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Tuesday, 11/02/2010 8:39:46 PM

Tuesday, November 02, 2010 8:39:46 PM

Post# of 1029




Strategic Resources Inc.









Strategic Resources Inc. is a junior exploration company with 4 projects in its portfolio and a management team capable of delivering on its committments.

The global economy is facing an unprecedented confluence of events that stands to re-shape the way people think and do business. China, India and their neighbors are leveraging their huge populations and transforming their societies to create an urban middle class of epic proportions. As this middle class of people continues to swell in numbers, the resulting demand for energy and in fact all commodity resources will remain robust.

Add to this equation the notion that global warming remains a key concern for political leaders. Energy sources that do not pose a carbon footprint will remain atop the political agenda. In March 2010, US Energy Secretary Steven Chu noted that the US is committed to the pursuit of additional nuclear capacity. These remarks came as Crude Oil prices topped the $80/barrel mark. No doubt political leaders are now accepting the fact that the 2008 Crude Oil price surge to $147/barrel was a sign of things to come as demand for energy increases.

A rational analysis of the nuclear power situation suggests that nuclear power will play a key role in meeting the power demands of society in the future.

Presently 1/6th of the worlds electricity comes from 440 existing nuclear reactors. By 2050, industry experts suggest the world will need to have several hundred more nuclear power plants up and running. Demand for Uranium is already outstripping supply to the point where we are relying on the recycling of old Soviet warheads and on Government stockpiles to meet demand. Both of these supply sources are finite - a fact which investors should take to heart when looking for investment opportunities.

Despite the $40/lb spot price that now casts a dark shadow over junior uranium exploration stocks, the shift toward nuclear energy has begun in earnest and is not about to stop. Meeting the future projected demands for Uranium will require the identification and development of many new Uranium deposits the world over.

The opportunity to identify and develop new Uranium deposits is certain to be an exciting challenge and one that the team at Strategic Resources has already embraced and taken action on. The time for investors to embrace Uranium as an investment theme is now....

Vanadium is also gaining prominence as a metal that can be used in energy applications. The University of New South Wales in Australia has now patented the Vanadium-Redox battery. This battery uses 2 Vanadium based electrolytes separated by a proton exchange membrane (PEM). This battery technology is ideally suited to storing power generated from large scale DC (direct current) applications such as wind turbines and solar panel arrays. As demand for this battery technology grows, Vanadium demand will increase significantly. With Vanadium mineralization also being present on its Uranium exploration projects, Strategic stands ready to benefit from growth in Vanadium demand

Lastly, we are witnessing first hand a change in our paradigms of transportation. Large luxury cars and gas guzzling SUV's are fading from the consumer landscape. Get used to seeing smaller,battery powered and Hybrid powered vehicles on the roads. Pay particular attention to Lithium and also to elements 57 through 70 on the Periodic Table (the Rare Earths). These will all play a vital role in the restructuring of the automotive industry. Electric cars require batteries that contain Lithium. Hybrid cars require permanent magnets in their electric motors. Total annual global consumption of Rare Earth minerals is some 124,000 tonnes. A growing proportion of this amount is finding its way into the automotive sector. Problem is, right now, China supplies 95% of the world's Rare Earth minerals. China is now openly hinting that it may start to reduce its exports of Rare Earths so as to ensure its own domestic needs are met first. The US Gov't has taken this threat seriously and the House Sub-Committee on Science is currently assessing this Chinese export reduction threat. Already a renewed wave of Rare Earth exploration activity is shaping up around the globe. Investors should take note of this. The time to take investment positions in junior companies engaged in Rare Earth and Lithium exploration is now....
New Mexico Uranium Exploration
Strategic Resources has entered into a joint venture in the Red Basin/deBaca trend - a geologically significant area that runs from Datil, New Mexico to Springerville, Arizona. Serious Uranium exploration along this trend began in the mid 1950's when Federal Resources carried out a drilling program. Old literature from the period suggests that Federal delineated an eastward trending mineralization occurence. Gulf Oil (Nuclear Fuels Division) starting in 1968 followed up on the work of Federal and drilled off what academic research papers describe as a series of medium sized ore bodies totalling several million pounds of Uranium and several million pounds of Vanadium. Mineralization in this area occurs at a transition interval between the Eocene Era Baca formation and the Cretaceous Age Crevasse Canyon formation.

Gulf's success attracted a host of other players including Pioneer Nuclear, Occidental Petroleum, and Energy Reserves Group. Just as these other players were gaining momentum, the Uranium cycle of the 1970's peaked and exploration activity ceased. No further work in this Datil area was done for the ensuing 25 years.

In 2007 Running Fox Resources acquired a series of lode claims totalling 3100 acres in the heart of the Red Basin. Strategic Resources has now been fortunate enough to enter into a Joint Venture with Running Fox on this property.

Work is now underway to define a drilling program that will take place in 2010.
New Mexico Rare Earth Exploration

One of Strategic's Rare Earth projects are located in Lincoln County in the central part of New Mexico. This area has been the subject of volcanic intrusive activity over geologic time which has resulted in mineralization that contains various Rare Earth elements. The second Rare Earth project area is situated in Socorro County. This project area exhibits carbonatite veins and dikes at surface that have been well mapped and documented by Dr. Virginia McLemore over the years.
Oregon Lithium Exploration

Strategic has acquired a small project area on the Oregon side of the Oregon/Nevada border in the vicinity of the old McDermitt Caldera volcanic complex. Across the State Line in Nevada, a Canadian company, Western Lithium, has delineated significant amounts of Lithium mineralization in the clay geology in the ancient lake bed sediments that pervade this area. Strategic Resources has acquired claims that also reside in these old lake bed sediments on the premise that the Lithium mineralization present in Nevada extends into Oregon.


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Strategic Resources Inc. - 1 Year Chart

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