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Rejuvenation of spot uranium price predicted for 2H 2008
Dorothy Kosich
http://www.mineweb.com/mineweb/view/mineweb/en/page38?oid=54278&sn=Detail
06 June 2008 @ 02:12 am EST
In their Uranium Industry Report published Thursday, Haywood Securities forecasts primary uranium production at 113.5 million pounds this year, which is well below reactor demand as secondary uranium sources dwindle.
Haywood predicts that the second half of 2008 will see a rejuvenation of the spot price.
Meanwhile, demand continues to outstrip primary supply, while a sustained injection of capital is needed to meet required primary production increases, according to Haywood.
In the report, Haywood analyst Geordie Mark noted that production costs have increased across the sector with the uranium price representing only a small fraction of operating costs.
The World Nuclear Association had earlier forecast uranium production of 124.8 million pounds of U3O8 this year, which had been projected to be a 16.5% increase on 2007 production. However, Mark said that, "based on the stilted flow of supply to venture on stream thus far due to various technical and infrastructural impediments, it is anticipated that 2008 production will rise only moderately above 2007 production."
Mark attributed the drop in production to: 1. ongoing production pressure within the sector; 2. Uncertainty of power and acid supply; and, 3. Technical nuances of bringing new production on-stream. "Consequently, these factors provide greater potential for upward pressure on the spot price."
Haywood asserted that 2008 primary production "will continue to fall short of future reactor demand. Thus, the entire sector will be ever more reliant on dwindling secondary supplies that progressively become more expensive, as well as technically, and politically difficult to extract."
"These factors will continue to support uranium prices into the future, where geopolitical interests will become ever more focused on security of domestic supply," Mark suggested. "This is particularly pertinent given that the major producers (Canada, Australia, and Kazakhstan) have little domestic demand."
"Primary uranium production has failed to deliver at estimated forecast rates over the last few years, and 2008 appears to be no except with Q1 production data being lower than either the forecast estimates and/or the previous quarter for a range of operations owned by Cameco, BHP Billiton, Denison Mines, Energy Resources, Australia, Paladin Energy, AngloGold Ashanti, Uranium One and Uranium Resources.
LONGER TERM OUTLOOK
Haywood asserts that the public's quest for a cheap, cleaner alternative to hydrocarbon-based energy production is being met "with a measurable change in view and broader acceptance of nuclear power generation by the general populace.
"Popular acceptance equates to a shifting political outlook on nuclear policy leading to potential changes in nuclear power production policy in both: countries ramping down future production (e.g., Sweden and Germany, as well as those countries considering a nuclear future. These motions are leading to a shift, a rebalance in sources used for future energy supply leading inexorably to a greater role for nuclear energy; and a sustained nuclear renaissance."
Nevertheless, Mark acknowledged that "future growth is at a bottleneck that continues to narrow and lengthen due to infrastructural impediments, political and NGO engagement, and an over reliance on second source material."
Haywood advises that, in the midterm, increased uranium production capacity is going to be largely derived by the expansion of current mines, or the exploitation of deposits in currently producing countries, such as Kazakhstan, the United States, Canada and Australia. "This is primarily due to infrastructural, regulatory and community support that is in place to expand and/or develop mines in locations with a ready draw on personnel currently engaged in mining," Mark suggested.
New long-term nuclear capacity will be driven mainly from China, India, Russia, and the United States, Haywood suggests. The Gulf States, mainland Europe, Africa and other counties will also increase nuclear generating capacity at a smaller rate
In their report, Haywood predicts that the next uranium companies to move to producer status within the next three years will originate from U.S. operations. "The rationale is that the USA was the primary producer of the world's uranium, and thus is a producer with a regulatory framework and a well established infrastructure that can be employed to bring projects into production rapidly," according to Mark.
The U.S. uranium projects may be small at under 2 million pounds of U3O8 of annual production. The mostly likely states that will experience increased production are Colorado, Utah, Wyoming and Texas, Haywood predicts. Despite this production, the U.S. will still have significant need for uranium.
In the meantime, Haywood forecasts that primary production to 2015 will continue to rely on secondary supplies, "which is unsustainable, and particularly acute in an environment seeking to expand nuclear energy capacity."
This will be the next mill constucted in the U.S.. Check out thier highly qulified personal at this company and their past accomplishments. All the political BS aside. I like to hold and buy near term producers.
Uranium mill meeting draws wary crowd
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By D. Dion
GateHouse News Service
Wed Jun 04, 2008, 02:19 PM MDT
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Naturita, Colo. -
Energy Fuels Resources President George Glasier was under no obligation to come to San Miguel County and make a presentation about their proposed uranium mill — and after taking barbed questions and angry comments for an hour and a half, he probably wished he hadn’t.
The company hopes to build the mill on 880 private acres between Naturita and Paradox, in Montrose County, in the same basic area where the historic Uravan mill processed uranium for the world’s first nuclear weapons. That site ended up polluted with radioactive waste. Uravan was a toxic mistake that cost taxpayers $70 million to clean up, and some of the miners and mill workers their health, according to the class action lawsuits filed against Umetco Minerals Corporation. Residents of the region seemed anxious not to let history repeat itself.
“It seems like a very dangerous substance, and you paint it as being benign or mild,” said David Glynn of the concentrated uranium or “yellowcake” to be produced at the mill. “I am trying to get the level of exposure quantified.”
Glasier, president of the company and also a rancher in Naturita, was eager to distinguish his proposed Piñon Ridge mill from Uravan and other mills like Cotter in Cañon City, which was plagued by health violations and shut down last year.
Glasier said that Piñon Ridge, unlike the other mills, was located far from a river or from any groundwater, so the potential for contamination is lower. He said that Piñon Ridge would utilize new technology that had not been available when the last uranium mill was built 25 years ago — double-lined pits for the toxic tailings, a pump vac system, leak detection, and dryers so that the slurry of radioactive processing waste can be capped more quickly.
“There have been so many advancements in technology,” said Glasier.
Energy Fuels representatives said that the lifespan of the pit liners was “hundreds of years,” but skeptical people in the audience pointed out that since these liners were just created in the 1980s, that claim was hard to prove. Marie Moore lives about 14 miles from the mill site, which is about 12 miles from Glasier’s ranch. She did not seem convinced that the technology would keep the environment safe.
“Why don’t we do it on your ranch, George Glasier?” said Moore.
Other members of the crowd asked about the monitoring of uranium dust carried in the wind, and about the emergency response in the case of a spill or an accident. Craig Pirazzi lives in Paradox and is an emergency responder who might be called on if there was a problem.
“Trucks have accidents every day,” said Pirazzi. “It’s probably one of the most dangerous routes in the state, and it follows rivers most of the way. And there’s no cell service on the road.”
The mill could generate a lot of traffic, processing 1,000 tons of ore a day. Ore would be trucked to the facility and 55-gallon drums of concentrated uranium would leave the mill to be further processed in Kansas or exported elsewhere. Glasier said that the mill could also generate a lot of jobs and tax revenue for the region. He estimated that the mill itself would employ 85 people and possibly create 200 jobs in the region, better paying jobs, said Glasier, than Telluride’s tourist economy demands.
“That’s going to affect Telluride. You’re going to have to get your condo cleaners somewhere else,” said Glasier.
The scale of the project is massive. It is estimated to cost $125-150 million to build, and would run 350 days a year, 24 hours a day. The fresh water needed to operate the mill, said Glasier, is 300 gallons per minute — roughly twice the Town of Norwood’s municipal water production.
The permitting process is also expensive, but it’s a calculated gamble for Glasier and the Energy Fuels Corporation. There is only one other uranium processing mill in the United States, just west of this region in Blanding, Utah, and the demand for uranium to fuel nuclear energy has caused the price of the mineral to jump from less than $10 per pound in 2002 to more than $100 per pound in recent years. The mill in Blanding is owned by Denison Mines, the company that operates the only mines currently producing uranium in Colorado. Those mines are in San Miguel County, in the same rich mineral belt that has generated a lot of interest and has dozens of leased areas and pending permits to mine; but so far, with only the Blanding mill processing ore, no other mines are extracting uranium in the state.
Despite the corporation’s outreach to the public at the meeting in San Miguel County Wednesday, ultimately the mill will only need to satisfy the regulators at the Colorado Department of Public Health and the Environment (CDPHE) and the Montrose County Commissioners to get permission to operate.
“Tell the regulators you don’t want the uranium mill,” said Glasier. “You can tell me you don’t want this uranium mill, but I’m going to do everything I can to get this uranium mill built.”
-D. Dion
For thoseof you that have some vanadium positions in the groung along with U:
Windimurra Sees Supply Shortfall in Vanadium to 2012 (Update2)
By Jason Scott
http://www.bloomberg.com/apps/news?pid=20601081&sid=aaUK0jkL63g4&refer=australia
May 30 (Bloomberg) -- Windimurra Vanadium Ltd., a Western Australian mining company aiming to provide 8.5 percent of the world's vanadium, said power shortages at rivals in South Africa will keep global supply short until at least 2012.
``Supply of will remain tight,'' said Iain Scott, chief executive officer of the Perth-based company, predicting a benchmark price of $50 a kilogram of the metal used to strengthen steel. ``And that's factoring in a best-case scenario for South African producers, which is no guarantee.''
Power cuts have reduced vanadium output in South Africa, the world's largest producer, with state-owned utility Eskom Holdings Ltd. predicting electricity shortages will peak in 2012. Prices of the metal have doubled this year, pushing Windimurra's shares up 43 percent in the same period.
Red Hot Yellow Cake
Over the past few weeks we here at theinvestar.com, LLC had speculated that uranium equities could be poised to rise higher if only they could hold recent gains and stay above support levels established in April and subsequently rise above previously established resistance levels. Our reasoning was due to the sideways trading seen in April, as depicted by TICUA our uranium equities index, the numerous charts flowing from the upper left hand corner to the lower right with very low volume near the end and the fact that when we had our first upwards movement it appeared the market "moved on a dime" accompanied by very high volume.
We also watch the financing markets very closely and had noted the recent financing news was
regarding cancelled offerings and those which came in lower than expected or on unfavorable terms. When we saw companies willing to go shopping for competitors we knew something was up, and it seems to be a rising tide. Currently we have Frontier Pacific (FRP) as the target of a buyout and Khan Resources (KRI) attempting a takeover of Western Prospector (WNP). In Australia, where there are numerous uranium explorers with market caps under A$20 million, many companies have been selling stakes at or above 10% of the shares outstanding to outside investors.
The uranium equities did indeed turn on a dime in early May led by near-term producers such as
Continental Precious Minerals (CZQ), Laramide (LAM), Mawson Resources (MAW), Powertech Uranium (PWE), UEX Corp. (UEX), Ur-Energy (URE) and explorers which were badly beaten down including JNR Resources (JNN), Santoy Resources (SAN), and Universal Uranium (UUL). Denison Mines Ltd. (DML) has performed quite well among the current producers with Cameco (CCO) and Paladin (PDN) rising as well. True the sector was brutally beaten following the sub-prime mess as hedge funds sold physical stocks of uranium on the spot market pushing the price down and then fund after fund (hedge funds as well as mutual and other investment vehicles) dumped shares as the market trend took us lower and lower. The selling by these funds was illogical as the spot price was roughly 50% above where they began accumulating their investment positions in the equities and the funds which did not have margin requirements needing to be met (think mutual funds, etc.) sold because their positions were down. With
the lack of volume it was easy to note where funds were liquidating positions in some of these thinly traded securities and according to our notes, some of these sales actually marked the lows for the securities being traded.
With money trickling back into the market now that the sub-prime crisis fears have largely been averted and investor confidence up, it seems that many of the speculative niche investment strategies of years past are heating up again. Solar stocks have seen a renewed interest after getting clobbered earlier this year and even the hated ethanol players are seeing some buying now. Oil is at all-time highs and the likes of Goldman Sachs and T. Boone Pickens have indicated that it should go higher this year with $141 and $200 being their price targets respectively.
We saw the number of reactors on order/planned rise by nearly 25% this year already with growth coming from across the world. We have the 'old money' of the world (the Western Nations- Canada, France and the U.S.) and the 'new money' (Asia, the Middle East and South America) both striving to add nuclear generating capacity with both anticipating plans for further reactor build-out.
The news is great for long-term investors, and by picking the stocks of companies with resources providing good opportunity for extraction investors could profit handsomely. We would caution those interested to always remember that stocks rise on what we call the 'hopes and dreams' factor and tend to fall on 'realization' factor. Even for those companies achieving their goals, sometimes it does not translate into amazing gains after the speculators dramatically exit. With that said, if the world does move away from fossil fuels powering the vehicle fleet, then one would have to imagine that uranium has a bright future based on its ability to generate large quantities of electricity output and its lack of CO2 emissions.
Resource expert sets sights on clean energy
Posted May 26th 2008 10:00AM by Steven Halpern
Filed under: China, Newsletters, Canada, Commodities, Oil, Suntech Power Hldgs ADS (STP), Stocks to Buy, Green Stocks
"Oil is setting the stage for a big rally in alternative energy," says Eric Roseman, resources expert and editor of Commodity Trend Alert. Here's a look at two stocks poised to benefit from this trend.
"A surging oil price is extremely bullish for alternative energy. Over the last 12 months, as oil prices have doubled, uranium and solar energy stocks have crashed.
"These sectors have declined because sub-prime has taken everything to the basement until recently - not because solar energy or uranium are flawed investment themes.
There's no way high oil prices won't encourage more interest in these distressed sectors.
"Here's another bullish reason why I like clean energy: The slow demise of bio-fuels. Over the last three months, soaring grain prices and a report on the harmful emissions manufactured by bio-fuel production has seriously compromised the bio-fuel theme.
"This means investors and governments will increasingly look to clean energy - solar and uranium. Governments will boost subsidies to solar energy. Stick to these investment themes because I expect them to rocket over the next several years as more investors dump corn-based and rapeseed-based bio-fuel.
"I guarantee that we will see a major long-term rally develop in solar and uranium (again) as a consequence of $125, $150 or even $200 per barrel oil. By now, everyone should be long.
Publisher: U3O8.biz
Author: Luke Brocki
Uranium stocks rallied hard last week, breaking this year's formula of excellent long-term industry news vacuum-sealed from the sector's disastrous market performance. As industry takeovers, international trade deals and political agreements march relentlessly on, sentiment is shifting in the beleaguered sector as investors look around for bulls.
Spot uranium prices held steady at US$60 a pound U3O8, with price publisher Tradetech reporting the conclusion of two transactions at current prices. A level of uncertainty remains in the sector, but sellers are starting to stand firm and no longer entertain lowball offers for material. Buyers are also starting to creep back into the market, hoping to cash in on rumours of the investment community gearing up for some massive buys. New demand is still scarce, but sufficient to buoy the metal's spot price at current levels.
According to the weekly uranium update from Toll Cross Securities, junior explorers jumped five per cent compared to last week, while advanced explorers moved up nine per cent, production visibility companies skyrocketed 17 per cent and producers jumped 10 per cent. The Toll Cross Junior Uranium Index jumped 6.7 per cent, moving to 369.34 from last week's high of 346.09.
Tuesday was a particularly strong day for uranium stocks on the TSX, with many companies posting significant gains. Here are just a few winners:
Uranium explorer and developer Khan Resources gained 20 cents, or 22.7 per cent, to close at $1.08 Tuesday, after Western Prospector announced the formation of a committee to review Khan's unsolicited takeover offer. Khan remained strong through Friday, closing the week at $1.03. Western shares jumped nine cents, or 14.5 per cent, to 71 cents a share, after the announcement on Tuesday, before settling Friday at 70 cents.
Khan announced a hostile takeover bid for Western Prospector Group last week, looking for synthesis of joint developments at its Dornod uranium deposit and Western Prospector's Gurvanbulag uranium deposit in Mongolia. The bid came after 18 months of friendly talks between the companies failed to reach a deal.
Khan offered 0.685 of its own share for each common share of Western Prospector, a premium over Western Prospector's then-current trading price. Shareholders of a merged company, if the takeover is successful, would enjoy in excess of US$100 million of savings in infrastructure and operating costs.
Shares of Uranium One enjoyed the highest jump they've seen in more than a month, climbing 43 cents, or 9.5 per cent, to $4.95 on Tuesday. The move came after The National Post reported last weekend that Jean Nortier, the company's interim CEO, wants to bring investor confidence back to Uranium One.
Nortier told the Post that he'd rather scale back his company's forecasting and thus under-promise and over-deliver. This strategy follows criticism that Uranium One did just the opposite late last year, when it hit production troubles at its flagship Dominion mine in South Africa. Uranium One shares have since eased, falling 14 cents, or 2.9 per cent, to close Friday at $4.69.
Forsys Minerals is on fire of late, posting eight straight higher closes on the TSX, including Friday's big move, when the company jumped 63 cents, or 15.3 per cent, to $4.74. The company was worth $3.14 a share on May 12.
Hathor Exploration continued its steady ascent, gaining 10 cents, or 3.3 per cent, to $3.15 on Friday. The company was a penny stock earlier this year, before shooting skyward after some key discoveries, the last of which promised extensive uranium mineralization on the company's Roughrider zone in Northern Saskatchewan and further excited investors returning to take another look at companies in the Athabasca Basin.
Friday also saw flurries of penny stocks closing higher, including Blue Sky Uranium, which gained 3.5 cents, or 11.1 per cent, to 35 cents; Bitterroot Resources, which gained four cents, or 10.8 per cent, to 41 cents; Cash Minerals, which was up 2.5 cents, or 10.4 per cent, to 26.5 cents; Capella Resouces, which jumped 2.5 cents, or 18.5 per cent, to 16 cents; Formation Capital, which gained eight cents, or 15.7 per cent, to 59 cents; and Yankee Hat Minerals, with jumped 2.5 cents, or 27.8 per cent, to 11.5 cents a share.
Now here's a look at the week's global nuclear industry news. Perhaps the momentum the sector is gaining on a global scale is finally starting to permeate the markets.
For starters, Electricite de France (France's main electrical utility) and Exelon (the largest nuclear power operator in the United States) signed a five-year agreement to cooperate on nuclear power matters. World Nuclear News reported the new agreement is similar to those Exelon has with major South Korean and Japanese utilities, specifically excluding any joint venture or new build efforts.
Then on Friday, France's Areva announced that one of its subsidiaries has finalized a US$2.7 billion deal with the U.S. Energy Department to build and operate a nuclear fuel plant in South Carolina. The plant, the first of its kind in the United States, will mix leftover plutonium from dismantled nuclear warheads with uranium oxide to make fuel pellets for commercial nuclear reactors.
Perhaps the biggest news came out of Asia, where Chinese and Russian officials signed a $1-billion deal to have Russia build and supply a nuclear fuel enrichment plant in China. The deal cements Russia's role of supplier to China's expanding nuclear industry.
The hits kept coming, as Agence France-Presse reported Thursday that Italy is ready to reenter the nuclear arena. Italy said it would begin building nuclear power stations to reduce dependence on foreign oil and gas, reversing a 1987 referendum decision to reject nuclear power.
Also Thursday, European Commission President Jose Manuel Barroso spoke at a nuclear energy forum in Prague and called nuclear energy a cheap and carbon-free source, which could contribute to Europe's fight against climate change.
Elsewhere, Kazakhstan's new sulfuric acid plant is expected to come online in June. The plant will be a blessing to that country's uranium producers, who have been battling supply problems, some of them directly related to the shortage of the acid, which is an essential component of in-situ ore leaching.
Finally, Toshiba expects orders for at least 33 nuclear power reactors by 2015 and plans to expand all its nuclear businesses over the next decade.
Talk about strong fundamentals for the nuclear industry. It's no wonder investors are finally taking note.
Outlook for the Uranium Industry - Evaluating the economic impact of the australian uranium industry to 2030
PDF File:
http://www.aua.org.au/files/AUA%20Deloitte%20Report%20FINAL.pdf
Paladin prepares to launch uranium trading arm
By: Liezel Hill
Published: 21st May 2008
http://www.miningweekly.com/article.php?a_id=133890
Uranium producer Paladin Energy will formally announce plans for its new uranium-trading subsidiary, Paladin Nuclear, within the next month or two, MD John Borshoff said on Wednesday.
The company is in the process of hiring senior people, with experience in the US, Asian and European markets, for the business, he said on a conference call.
“We are looking at Paladin Nuclear as a portal that will leverage us with opportunities into other areas,” he said.
Despite recent declines in both the spot and long-term prices, the uranium market was “very much alive and kicking”, Borshoff commented.
He argued that analysts and market watchers were not taking into account the element of panic buying – as utilities begin to act on concerns over security of future supply - when calculating the price and supply/demand outlook for the nuclear fuel.
“It is likely that, the uranium market if not bottomed, is near bottom, and 2008, I believe, will be a year of turnaround.”
Paladin Energy, which has uranium assets in Namibia, Malawi and Australia, is also on the lookout for potential targets and is “hopeful” that it will be able to add to its existing portfolio through merger and acquisition activity, he added.
The company expects to meet its 2008 output target of 2,6-million pounds of uranium at its Langer Heinrich mine, in Namibia, and is on track to start commissioning its second mine, the Kayelekera operation, in Malawi, early next year.
Domestic Uranium Production Report - Quarterly
Production of uranium concentrate in the United States was 810,189 pounds uranium oxide (U3O8) for the first
quarter 2008, 31 percent lower than the previous quarter, and 30 percent lower compared with the first quarter
2007 production. One U.S. mill (White Mesa Mill) and five U.S. in-situ-leach plants (Alta Mesa Project, Crow Butte
Operation, Kingsville Dome, Smith Ranch-Highland Operation, and Vasquez) produced uranium concentrate during
the first quarter 2008, the same as the end of 2007. U.S. uranium concentrate production totaled 4,533,578 pounds
U3O8 in 2007, 10 percent higher than in 2006.
Facilities reporting for the first time:
- Lost Creek Project (owner: Lost Creek ISR LLC)
- Moore Ranch (owner: Uranium One)
- Piñon Ridge Mill (owner: Energy Fuels Resources Corporation)
All of these are currently in development, but have not yet begun producing.
http://www.eia.doe.gov/cneaf/nuclear/dupr/qupd.pdf
The Alternative Energy Bargain
by Sean Brodrick 05-21-08
All eyes are on oil as the price of crude trends higher and higher. But one of the rules of smart investing is to look at things others have ignored or written off, because you might find real bargains there.
And this may be a good time to look at a sector we haven't looked at in a long time: uranium and nuclear power. Why? Because as oil prices dominate the headlines, the smart money is looking at uranium. As a result ...
Uranium Stocks are Rallying Sharply
Just look at this chart of the Uranium Focused Energy Fund, an investment trust in Canada. The stocks in it include Cameco, Denison Mines, Paladin Energy, Rio Tinto, Uranium One — all the big producers.
Sean Brodrick
The fund has come roaring back, up a whopping 15% from its lows earlier this month. In other words, this index of uranium stocks is heading higher in a hurry.
Looking around at some of my favorite uranium stocks, I can see not only rising prices, but also methodical accumulation and rising volume. These trends indicate that the smart money is picking up shares. And I can see some reasons why.
Industry analysts are turning bullish. In fact, I've read two different positive reports on uranium recently, from MacQuarie and Merrill Lynch. I think that is re-igniting investor interest in uranium stocks. And that could lead to these stocks heating up this summer.
But despite the powerful rally currently underway, most investors are still stuck on ...
Continued:
http://www.moneyandmarkets.com/Issues.aspx?NewsletterEntryId=1801
Uranium Market Glowing Green
William Pentland 05.20.08, 6:00 AM ET
From copper to gold, from oil to natural gas, prices for the earth's riches have skyrocketed in the past few years as emerging markets added vast demand and speculators revved up markets in ways never seen before.
But one commodity trumped them all: uranium. For decades, the trade belonged to a handful of insiders who kept prices level and deals quiet. All the key players could fit in a single Starbucks. Not anymore.
The world's insatiable thirst for new energy supplies has fueled a quiet resurgence of interest in nuclear energy, and the market is changing fast. New entrants are now knocking elbows with entrenched insiders for influence over the future of nuclear fuel and the market where it is bought and sold.
The predictable result: The price of uranium exploded, peaking at a price of somewhere between $136 and $138 a pound, a stunning 1,365% rise from the early '90s, when uranium prices fell below $10. That outpaced even gold, which rose 400% during that time. But since prices dipped to more modest levels this year, investors are calling for change in the uranium game. The fact that there isn't even agreement on pricing shows how immature the market remains.
"Observing the uranium market today, one can see a growing discussion about exactly what trading tools the market participants want and need," says David Stollfox, senior editor of Platts Nuclear Fuels report. "We see a lot of discussions going on about creating standardized contracts, about the need for greater price transparency and more liquid spot and futures markets."
Until 1968, only the federal government could own uranium in the U.S. Although investors still cannot physically possess uranium and there is no formal exchange for the metal, as there is for gold, oil and copper, they can legally own it, if only on paper. The actual uranium never leaves producer facilities.
Since the early '70s, anyone could buy or sell uranium. For 30 years, only a handful of utilities companies bought uranium, and they bought it from a uranium trader like Atlanta-based American Fuels Resources or New York Nuclear Corp. As a result, a few dozen individual traders became the key wheelers and dealers in the uranium market.
Traditionally, utilities and nuclear reactors would buy uranium supplies far in advance of the actual delivery to ensure they had sufficient future supplies. The price they paid was either tied to the spot price at the time of delivery or agreed to at the time they formed the contract.
After the New York Mercantile Exchange added uranium futures in May 2007, index funds were set up on U.S. and European stock exchanges that tracked uranium prices and the nuclear energy sector generally. New financial players, like South Africa's Nufcor Group and Evolution Markets, a New York-based over the counter brokerage firm, have become active in uranium contracts in the last couple of years, while deep-pocketed investors have financed new uranium exploration operations. Similarly, mutual funds like the Junior Energy Fund and venture capital firms like Solios Asset Management have made big bets that growth in nuclear power is inevitable.
The relentless rise in demand for electricity has resulted in nuclear reactors ramping up production almost to capacity. In 2007, U.S. nuclear reactors operated at record capacity of 91.8% and generated a record 806.5 billion kilowatt-hours of electricity. Meanwhile, a new generation of nuclear reactors is already under construction or in advanced stages of planning.
In less than a decade, the world has plans to add nearly 40 more nuclear reactors besides the 438 reactors currently operational. By 2013, nuclear power will generate 414 gigawatts of electricity, or 13% more than the 367 GW it generated last year, according to Lehman Brothers.
The corresponding rise in uranium demand would be 18%--roughly 3% growth annually--or 33 million pounds more than the 173 million pounds used in 2007, according to Lehman. The spot price peaked at $138 last summer, says Lehman, and has since settled around $70, still up 600% from a decade earlier.
Says Jeff Combs, president of UX Consulting, "The spot price rose so dramatically in 2007 due to speculation following a series of floods and water problems starting in the latter part of 2006 that led to cutbacks in mine output and a reduction in anticipated increases in production. The spot market was, and is, relatively thin, and with spot material in relatively short supply, buyers had to bid up price to quite high levels to establish positions."
Many investors seem considerably more bullish on the industry's long-term prospects, which have fueled a growing number of uranium exploration deals. Part of the enthusiasm reflects the anticipated expiration of the Highly Enriched Uranium agreement between Russia and the U.S., in 2013.
A critical piece of post-Cold War anti-proliferation policy, the HEU agreement has kept uranium supplies abundant since it began in 1993. Add to this the widely predicted growth in demand for electricity likely to materialize in the same time period, and the stage seems set for supply shortages and a rise in uranium prices.
http://www.forbes.com/business/2008/05/19/commodities-energy-uranium-biz-energy-cx_wp_0519uranium.ht...
Two transactions were concluded this week in the spot uranium market with prices at, or very near, today’s spot price indicator. While there remains an undercurrent of uncertainty about future price direction, buyers are beginning to venture back into the market and sellers are less willing to cut prices. One factor contributing to this change in behavior is the expectation for large volumes of demand to return to the market in coming weeks and months, as rumors continue to swirl about potentially large purchases from the investment community. However, significant demand from this sector of the market has yet to surface. TradeTech’s Uranium Spot Price Indicator remains unchanged this week at $60.00 per pound U3O8.
U.N. sees dash for nuclear programs
Some nations' interest spurred by rising cost of oil; others fear start of a regional arms race.
By Joby Warrick
THE WASHINGTON POST
Sunday, May 18, 2008
VIENNA, Austria — At least 40 developing countries from the Persian Gulf region to Latin America have recently approached U.N. officials to signal interest in starting nuclear power programs, a trend that concerned proliferation experts say could provide the building blocks of nuclear arsenals in some of those nations.
At least half a dozen countries have also said in the past four years that they are specifically planning to conduct enrichment or reprocessing of nuclear fuel, a prospect that could dramatically expand the global supply of plutonium and enriched uranium, according to U.S. and international nuclear officials and arms control experts.
http://www.statesman.com/news/content/news/stories/world/05/18/0518nuclearinterest.html
3rd Hour with Jim & John
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* The World is Truly a Different Place
* Water & Uranium
3/4`s way through interview
http://www.financialsense.com/fsn/main.html
Special Interview:
James Dines & Eric King
"The Looming Economic Crises"
http://www.financialsense.com/fsn/main.html
ENERGY FUELS INC - EFR:TSX
"The mine would use Colorado Highway 141 to take ore to a mill in Blanding, Utah."
Assessment: Mine could be reopened without harm
By GARY HARMON
The Daily Sentinel
Thursday, May 15, 2008
Reopeningtwo old mines along the Colorado-Utah border can be done withoutcausing irreparable damage, an environmental assessment concluded.
Theassessment for the Whirlwind Mine is likely the first of many similarstudies as the worldwide market for uranium grows, officials said.
“We’veseen interest in uranium activity going up,” said Steven Hall of theBureau of Land Management state office. “As costs for traditional powersources increase, there’s a renewed interest in nuclear power, and withthat convergence of factors, we’re seeing increased interest in westernColorado.”
Energy Fuels Resources is seeking to reopen theUrantah Decline and Packrat mines, which are about 45 miles southwestof Grand Junction, and combine them into the Whirlwind Mine.
Ifmining is allowed to begin anew in the 4,890 acres in the Beaver MesaMining District, the BLM said the company would have to comply with theterms of a Mesa County conditional-use permit.
Energy Fuels wouldbe allowed to transport ore from the Whirlwind from April 15 toDecember 15 and only on weekdays, under the permit.
The companyalso would have to maintain an emergency plan in the event of anaccident involving vehicles transporting ore from the mine, as well asmonitor radiation emissions and build vent shafts into the mine.
The mine would use Colorado Highway 141 to take ore to a mill in Blanding, Utah.
Officialsused 14 comments in drafting the assessment, Grand Junction FieldManager Catherine Robertson said, adding that public review “will helpus make improvements where they might be needed.”
The assessmentand associated documents may be viewed at www.blm.gov/co. To reach thereport, select Colorado and then Grand Junction on the interactive map.
Commentsmay be submitted electronically to gjfo_mail@blm.gov, or by mail toBLM, Whirlwind Mine EA, 2815 H Road, Grand Junction, 81506.
http://www.gjsentinel.com/news/content/news/stories/2008/05/15/051608_3a_Whirlwind_mine.html?cxtype=rss&cxsvc=7&cxcat=7
E-mail Gary Harmon at gharmon@gjds.com.
Interesting!
Russia and U.S. sign civilian nuclear pact
By Guy Faulconbridge Reuters
Published: May 6, 2008
MOSCOW: Russia and the United States signed a pact on Tuesday allowing the world's two biggest atomic powers to boost their nuclear trade and work on new ways to prevent the proliferation of nuclear weapons.
The civilian deal will open up the booming U.S. nuclear market and Russia's vast uranium fields to firms from both countries by removing Cold War restrictions that prevented bilateral trade potentially worth billions of dollars.
U.S. ambassador to Russia, William Burns, signed the deal with the head of Russia's state nuclear corporation, Sergei Kiriyenko, on the last full day of Vladimir Putin's presidency.
"The United States and Russia were once nuclear rivals -- we are today nuclear partners," said Burns.
At the 2006 Group of Eight summit in St Petersburg, President George W. Bush and Putin ordered ministers to reach a deal but it has faced opposition from some U.S. congressmen because of Russia's nuclear cooperation with Iran.
A 123 agreement, so-called because it falls under section 123 of the U.S. Atomic Energy Act, is required before countries can cooperate on nuclear materials.
It is critical to the Global Nuclear Energy Partnership, or GNEP, which the United States and Russia have discussed for more than a year as a way to expand peaceful nuclear energy development and mitigate proliferation risks.
"What this agreement allows us to do is to implement some very creative ideas that both Russia and the United States have put forward to deal with the growing challenge of proliferation of nuclear weapons," Burns said.
He said the deal would allow Washington and Moscow to move forward on proposals for international nuclear fuel centres, which would sell developing countries access to nuclear energy but remove the need for their own enrichment programmes.
NUCLEAR GIANTS
Russia and the United States control the largest arsenals of nuclear weapons in the world and both have ambitious plans to build hundreds of new reactors for power production.
Some U.S. politicians have said nuclear cooperation with Russia should be shunned because Moscow is helping Iran build an atomic power station, but the Bush administration is keen to have the pact approved this year.
State Department spokesman Sean McCormack said in Washington that now that the deal has been signed, it would be sent to Congress for lawmakers to review "in due course".
When asked about speculation that Bush may not submit the deal to Congress -- possibly leaving it for the next president to do -- McCormack said: "Usually we don't sign agreements we don't intend to send to Congress for ratification."
Once the agreement is sent to lawmakers, it would go into force if Congress did not pass a disapproval resolution within 90 legislative days. Russia's parliament, controlled by Putin's party, must also ratify the treaty.
Russia, one of the world's biggest sellers of enrichment services, has been trying to break into the nuclear markets of the United States and European Union.
"The signing of this agreement opens a gigantic field of opportunities for the economic cooperation in the large and growing businesses linked to the civilian use of nuclear energy," Kiriyenko said after the signing.
Tuesday's agreement simplifies life for companies in both countries and allows them to strike deals on trade in nuclear materials directly among themselves.
Putin has reformed Russia's nuclear sector to boost competition and open it up to atomic firms such as Japan's Toshiba, which owns U.S.-based Westinghouse Electric.
Russia has crafted a nuclear behemoth called Atomenergoprom -- which officials say is an atomic version of Russian gas giant Gazprom -- to compete with the biggest nuclear companies on the world market.
(Additional reporting by Susan Cornwell in Washington; Editing by Sami Aboudi)
Reality is, the flip side!
ANALYSIS-Uranium bearish as tight credit cools investors
Thu May 1, 2008 12:24pm BST
http://uk.reuters.com/article/oilRpt/idUKL2991596420080501?sp=true
By Anna Stablum
LONDON, May 1 (Reuters) - Uranium prices could fall further as investor buying interest fades because of tighter money and nuclear reactor demand staying sidelined, investment managers say.
Uranium, used to fuel the world's nuclear plants, hit a record high of $136 per pound in June last year on expectations of a massive build-up of power plants, but since then the spot price UX-U3O8-SPT has more than halved to $65.
"Compared to last year's sunny prospects for uranium investment, the sky is now somewhat cloudier," said Robert Wallace, CEO of London-based uranium investment manager Yellowcake.
Bearish sentiment has spread to the long-term contract price, which fell $5 for the first time in 11 months to $90 this week, as many reactors now have sufficient supplies.
A long-term price is settled between producers and consumers, mainly nuclear reactors, in contracts for at least three years, according to UxConsulting.
The main driver behind the spot price, which accounts for nearly 10 percent of total annual turnover, has been the speculative community believing in a "nuclear renaissance."
The spot price sets the tone for overall market sentiment.
"This turnaround in uranium being the trendy thing and people not being interested in it has been driven by external factors like...the credit crisis particularly in the U.S.," said President Treva Klingbiel of TradeTech, a leading uranium consultancy.
Shortly after uranium prices peaked last year, financial markets began to seize up as U.S. house prices fell, triggering a global credit crunch.
"We understand that some hedge funds and other groups may want to cash out of their positions, in order to cover losses in other markets," Klingbiel said.
WEAK MARKET
The two largest funds holding uranium are Canada's Uranium Participation Corp. (UPC) (U.TO: Quote, Profile, Research) and London-listed Nufcor Uranium (NU.L: Quote, Profile, Research) -- which together own around 8 million pounds of uranium.
But a purchase by Canada's UPC of 700,000 pounds at the end of March did little to take the spot price higher.
"It is really indicative of just how weak this market is," Klingbiel said.
Ten to 12 hedge funds are said to hold around 20-30 million pounds, which they bought through a few U.S. intermediaries whose numbers are limited by strict regulations.
"Now people are a bit more conservative how they are going to develop their strategies," said marketing manager Gary Stoker at Nufcor International and adviser to Nufcor Uranium.
He noted that as the market developed players changed.
"In the first place you get the likes of hedge funds coming in who are interested in underdeveloped markets with the potential for quite large degrees of volatility," he said.
"But what we are seeing now are the large investment banks and pension funds, who have different return criteria compared with the hedge funds," he added. With little buying interest from the speculative community and some selling pressure, utilities needing uranium are staying sidelined to see how much further the price dips.
It is a bit of a catch-22 situation with utilities waiting for a price floor before buying and as long as there is no demand investors are likely sellers.
"The spot price is depressed by fund and speculator activity," a London-based fund manager said.
But he said the market should improve in favour of the producers over the next 3-5 years due to growing demand and delays in new supply, irrespective of macroeconomic conditions.
(Reporting by Anna Stablum, editing by Peter Blackburn)
© Thomson Reuters 2008 All rights reserved
You`ll never get the more radical enviormental groups, ie, "Sierra Club, Public Citizens, ect" to except nuclear energy but wisley there`s more greens jumping on the band wagon to promote reactors for the worlds future energy needs.
http://discovermagazine.com/2008/may/02-is-nuclear-energy-our-best-hope
Is Nuclear Energy Our Best Hope?
Despite its negative image, nuclear energy may be the most efficient and realistic means of meeting the rapidly-growing demand for power in the United States.
by Gwyneth Cravens
Four years ago this month, James Lovelock upset a lot of his fans. Lovelock was revered in the green movement for developing the Gaia hypothesis, which links everything on earth to a dynamic, organic whole. Writing in the British newspaper The Independent, Lovelock stated in an op-ed: “We have no time to experiment with visionary energy sources; civilisation is in imminent danger and has to use nuclear—the one safe, available energy source—now or suffer the pain soon to be inflicted by our outraged planet.”
Lovelock explained that his decision to endorse nuclear power was motivated by his fear of the consequences of global warming and by reports of increasing fossil-fuel emissions that drive the warming. Jesse Ausubel, head of the Program for the Human Environment at Rockefeller University, recently echoed Lovelock’s sentiment. “As a green, I care intensely about land-sparing, about leaving land for nature,” he wrote. “To reach the scale at which they would contribute importantly to meeting global energy demand, renewable sources of energy such as wind, water, and biomass cause serious environmental harm. Measuring renewables in watts per square meter, nuclear has astronomical advantages over its competitors.” All of this has led several other prominent environmentalists to publicly favor new nuclear plants. I had a similar change of heart. For years I opposed nuclear power, but while I was researching my book Power to Save the World: The Truth About Nuclear Energy, my views completely turned around.
According to the Department of Energy, just to maintain nuclear’s 20 percent share of the energy supply, the United States would need to add three or four new nuclear power plants a year starting in 2015. (There are 104 nuclear power plants currently in operation in the United States.) But no new nuclear power plants have been built here in 30 years, partly because of the public’s aversion to nuclear power after the Three Mile Island accident in 1979 and the Chernobyl disaster in 1986. Now NRG Energy, based in Princeton, New Jersey, is sticking its neck out with plans to build two new nuclear reactors at the South Texas Project facility near Bay City. The new reactors will be able to steadily generate a total of 2,700 megawatts—enough to light up 2 million households.
The United States alone pumped the equivalent of nearly 7 billion tons of carbon dioxide into the atmosphere in 2005. More than 2 billion tons of that came from electricity generation—not surprising, considering that we burn fossil fuels for 70 percent of our electricity. About half of all our electricity comes from more than 500 coal-fired plants. Besides contributing to global warming, their pollution has a serious health impact. Burning coal releases fine particulates that kill 24,000 Americans annually and cause hundreds of thousands of cases of lung and heart problems.
America’s electricity demand is expected to increase by almost 50 percent by 2030, according to the Department of Energy. Unfortunately, renewable energy sources, such as the wind and sun, are highly unlikely to meet that need. Wind and solar installations today supply less than 1 percent of electricity in the United States, do so intermittently, and are decades away from providing more than a small boost to the electric grid. “To meet the 2005 U.S. electricity demand of about 4 million megawatt-hours with around-the-clock wind would have required wind farms covering over 780,000 square kilometers,” Ausubel notes. For context, 780,000 square kilometers (301,000 square miles) is greater than the area of Texas. Solar power fares badly too, in Ausubel’s analysis: “The amount of energy generated in [one quart] of the core of a nuclear reactor requires [2.5 acres] of solar cells.” Geothermal power also is decades away from making a significant contribution to America’s electricity budget.
“Nuclear has the power to move the needle in the fight against global warming,” says NRG’s president and CEO, David Crane. “While the up-front costs of building new nuclear generation are not cheap, in the long run it’s one of the most economical ways to make electricity.” NRG is already the target of vocal opposition. National environmental groups, and some in Texas like the Sierra Club and Public Citizen, do not want new electrical demand met by nuclear power. “We’re all very much in opposition,” says Karen Hadden, director of the Sustainable Energy and Economic Development Coalition, which has rallied other groups to the battle. “We’ll fight the reactors.” She, like other opponents, insists that nuclear power is unsafe and costly and diverts dollars from conservation, energy efficiency, wind, solar, and energy-storage technologies.
Public concerns about nuclear power have traditionally centered on two issues: the risk of widespread radioactive fallout from an accident and the hazards of nuclear waste. (Since 9/11, security risk has emerged as a third major worry.) My research shows such fears are unfounded. A Chernobyl cannot happen here—a survey by the Nuclear Regulatory Commission (NRC) established that our reactors are free of the design flaws that permitted Chernobyl to explode, and in the United States a typical reactor core is surrounded by multiple enclosures to block the escape of radioactive material even in the event of an accident. Chernobyl had no such containment.
Our worst commercial reactor accident, at Three Mile Island 2, was said to be successfully contained despite a partial meltdown, according to the NRC’s investigation. A minute quantity of radioactive gas was intentionally vented from the reactor building, but several independent, peer-reviewed studies have not ascertained any health effects attributable to exposure. Since then, U.S. regulations have instituted many additional safety measures. The reactors that will be used by NRG in the South Texas Project are of a type dubbed the Advanced Boiling Water Reactor (pdf), the latest iteration of a thoroughly vetted design that has been safely used for a decades, the light water reactor. These reactors have the intriguing feature that the water used to cool the core and run the generating turbine is also essential to maintaining a nuclear chain reaction. Briefly, fissioning atoms in the nuclear reactor’s fuel emit neutrons that are traveling too fast to efficiently cause other atoms to fission. The water slows the neutrons, allowing the chain reaction to continue at a steady pace. In case of an accident, multiple systems would keep cooling water flowing to the core, and control rods would quickly drop, automatically shutting down the nuclear reactions.
What about the waste? Uranium is an extremely dense source of energy, and the volume of waste is therefore small. According to David Bradish, a data analyst at the Nuclear Energy Institute, a nuclear fuel pellet measures 0.07 cubic inch (about the size of your fingertip) and contains the energy equivalent of 1,780 pounds of coal. The nation’s 104 reactors generate roughly 800 billion kilowatt-hours a year and contribute about 2,000 tons of spent nuclear fuel a year. By contrast, U.S. coal combustion produces some 100 million tons of toxic material annually.
By no this should raise some politicians eyebrows in the U.S. to start building reactors A.S.P....and start stockpilling U...
Last Year.....
New 'super-spike' might mean $200 a barrel oil
Goldman's projections foretell persistent turbulence in energy prices
By Steve Gelsi, MarketWatch
Last update: 1:42 p.m. EST March 7, 2008
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NEW YORK (MarketWatch) -- With $100-a-barrel here for now, Goldman Sachs says $200 a barrel could be a reality in the not-too-distant future in the case of a "major disruption."
Goldman on Friday also boosted by $10 the low end of its 2008-2012 projected range for crude to $60 a barrel -- significantly lower than current prices, to be sure, but a possible mark for oil if "normalized" trends return to the marketplace.
With the dollar's fall continuing and financial markets roiled by the credit crunch, commodities like oil have been drawing the fancy of increasing numbers of investors. Accordingly, Wall Street firms have been eager to adjust forecasts to incorporate fresh data on the global economy and energy supplies.
Goldman analysts Arjun Murti, Kevin Koh and Michele della Vigna said prices have advanced more quickly than Goldman had forecast back in 2005, when it predicted a range of $50 to $105 a barrel as part of its "super-spike" oil theory.
"We characterized the upper end of the band as more likely to be driven by geopolitical turmoil and that recession was a key risk to our view," the analysts said. "In fact, oil prices have reached $100 a barrel without extraordinary turmoil, and the U.S. currently appears to be in recession."
Tacking on $15 a barrel to all of its oil estimates, Goldman now sees average selling prices of $95 a barrel for 2008, $105 a barrel for 2009 and $110 a barrel for 2010. The high end of its range is now $135 a barrel -- but Goldman hinted that prices could be headed even higher.
"As the lack of supply growth and price-insulated non-OECD demand suggest a future rebound in U.S. gross domestic product growth or a major oil supply disruption could lead to $150-$200 a barrel oil prices," Goldman said.
While saying it has a bullish long-term outlook, Goldman acknowledged that oil prices could correct from recent highs.
Favorite picks among energy stocks include Frontier Oil (FTO:
News, chart, profile, more
Last:
Goldman also reiterated its view that oil prices could fall as normal market conditions return over the next four years.
"The core of our 'super-spike' view is that oil prices will keep rising until demand declines globally on a multiyear basis, resulting in the return of excess capacity and a lower cost structure," Goldman's analysts said. "Given this view, once excess capacity returns, we think prices can move sharply lower."
The analysts reiterated their "attractive" view on the European energy sector, but kept a neutral view on the Russian sector due to costs. It upgraded Transneft and Sibir Energy to neutral from sell after underperformance, and cut Imperial Energy to sell from neutral on capital-spending requirements. End of Story
Steve Gelsi is a reporter for MarketWatch in New York. MarketWatch London bureau chief Steve Goldstein contributed to this report.
This Year.....
'Age of scarcity' will drive oil to $225 US a barrel: CIBC
John Morrissy
Canwest News Service
Thursday, April 24, 2008
With many oil-producing countries subsidizing prices, demand for oil and gasoline has surged in the developing world as new affluence drives auto purchases.
CREDIT: Jin Lee/Bloomberg News
With many oil-producing countries subsidizing prices, demand for oil and gasoline has surged in the developing world as new affluence drives auto purchases.
OTTAWA - Prepare for gasoline prices to hit $2.25 a litre by 2012 and for crude oil to soar to $225 US a barrel as scant supply growth delivers us into the "age of scarcity," says CIBC World Markets chief economist Jeff Rubin.
"Our latest review of probable supply suggests oil production will hardly grow at all, with average daily production between now and 2012 rising by barely more than a million barrels per day, Rubin said in his report, The Age of Scarcity. "Despite the recent record jump in oil prices, the outlook suggests oil prices will continue to rise steadily over the next five years, almost doubling from current levels."
He said there has been no growth in oil supply over the past two and half years, contrary to popular misconception. Whereas total output has grown to an estimated 86 million barrels a day, the growth has been in related products known as natural-gas liquids, such as butane, used in cigarette lighters.
But those liquids - other than lightly used propane - are not transportation fuels, which now account for half of the world's oil use and more than 90 per cent of demand growth in recent years.
With many oil-producing countries subsidizing gasoline prices, demand has surged in the developing world as new affluence drives auto purchases.
But as prices soar in countries belonging to the Organization for Economic Co-operation and Development, where consumers not only pay full prices but excise taxes as well, demand is destined to fall.
"The point of the fact is that for every extra driver that gets a car and goes on the road in those (developing) countries in the next five to six years, somebody's having to get off the road in the OECD countries," Rubin said.
That situation will only be exacerbated by major oil-producing countries like Russia and Saudi Arabia consuming more oil themselves, thus reducing supplies available for export.
By 2012, more oil will be consumed in the developing world than in the developed world, "a virtually unthinkable prospect a little over a decade ago, when consumption outside of the OECD measured little more than half of the OECD's annual oil intake."
"The point is that the solution lies not with the supply curve, it lies with the demand curve," Rubin said. "It's not about finding new sources of energy supply, it's about consuming less energy, because ultimately, that's what we're going to have to do."
Oil prices have spiked in recent weeks as the U.S. dollar fell and supply fundamentals weakened. They eased $2.21, or 1.9 percent, to $116.09 a barrel US on Thursday.
Gasoline prices have been similarly rising and averaged $1.24 a litre for regular gas across Canada on Thursday, according to price-monitoring site Gasbuddy.com.
© Canwest News Service 2008
Uranium near floor after this year's collapse
* Reuters
* , Wednesday April 24 2008
(Corrects price in para four to...a pound...from...an ounce)
By Anna Stablum
LONDON, April 24 (Reuters) - Spot uranium prices could ease further short term after falling around 25 percent this year, but are likely to stabilise fairly soon as utilities and producers return to the market, analysts say.
Uranium, a silvery metallic element used to fuel nuclear reactors, saw a sharp price spike last year as investors bought into the idea that nuclear power was a cleaner alternative to non-renewable energy sources emitting greenhouse gases.
But with nuclear plants taking longer than expected to build and after heavy stock piling last year by utilities, activity on the spot market has dried up and prices have collapsed.
Uranium hit an all-time high of $136 a pound in June 2007, up from just $7 in 2000. This week the price fell $3 to $65 per pound, according to a leading publisher of prices UxConsulting.
Although prices are still slipping, analysts believe the price may soon begin to stabilise and find a floor.
"Most utilities are staying out of the spot market to keep prices down and impact sentiment in long-term price negotiations," said fund manager David Coates at CQS New City Investment Managers Ltd.
"All the bulls turning bearish and a lack of positives across a sector is often the bottom of the market," he added.
Dealers said there was a lack of short-term buyers, but prices could pick up if they stabilised around $65 a pound.
"Buyers are going to come in. There is a rumour that a couple of producers are short and that they will come into buy," a uranium trader said.
The recent weakness of uranium prices contrasts with other commodities such as metals and oil which have been hitting record highs on the back of global power shortages.
"FULLY COVERED"
This year oil and copper futures have gained nearly 20 percent and 30 percent respectively, whereas spot uranium prices have fallen by almost 25 percent and analysts believe the price could fall even further.
Nuclear reactors are the main buyers of uranium, but with around 90 percent of all their requirements bought on long-term contracts, other players have been some of the main drivers behind the price run-up on the spot market in recent years.
"Utilities are fully covered and there are no sign of them getting back into the market ... and without them the price is going to continue to drift," managing director Jamie Strauss at BMO Capital Markets told Reuters.
"The hedge funds are unlikely to be buyers as the demand picture is being pushed further back due to longer lead times and permitting of large projects (reactors) and producers (mine) have reacted positivEly to the rise in prices," Strauss said.
After 2020, analysts expect a dramatic increase in demand from today's levels, at around 66,500 tonnes a year, because of a delay in permitting and building new reactors.
There are now 439 reactors in operation, 35 are under construction and 91 are planned and expected to be in operation in eight years. Another 228 reactors have been proposed, according to the World Nuclear Association.
Coates said that in the long run, the demand picture, especially with new reactors in China, looked strong. Mine supply, because of permissioning and construction delays, would struggle to meet demand.
CHINA IMPACT
Macquarie Bank expects the market to be balanced or in a slight surplus in 2008. The surplus would remain in 2009 and in 2010 the market was likely to be balanced or in a small deficit.
"The China impact is yet to hit the market and will probably not hit the market in a big way until 2010/11/12," said analyst Max Layton at Macquarie Bank.
With prices at record high levels last year, the industry saw a quick supply response with many major companies expanding capacity and new producer countries such as Kazakhstan emerged.
Kazakh state-owned company Kazatomprom aims to nearly treble output by 2010 to 18,000 tonnes, after raising production by 42 percent from last year to 9,405 tonnes in 2008.
However, if the price comes down below $40 the viability of a few smaller projects could be put into question, dealers said.
"If you are looking further down the curve that is going to affect future production," a uranium trader said.
However, analysts said $40-$50 was enough to bring most of the new supply on stream. This output would be needed for reactors to fill the energy shortage in the world, Coates said.
He sees uranium as an energy source, rather than a metal, and argues that the valuation gap between oil and uranium will shrink as governments turn to low-carbon emission energy sources in the future.
But Layton said there was one important reason behind the difference between oil and uranium prices -- enrichment.
"At prices above $60 and $70 there is a big incentive for reactors to use every single bit of enrichment capacity to re-refine the uranium," Layton said.
By asking the enricher to re-refine, the utilities could save up to 6 percent of total uranium demand, Layton said.
"That is the difference between oil and metals and other commodities -- there is a direct substitute that has been utilised over the last year, two years," Layton said.
(Reporting by Anna Stablum; editing by Chris Johnson)
Uranium expected to rise on falling inventories and limited mine supplyPosted: April 08, 2008, 8:41 AM by Jonathan Ratner
Uranium, Mining
While the spot price for uranium continues to sag at US$71 per pound,
according to Ux Consulting, and long-term prices remain at US$95,
patient investors are waiting for prices to again rise. Spot prices hit
a record US$138 per pound in the summer of 2007.
So they’ll be happy to hear that Blackmont Capital analyst George Topping
expects that uranium will make gains in the second half of 2008 due to
the depletion of inventories built up by nuclear power plants during
the panic buying of the second half of 2007.
Permitting problems in Australia, North America, Europe and Asia, with names like Aurora Energy Resources Inc., Tournigan Gold Corp., Khan Resources Inc. and Laramide Resources Ltd. all affected, will lead to limited growth in new mine supply, he told clients in a note.
“Furthermore, China plans to create strategic stockpiles of other energy sources, not just oil,” Mr. Topping added.
He expects Cameco Corp., the world’s largest and most liquid uranium
company with more than 600 million pounds of U308 resources, to boost
production from 21 million pounds in 2007 to 32 million by 2015.
Cameco currently trades at 0.8 times net asset value (NAV) and 13 times 2008
cash flow per share. Mr. Topping’s target price of $58.10, which
represents upside of more than 65% as of Monday’s close, is based on
1.3x NAV.
March 25, 2008 Uranium Mining Is Important for Securing America's Energy Future by Jack Spencer and Nick Loris WebMemo #1866 Burdensome regulation, politics, and bad policy hamper access to available energy resources in the United States. The nation can now add uranium to the list of energy resources that local, state, and federal bureaucrats have deemed off-limits, which includes oil in the Arctic, off-shore natural gas, coastal wind, and cellulosic ethanol. The nation's largest known uranium deposit was discovered in the 1980s on a farm in southern Virginia. The owner of that land has recently explored the possibility of mining the approximately $10 billion worth of uranium believed to be on the site. Despite the fact that uranium has been mined safely around the world for decades, including in New Mexico, Nebraska, Utah, and Wyoming, Virginia bureaucrats have decided to prohibit land owners from even studying the viability of mining. As the only proven power source that affordably provides large amounts of primarily domestic energy without atmospheric emissions, nuclear energy is a logical choice for a nation struggling to reconcile its energy policy with its economic, environmental, and security objectives. Like other large power generators, nuclear power plants need fuel. In the U.S., that fuel is uranium. As nuclear power expands, it will be critical that uranium resources are accessible when mining can be done in a safe and economical way. Uranium: A Must-Have for Nuclear Power To produce the same amount of electricity, nuclear power requires far less fuel than does coal, natural gas, petroleum and other energy sources. Still, some fuel is required. Uranium is found throughout the world, but quantities sufficient to be mined economically are limited to a few known regions. Canada has the highest grade uranium while Australia has the most. Kazakhstan, South Africa, Niger, Namibia, and Brazil also have significant deposits. The U.S. has about 3 percent-4 percent of the world's known uranium and produces about 4.3 percent of the world's supply despite operating about one-quarter of the world's commercial power reactors. Natural uranium is critical in the production of electricity through nuclear power. In its natural state, uranium consists of several isotopes. The isotope needed to conduct fission--the process that creates the heat necessary to produce power--is uranium-235 (U-235) and makes up 0.07 percent of naturally occurring uranium. The remainder is primarily uranium-238 (U-238). However, for fission to be sustained in U.S. light water reactors, the uranium fuel must consist of approximately 3 percent-5 percent U-235. To reach this level, natural uranium must be enriched. Once the correct level of U-235 is attained, the uranium is manufactured into small pellets about the size of a pencil eraser. Each uranium pellet contains as much energy as 150 gallons of oil.[1] Increasing Demand for Uranium Increasing production of nuclear power and higher production efficiency[2] (which results in more fuel usage) inevitably mean a higher demand for uranium. Uranium production from mines eclipsed 39,000 tons in 2006.[3] According to the World Nuclear Association, uranium requirements for fuel reactors could surpass 100,000 tons by 2020.[4] Given that more than half of the world's uranium production comes from three countries, the U.S. faces substantial incentives to increase access to domestic uranium mining. A nuclear renaissance is emerging worldwide. Countries like the United Kingdom, China, India, and Russia are planning significant expansions of nuclear energy; other nations are also planning new reactors. Indeed, some 35 reactors are under construction today throughout the world. U.S companies are planning to build up to 30 new reactors--though none have actually started construction. Building all of these reactors would likely put substantial pressure on current uranium supplies. This is one reason why the United States must consider tapping more of its own uranium reserves. One place where that could happen is in Pittsylvania County, Virginia, where a 200-acre farm sits on an estimated 110 million pounds of uranium. This could fuel each of America's 104 nuclear reactors, which provide the U.S. with 20 percent of its electricity, for two years.[5] Regrettably, Virginia banned uranium mining in 1982 and exhibits little inclination to reconsider this needless policy. Access Denied Despite rising energy prices, government at all levels continues to deny Americans access to significant portions of the nation's energy resources. These legislative, bureaucratic, and procedural barriers are even more bizarre considering growing calls for energy independence. This affects uranium mining as well as Alaskan oil drilling, off-shore gas exploration, and wind farms. Ironically, Virginia has a rich history of supporting nuclear power and continues to depend on it today. Its ban on uranium mining demonstrates the impact that anti-nuclear propaganda has had on the population. Virginia gets 38 percent of its electricity from four nuclear reactors and will likely be among the first to build a new reactor in the United States. Beyond that, Virginia hosts a variety of other nuclear-related industries, including the nuclear qualified Newport News naval shipyard, which is one of the nation's only two with that capability. Virginia will surely not be the only place in the U.S. that attempts to prohibit access to uranium reserves as rising demand spurs exploration activities. Three decades of anti-nuclear propaganda continues to influence the public perception of nuclear power. Mining is Expanding Around the World As noted, uranium is mined safely all over the world, including in several U.S. states. Although existing stocks are meeting current demand along with secondary sources[6], the uranium market could tighten significantly unless additional mines are explored. As new power plants are brought on-line, the U.S. could play a key role in meeting future demand with state and federal policies that allow entrepreneurs to invest in accessing uranium reserves. Of course, federal oversight agencies would still play an important role in protecting public safety. In 2006, more than half of the world's uranium supply came from Canada, Australia and Kazakhstan, with Canada supplying one-fourth on its own. The U.S. accounted for only 4.24 percent of all uranium production.[7] A decade ago, U.S. mines produced 2,400 tons of uranium and provided 1,100 jobs for American workers; these numbers dropped to as low as 1,100 tons and 321 jobs in 2003.[8] Although production has increased steadily increased since then, the extent of proven reserves, especially in Wyoming and New Mexico, indicates that the U.S. could greatly contribute significantly to the forthcoming increase in demand for uranium. Ultimately, estimates of the world's proven reserves are not 100-percent accurate, but figures indicate that Australia (35 percent) and Canada (13 percent) have considerably higher percentages of total world reserves than the United States (3-4 percent). According to the World Nuclear Association, most of the uranium in the United States is categorized as low-cost mining, which is an assessment based on the ease with which it can be mined and the quality of the ore.[9] Other former uranium mining countries are also considering the possibility of reentering the market; for instance, Finland, which has not mined the ore in 45 years.[10] Finland currently receives 28 percent of its electricity from nuclear power and has a new plant under construction. The country is also implementing a comprehensive program to support its nuclear activities.[11] Mining Methods Uranium is mined in one of three ways. Deposits up to 100 meters below the surface are generally mined through open-pit mining. Deeper reserves are normally accessed through underground mining. These underground mines are heavily ventilated to protect workers from radiation exposure. When the ore is of a high enough grade, it is sometimes partially processed underground to further protect workers from radiation exposure. When conditions are right, a third method called in-situ leaching (ISL) can be very advantageous. This is the method most often used in the U.S. ISL entails dissolving the below-surface uranium into a low-acidic solution and then pumping it to the surface. This permits the extraction of uranium with minimal ground-level disturbance. Groundwater is then cleanly restored after the removal of uranium.[12] Even as the U.S. imports approximately 80 percent of its uranium requirements, technological advancements in ISL have substantially lowered the costs of domestic mining. Once the ore is mined, it must be milled: the process by which the uranium is separated from other substances. These facilities are sometimes located near the mines. The milling process depends on the state of the uranium when it is removed from the ground. Unless it was already leached, the ore must be crushed and treated with an acid solution to separate out the uranium. It is then further purified through a number of chemical processes. The resulting uranium-rich liquid is then dried into a powder called uranium oxide concentrate (U3O8), also known as yellow-cake. After further refinement, the yellow-cake is ready for the next steps in the fuel production process, which are separate from the mining/milling processes.[13] Mining Safety Safety is and should be a paramount concern with uranium mining, especially in densely populated areas like Pittsylvania County. The reality is that the impact of uranium mining is not much different from the impact of other mining. For one thing, natural uranium is about as radioactive as granite. While there is often more dangerous radium or radon with uranium, these elements are safely managed to protect workers and the environment.[14] The two global leaders in uranium mining, Australia and Canada, have set the standard in workers' safety. Both countries have implemented strict regulations to control dust, minimize radiation exposure, and control for any significant radon exposure. Radiation doses are well below regulatory limits, according to the World Nuclear Association: Radiation dose records compiled by mining companies under the scrutiny of regulatory authorities have shown consistently that mining company employees are not exposed to radiation doses in excess of the limits. The maximum dose received is about half of the 20 mSv/yr limit and the average is about one tenth of it.[15] In the U.S., most environmental and operational oversight is conducted by the Environmental Protection Agency and the Nuclear Regulatory Commission. These agencies have found that both mining and ISL operations pose a low risk to the public.[16] Mill tailings, the byproduct of the mining/milling process,[17] are often the focus of safety concerns despite stringent regulation. Like uranium ore itself, the tailings differ with regard to radioactivity. During operations, the tailings are usually stored underwater to protect the environment from danger. Upon the cessation of mining activities, the tailings are safely managed through a number of proven methods, which usually involves returning them underground. Regardless of the method, the outcome is that surface radiation is returned to pre-mining levels. Studies have demonstrated that the impact of tailings on humans is insignificant.[18] Another point of contention is the environmental footprint that uranium mining can leave. The waste from conventional open-cut mining and milling creates radioactive solid products that could pose a danger. However, these byproducts are managed in a safe and reasonable way that protects public health and the environment. Regardless of the mining method, the sites are restored and revegitated. In the case of ISL, because the only surface disturbance is bore-hole drilling, the site is easily restored to its original condition. Conclusion Nuclear energy is becoming globally recognized as a safe, affordable, clean source of energy. Uranium is an important and necessary component of nuclear energy, and firms choosing to pursue uranium mining should not be unnecessarily burdened by fear and government overreach. Uranium mining occurs all over the world, and the United States should realize its potential to increase America's share of the uranium mining sector. It has proven to be safe for workers, the public, and the environment and is critical to the ability of the U.S. to enjoy all of the advantages that accrue from expansion of nuclear power. Jack Spencer is Research Fellow in Nuclear Energy, and Nicolas Loris is a Research Assistant, in the Thomas A. Roe Institute for Economic Policy Studies at The Heritage Foundation.
Commods bull Rogers says wouldn't buy platinum nowReuters Friday February 2008 By Eva Kuehnen FRANKFURT,Reuters) - Investment guru Jim Rogers won't buy platinum at record-high prices but sees uranium as an up and coming play on metals markets. Asked about platinum , after it spiked to a record of $1,759 an ounce, the Rogers told an investors conference on Friday: "Would I buy it today? No, I wouldn't buy it today." He said he may consider buying if prices were to come down but Rogers, whose Rogers International Commodity Index <.RICIX> rose some 30 percent in 2007, declined to give an outlook for platinum prices. "I just don't know how far it's going to go in 2009," he added, when asked where he saw prices in 2009. A global Reuters poll of 50 analysts and traders showed last month platinum was seen falling to $1,440 in 2009. He said prospects looked good for uranium . "Uranium has a great future and atomic energy has a great future... There is a huge amount of nuclear power plants, which have to be replaced," the American investor said. "Even the environmentalists now say we should use atomic energy, because if properly...contained it is cleaner and it is much cheaper. "Nuclear energy has a spectacular future. There is a huge amount of nuclear power plants which have to be replaced. No one has been opening uranium mines for decades. I think uranium is a great place to be." While base metals prices such as copper and aluminium are seen to fall this year amid fears of a global economic slowdown and hence weaker demand, Rogers said he was watching the market closely. Rogers, who co-founded the Quantum Fund with billionaire George Soros in the 1970s, said he preferred investments in the agriculture sector in the light of tightening supplies worldwide. Cotton , sugar <1SBH8>, coffee <1KCH8> were currently cheap on a historic scale with inventories running low and in the wake of rising demand from emerging markets and alternative energies, Rogers said. (Editing by Michael Roddy)
Energy Fuels Closer to Full Production at the Whirlwind Mine
TORONTO, Feb. 27, 2008 (Canada NewsWire via COMTEX News Network) --
(SYMBOL: "EFR" - TSX)
Energy Fuels Inc. (TSX: EFR) is pleased to announce that on February 21, the Colorado Division of Reclamation, Mining and Safety approved, with no public objection, the 112d Hard Rock Reclamation Permit for the Whirlwind Mine located near Gateway, Colorado. Energy Fuels' permitting team completed this process in only seven months from the July 23, 2007 application submittal date. Approvals for construction of ventilation shafts on the Utah side of the Whirlwind property and for site air emissions were also obtained this month from the Utah Division of Oil, Gas, and Mining and the Colorado Air Pollution Control Division, respectively. The only remaining permit approval required for full-scale Whirlwind mining operations is the US Bureau of Land Management "Plan of Operations" anticipated in May, 2008.
Energy Fuels President and CEO, George Glasier, stated that, "The receipt of this permit moves us much closer to becoming the first junior uranium company to actually reach production since the turnaround in the uranium business. I am extremely proud of the efforts of our permitting team. Their hard work, knowledge, and professionalism are responsible for the timely approval of our permit with the State of Colorado."
Further progress on the ground at the Whirlwind includes mine de-watering which was completed the end of January, approximately one month ahead of schedule. The Whirlwind Mine is now 100% accessible to mine crews, from the portal to the production faces. Energy Fuels will accelerate the clean-up, drift development, and bulk sampling program at the mine as we continue to work toward obtaining approval from the BLM for full-scale production.
Completion of de-watering opened up significantly more area in which to work and Energy Fuels' management chose to move to a more efficient double-shift schedule at Whirlwind starting the week of February 4. Currently, there are 7 miners, 2 mechanics, and 1 laborer on the Whirlwind Mine payroll with three newly approved miner positions being filled.
Energy Fuels also took delivery on a new Atlas Copco Wagner ST-2G "Scooptram" underground loader in mid-February. This is a 2 1/2 cubic yard production machine, specifically designed and selected for thin seam underground mining of the type Energy Fuels will conduct at the Whirlwind mine. This machine, matched with the 5 and 10 ton haulage vehicles rebuilt by Energy Fuels, will provide the backbone for the 200 tpd permitted production tonnage at Whirlwind.
Energy Fuels anticipates mineralized material to be stockpiled at the mine during the second quarter of 2008, under the prospecting permit now in place
Stephen P. Antony, P.E., a Qualified Person as defined by National Instrument 43-101, has reviewed and approved the content of this press release.
Energy Fuels Inc. is a Toronto-based uranium and vanadium mineral exploration and development company actively rehabilitating and developing formerly producing mines. With more than 40,000 acres of highly prospective uranium and vanadium property located in the states of Colorado, Utah and Arizona, the Company has a full pipeline of additional development prospects. Energy Fuels, through its wholly-owned Colorado subsidiary, Energy Fuels Resources Corporation, has assembled this property portfolio along with a first class management team, including highly skilled technical mining and milling professionals based in Lakewood and Nucla, Colorado and Kanab, Utah.
This news release contains certain "Forward-Looking Statements" within the meaning of Section 21E of the United States Securities Exchange Act of 1934, as amended and "Forward-Looking Information" within the meaning of applicable Canadian securities legislation. All statements, other than statements of historical fact, included herein are forward-looking statements and forward-looking information that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations are disclosed in the Company's documents filed from time to time with the British Columbia, Alberta and Ontario Securities Commissions.
<< 'George E.L. Glasier' President & CEO Website: www.energyfuels.com >>
Trendsman Newsletter
Monday, February 25, 2008
Dear Readers,
I believe a point of recognition was reached this week regarding this entire economic cycle, which should last until mid to late next decade. Both the Financial Times and the WSJ had stories about stagflation on the front cover and on the same day. The NYT also had a piece on stagflation. If that isn't some kind of point of recognition, I don't know what is. You also have to couple that with gold negating its head and shoulders top and moving to a new high. It is super bullish when you get a bullish outcome from a bearish pattern. The point of recognition isn't a single event, it is more of a process in which Wall Street and the business media capitulate any doubt to the major trend.
Initially, most will compare the situation today to the 1970s. There are key similarities but also key differences. In the 1970s we had a strong manufacturing sector and a much better ability to export. We had savings and the dollar was in a better position than it is now. The economy could withstand a series of interest rate hikes. Also, the economy was not coming off of a 25 year long credit bubble.
The situation today is far worse than the 1970s and quite honestly, clearly worse than it was in the 1930s. It is an incredibly unique situation to have a combination of both deflationary and inflationary forces. There is the deflation vs. hyperinflation debate where everyone seems to take one side. The more I think about it, the more I see a environment plagued by the worst of both ills. On the one hand, you have an economy headed for hyperinflation in the long term. You have debt that cannot be repaid, a collapsing currency, a thin productive base, and overreliance on exports. The deflationary forces will also be felt. Credit will be more difficult to obtain and more costly. Furthermore, it won't help the economy expand. For the most part it will be used to cover the bad debts and losses of major financial institutions. Just study how many dollars of debt it takes to get $1 of gdp. Since the 1980s it has been growing and the pace of growth has increased. Last year it may have been $7 of debt to get $1 of new gdp. Perhaps it is $10 now.
The Depression is just beginning and will continue to unfold over the next 15 years. As the financial system continues its collapse and plagues the economy, it will have amazing impact on the political and social climate. My next large editorial/report/e-book will update my long term thinking on the economic climate and analyze how life will be impacted and what strategies there are to preserve and grow wealth and well-being. It will be sort of a sequel to the American Inflation. It is important to note that Depressions are not single events. They are eras with ups and downs that last years. The greatest transfers of wealth occur in such periods. It will be the same in the future as the move from paper assets to hard assets gains momentum.
And we are starting to see that momentum build. Natural gas is breaking out. Gold and Silver are defying gravity. The uranium stocks are rebounding. Agricultural commodities are going through the roof. In the last week or so, some junior gold and silver stocks have started to move. I do feel this is the start of what many have been expecting.
In the very short term, many are expecting a pullback in gold and silver. I agree that there is some short term risk right now but the fact that so many are calling for a correction makes me think this move has more to go. I very much like the way the gold stock indices look. I think the stocks have a good chance to run big here in the short term.
Want more evidence that commodities have much further to go? Analysts are forecasting most commodities to drop in price over the next 12 months. Folks, there is nothing more bullish than skepticism amidst a raging uptrend. It means those that are skeptical are yet to be involved.
I will have a lot more charts out on commodities this week. I want to reaffirm that I expect very good gains over the next few weeks in the uranium and gold and silver shares. The stock market is having trouble deciding which way it wants to break. With triangles you can get false moves before the real move comes. Friday we got a false breakdown followed by a reversal. I now think the market can rally out of the triangle. However, I wouldn't be deploying capital there on either side of the trade.
Contact Information
Email: Trendsman@Trendsman.com
Most investors have no idea that there is currently a mad speculative scramble going on in the commodities markets over the future price of uranium. Yellowcake, the raw unrefined uranium oxide from mines, has jumped from $10 per pound five years ago to $138 per pound recently. A year ago, yellowcake was selling for $45 per pound.
But few ''serious'' investors are following this. Uranium is not even in the basket of either of the best-known Commodity Indexes from Standard & Poor's and Goldman Sachs (nyse: GS - news - people ) or Dow Jones-AIG. In fact, to understand what has already happened, and where the price of uranium might be headed, you first have to understand uranium's ''weird factor.''
Uranium is weird because it is the only material used by humans that taps into the universe's most powerful force; the nuclear binding energy that holds atoms together. Excuse the physics, but everything about uranium derives from this, including guessing whether the current hot commodity price is a bubble or a new floor. The most bullish commodities pundits speculate about prices rising to the $200 per pound range. You could say that the physics suggest a ceiling as high as $1,000.
The physics start with the little-understood but widely recognized formula E=MC². Einstein's formula reveals the energy in nuclear reactions that convert matter into pure energy--something physically impossible with chemical reactions. A large nuclear reactor that powers some 700,000 homes invisibly destroys just five pounds of uranium (roughly a 2-inch cube of pure uranium) each day. The same amount of energy from a combustion power plant is produced daily by combining 20 million pounds of coal with 200 million pounds of air, not incidentally yielding an equal weight in ashes and gases.
Extend this arithmetic to global appetites. In two decades, growth in electricity demand will add 5,000 billion kilowatt-hours to annual consumption. You can get that much electricity by burning 10 billion barrels of oil annually, or three billion tons of coal--or digging up 150,000 tons of yellowcake. (By the way, for the "anything-but-nukes-coal-oil" crowd, supplying that elecricity would take one million more of the biggest solar arrays so far deployed.)
While it is hard to imagine that civilization will forgo the benefits of expanding nuclear energy, the question of when this may happen is a political decision facing every nation. Luckily, as an investor in uranium, you don't have to bet on a nuclear renaissance. You just have to assume modest rationality in keeping the world's existing fleet of 437 nuclear reactors operating.
Google the words ''investing in uranium'' and you'll see a flood of hits, newsletters and advice. The truth is, no one can really guess the future or ''natural'' price of uranium using traditional forecasting methods anchored in historic trends.
At first blush, the hot uranium market appears to be all fired up by talk of a commercial nuclear renaissance. Bureaucrats, joined by splinter environmentalists in large measure inspired by the global warming issue, are part of a vocal contingent pushing nukes as a major alternative to hydrocarbons. But even dewy-eyed optimists don't predict the addition of many more nukes on the global grid within the next decade. So what gives?
Taking a stab at understanding the once-and-present future of uranium requires knowing just three underlying realities:
-- There has never been a long-run commercial market in uranium. Unlike all other commodities, with a century or more of history, commercial uranium consumption is barely two decades old.
-- A nuke without uranium is like the Hoover Dam on a dry river bed; uranium availability is vastly more important than its price for the operator, and collaterally, yellowcake price is nearly irrelevant to the electricity consumer.
-- There's lots of uranium on the planet, but not enough production from uranium mines to keep existing reactors operating.
First, about 80% of all uranium consumed to make electricity has occurred in the last 20 years. There is no long-run history of a commercial market. Until just recently, it has been a military-dominated market. Most uranium mined from WWII until roughly 1970 was driven by military propulsion, weapons and stockpiles.
Then, just when miners thought there would be a commercial market from a proliferation of civilian power plant orders and plans, came the 1979 accident at Three Mile Island. Reactor plans, orders and even in-progress construction evaporated.
Fourteen years of no-new-nuke-orders later, Uranium mining's drop in popularity came with the post-Cold War decision to buy Soviet weapons and turn them into reactor-grade fuel. Each ton converted wiped out 2,000 tons of yellowcake demand. Hundreds of tons were converted along with uranium drawn down from old military stockpiles, dumping back into the market yellowcake mined decades earlier, sucking the life out of 40% of what was left of the uranium market.
Second, the price issue. A nuclear plant, like a hydro-dam, is entirely dominated by the cost of capital. The fuel is a small share of the economics. When push comes to shove, operators will pay hyperbolic prices to keep a reactor humming. Consumers will grumble, but the economy will survive just fine. In fact, even $1,000 per pound of yellowcake would impact a delivered kilowatt-hour no more than if natural gas rose from today's $7 per 1,000 cubic feet to $12 per 1,000 cubic feet. Gas was at $10 in 2005.
Since uranium is 20 times cheaper to find than oil, (in terms of finding cost's share of sale price), the current price run-up has already spawned hundreds of exploration companies, where there were only a handful a decade ago. Doubtless, many uranium upstarts will score.
Small companies like Yellowcake Mining and Uranium One hint at promise. But the big dogs have advantages in this challenging field; mining is no business for the faint-of-heart, with long lead times from discovery to operations and the unique challenge of radiation-related regulations.
For developing world projects, add a unique ''export'' from the developed world, a side effect of Friedman's ''The World is Flat;" effective political opposition from non-government organizations to any kind of mining, especially anything nuclear. Figuring out which upstarts will make it takes serious work. Likely winners are pure exploration-for-hire companies like Fronteer Development Group (amex: FRG - news - people ). All they do is find the uranium, leaving the mining and political jockeying to others.
Which brings us to the third point about uranium: its ubiquity on the planet. The key issue here is who has the ability to exploit a source when it's needed. As it stands now, five-year forecasts show one-fourth of all new production emerging from Kazakhstan. Another 30% or so will come from Canada, and much of the rest from Africa. No offense intended to Kazakhstan, but it's a longshot that such rapid short-term growth is feasible there given the infrastructure, labor and related challenges. Ditto for Africa.
That leaves Canada, which could reasonably do much more (despite recent delays in important new mines). The Athabasca Basin with vast oil sands also holds extensive uranium resources, with dozens of companies in that geological province. Australia has the world's largest reserves, but regional legislation restricts serious expansions. Compare the odds though: Fix a few mines in Canada, or fix a few rules in Australia. Or fix Kazakhstan. Place your bets.
Logic certainly suggests that more supply is most likely to come from large established companies like Australia's BHP Billiton (nyse: BBL - news - people ) and Rio Tinto (nyse: RTP - news - people ). (Incidentally, the Australian Bureau of Agricultural and Resource Economics generates the most useful reports on uranium.) On the same scale is Canada's Cameco (nyse: CCJ - news - people ) and Cogema owned by France's still private Areva. The aforementioned four companies account for almost 60% of world yellowcake production.
There could be a new tantalizing play in the global uranium sweepstakes. Areva President Anne Lauvergeon has overseen a stunning acquisition record, building a $10 billion-plus per year, globe-straddling, fully integrated, mine-mouth to power plant nuclear enterprise. Areva's 2005 run at an IPO was slapped down by the previous French government. But given Lauvergeon's history with new French President Nicolas Sarkozy and his pro-market opinions, the time may be right to bring Areva to the public markets again. With the world's most nuclear-electrified grid, who better to lead a nuclear stock boom than France?
Written by Mark P. Mills, a physicist and a co-founding partner in Digital Power Capital, an energy tech venture fund. Mills is also co-author of The Bottomless Well: The Twilight of Fuel, the Virtue of Waste, and Why We Will Never Run Out of Energy (Basic Books, 2005).
http://www.forbes.com/finance/2007/06/28/uranium-yellowcake-bhp-pf-guru_in_mm_0628energy_inl.html
OTC BULLETIN BOARD (OTCBB) SYSTEM CHANGES
NAME/SYMBOL CHANGES
DL DATE DATE OLD SYMBOL/NAME NEW SYMBOL/NAME
6/13/2007 6/14/2007 RHWC Reliant Home Warranty Corporation Common Stock RFNS Reliant Financial Service Corporation Common Stock
URZ added to Russell Microcap index, effective June 22:
Additions: Russell Microcap® Index
The Russell family of U.S. indexes is designed to be a comprehensive representation of the investable U.S. equity market. These indexes are value-weighted and include only common stocks belonging to corporations incorporated in the United States and its territories.
Russell Microcap Index measures performance of the microcap segment, representing less than 3% of the U.S. equity market. The Russell Microcap Index includes the smallest 1,000 securities in the small-cap Russell 2000 Index plus the next 1,000 securities.
This is a list of companies which, after applying Russell's objective construction and methodology, will join the Russell Microcap Index at the close of the market June 22. A list of deletions is also available.
Final membership lists for the Russell 3000®, Russell 1000®, Russell 2000®, Russell Midcap® and Russell Microcap will be posted June 25.
http://www.russell.com/Indexes/membership/US/Reconstitution/Recon_Microcap_Additions.asp
Uranerz Doubles Land Holdings in the Powder River Basin, Wyoming
Tuesday June 12, 9:15 am ET
CASPER, WYOMING--(MARKET WIRE)--Jun 12, 2007 -- Uranerz Energy Corporation (AMEX:URZ - News)(Frankfurt:U9E.F - News) is pleased to announce the acquisition of an additional 349 federal lode mining claims located in the Powder River Basin of Wyoming. These 349 new claims are in addition to the recent press release of May 18, 2007 announcing the staking of 222 new claims, and adjoin or are in close proximity to the previously announced claims. Known chemical oxidation-reduction (roll) front systems are present on many of the claims and it is planned that these systems will be further defined as drilling rig time allows. In Wyoming, Sandstone-hosted uranium deposits typically occur along these chemical oxidation-reduction roll fronts.
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The acquisitions and claim staking activities of the last few months more than double the land position held by Uranerz Energy in the Powder River Basin, with most properties being located in what is known as the Pumpkin Buttes uranium mining district.
Uranium was first discovered in Wyoming in 1949 and in the Pumpkin Buttes area shortly thereafter. The Pumpkin Buttes mining district was the first commercial uranium production region in the State. Since 1957, Wyoming mines have produced over 213 million pounds of uranium. The energy contained in one pound of uranium is equivalent to 31 barrels of fuel oil or 10 tons of coal, so the total energy produced from Wyoming uranium is equivalent to over 6.6 billion barrels of fuel oil or 2.1 billion tons of coal. Wyoming leads the United States in uranium production, with present uranium production all from in-situ recovery ("ISR") facilities in the Powder River Basin.
With these additional claims our present land position in Wyoming is approximately 40,700 acres - comprised of federal lode mineral claims, State of Wyoming mineral leases and private fee mining leases. As additional data are developed, supplementary land acquisition programs may be conducted to secure other high potential properties for future mineralization delineation and possible ISR uranium production.
Uranerz Energy Corporation has expertise in ISR uranium mining and holds a number of properties in Wyoming with uranium-mineralized sandstone. Several of the Powder River Basin uranium properties are advanced, and the Company has initiated environmental licensing and mine planning for the development of two of these properties, the Hank and Nichols Ranch projects.
ON BEHALF OF THE BOARD
Glenn Catchpole, President and CEO
This Press Release may contain, in addition, to historical information, forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on management's expectations and beliefs, and involve risks and uncertainties. These statements may involve known and unknown risks and uncertainties and other factors that may cause the actual results to be materially different from the results implied herein. Key factors that could cause actual results to differ materially from those described in forward-looking statements are:
(i) the inability of the Company to complete the acquisition of any interest in any new mineral exploration properties;
(ii) the inability of the Company to achieve the financing required to pursue the acquisition or exploration of any new mineral properties;
(iii) the inability of the Company to raise the financing necessary to conduct exploration or development of its properties;
(iv) the lack of presence of commercial mineralization on its properties; and
(v) the inability of the Company to establish commercial deposits or reserves of uranium on its properties.
Readers are cautioned not to place undue reliance on the forward-looking statements made in this Press Release.
Contact:
Contacts:
Uranerz Energy Corporation
Dennis Higgs
(604) 644-6579 or 1-800-689-1659
Website: http://www.uranerz.com
Source: Uranerz Energy Corporation
110,105 shares owned here!
Off Topic Somewhat:
Exclusive Commentary from newsletter writer John Kaise
By Stanlie Hunt
www.smartstox.com
At the Cambridge House Calgary Resource Investment Conference, Smartstox talked with John Kaiser of Kaiser Bottomfish Online about his thoughts regarding the general economy and where he believes the commodity markets will be going.
John looks at trading patterns around the world as an element of his work and remains steadfastly bullish about the future for natural resource commodities going forward. He does note that the sub-prime mortgage issues and the relationship (or lack thereof) of the US with Iran provide good reasons to be concerned about the economy, but he thinks these issues will remain relatively contained.
A key theme of John’s is that across the board really, metal prices have risen and are now establishing new ‘norms’ where the prices seen in the past won’t be seen again. (Remember 50¢/litre gasoline, only a few years ago?) Companies with holdings that contain metals like molybdenum, which moved from $3/lb to $40/lb a few years ago and has now has stabilized well above $20/lb, stand to benefit significantly from this new price standard. Many deposits in BC and around the world become economic with these price levels.
John sees this as an example of what is, or will be, happening across most of the metals. There may not be much upside left in the price of metals, but the current prices means there are many junior resource companies who both hold increasingly valuable property currently, and will be generating new projects, as well. John sees an active exploration and development sector for years to come.
One of metals with the brightest outlook is uranium, as the world is near the end of the decommissioned nuclear weapons supplies and more mine supply is needed. As John notes though, the general public still isn’t crazy about having a uranium mine in their own backyard, so bringing new supply into production will continue to be a challenge.
Click here to watch our interview with John Kaiser.
Smartstox.com provides investors with informative investment-related content through video and audio interviews with the management of small cap companies discussing their organization’s activities and outlook, along with written profiles of the organizations. For these, along with more market comments from leading analysts, go to http://www.smartstox.com!!
****
"Smartstox Online-TV Talk Show" interview host, Stanlie Hunt, has spent over 25 years in the investment business. Mr. Hunt, President and founder of Dynamic Stock Market Analysis, has been a speaker at numerous investment conferences, has interviewed hundreds of domestic and international companies, and appeared on CBC’s Nightly Business News. He now actively researches emerging resource companies, which are featured on his "Smartstox Online Talk Show".
Exclusive Commentary from newsletter writer John Kaise
By Stanlie Hunt
www.smartstox.com
At the Cambridge House Calgary Resource Investment Conference, Smartstox talked with John Kaiser of Kaiser Bottomfish Online about his thoughts regarding the general economy and where he believes the commodity markets will be going.
John looks at trading patterns around the world as an element of his work and remains steadfastly bullish about the future for natural resource commodities going forward. He does note that the sub-prime mortgage issues and the relationship (or lack thereof) of the US with Iran provide good reasons to be concerned about the economy, but he thinks these issues will remain relatively contained.
A key theme of John’s is that across the board really, metal prices have risen and are now establishing new ‘norms’ where the prices seen in the past won’t be seen again. (Remember 50¢/litre gasoline, only a few years ago?) Companies with holdings that contain metals like molybdenum, which moved from $3/lb to $40/lb a few years ago and has now has stabilized well above $20/lb, stand to benefit significantly from this new price standard. Many deposits in BC and around the world become economic with these price levels.
John sees this as an example of what is, or will be, happening across most of the metals. There may not be much upside left in the price of metals, but the current prices means there are many junior resource companies who both hold increasingly valuable property currently, and will be generating new projects, as well. John sees an active exploration and development sector for years to come.
One of metals with the brightest outlook is uranium, as the world is near the end of the decommissioned nuclear weapons supplies and more mine supply is needed. As John notes though, the general public still isn’t crazy about having a uranium mine in their own backyard, so bringing new supply into production will continue to be a challenge.
Click here to watch our interview with John Kaiser.
Smartstox.com provides investors with informative investment-related content through video and audio interviews with the management of small cap companies discussing their organization’s activities and outlook, along with written profiles of the organizations. For these, along with more market comments from leading analysts, go to http://www.smartstox.com!!
****
"Smartstox Online-TV Talk Show" interview host, Stanlie Hunt, has spent over 25 years in the investment business. Mr. Hunt, President and founder of Dynamic Stock Market Analysis, has been a speaker at numerous investment conferences, has interviewed hundreds of domestic and international companies, and appeared on CBC’s Nightly Business News. He now actively researches emerging resource companies, which are featured on his "Smartstox Online Talk Show".
Supplies will get squeezed tightly. The U.S. is seeing the reality finally. Always after the fact though as usual!
U.S. Government May Sell ‘Very Small’ Amount of Uranium in 2007
http://www.stockinterview.com/News/05072007/DOE-uranium-sales-this-year.html?section=news&action...
Where or where will all the needed U come from?
http://www.nytimes.com/2007/05/11/business/11nuke.html?ex=1179547200&en=2061138da7ba707d&ei=...
I havn`t posted in awhile but have a large position and have been entering the low bids and accumulating. I`ve a lady friend up north and buying is in a frenzy, not to see an end soon.
A lot of this share price action is do to the sub prime diabolical in the U.S..
The company is very up front and calling the principles confirms this. Speaking to HR is nothing but fluff, go to the source there`re very assessable.
Old news on ENERGY FUELS INC (EFR:TSX ),(EFRFF OTCBB) but still very viable going forward, do your D&D for this near term player. You know the game, few will ever make it to production. Another good player old URANERZ ENERGY CORP URZ:AMEX.
http://www.resourceinvestor.com/pebble.asp?relid=25557
St. LOUIS (ResourceInvestor.com) -- TradeTech increased uranium spot prices to an all-time record of $120 per pound in anticipation of today's startup of futures trading on the New York Mercantile Exchange. The June contract hit $140/lb in its first day, with January 2008 U308 trading at $150.50/lb, raising the question of whether futures will trace the price of uranium or lead a life of their own.
A Ux Consulting Company (UxC) spokesperson told RI that as the current date gets closer to the futures settlement date, “you’re going to see the gap narrow” between the spot price and the contracts."
"Taylor said he did not see an end to higher uranium prices anytime soon, with some forecasters predicting $500/lb.
“At present, very few people in the industry think $100 uranium is a sufficiently high price to keep new nuclear plants from being planned and constructed,” Taylor concluded."
http://www.resourceinvestor.com/pebble.asp?relid=31565
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NORTHWESTERN MINERAL
Northwestern confirms higher-grade uranium mineralization on Niger properties; submits over-limit samples for re-analysis
4/30/2007
TORONTO, April 30, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --
Northwestern Mineral Ventures Inc. (TSXV: NWT; OTCBB: NWTMF) is pleased to announce additional assay results from rock samples collected during a first-pass reconnaissance exploration of airborne anomalies on its 100%-owned In Gall and Irhazer uranium properties in Niger. Findings reveal the highest levels of uranium mineralization discovered on the properties to date, with values of up to 0.18% U(3)O8. In addition, several samples exceeded the 0.24% U(3)O(8) detection limit in tests that are commonly used to analyze samples from Niger. The above-limit samples have been scheduled for further analysis using a technique that can accurately measure higher uranium values.
"The initial rock sample results, which we reported in early March, confirmed uranium mineralization in one highly prospective area. These new findings include even greater uranium values from a new discovery zone that is situated 4.0 miles (6.3 kilometers) east of the original area of mineralization," said Marek J. Kreczmer, President and CEO of Northwestern. "Based on results to date, we believe that these two areas are part of a larger mineralized system."
The new discovery, called the Bingo zone, is associated with a radioactive structural dome that is geologically similar to others that have been proven to host uranium mineralization in Niger. It is favorably located on a fault that contains uranium deposits along strike elsewhere in the district.
Results
Assay results from 16 surface rock chip samples, which were collected from outcrops covering a large area during a first-pass reconnaissance exploration of anomalies identified during an earlier airborne survey, reveal uranium values of up to 0.18% U(3)O(8). Details of the 10 assays that returned values above 0.09% U(3)O(8) are provided in the table below.
-------------------------------------------------------------------------
Sample ID Scintillometer Uranium U(3)O(8) U(3)O(8)
Intensity (cps) (U_IMS40B) (ppm) (%)
(ppm)
-------------------------------------------------------------------------
ING-A10-001 8000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
ING-A10-002 37000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
ING-A10-003 17000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
TNX_002 26000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
TNX_004 350 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
FAX_001 greater 1555 1833 0.18
than 9999
-------------------------------------------------------------------------
IRZ-A07-001 3750 1109 1308 0.13
-------------------------------------------------------------------------
TNX_001 6993 1018 1200 0.12
-------------------------------------------------------------------------
AZX_100 3600 760 904.8 0.09
-------------------------------------------------------------------------
ING-A16-001 3000 757 893 0.09
-------------------------------------------------------------------------
Producing mines and deposits in Niger typically grade from 0.1% to 0.42% U(3)O(8), with the highest grades being mined at greater depths.
Findings from the re-analysis of over-limit samples will be announced once they have been received. SGS Lakefield Research Africa has advised Northwestern that the expected minimum turnaround time for these results is 5-6 weeks. As such, results are not expected until June at the earliest.
In Gall and Irhazer cover 988,000 acres (4,000 square kilometers) of highly prospective land within the same stratigraphy as two operating uranium mines that together provide almost 10% of worldwide production. Niger currently ranks as one of the world's top producers of uranium.
With excellent results from rock sampling, reconnaissance exploration and an airborne survey, Northwestern anticipates the commencement of drilling before the rainy season. The drill remains en route to Africa from France, having been delayed because of mechanical problems with the ship transporting the equipment. Northwestern is making arrangements to have the drill arrive in Niger as quickly as possible. Drilling is expected to commence as soon as the drill arrives and the company receives permission from the Government of Niger to commence drilling. Northwestern will provide an update as developments warrant.
Quality Assurance
Fieldwork in Niger is being conducted under the supervision of Abdelkarim Aksar, P.Geo., Northwestern's Niger Project Manager. Laboratory analysis was conducted by SGS Lakefield Research Africa by Aqua Regia Digest followed by ICP-OES. Analysis of all samples is carried out using Standard Reference Materials and a minimum of 10% of samples are analyzed in duplicate. Re-analysis is being conducted by SGS using borat fusion followed by x-ray fluorescence. Northwestern and SGS both maintain comprehensive and independent Quality Control/Quality Assurance programs.
ABOUT NORTHWESTERN:
Northwestern Mineral Ventures (www.northwestmineral.com) is an international resource exploration company with an experienced management team. The company is focused on properties in Niger and Canada with potential uranium targets. Northwestern also has a precious and base metal property in Mexico. Northwestern is listed on the NASD Bulletin Board under the symbol "NWTMF" and the TSX Venture Exchange under the symbol "NWT."
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the worldwide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
Potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource on Northwestern's Niger properties and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Additional information about Northwestern's Niger properties is contained in press releases dated March 15, 2006, March 1, 2006, December 14, 2006, October 25, 2006, September 29, 2006, September 22, 2006, June 15, 2006, May 23, 2006, May 2, 2006 , March 27, 2006 and March 8, 2006.
SOURCE Northwestern Mineral Ventures Inc.
Marek J. Kreczmer, M.Sc., P.Eng., President and CEO, (866) 437-9551, info@northwestmineral.com http://www.prnewswire.com
Copyright (C) 2007 PR Newswire. All rights reserved
© 2007 Stockgroup Media Inc. | Disclaimer
NWT Releases SHfn
Northwestern confirms higher-grade uranium mineralization on Niger properties; submits over-limit samples for re-analysis
Pinnacle Digest: Northwestern Mineral Ventures Inc: A Drilling Contract Update
Northwestern signs Niger drill contract
Northwestern confirms uranium occurrences on Niger properties
NORTHWESTERN MINERAL
Northwestern confirms higher-grade uranium mineralization on Niger properties; submits over-limit samples for re-analysis
4/30/2007
TORONTO, April 30, 2007 /PRNewswire-FirstCall via COMTEX News Network/ --
Northwestern Mineral Ventures Inc. (TSXV: NWT; OTCBB: NWTMF) is pleased to announce additional assay results from rock samples collected during a first-pass reconnaissance exploration of airborne anomalies on its 100%-owned In Gall and Irhazer uranium properties in Niger. Findings reveal the highest levels of uranium mineralization discovered on the properties to date, with values of up to 0.18% U(3)O8. In addition, several samples exceeded the 0.24% U(3)O(8) detection limit in tests that are commonly used to analyze samples from Niger. The above-limit samples have been scheduled for further analysis using a technique that can accurately measure higher uranium values.
"The initial rock sample results, which we reported in early March, confirmed uranium mineralization in one highly prospective area. These new findings include even greater uranium values from a new discovery zone that is situated 4.0 miles (6.3 kilometers) east of the original area of mineralization," said Marek J. Kreczmer, President and CEO of Northwestern. "Based on results to date, we believe that these two areas are part of a larger mineralized system."
The new discovery, called the Bingo zone, is associated with a radioactive structural dome that is geologically similar to others that have been proven to host uranium mineralization in Niger. It is favorably located on a fault that contains uranium deposits along strike elsewhere in the district.
Results
Assay results from 16 surface rock chip samples, which were collected from outcrops covering a large area during a first-pass reconnaissance exploration of anomalies identified during an earlier airborne survey, reveal uranium values of up to 0.18% U(3)O(8). Details of the 10 assays that returned values above 0.09% U(3)O(8) are provided in the table below.
-------------------------------------------------------------------------
Sample ID Scintillometer Uranium U(3)O(8) U(3)O(8)
Intensity (cps) (U_IMS40B) (ppm) (%)
(ppm)
-------------------------------------------------------------------------
ING-A10-001 8000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
ING-A10-002 37000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
ING-A10-003 17000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
TNX_002 26000 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
TNX_004 350 greater greater greater
than 2000 than 2358 than 0.24
-------------------------------------------------------------------------
FAX_001 greater 1555 1833 0.18
than 9999
-------------------------------------------------------------------------
IRZ-A07-001 3750 1109 1308 0.13
-------------------------------------------------------------------------
TNX_001 6993 1018 1200 0.12
-------------------------------------------------------------------------
AZX_100 3600 760 904.8 0.09
-------------------------------------------------------------------------
ING-A16-001 3000 757 893 0.09
-------------------------------------------------------------------------
Producing mines and deposits in Niger typically grade from 0.1% to 0.42% U(3)O(8), with the highest grades being mined at greater depths.
Findings from the re-analysis of over-limit samples will be announced once they have been received. SGS Lakefield Research Africa has advised Northwestern that the expected minimum turnaround time for these results is 5-6 weeks. As such, results are not expected until June at the earliest.
In Gall and Irhazer cover 988,000 acres (4,000 square kilometers) of highly prospective land within the same stratigraphy as two operating uranium mines that together provide almost 10% of worldwide production. Niger currently ranks as one of the world's top producers of uranium.
With excellent results from rock sampling, reconnaissance exploration and an airborne survey, Northwestern anticipates the commencement of drilling before the rainy season. The drill remains en route to Africa from France, having been delayed because of mechanical problems with the ship transporting the equipment. Northwestern is making arrangements to have the drill arrive in Niger as quickly as possible. Drilling is expected to commence as soon as the drill arrives and the company receives permission from the Government of Niger to commence drilling. Northwestern will provide an update as developments warrant.
Quality Assurance
Fieldwork in Niger is being conducted under the supervision of Abdelkarim Aksar, P.Geo., Northwestern's Niger Project Manager. Laboratory analysis was conducted by SGS Lakefield Research Africa by Aqua Regia Digest followed by ICP-OES. Analysis of all samples is carried out using Standard Reference Materials and a minimum of 10% of samples are analyzed in duplicate. Re-analysis is being conducted by SGS using borat fusion followed by x-ray fluorescence. Northwestern and SGS both maintain comprehensive and independent Quality Control/Quality Assurance programs.
ABOUT NORTHWESTERN:
Northwestern Mineral Ventures (www.northwestmineral.com) is an international resource exploration company with an experienced management team. The company is focused on properties in Niger and Canada with potential uranium targets. Northwestern also has a precious and base metal property in Mexico. Northwestern is listed on the NASD Bulletin Board under the symbol "NWTMF" and the TSX Venture Exchange under the symbol "NWT."
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this news release.
This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the worldwide price of mineral commodities, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital.
Potential quantity and grade is conceptual in nature, there has been insufficient exploration to define a mineral resource on Northwestern's Niger properties and it is uncertain if further exploration will result in the target being delineated as a mineral resource.
Additional information about Northwestern's Niger properties is contained in press releases dated March 15, 2006, March 1, 2006, December 14, 2006, October 25, 2006, September 29, 2006, September 22, 2006, June 15, 2006, May 23, 2006, May 2, 2006 , March 27, 2006 and March 8, 2006.
SOURCE Northwestern Mineral Ventures Inc.
Marek J. Kreczmer, M.Sc., P.Eng., President and CEO, (866) 437-9551, info@northwestmineral.com http://www.prnewswire.com
Copyright (C) 2007 PR Newswire. All rights reserved
© 2007 Stockgroup Media Inc. | Disclaimer
NWT Releases SHfn
Northwestern confirms higher-grade uranium mineralization on Niger properties; submits over-limit samples for re-analysis
Pinnacle Digest: Northwestern Mineral Ventures Inc: A Drilling Contract Update
Northwestern signs Niger drill contract
Northwestern confirms uranium occurrences on Niger properties
SH @ the Bell: Wall Street Goes Four for Four
This Week on StockHouse April 30 to May 4
Resourcex Dispatches: Uranium Stocks Rally Ahead Of \
MINEWEB mentions NWT by Rodrick Mukumbira, 02 May 2007
ABOVE-LIMIT SAMPLES
Northwestern Mineral Ventures has sent uranium samples from its property in Niger for re-analysis because preliminary analyses suggested grades were higher than the standard detection limit.
Uranium mineralization in Niger has so captivated Northwestern Mineral Ventures Inc (TSXV: NWT; OTCBB: NWTMF) that it has sent some samples collected from its properties in the West African country for re-analysis to get the accurate value of the uranium find.
The company Wednesday identified these as above-limit samples documented after assay results from rock samples collected during a first-pass reconnaissance exploration of airborne anomalies on its 100 percent-owned In Gall and Irhazer uranium properties in Niger confirmed high mineralization of uranium.
The company said it intersected mineralization of as high as 0.18 percent U3O8, with several samples exceeding the 0.24 percent U3O8 detection limit that is commonly used to analyze samples from Niger.
Niger is currently ranked among the world's top producers of uranium. Northwestern Mineral's properties cover 4,000 square kilometres of highly prospective land within the same stratigraphy as two operating uranium mines that together provide almost 10 percent of worldwide production.
Producing mines and deposits in Niger typically grade from 0.1% to 0.42% U3O8, with the highest grades being mined at greater depths.
"The initial rock sample results, which we reported in early March, confirmed uranium mineralization in one highly prospective area. These new findings include even greater uranium values from a new discovery zone that is situated 6.3 kilometres east of the original area of mineralization," said Marek J. Kreczmer, President and CEO of Northwestern. "Based on results to date, we believe that these two areas are part of a larger mineralized system."
Kreczmer said the new discovery, called the Bingo zone, is associated with a radioactive structural dome that is geologically similar to others that have been proven to host uranium mineralization in Niger.
He said it is favourably located on a fault that contains uranium deposits along strike elsewhere in the district.
Assay results from 16 surface rock chip samples, which were collected from outcrops covering a large area during a first-pass reconnaissance exploration of anomalies identified during an earlier airborne survey, revealed uranium values of up to 0.18 percent U3O8.
Following the excellent results from rock sampling, Northwestern expected to commence drilling on the properties "before the rainy season" and was making efforts to fast track the shipment of drilling equipment from France.
The company is focused on properties in Niger and Canada with potential uranium targets, but also has a precious and base metal property in Mexico.
http://www.mineweb.com/mineweb/view/mineweb/en/page66?oid=20408&sn=Detail