Uranium Exploration (U3O8)

[fazoolius]

August 24, 2007
Uranium continues its fall from grace
Publisher: U3O8.biz
Author: Luke Brocki
Uranium continues its fall from grace while speculators refuse to buy
the metal. Not only that, they're fleeing the sector in droves.

To be sure, things have looked better. The spot price of uranium took
a heavy beating earlier this week. Ux Consulting LLC clocked the
metal's spot price at US$90 a pound, with rival TradeTech holding its
price at US$105 a pound in anticipation of feedback from last week's
auction of 200 tonnes of UF6 by the U.S. Department of Energy. Let's
not forget uranium's spot price peaked just below $140 a pound earlier
this summer.

Uranium futures on the New York Mercantile Exchange are pushing prices
ever lower, with December 2007 contracts having fallen to US$68 a
pound.

But fundamentals still support a long-term target of US$95 a pound.
The hope remains that the proverbial nuclear renaissance will ignore
market pullbacks such as this one in the long run. Perhaps, with
hundreds of new nuclear reactors in the planning and construction
phases, it's only a matter of time before demand for uranium again
outstrips its supply.

The Resource World uranium stock index was up just a fraction of a
percent Thursday, gaining six points to close at 978.39. But markets
closed lower in general on Thursday, amid continued credit worries and
a terrible housing market in the United States.

Canada's beleaguered uranium giant Cameco Corp. had a good day of
trading Wednesday after one of its subsidiaries signed a processing
deal with Uranium One Inc., but the world's largest publicly traded
uranium producer saw its stock fall 80 cents Thursday to close at
$40.65.

This drop follows Thursday's article in the Globe and Mail, which
stated that Cormark Securities' uranium index has fallen to new
52-week lows. Cameco is one of 33 stocks in that index and the
bellwether security for many investors; The Globe reports that all
companies in the index are oversold and remain below their 50-, 100-
and 200-day moving averages.

Still, there remains money to be made, even if uranium buyers are
tough to find.
Thursday's winners included Altius Minerals Corp., which gained $1.67,
or 10 per cent, to close at 18.31. The gain came with no new
announcement from the company, but follows news of a drilling program
on its Rocky Brook uranium property in western Newfoundland.

Energy Fuels Inc. was up nearly 12 per cent, gaining 19 cents to close
at $1.82 amid news of the company doubling its National Instrument
43-101-compliant resource base in Colorado and Utah.
Khan Resources Inc. enjoyed some gains, closing nearly 13 per cent
higher, as it crept up 18 cents to $1.60. This news followed an update
from the company's Mongolia property. The property's license is not
invalid, as reported earlier this month, but under review by the
Mineral Resources and Petroleum Authority of Mongolia.

A company news release states that the license may still be rendered
invalid, but also reassures investors that Khan is debt-free with more
than US$34 million in its treasury and all of its cash invested in
demand deposits at a Canadian bank.

Also, Mega Uranium Ltd. climbed 41 cents, or 13.3 per cent, to $3.49
and explorer Adriana Resources Inc. was up a whopping 37.5 per cent,
gaining 30 cents to close at $1.10 after announcing it has just
bought more than 850,000 square meters of Brazilian shoreline for the
development of an iron ore port facility.