U3O8 Uranium.

[BillMcHenry]

BTW, here's an Aussie co in here w/ US news IOI: UraniumKing

N.M. company joins search for uranium

By Zsombor Peter
Staff Writer

GALLUP — Add the Uranium Company of New Mexico to the latest wave of mining operations applying for exploration permits around Mt. Taylor. The mining company, which has ties to an Australian firm, filed its application with the New Mexico Mining and Minerals Division in December.

Indian tribes in the area and the grassroots groups they've joined forces with are urging the state not to grant the permits. Still living with the environmental fallout of past uranium mining booms, they fear that another would only bring them more of the same.

Public comments are due Friday.

Fueled by a renewed global interest in nuclear power, uranium prices started to skyrocket in 2003. In the past few years, seven companies have filed for exploratory permits around Mt. Taylor alone. Uranium Company makes eight.

"We've been waiting since 1987 for uranium prices to go up enough so we could start exploring," said Karl Meyers, who identified himself as the general manager of the company, which has held continuous title to the land since 1968.

The site, about 3,000 acres according to Meyers, sits in the extreme southwest corner of Sandoval County, a few miles north of the Navajo Nation's Tohajiilee Chapter and west of the Laguna Indian Reservation. In its application, Uranium Company lays out its plans to drill 10 holes each 600 feet deep and five inches wide to find out exactly how much uranium lies underneath. According to a 2006 prospectus designed to attract investors, there could be more than 4.5 million pounds at 12 percent U3O8 (a relatively stable combination of uranium and oxygen).

Uranium Company hopes to start drilling by April.

On its own, one exploration project isn't too much for the surrounding tribes to worry about.

"It's not about any one exploration project," said Chris Shuey, an environmental health specialist for the Southwest Research and Information Center, a non-profit group out of Albuquerque helping local tribes keep the uranium industry off of Indian land.

"Each one of these is a relatively small operation ... but when you start looking at the cumulative effect," he said, "all of a sudden it starts to add up to a major impact."

Local miners are still filing for restitution under the federal government's Radiation Exposure Compensation Act, which extends eligibility to people who worked in a uranium mine anywhere in the country prior to 1971. Others blame their chronic ailments on residual radiation from nearby mining sites still waiting to be cleaned up decades after they've been abandoned.

Today's mining and exploration companies say modern technology and tougher government regulations would spare them a repeat. But tribes aren't convinced.

In 2005, the Navajo Nation Council approved the Diné Natural Resources Protection Act, which bans all uranium mining on Navajoland. This past December, at the first Indigenous World Uranium Summit, co-hosted by the Navajo Nation in Window Rock, grassroots groups from some half-dozen countries ratified a declaration opposing all uranium-related activity on "native lands."

For the local tribes that hold Mt. Taylor sacred, mining the area would also constitute a desecration of the site. Unfortunately for them, the mountain sits on one of the most historically prolific uranium belts in the country.

With all the renewed interest in the area, they're waiting on Gov. Bill Richardson to take a firm position on uranium mining in the state, one they hope opposed to it.

But the companies pulling the state in the other direction aren't just well funded. They're multinational.

Uranium Company is so new it's not even registered with the state yet. But according to Meyers, it's tied to Mineral Energy and Technology, which had its uranium assets acquired by Uranium King an exploration company out of Australia last summer. Western Energy Development, another company after an exploration permit near M

[Harry7]

Big rises on open for producers PDN and ERA. Has the spot price jump to US$80/lb been confirmed?

[Crypto Crude]

Somethings up.... namely URA,UXA,UTO,BMN, UNX trading halt,UEQ,UKL marginally,USA....
I can't confirm if Uraniums at $80....
analysts are predicting that $80 will be the bottom end of the range for U prices this year... and up to $120...
[8D]
.^sc

[BillMcHenry]

The "something" is
Couple of the top two new producers merge. [Ones we recommended and owned years ago when SXR was Aflease...] Portends more acquisitions and consolidation and the sector jumps up to the next level:
"Uranium miners merge


Terry Macalister
Monday February 12, 2007
Guardian Unlimited


The scramble for uranium to supply a future breed of nuclear reactors has led to a $5bn (£2.6bn) merger of two of the sector's biggest mining companies, Uranium One and UrAsia Energy, which is listed in London.
Neal Froneman, chief executive of Uranium One and prospective boss of the Canadian-based combined group, said he expected to see the price of uranium rise from $75 a pound to over $100 by the middle of this year.

"For the next five years there will be a significant constraint on supply," he added.
A new report from accountant Ernst & Young showed uranium represents 10% of its mining index compared with 1% only 12 months earlier, underlining the way mining companies in this part of the minerals world have been rushing to raise money on London's junior stock market, Aim.
Shares in Uranium One and UrAsia raced forward by more than 10% as analysts saw the two firms giving themselves a stronger position in a fast-consolidating sector.
BHP spent more than $7bn in 2005 taking control of WMC Resources, which controls Olympic Dam in South Australia, the biggest uranium mine in the world.
Uranium One expects to complete its acquisition of UrAsia by May by offering its shareholders 0.45 shares in Uranium One for each share in UrAsia. The two firms together will have more than 7m lbs of annual production from five operations.
Mr Froneman said they would benefit from being the only big uranium miner to have production in each of the five biggest resource areas: Kazakhstan, South Africa, Australia, Canada and the US.
"We will have one of the lowest production costs, which amounts to between $10 and $12 per pound," he added.
Some of the uranium is supplied to European customers but the company declined to name them. ..."

Bill McHenry, CFA
Uraniumanalyst.com

[laurie]

Has everyone forgotten about ERA! going to fly past BHP sp shortly

cheers laurie

[Skol]

[quote]Originally posted by laurie

Has everyone forgotten about ERA! going to fly past BHP sp shortly [:

Taken my profits in ERA. Average sale price for their U308 about $17/lb when spot price is $75. Also hamstrung by production delays. Better off with PDN or maybe SMM and hope that labour changes its mind on uranium which it probably will.
WA has $40billion worth in the ground.

[stolwyk]

Thanks yellowcake:


"Everyone is running to Namibia for uranium and we don't want every Jack and Jill mining uranium ...," he said.

Iita also said uranium was a special mineral, adding that the Government was reconsidering its policies on the resource."

-------------------------------------------------------
Namibia: Government Calls Halt to Uranium Licences

The Namibian (Windhoek)

February 14, 2007
Posted to the web February 14, 2007

Tonderai Katswara

AS applications pour into Namibia from companies intending to prospect for uranium, the Ministry of Mines and Energy has stopped accepting such requests.

It will soon announce a moratorium in the Government Gazette.
Western Union

The Namibian has it on good authority that the Ministry stopped accepting applications for uranium prospecting and exploration two months ago.

This comes hot on the heels of a similar moratorium slapped on the granting of diamond cutting and polishing licences by the same Ministry early this month, after the renewal of a five-year sales agreement between Government and De Beers on January 30.

In the last two years, Namibia has become a global attraction because of its mineral deposits hugely in demand on international markets, like uranium and diamonds.

In an interview with The Namibian yesterday, the Permanent Secretary of Mines and Energy, Joseph Iita, confirmed that no applications were currently being accepted, adding that more would soon be revealed in the Government Gazette.

"It's a matter of regulating the issue of licences.

Everyone is running to Namibia for uranium and we don't want every Jack and Jill mining uranium ...," he said.

Iita also said uranium was a special mineral, adding that the Government was reconsidering its policies on the resource.

He said there was an upsurge in the global demand for uranium, hence the need to regulate uranium activities.

Said Iita: "The world is now highly advanced and has come up with all sorts of uses for uranium.

In the end uranium is not only used for the generation of electricity, but can be used for destructive purposes as well."

Local and international companies alike have of late been rushing in with applications for uranium prospecting and mining in Namibia.

To date, more than 20 mining outfits are doing uranium prospecting and exploration, mainly in the Erongo Region.

These companies are of an international mix with various owners from Namibia, China, Australia and Ghana, among a host of others.

However, there are currently only two active uranium mines - Roessing Uranium and Langer Heinrich Uranium.

With the possibility of a looming power crunch in southern Africa, nuclear power is being touted as an alternative power source.

Last month the Ministry of Mines and Energy announced that Government was considering a nuclear power plant to escape the impending energy crisis and was looking for international partners to achieve this.

Namibia imports about 50 per cent of its electricity needs, mainly from South Africa.

http://allafrica.com/stories/200702140503.html

[stolwyk]

Thanks yellowcake:

Suspend Uranium mining – Don’t be short changed
Feb 14,2007 by Edgar Msowoya

Malawi government must be cautious in the dealings with Paladin Resources Inc of Australia in order to realise full benefits from the Kayelekera project and avoid being short changed by companies scrambling for African resources.

The government SHOULD CANCEL or RENEGOTIATE the FINANCIAL BENEFITS TO THE NATION taking into consideration of its ailing and dwindling forex earnings from tobacco. The uranium mining project which has a life span of 10 years can be a good short term substitute as the country recovers from the tobacco export earnings set backs.

Recently, the civil society groups warned government that it stands to lose the benefits of uranium mining if the issue is not handled properly.

Uranium is called the “white-hot metal,” and not only because it glows in the dark but during the course of 2006, uranium spot market price continually climbed by 99% from US$36.25 to US$72 per pound and now hitting US$75 per pound. The price is now more than 10 times its record low of US$7 per pound that it hit in 2000.

Despite the big bull rally in uranium over the past couple years, on a historical basis, it is still dirt-cheap. Uranium has not come anywhere near its old peak in inflation-adjusted terms. In 1978, uranium topped at US$43.40 per pound - but adjusted for inflation, that is around US$145 per pound in today’s dollar terms. It is now trading at US$75 per pound. That means uranium could nearly double and still not surpass its old inflation-adjusted highs. That is why we are looking at US$100 uranium by the end of this year - a 39% move from recent levels.

Institute for Policy Interaction (IPI) executive director Rafiq Hajat and Renford Mwangonde from Citizen for Justice told the media that Malawi would get only 5% of the project output while 95 percent would go to the investors, an observation the two described as unfair to the people of Malawi.

The supply/demand gap is ever increasing. About 16% of the world's electricity last year came from 440 nuclear reactors according to the World Nuclear Association. Currently, there are 28 reactors under construction around the world and another 62 being planned.

There are undeniable realities that demand for uranium is outstripping supply. In 2005 supply from mines was 102.5 million pounds while demand was 171 million pounds, leaving a supply gap of 68.5 million pounds.

The Chinese are hot-footing it through the Australian outback with bags of cash, investing in the best small companies sitting on large quantities of uranium. China plans to import 2,500 metric tonnes of Australian uranium per year by 2020, as it builds 24-30 new atomic power plants. The really bullish news is that China’s total expected annual uranium demand is three times as much - 7,500 metric tonnes.

Paladin’s chief geologist Ed Becker last years September said Malawi would be getting K14 billion (about US$100 million) annually from the project which represented about 20 percent of total export income without taking into considerations the implications of the project. The amount Malawi will get is nothing in real term value as compared to the upsurge in prices. Malawi can benefit much more than the said 5%. The mineral is on Malawi soil and the country should not be short changed because of its lack of negotiating skills.

Gevin Mudd, a visiting environmental expert and lecturer in environmental engineering at Monash University, who was in the country to asses the environmental impact assessment (EIA) report on the project warned that the Kayelekera EIA report that Paladin International released last year has some flaws that may put the lives of people at risk and urged government to take some studies before mining takes in Karonga.

Meanwhile, Namibia has suspended issuing new uranium prospecting licences, as it seeks to bring order in the rush for its uranium resources.

"It's a matter of regulating the issue of licences,” Lita was quoted as saying. “Everyone is running

[shasta]

For fans of the Yellowcake, & a few U308 companies on the US Exchange.


World’s Uranium Companies Beginning to Head to U.S. Stock Exchanges

Submitted by JamesFinch on February 12, 2007 - 5:11pm. Business | Investing


A soaring uranium price performs magic for many of the companies who have begun developing their uranium assets and moving toward production. Canadian, Australian and South African uranium companies are eyeing listings on U.S. stock exchanges. Some have already begun.

Three years ago, one could only find Cameco Corp (CCJ) trading on the New York Stock exchange. As of late November 2006, Energy Metals Corp (EMU) began trading on the NYSE ARCA. Energy Metals is currently developing their Texas uranium in situ recovery mine for production in either late 2007 or early 2008.

One tier down on the American Stock Exchange is the Fronteer Group (FRG), which is a hybrid gold company holding uranium-mineralized assets. A recent entry to the American exchange is first pure-play uranium company to trade on this exchange: Uranerz Energy (URZ). Uranerz is now the second publicly traded company, after Cameco Corp, in which investors can also trade stock options. The announcement was made at the end of January.

After those, there are a number of different companies with some prospects better than others. However, before reviewing those, let’s look at what could well become the world’s second largest uranium company, by market capitalization, after Cameco Corp. On early Monday morning, Canada’s Globe and Mail newspaper published a report that Johannesburg- and Toronto-listed SXR Uranium One (TSX: SXR) planned to acquire TSX- and AIM-listed UrAsia Energy (TSX: UUU) for approximately $3 billion. In what has been announced as a friendly take-over, SXR Uranium One plans to issue some $3.1 billion in stock to buy UrAsia. Before the announcement, SXR was valued at less than CDN$2 billion.

In previous interviews with SXR Uranium One chief executive Neal Froneman, he has repeatedly told us he wishes to list on a U.S. stock exchange. If and when the acquisition closes – it was announced that it should by mid May of this year – the new Uranium One would hold uranium properties on four continents: Africa, Australia, Asia and North America. SXR’s Dominion uranium mine should begin producing this March. UrAsia Energy is currently producing in Kazakhstan. SXR’s Australian ‘Honeymoon’ in situ leach uranium operation is scheduled to start producing in early 2008.

According to Canada’s national newspaper, the combined companies have the potential to annually produce some 19 million pounds by 2012. That’s about what Cameco Corp’s Cigar Lake was expected to produce before the mine flooded this past October. Since then, Cameco has delayed in announcing when the company believes its uranium mine will actually be in shape to produce uranium.

Based upon our conversations with Neal Froneman, and in light of this new business combination creating the world’s second largest uranium mining company, it shouldn’t be too far into the future when Uranium One announces it plans to list on the New York Stock Exchange. The headline of their February 12th news release announced, “Uranium One and UrAsia Energy Announce Combination to Create Emerging Senior Uranium Company.” Aside from Cameco Corp, there really is no other senior pure play uranium company.

As for the rest of the companies now trading on the over the counter bulletin board, we have reviewed two which offer hope to investors. Uranium Energy (OTC BB: URME) plans to mine uranium using the in situ recovery (ISR) method. Chief operating officer Harry Anthony appears to be one of the boys in the ISR club with decades of experience behind him. He lives and works in south Texas.

After extensive interviews with Mr. Anthony – which we used in our publication “Investing in the Great Uranium Bull Market” in explaining the ISR method of mining – it became evident to us that if Anthony couldn’t get an ISR operation functioning in Texas, that no one else on the planet wa

[tricha]

Wednesday, February 14th, 2007

The full monty - http://www.goldworld.com/newsletter.php?id=114

Up 900% in Five Years But Still Going Higher
By Luke Burgess


BALTIMORE, MD - Since the beginning of 2001, uranium prices have mushroomed 900% selling today for a multi-decade high of $75 per pound. But because of severe supply constraints, we think the energy metal still has plenty of room to grow.

Sometime in the first century, a small group of potters living in a tiny village in Italy discovered that mixing uranium powder with standard glaze gave their ceramics a handsome yellow tint.

The technique was short-lived and disappeared some 400 years later with the fall of the Roman Empire. But in the early 19th century, the Germans rediscovered uranium's aesthetic properties. This time uranium powder was mixed with glass, creating something known as "vaseline glass".

Vaseline glass, which can still be found in antique shops today, has a yellow-green hue in normal light. But when put under an ultraviolet light, like a black-light, vaseline glass glows a wild fluorescent green. Take a look at the antique vaseline glass pitcher below:


With uranium currently in such short supply, it might seem that using it for decorative glassware is a waste of good material. But here's something most people don't know: The radioactive metal is far from rare.

Get this...

It's been estimated that the earth's crust contains more than 88 quintillion pounds of uranium. That's 88,000,000,000,000,000! The earth contains so much uranium that you can find it pretty much everywhere. As a matter of fact, it's very likely that there's uranium right in your own backyard.

But don't worry. It can't hurt you.

The total volume of uranium in your backyard is most likely minute. Truth is, there would have to be a highly concentrated deposit back there in order for it to make you sick. And this is a rare occurrence.

The rarity of such highly concentrated deposits makes finding the metal in large quantities incredibly difficult. In fact, despite the massive quantity of uranium on the planet, only a small number of highly concentrated deposits have been pinpointed around the globe.

Over 50% of the uranium produced from mines comes from in Canada (28% of the world's supply), and Australia (23%). Other major producing countries include Kazakhstan, Russia and Namibia.


Because of the limited number of large uranium deposits, a problem with a single significant mine can cause serve supply constraints.

Like Cigar Lake...

The world's largest undeveloped, high-grade uranium deposit today is Cigar Lake in Saskatchewan. Cigar Lake, operated by Cameco Corp. (TSX: CCO), holds 232 million pounds of U3O8 at a grade of 19%.

Production from Cigar Lake was scheduled to begin in early 2008. At its peak, Cigar Lake was supposed to provide 17% of world's uranium supply. But now the future of the mine is in doubt.

A few months ago, Cameco announced that Cigar Lake had sprung a leak and the underground workings are now completely flooded. From what I hear, the mine may be lost completely. But at the very least, the flood will push back production a minimum of twelve months.

News of the flood pushed uranium prices 6.6% higher, from $56 a pound to $60. The increase was the largest weekly gain in 20 years!

Today the energy metal sits at $75 a pound, a 900% increase since early 2001 and a 150% increase from just a year ago when uranium was trading for $30/lb.


And although uranium prices haven't had a down month in five years, I think the radioactive metal still has a lot of steam behind it.

About 16% of the world's electricity came from 440 nuclear reactors last year. This figure is constantly growing. Right now there are 28 reactors under construction around the world and another 62 being planned. Japan alone intends to add 11 more by the year 2010 and China hopes to add 24 to 30