U3O8 Uranium.

[stolwyk]

Cameco May Halt Water Leak at Mine in Second Quarter (Update2)

By Christopher Donville

Jan. 25 (Bloomberg) -- Cameco Corp., the world's largest uranium producer, plans to finish sealing a water leak at its flooded Cigar Lake mine in northern Canada in the second quarter and said a cost estimate would be delayed by a month.

Preliminary costs and a timeline for repairs will be ready by late March, Saskatoon, Saskatchewan-based Cameco said today in a statement.

Cameco's shares fell 5.1 percent three days ago as investors grew concerned rehabilitation might be delayed indefinitely. Cameco spokesman Lyle Krahn denied the speculation. The stock fell 47 cents, or 1 percent, to C$45.10 at 4:10 p.m. on the Toronto Stock Exchange.

Cameco had predicted the mine would supply as much as 10 percent of the world's uranium when it reached full production in 2010. The Cigar Lake deposit, in northern Saskatchewan, contains reserves of 232 million pounds of uranium, a raw element used in fuel for nuclear reactors.

``On the surface, the news appears to be better than some rumors that have been circulating about extreme difficulties with remediation,'' Kevin Bambrough, a strategist at fund manager Sprott Asset Management Inc. in Toronto, said in a telephone interview.

Development of the mine was halted in October after the flood. It had been scheduled to open in 2008. The company initially said the flood would delay construction by at least a year.

Timing

The price of uranium almost doubled last year to $72 a pound as hedge funds and other speculative investors competed with nuclear power plants for supplies. The price has been unchanged since the middle of December.

``I expect the uranium price will begin to head higher in anticipation of Cameco's full mine update in March,'' Bambrough said. ``There's a significant possibility the rehabilitation will take many years.''

The mine at Cigar Lake is 50 percent owned by Cameco, with the remainder held by Areva Resources Canada Inc., Idemitsu Uranium Exploration Canada Ltd. and TEPCO Resources Inc.

To contact the reporter on this story: Christopher Donville in Vancouver at cjdonville@bloomberg.net

http://www.bloomberg.com/apps/news?p...d=aYud.MN9IVoY

[Skol]

New news or old news? Cigar Lake customers told to defer U308 delivery 5 - 7 years. Glad I own some uranium shares.

[Skol]

Heres something for the uranium bulls.

http://www.moneyweek.com/file/25277/...this-year.html

[stolwyk]

I predicted $100 in 2007-See below; but since that bad Cameco news came through, I want to upgrade that prediction to $115.

Note that my previous prediction (Made on 11 May 2006 and to last till May 11, 2007) was conservative:
______________________________________________

Posted - 27/09/2006 : 5:11:49 PM

1. PREDICTION OF U PRICES.

COMMENT: Refer to my post of 18 June:
"That is very low. Price on 11 May (see this thread) was already $42 and I pointed out that one can expect some additional $26 in the next 12 months to bring a total of US$68/lb".

Comment: We need to get $68 on 11 May 2007. It is now $54.00. I need another $14 to bring the price up to $68.

Sofar, 139 days have lapsed since 11 May and we gained $12. Till 11 May 2007, we could get: 365/139*$12=$31.51.

Add that to the original $42=$73.51, say US$73.50 instead of $68 predicted; so we are well on the way.

Based on $73.50, that would be an increase of 75% in one year!

However, we'll stick to $68 in the meantime. Am expecting say $100 in the year thereafter".

__________________________________________________ ____

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.

[BillMcHenry]

I would get Uramin. IMHO they will be the next Paladin type. I've followed the group for a long time now. I remember when no would touch them or Aflease (now SXR); now those are mainstream. <1 yr from now Uramin will be too (as will Forsys, but not as attractive).

Summit would be hard to leave out. Either they'llbe producing or Paladin buys that half and they still do. Myself I like to be a bit more upstream exploration higher risk/reward. Just thought Uramin is a great vertical mix and cheap too.

[shasta]

Major

In anticipation of Gerry's answer, i would say PDN, SMM, AGS, URA & DYL/MTN are ahead of the pack in terms of being "U" producers IMO.

Outside of these, the rest are pretty much spec explorers & are much further away from producing U, & therefore, IMO are well down the pecking order.

Disc: Hold URA, DYL

[shasta]

http://www.zeenews.com/articles.asp?...&sid=NAT&ssid=

Article below from the above site


Home > Nation



Australia could sell Uranium `within a decade`

Melbourne, Feb 09: Australia could be selling Uranium to India within a decade in view of its Nuclear credentials, one of the country's chief nuclear advisers said here Friday.

"I expect that India could join the nations to which we export (Uranium) in the not too distant future," Ziggy Switkowski, who headed the government's Nuclear Task Force, said while praising New Delhi's Nuclear credentials.

The official said while it was a political decision, it may not be too long before India follows in the footsteps of China, which last year got the green light to buy Australian Uranium.

Australia has so far refused to consider selling Uranium to India because it is not a signatory to the Nuclear Non-Proliferation Treaty (NPT). China is a party to the treaty.

"..if it's going to happen, I would expect it to happen before the end of the decade," Switkowski was quoted as saying by AAP after an address to the Uranium Club of Australia here.

While India had not signed the NPT, Switkowski said it had good credentials. "India's credentials are well regarded in Australia and... therefore it may mean they emerge eventually as a potential market for Australian Uranium," he said.

Australia has faced pressure from Washington and New Delhi to alter its line after the signing of the Indo-US Civilian Nuclear Deal.

Last year, Australia had insisted that it had no plans to change its Uranium policy. But last month, Foreign Minister Alexander Downer appeared to have softened his position saying it was an issue still up for discussion between the two countries.

Bureau Report

[marcer]

quote:Originally posted by major

Hi Gerry,
Could I ask a favour?
Could you list say, 5 U stocks that you think have good medium term potential and would be worthy of further investigation by anyone interested and maybe another 5 that you think don't deserve the attention they are currently getting? A short sentence as to your reason for each choice would be appreciated.

I am interested because there are supposed to be 70 or more Uranium hopefuls, with only 3 I believe currently producing.

Major - Check out CMR Compass Resources

Own - an ex uranium mine at Rum Jungle that was mined into the early 1960's. Currently setting up a production plant to mine their other metals in the area.

They will release to the market (according to the most recent quarterly) sometime in February, the results of a uranium mining feasibility study for the area.

Do your own research.

[stolwyk]

Hi Major,

I am too occupied with being a moderator on H/C and posting there as well.

Your question involves a lot of work, so I can't find the time to answer it.

Here, I am posting on SMM and URA. There is always risk of course.

Gerry
Readers, please do your own research and you decide if and when to buy, hold or sell any stocks or metals/commodities.

[BillMcHenry]

We've kind of danced around a good point: one's risk tolerance. In the sector that is manifasted by how upstream of exploration risk do you want?

The valuations roll up as they get closer to production. I was alluding to the fact that this worked in a huge way w/ Paladin and SXR/Aflease over last several years and that now Uramin was on that track. To a lessor attractiveness Forsys. Forsys is richer and doesn't have the verticality of other projects that Uramin does. SMM is more a 1 trick pony as far as assets/company goes [but I would sprinkle some in, doesn't mean not to, just offers less long term continuation of growth]. Got to go: the point was get some vertical risk exposure as that has been where the real money has been this whole time. Leading hedge fund on the group here in US and everyone else eschewed risk concerns for the very things they turn around and love the next year [classic was Aflease/SXR, and I was buying.] Be one up on them w/ at least some of portfolio. The diversify. No one knows whats underground till they get there.