranium Corp. The most recent landholder
was RTS Holdings Ltd. Prior to them Cameco held the ground. The southwest corner of
the landholdings is along strike and within two kilometers of the mined-out C-orebody of
the Anglo Rouyn mine.
The Anglo Rouyn mine operated from 1966 to 1972. During this time period 1.7 million
tones of ore at an average grade of 1.7% CU, 1.2 g/t AU and 5.5 g/t AG were extracted from
three ruler shaped ore-bodies. Referred to as the A, B and C ore-bodies they occurred over
a strike length of 3.0 kilometers and consisted of lenses of sulphides; specifically
chalcopyrite, pyrite, pyrrhotite and magnetite, with trace amounts of sphalerite,
molybdenite and skutterudite.
The nature of the mineralization at Anglo Rouyn has always been contentious. A number
of geological models were proposed most of which ascribed to secondary processes to
explain the mineralization. Work however by R.G Roberts and K. Krey of the University of
Waterloo, indicate that the deposit is in fact volcanogenic and stratigraphically controlled.
This is significant in that exhalative centers are commonly episodic and over 5.0
kilometers of the “favorable” Anglo Rouyn mine horizon occurs on SUV landholdings.
Several trenches are evident in the northeast corner of the properties but none in the
southwest. Sampling of the trenches by Cameco in the late 80’s returned up to 0.353
oz/ton AU from grabs and 0.117 oz/ton AU/1.0 m from chips. Limited prospecting by
Cameco identified a number of showings in the southwest corner of the property, with
grab samples returning up to 0.165 oz/ton AU. No records of any diamond drilling have
been found to date.
Zama Lake, Zama City - Alberta, Canada
Last month Star Uranium released a news release reporting their latest acquisition of
this Lead/Zinc property.
Star Uranium Corp acquires lead-zinc prospect
May 15, 2006 -Saskatoon, Saskatchewan – Star Uranium Corp. (SUV – TSX Venture) is
pleased to announce the acquisition by staking from the Government of Alberta- 230,400
acres (93,242 hectares) north of Zama Lake, Alberta to cover part of an anomalous train of
sphalerite(Zinc) and galena (Lead) grains in soils disclosed in a recently released
Geological Survey of Canada (GSC) Open File #5121 / Alberta Geological Survey (AGS)
SPE-77 on March 1st, 2006. Star Uranium has 100% interest in this property and there
are no royalties.
The dispersal train consists of sphalerite and galena grains in till from the course sand
fraction. In the case of sphalerite the number of grains present in the heavy mineral sample
concentrate is the highest ever detected in Canada in an exploration till sample - in excess
of 1000 grains in a 20 kg sample. Given the grain size, compaction of the till and till
composition it is likely that the source of the lead-zinc is within the property area. This
discovery indicates potential for the discovery of Mississippi Valley Type lead-zinc deposits
similar to those 330 km. to the NE at Pine Point mined by Cominco, now TeckCominco
(symbol:TEK.MV.A-TSE) between 1964 and 1998. The same carbonate strata found at Pine
Point occurs at depth near Zama Lake.
Most of us watched as Yukon Zinc. Plummeted on news that they had to re-write their
feasibility study. Unfortunately it was the run up before that hurt investors, who woke up
to a 50% + drop the morning that announcement came up.
What is important about this reference, is that prior to the announcement, Yukon
Zinc(YZC.V) performed brilliantly from a low of 0.18 cents to a high of 1.01 which clearly
demonstrated the interest in Zinc and the demand shortfall our global economy is currently
faced with.
- After looking into these claims and regions, we have also found that Stornoway
Diamonds (SWY), a TSX listed company holds property South of the claims owned by
Star Uranium. Does this also indicate the potential for diamonds on this land? This is
another point of speculation that makes this company exciting!
- Astonishing results by the Alberta Geological Survey may very well open up another new
area for mining and resource development. Star Uranium & Stornoway diamonds seem
to be the first ones there, could we see another diamond rush?
- Potential Spin-Off of Star’s diamond assets into another company, would give
investors shares in the new deal, providing further room for price appreciation.
- Holds strategic property claim positions in the lucrative Uranium sector.
Remember to always do your own due diligence and company research, we hope you
enjoy our recent profile and we look forward to writing up our next feature report. Until
next time, good luck! - ResourceBubble.Com
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