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Canadian Junior Energy Resorces Companies
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steelpiston71
Joined: 02 Jan 2007
Posts: 833
Location: Mt. Pleasant MI USA
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 Posted: Tue Apr 09, 2013 2:18 pm Post subject: |
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| This one did a 5:1 share consolidation a few months back. Today's trade at .05 would be 1 cent prior to that. The market cap is now under $2M. |
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steelpiston71
Joined: 02 Jan 2007
Posts: 833
Location: Mt. Pleasant MI USA
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| Posted: Fri Oct 26, 2012 1:35 pm Post subject: |
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| Grabbed some at 2 cents. MCap is now 2.6M. |
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steelpiston71
Joined: 02 Jan 2007
Posts: 833
Location: Mt. Pleasant MI USA
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| Posted: Wed Jun 22, 2011 12:40 pm Post subject: |
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| .09, historic low. Was at 40 cents prior to Fukishima. |
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D_Roberts
Joined: 04 Jan 2006
Posts: 114
Location: UK
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| Posted: Thu Jan 14, 2010 1:59 pm Post subject: |
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Further good drill results out this week.
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Vancouver, Canada – Uracan Resources Ltd. (the “Company”) is pleased to report on assay results from the last 6 drill holes from the 15 drill hole program completed during its Summer 2009 diamond drill program at its 100% owned North Shore Project in Quebec.
These assay results continue to prove the successful expansion of the Double S Zone along strike in the southeast. Overall size of the Double S zone has increased to 1.5 kilometres in length and up to 750 meters in width and the zone still remains open in all directions.
Uranium mineralization on the property continues to occur as broad multiple stacked mineralized zones hosted by granites and pegmatites, with significant drilled widths ranging from 9.0 meters grading 213 ppm (0.021%) U3O8 to 52.5 meters grading 110 ppm (0.011%) U3O8.
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I reckon, there will be 100m+ lbs on near surface uranium here when all is said and done.
DR |
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D_Roberts
Joined: 04 Jan 2006
Posts: 114
Location: UK
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| Posted: Mon Dec 07, 2009 10:44 am Post subject: |
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More zones show up U308, expanding the area to some 6.5km by 2km:
| Quote: |
Program Review
When all zones are viewed together, they cover an area approximately 6,500 meters by 2,000 meters oriented in a northwest to southeast trend. This area continues to show real promise as surface sampling and mapping outside of the main drilled zones and resource areas continue to provide significant results.
Uracan continues to analyse its findings and is developing an exploration plan for the coming year that will continue to address the vast potential of the region. A significant number of radiometric anomalies remain to be mapped and sampled. Maps detailing the results from the zones discussed above will be put on the Uracan website www.uracan.ca in the near future. |
http://www.stockhouse.com/News.....?n=7557571
Tuck away and wait for 12-24 months. For anyone who wants energy exposure via uranium, I believe URC is a must have.
DR |
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D_Roberts
Joined: 04 Jan 2006
Posts: 114
Location: UK
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| Posted: Wed Nov 25, 2009 11:45 am Post subject: |
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News today - looks good:
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racan discovers 12 meters of 0.123% U3O8 on its 100% owned Costebelle claims
VANCOUVER, Nov 25, 2009 /PRNewswire-FirstCall via COMTEX News Network/ --
Uracan Resources Ltd. (the "Company") announces it has discovered additional areas of significant uranium mineralization on the Costebelle claim group of the North Shore Property in Quebec. Additionally, many of the mineralized zones discovered during the 2008 Costebelle exploration program have been extended along strike.
Results include 12 meters grading 0.123% (1,233 ppm or 2.47 lbs/t) U3O8 (A4 Zone) and 6.5 meters of 0.074% (735 ppm or 1.47 lbs/t) U3O8 (H3 Zone) in saw channel samples. Please refer to the sections below for more details. The mineralized zones at Costebelle are generally open in all directions as channel sampling was limited to areas of existing outcrop exposure, with shallow overburden cover overlaying large areas of the targeted airborne anomalies.
Costebelle C Claim Group - A4 Zone ----------------------------------
During the initial reconnaissance exploration program in 2008 the A4 zone was discovered, with channel sample widths and grades of up to 57 meters of 0.021% (210 ppm or 0.42 lbs/t) U3O8. The 2009 work program followed up the 2008 results with a mapping and sampling program to further define strike lengths and mineralization in the area.
The 2009 exploration program in the A4 zone area consisted of a combination of mapping, scintillometer surveys and rock saw channel sampling. The A4 zone is located approximately 65 kilometres northeast of the Double S, TJ and Middle Zones. The mineralization outlined in the A4 area in 2008 has been extended to a currently defined strike length of 200 meters with results of up to 12 meters of 0.123% (1233 ppm or 2.47 lbs/t) U3O8. Selected results are listed in the table below.
This mineralization occurs within a pegmatite dyke or series of dykes with an overall potential strike length of at least 1,500 metres (1.5 km) based on mapping and scintillometer surveys over the strike extensions of the zone. This pegmatite dyke ranges from 50 to 150 meters in width based on geological mapping. This pegmatite body remains open along strike and to depth. Selected intervals from the A4-Zone5 area are outlined in the tables below:
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average average
ZONE grade U3O8% grade U3O8 ppm Length (m)
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A4-ZONE5-1 0.148 1477 5
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A4-ZONE5-2 0.123 1233 12
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A4-ZONE5-3 0.108 1084 3
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Previously released intervals from the 2008 channel sampling program are
listed in the table below:
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average average
ZONE grade U3O8% grade U3O8 ppm Length (m)
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*A4-2 0.029 286 12
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*A4-3 0.036 356 22
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*A4-4 0.021 213 57
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- denotes previously released (November 2008 and January 2009) channel
sample results
In addition, a new area of mineralization (A4-Zone2) has been discovered approximately 300 meters northwest of the main A4 area noted above as defined by channels A4-Zone2-1 and A4-Zone2-2, with results of 0.048% (475 ppm or 0.95 lbs/t) U3O8 over 4 meters and 0.027% (274 ppm or 0.55 lbs/t) U3O8 over 6 meters being received.
The pegmatite body hosting the A4-Zone2 mineralization extends over a strike length of at least 700 meters based on geological mapping and scintillometer readings. The extent of the mineralization here has not yet been determined. Generally outcrop exposures are limited in the Costebelle claims. Several other anomalous areas were outlined as part of the mapping and scintillometer survey program. These scintillometer survey anomalies are hosted by pegmatite dykes with strike length potential of several hundred meters. Selected intervals from the A4-Zone2 area are outlined in the tables below:
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average average
ZONE grade U3O8% grade U3O8 ppm Length (m)
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A4-ZONE2-1 0.027 274 6
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A4-ZONE2-2 0.047 475 4
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Costebelle A Claim Group - R and P Zones
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Exploration carried out during 2009 on the Costebelle A claim group focussed on follow up of results from the 2008 summer work program as well as assessing the potential of a number of radiometric anomalies that were not previously assessed. The R and P zones are located approximately 57 kilometres northeast of the Double S, TJ and Middle Zones.
The 2009 work program has outlined uranium mineralization in several mineralized trends within an area approximately 1,500 meters (1.5 km) by 1,500 meters (1.5 km) in size. Results including 0.033% (333 ppm or 0.67 lbs/t) U3O8 over 15 meters (RS1) and 0.029% (291 ppm or 0.58 lbs/t) U3O8 over 11 meters (C-A-13-Knob8) were encountered in channel sampling.
These channel results outline a number of mineralized trends, including 100 meters of strike (RS series channels), 150 meters of strike (C-A-13 East series channels), 300 meters of strike (C-A-13 Knob series channels) and 450 meters of strike (C-A-13 Southeast series channels). All mineralized trends are open along strike in both directions.
In addition the 2009 work program outlined significant surface mineralization on the P zone occurring approximately 6 kilometres north of the R zone. The main mineralized trend at the P Zone is defined by the P08-Tr and P09-Tr series channels. Highlights include 0.045% (449 ppm or 0.9 lbs/t) U3O8 over 5 meters (channel P09-Tr10b), 0.034% (337 ppm or 0.68 lbs/t) U3O8 over 5 meters (channel P09-Tr8b) and 0.086% (855 ppm or 1.71 lbs/t) U3O8 over 2 meters (channel P09-Tr6). These channels have outlined a 900 meter trend of mineralized pegmatites and granites. This trend remains open along strike in both directions. Selected intervals from the P and R areas are outlined in the table below:
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average average
ZONE grade U3O8% grade U3O8 ppm Length (m)
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P08-TR3a 0.040 399 3
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P09-TR10a 0.021 206 6
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P09-TR10b 0.045 449 5
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P09-TR6 0.085 855 2
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P09-TR8a 0.031 309 4
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P09-TR8b 0.034 337 5
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P-CENTRAL-SOUTH 0.017 166 5
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RS1 0.033 333 15
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RS2 0.077 772 2
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RS2 0.041 409 4
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C-A-13-KNOB-1 0.011 109 15
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C-A-13-KNOB-2 0.011 110 17
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C-A-13-KNOB-5 0.021 208 10
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C-A-13-KNOB-6 0.015 154 9
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C-A-13-KNOB-7 0.018 179 10
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C-A-13-KNOB-8 0.029 291 11
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C-A-8-4 0.018 182 12
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C-A-8-5 0.041 410 2
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C-A-8-6 0.018 177 6
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C-A-9-1 0.015 147 7
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Costebelle G Claim Group - H Zone
---------------------------------
The 2009 summer work program followed up results from the 2008 work program on the Costebelle G claim group. The 2009 program has outlined a number of mineralized zones hosted by granites and pegmatites along an overall trend of 800 meters. Results include 0.074% (735 ppm or 1.47 lbs/t) U3O8 over 6.5 meters (channel H3-NE8) and 0.084% (839 ppm or 1.68 lbs/t) U3O8 over 2 meters (channel H3 Northeast-4). This trend remains open along strike. The H Zone mineralization is located approximately 120 kilometres northeast of the Double S, TJ and Middle Zones.
Selected channel sample mineralized intervals are outlined in the table below:
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average average
ZONE grade U3O8% grade U3O8 ppm Length (m)
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H3 EAST-1 0.023 232 4
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H3 EAST-2 0.077 771 3
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H3 NORTHEAST-2 0.024 237 7
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H3 NORTHEAST-3 0.035 354 5
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H3 NORTHEAST-4 0.084 839 2
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H3 NORTHEAST-5 0.055 554 3
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H3-camp zone 3 0.045 452 3
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H3-camp zone 5 0.013 127 6
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H3-camp zone 6 0.012 121 9
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H3-NE-8 0.073 735 6.5
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H3-North zone 5 0.019 192 7
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H3-S 0.039 385 4
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H3-south-west zone 2 0.105 1049 1
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H4-ouest zone 1 0.052 519 1
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H4-ouest zone 14 0.065 648 1
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H4-ouest zone 8 0.190 1898 1
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Double S Resource Estimate
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Work is underway to update the resource at Double S, Middle and TJ Zones which are host to an NI 43-101 compliant inferred resource of approximately 154.9 million tonnes at an average grade of 0.012% U3O8 containing 18.48 million kilograms (40.73 million pounds) of U3O8 at a 0.009% cutoff. The Double S portion of this resource will be updated based on the results from the 2009 drill program on this area.
2010 Winter Program -------------------
Planning is underway for an initial 2,000 meter diamond drill program on the Costebelle A4 zone. This drill program will test the areas of surface channel results at depth. This drill program is expected to commence during winter 2010. The total meterage planned may be expanded based on drill assay results as they are received.
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D_Roberts
Joined: 04 Jan 2006
Posts: 114
Location: UK
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| Posted: Sat Nov 07, 2009 3:27 pm Post subject: |
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Thanks Bobwins. I think URC is starting to get exposure and for the potential it has as a near surface deposit. My feeling is - I think Uranium will be one of the coming bulls in the next few years. URC is my play on it.
DR |
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Bobwins
Joined: 05 Feb 2007
Posts: 1227
Location: Seattle, Wa
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| Posted: Fri Nov 06, 2009 7:52 pm Post subject: Pescod's newsletter |
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Here what was in Pescod's newsletter today.
Uracan has been steadily climbing. It's a double in the past month.
Meanwhile with all this gloom and doom in the sector,
there is one story that is starting to attract attention and
you’ll notice up until today at least, its chart was actually
going up and that’s Uracan Resources. With a huge, low
grade play in Quebec this play is often compared to the
Forsys assets in Namibia. The difference being that in
Namibia, you are in the middle of nowhere, a long way
away from any infrastructure where as Uracan is operating
in mining-friendly Quebec, close to all the infrastructure,
power, skills, you-name-it.
What has helped Uracan is some drilling results out
just recently that released two holes in their new zone
called the Grandroy which came up with the equivalent of
4.2 pounds of uranium per ton over 5 metres and 3/12
pounds per ton over 20 metres close to surface.
When work starts on this in January, this might be a
uranium story to be following...or then again, we might
just continue to hits our heads against a wall. |
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D_Roberts
Joined: 04 Jan 2006
Posts: 114
Location: UK
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| Posted: Thu Sep 10, 2009 3:59 pm Post subject: Quebec Uranium Explorer - Uracan Resources (URC) |
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I've cut and paste my research notes below. I hold shares in URC and I'd welcome any comments. Five main points:
1) Based in Quebec, say no more
2) On an enterprise value basis, the cheapest uranium stock around according to Cannacord (who do not cover the stock). URC have an EV of 43c per lb against a mean of $3 per lb.
3) There seems to plenty of potential for expansion of the resource from 40m lbs at a cutoff of 0.09.
4) The deposit and nature of the resource are very similar to the Valencia Uranium Deposit, Namibia – Forsys Metals (FSY-TSX). That was valued at $579m vs URC's market cap of just over $20m.
5) Management are proven at mine finding and building.
I personally believe URC to be one of the most unrecognised and undervalued Uranium explorers around. If you believe that uranium is due to move upward - as most commentators suggest, due to the number of reactors coming online and being built, URC is a no-brainer IMHO.
My main concern is financing. They have enough cash to last till the end of 2009. I hope that they do not have to dilute too heavily, although I would be surprised if other companies are not sniffing around.
| Quote: |
Uracan Resources – T:URC
Uranium exploration in Canada (Quebec). Favourable Juristiction.
Issued Common Shares 90,971,257
Stock Options 7,725,000 WTS ($1.25) - Expiry June 2009 2,000,000 WTS ($1.00) - Expiry Dec 2009 6,430,000 WTS ($0.25) - Expiry April 2010 1,026,000 WTS ($0.50) - Expiry April 2010 9,610,000 WTS ($0.40) - Expiry April 2010 625,000 WTS ($0.25) - Expiry May 2010 150,000 WTS ($0.50) - Expiry May 2010 1,270,000
Subtotal 28,836,000
Fully Diluted 119,807,257
Market Cap @ 29c = $29m
2 properties – North Shore and Pipewrench.
North Shore:
Table 2: Total Combined Double S, MZ and TJ Inferred Resource Table
Cutoff
U3O8% Cutoff U
ppm Tonnes
('000) Average
U3O8% Average U
(ppm) Contained
U3O8 (Kg) Contained
U3O8 (lbs)
0.009 75 154,904 0.012 99.9 18,475,765 40,731,672
0.012 100 60,540 0.015 125 8,992,391 19,824,625
0.015 125 23,283 0.018 150.8 4,160,944 9,173,217
All tabulated data has been rounded to three decimal places for U3O8 grades
Does not include new AJ zone or Costabelle, or additional drill results from Double S (below).
________________________________________
AJ Zone
November 26, 2008
New Uranium Zone Discovered Near Double S Resource
NEW AREAS WILL BE ADDED TO UPDATED RESOURCE IN 2009
View News Release in PDF Format
HIGHLIGHTS:
• New discovery of U3O8 mineralization over 450 m at AJ Zone, remains open along strike and at depth - 1.9 km northwest of main Double S Zone
• Additional stacked mineralized intervals up to 53.4 meters thick at TJ Zone, 3 km northwest of main Double S zone
• 43-101 compliant resource estimate on Middle Zone and TJ Zone underway, expected early 2009
Vancouver, Canada - Uracan Resources Ltd. (the "Company") is pleased to announce additional drill results from the North Shore Property in Quebec. A new mineralized zone has been discovered, and areas of existing mineralization continue to produce broad zones of mineralization, increasing strike length and remain open at depth.
The new area of mineralization called the AJ Zone was discovered by grassroots prospecting and sampling, with follow up diamond drilling. Furthermore, additional drilling at the TJ Zone continues to identify significant widths of near surface uranium mineralization contained within multiple stacked zones. The TJ Zone occurs within the main Double S trend.
The TJ Zone is three kilometres northwest of the Double S Zone, which hosts an NI 43-101 compliant inferred resource of 74.2 million tonnes at an average grade of 0.012% U3O8, containing 19.96 million pounds of uranium. Once all final assay results from the remaining drill holes at the TJ Zone have been received, Uracan plans to complete a revised resource estimate for the combined areas of mineralization. Please refer to the Uracan Resources Ltd. website www.uracan.ca for maps and tables outlining the locations of the various mineralized zones.
Mineralization in the TJ zone of the North Shore Property continues to occur in multiple stacked mineralized zones hosted by granites and pegmatites, with drilled thicknesses and grades of up to 53.35 meters of 0.013% U3O8.
In 2008 a total of 22,711.5 meters in 110 drill holes was completed at the North Shore Property. This drilling has been focussed primarily on testing new areas of the property for additional uranium mineralization. While the majority of results have been received, further results for the remainder of the summer 2008 drilling are pending from the assay laboratory. These are expected to be received by early December.
AJ Zone
The AJ Zone constitutes a new discovery at the North Shore Property as there was no historic work carried out on this area of the property. Green fields prospecting beyond the TJ and Chan Zone areas by Uracan field personnel identified a large area of surficial uranophane mineralization which had not previously been identified. A follow up program of mapping and channel sampling to confirm the nature of the mineralization was carried out based on the results of the earlier prospecting. Diamond drilling was carried out once mapping and surface sampling was completed.
This follow up drilling was completed in a scissor pattern to determine the general orientation of the mineralized zone in this area. A total of 10 diamond drill holes totalling 2,000 meters in length was completed on the AJ Zone, with the best results being 33 meters of 0.013% U3O8 in hole AJ-08-09, 21 meters of 0.012% U3O8 in AJ-08-08, and 15 meters of 0.014% U3O8 in hole AJ-08-10. All thicknesses are core length. True thickness is not known at this time.
The mineralized zone at AJ has a current strike length of approximately 450 meters, with mineralization being open along strike in both directions as well as at depth. Follow up drilling is planned for the upcoming winter drill program to better outline the size and orientation of this new discovery.
Other deposits have been sold for multiples of the current cap.
Valencia Uranium Deposit, Namibia – Forsys Metals (FSY-TSX)
(purchased by George Forrest International Afrique SPRL for Cdn$579 Million in November 2008 – take over bid Cdn $7/share)
Grade 0.012% U3O8(or about a quarter pound per tonne)
Mineral Reserve 117.1 M tonnes (measured and indicated)
Contained Lbs U3O8 30.8 M Lbs
Capital Cost US$223M
Operating Costs US$/t $10.34
Cash cost US$/lb < $40/lb
Market Capitalization $579 Million
After Tax IRR 61%
Source: Forsys Metals, Canaccord Adams
Trekkopje Uranium Deposit, Namibia – Uramin (purchased in 2007 by Areva for US$2.5 billion)
Grade 0.015% U308
Mineral Resource 146 M tonnes (measured and indicated)
Contained Lbs U3O8 46.5 M Lbs
Capital Cost $602 million
Operating Costs US$/t $4.64
Cash cost US$/lb $20.21
Market Capitalization $2.5 Billion
Pre tax IRR 67%
Source: Uramin NI 43-101 Preliminary Assessment, SRK Consulting, April 2007
5
Conclusion – low grade deposits can be very profitable mines
________________________________________
Double S zone Expansion
May 07, 2009
Uracan Expands Double S Mineralization West Of Inferred Resource Area
HIGHLIGHTS:
-181.5 meters of 147 ppm (0.015%) U3O8, 40.1 meters of 211 ppm (0.021%) U3O8 and 72 meters of 144 ppm (0.014%) U3O8 encountered in drilling
-Drilling continues to expand mineralization adjacent to Double S inferred resource area.
________________________________________
Also 3rd U308 target at Costabelle:
January 13, 2009
Uracan Discovers Third Uranium Target In Quebec
Costebelle Continues to Show Wide Intervals of Higher Grade Uranium at Surface
HIGHLIGHTS:
• Discovery of additional areas of significant uranium mineralization on eastern Costebelle Claims
• Costebelle A4-4 channel zone extended to 57 meters of 0.021% (0.42 lbs/ton), one of the widest intervals of surface mineralization encountered to date on the property.
Vancouver, Canada -- Uracan Resources Ltd. (the "Company") announces it has discovered a third new area of significant uranium mineralization in the eastern Costebelle claim group of the North Shore Property in Quebec
The new discoveries are 115 kilometres northeast of the Company's Double S NI 43-101 inferred resource of 74.2 million tonnes at an average grade of 0.012% U3O8 containing 19.96 million pounds of uranium, and 55 kilometers east of the recently announced (November 28, 2008) mineralization on the Costabelle claim group.
Results include 8 meters grading 0.033% (0.66 lbs/ton) U3O8 and 10 meters of 0.019% (0.38 lbs/ton) U3O8 in saw channel samples. In addition several 2 meter channels with up to 0.181% (3.62 lbs/ton) U3O8 were also encountered.
The mineralized zones at Costebelle are open in all directions as channel sampling was limited to areas of outcrop exposure, with overburden cover overlaying large areas of the targeted airborne anomalies.
Strike lengths range from tens of meters to over 100 meters of exposure. The area of the Costebelle claim group has not seen any historic exploration activity, and represents a new area for uranium exploration in Quebec.
Stockhouse Post:
At this point in the uranium cycle, we see the big upside leverage in the high quality junior uranium companies with cash and large deposits. These stocks have not yet moved. Our number one pick for this sector is Uracan Resources (URC-TSXv).
Uracan has more than 40 million compliant, inferred pounds of uranium in Quebec, Canada – the top mining jurisdiction in the world according to a conservative think tank, The Fraser Institute.
Each week Canadian brokerage firm Canaccord Capital issues a report on the junior mining sector, which compares the value of about 20 uranium companies. Uracan has the lowest valuation of roughly 40 cents per pound of resources, compared to a peer group average of $2.41 per pound (April 15, 2009).
With immediate upgrade potential to the company’s resources, and significant exploration upside with many new zones discovered, the prospect for one of the largest resources in the world is significant.
Uracan’s grade is 0.012% U3O8 – the same grade as Forsys Metals’ Valencia deposit, which is now being bought out for roughly $9.50 per pound.
So there is a huge valuation gap for investors to profit from – 40 cents to $9.50. Valencia also has many challenges – it’s in Africa, and water for any mill is expensive to get.
In 2007, uranium industry giant AREVA, out of France, purchased the Trekkopje deposit from Uramin Resources for $2.5 billion. It also had the same grade as Uracan and its 229 million pounds went for just over $10 per pound.
Uracan is currently trading at 20 cents per share and has cash of $2.5 million, enough to get them through the end of 2009.
Uracan’s share price was in steady decline since its peak at $1.65 in June 2007, until its recent 12 cent low at the height of tax-loss selling last December. Price quickly bounced to 36.5 cents in January and convincingly broke its 19-month downtrend – the first time in years. The recent price pullback formed a higher low and saucer-bottom at 17.5 cents, and is slowly working higher under technical accumulation. Price is now testing minor overhead resistance at 20.5 cents, with the Stochastics, RSI, MACD and OBV supportive of higher prices to come.
Fundamentally, I like the fact that Uracan’s uranium deposits are all right at surface. The deposits are low grade enough not to cause any environmental or health issues, and are so close to infrastructure – power, highway and ocean port – that they can be easily developed.
It’s these bulk tonnage lower grade deposits that, outside of Hathor (HAT-TSX), have gotten all the investor attention. Over $3 billion in buyouts of lower grade deposits, and the price action of PDN and UUU, tell me that a URC-style deposit is the best bet for investors to profit from during the coming uranium price renaissance.
Financials:
The Company’s principal business activity is the acquisition and exploration of properties in the uranium industry, with a focus in Quebec and Saskatchewan. The Company has not generated revenues from operations and is considered to be in the exploration stage.
While these interim financial statements have been prepared on a going concern basis, which assumes that the Company will continue its operations for the foreseeable future and will be able to realize its assets and discharge its liabilities in the normal course of business, there are conditions that cast doubt on the validity of this assumption. As at January 31, 2009, the Company had working capital of $5,256,636. The Company has incurred negative cash flows from operations, recorded a loss of $984,676 for the six months ended January 31, 2009 and had an accumulated deficit of $5,095,607 as at January 31, 2009. In addition to its ongoing capital requirements, the Company must secure sufficient funding for existing commitments including minimum exploration expenditures amounting to $5 million over a period of five years from August 28, 2008. The Company’s ability to continue as a going concern is dependent on management’s capacity to identify additional sources of capital and to raise sufficient resources in order to fund the Company’s development plan. These interim financial statements do not include adjustments that would be necessary should the Company be unable to continue as a going concern. These adjustments could be material.
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Recent article:
| Quote: |
A Nuclear Powered World
Richard (Rick) Mills
www.aheadoftheherd.com
As a general rule, the most successful man in life
is the man who has the best information
The electricity needed to succeed in replacing fossil fuels, both for transportation and everyday use, will have to come from nuclear generation. There is simply no other logical alternative.
- Coal and natural gas plants emit carbon dioxide emissions.
- Extensive use of hydrogen is not practical due to its volatile nature and lack of infrastructure.
- Solar, wind and geothermal are all niche suppliers and are untried on a large scale. Solar and wind have extremely large footprints and geothermal seems to be limited to a few parts of the country. All three of these technologies are extremely important and each will successfully contribute, in a small way, to our independence from fossil fuels.
- High emissions, a negative energy return and severe environmental costs are associated with ethanol and make its use impractical.
- Hydro, going to clean eco-friendly energy isn’t accomplished by damming what free-flowing rivers are left.
And this fact, that there is no other logical alternative to going nuclear, is being recognized. Developing countries such as China and India, with 2.3 billion people between them, will, even while going mostly nuclear, drastically increase their consumption of fossil fuels. Is oil going to get any cheaper in the future? Not likely according to Dr. Fatih Birol chief economist at the International Energy Agency (IEA) in Paris.
“In most fields, oil production has now peaked...Even if demand remained steady, the world would have to find the equivalent of four Saudi Arabia’s to maintain production, and six Saudi Arabia’s if it is to keep up with the expected increase in demand between now and 2030.” Dr Birol said.
The IEA has estimated that the decline in oil production in existing fields is now running at 6.7% a year compared to the 3.7 % decline it had estimated in 2007. The coming high price of energy derived from fossil fuels combined with ever increasing competition for limited resources will make the switch to nuclear production of our energy happen.
“Some 16 countries with existing nuclear power programs (Argentina, Brazil, Bulgaria, Canada, France, Russia, China, India, Pakistan, Japan, Romania, Slovakia, South Korea, South Africa, Ukraine, USA) have plans to build new power reactors (beyond those now under construction). In all, over 100 power reactors with a total net capacity of almost 120,000 MWe are planned and over 250 more are proposed.”
http://www.world-nuclear.org/info/inf17.html
Global warming, reducing our carbon footprints, weaning ourselves off fossil fuels and achieving energy independence are all key issues facing us and future generations and no one is paying attention to HOW our future power is going to be produced, instead all seem to be concentrating on how this yet to be produced power will be stored.
Uranium stocks are cheap; but few new deposits are being discovered or permitted. Two junior uranium explorers that I follow have recently announced significant mineralization yet investors are yawning.
Uracan Resources (URC-TSXv) announced the highest grades of uranium ever found on their North Shore Property in Quebec.
The company assayed a 4-meter long sample that averaged about 3.5 pounds per tonne uranium. These samples are cut with a stone cutting saw and investors can consider them as basically horizontal drill holes.
3.5 pounds per tonne, at a US$48/lb uranium price (I’m using $48/lb since most investors use the spot price, but 80% of all uranium sales are done at the term price which is US$65 per pound) equals gross metal value per tonne of US$168.00, that’s for open pittable rock. Open pit operating costs are generally around $15-$20 per tonne and can be lower, it depends on the scale and size of the mine.
That’s potentially very profitable rock if the company can cobble together a compliant 43-101 resource of any significant size. Management comes from the former Bema Gold, now B2 Gold. Clive Johnson and Tom Garagan, who are both on the board of Uracan, are open pit mining specialists. They formed Uracan with Frank Giustra and Gregg Sedun (both very, very successful venture capitalists) to go after open pit uranium back in 2006 when everybody else was chasing the deep, high-grade targets in the Athabasca Basin of Saskatchewan.
This discovery is located in a new zone, about 5 km north of their Double S deposit. The Double S already has 40 million pounds of uranium but the grade is a quarter of a pound, or 0.012% U3O8. While it is the same grade as Forsys Metals (FSY-TSX) Valencia deposit in Namibia investors have been shy about giving Uracan even a remotely similar valuation.
Uracan can drill year round at their North Shore Property, it’s right on the coast of the St. Lawrence Seaway in the Province of Quebec, Canada, which year after year is named one of the best mining jurisdictions in the world by the highly respected Fraser Institute. Power and a highway run through the property.
The other junior high on my radar screen is Kivalliq (KIV-TSXv). CEO John Robins is one of the top exploration geologists in the world. Aside from Chuck Fipke and his DiaMet diamond discovery in 1992 in northern Canada, nobody has been responsible for raising more money and doing more exploration than John. He goes where nobody else is and seems to make the discoveries.
KIV just released scintillometer (a Geiger counter) counts off the core of seven holes at their Lac Cinquante project in Nunavut, with all holes showing more than 9000 counts per second (cps), these are very high grade readings.
A scintillometer reads radioactivity levels. It really is impossible to equate cps to an assay of uranium – to say that 9000 cps = X% U3O8 doesn’t work, but investors can expect that a cps count of 9000 will result in a measurable percentage of uranium, i.e. management will report results not just as “ppm”, or parts per million, but the assay will be good enough to show as a percentage.
The overall historical grade of the Lac Cinquante project, drilled in the mid-1980s by Pan Ocean, a multi-national oil and gas company, is 1% U3O8. Pan Ocean drilled over 100 holes and even developed a mineable reserve, but the data is, unfortunately, lost. There is a historical resource (not 43-101 compliant) of 20.4 million pounds of uranium oxide with grades averaging 1.03%.
1% = 22.04 pounds uranium, which at the current spot price of US$48 per pound, equals a gross metal value per tonne of $1057. This deposit is close enough to surface to likely be an open pit for the first two – four years before going underground, it would need a lot of overburden removed but I’m thinking at $1057 a tonne rock it would get done!
As a higher grade deposit, it will by definition have some very high grade sections right beside some very low-to-no grade mineralization, which means investors should expect to see some holes miss ore completely. Uracan's mineralization has been much more evenly disseminated, as you would expect from a lower grade deposit, but this new zone could be different. I'll be watching the upcoming drill program closely.
Conclusion
Both of these companies have just released high grade, but early stage results. For Uracan drilling doesn’t start at the new zone until mid-September. Kivalliq won’t have new drill results out until mid-October at the earliest.
But it will only take a couple weeks of upticks in the uranium price for investors to start flocking back to the sector, and as always, those companies with the highest prospects for discovery will take the lead.
Put these two companies on your radar screen and watch the charts.
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