U3O8 Uranium.

[shasta]

http://www.theconservativevoice.com/article/22924.html

Next Uranium Auction to Fetch $80/Pound?
February 19, 2007 01:00 PM EST


The weekly TradeTech uranium spot price indicator remained unchanged for a third straight week, but Tuesday’s sale of 100,000 pounds U3O8 could result in another record price spurt. According to Nuclear Market Review (NMR) editor Treva Klingbiel, “This lot of material represents an opportunity for buyers to secure material at a fixed price and is expected to be highly sought after.”

It's been two months since the last uranium auction. That one led to a record price jump in yellowcake. How will this auction compare? It could be an eye-opener.

Klingbiel pointed out in the February 16th issue of NMR, “The majority of other supply currently available to potential buyers is being offered with market-related pricing terms at time of delivery.” Utilities and other buyers hesitate to accept U3O8 and related product under these terms. As a result, the spot uranium price has remained nearly unchanged for the past two months, aside from a small percentage increase at the end of January.

Activity has come to a standstill at these lofty price levels. Uncertainty about remediation efforts by Cameco Corp at its Cigar Lake uranium project has left buyers and sellers at odds with each other. As TradeTech has told us during this two-month stalemate, buyers are nervous about paying these prices, while sellers are confident they can get even higher prices. Three weeks before the Cigar Lake flood, we reported that some utilities believed the uranium price would decline to $30/pound. By mid December, the price had jumped another 50 percent above October’s high levels.

The significant problem buyers now face is being forced to blindly agree to purchase uranium without knowing the final price tag. Contracts for the sale of uranium lack a fixed price. Because contracts are written under ‘market-related pricing terms,’ U.S. utilities and others would never really know the final cost of their purchase until months later, when the product would be delivered. Buyers might worry the final price tag could be many percentage points higher than what they believed they might be paying.

In light of these market conditions, we believe the modest sale of 100,000 pounds U3O8 would likely result in a new record spot uranium price. Treva Klingbiel is accurate in her forecast for the February 20th auction – this uranium should be highly sought after. Numerous crystal ball gazers have predicted the spot uranium price should reach $80/pound after the sealed bids are opened next week. Some have called for an even higher price tag.

COPYRIGHT © 2007 by StockInterview, Inc. ALL RIGHTS RESERVED

James Finch contributes to StockInterview.com and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular “Investing in the Great Uranium Bull Market,” which is now available on http://www.stockinterview.com and on http://www.amazon.com After publishing the weekly uranium spot price indicator in the Nuclear Market Review magazine every Friday, TradeTech publishes the price indicator on the consulting service’s website at http://www.uranium.info

[shasta]

http://www.resourceinvestor.com/pebble.asp?relid=29097

Good for those ASX interests in South Africa?

PDN & DYL have the Namibia tenements, anyone know of an ASX listed U308 miner with South Africa tenements?


Uranium in South Africa: Hotspot in the Karoo

By Andrew K. Burger
19 Feb 2007 at 01:38 PM GMT-05:00


PRETORIA (ResourceInvestor.com) -- Mining activity is beginning to heat up in South Africa’s Karoo Basin, an area where uranium ore deposits are once again attracting interest from mining companies.

Brinkley Mining Plc. [AIM:BRM] on Feb. 13 confirmed that South Africa’s Department of Minerals and Energy has officially granted Western Uranium Pty. Ltd., Brinkley’s South African subsidiary, prospecting rights for four uranium prospects in the Karoo region, including two in Waterval and Rietkull, prospects that are “hugely important to Brinkley,” said a spokesperson for the company. Rights to an additional area called “remainder of Krugel’s claim 459” were also confirmed.


Rights to three of these prospects - two in the Waterval and one in the Rietkull Prospect - were previously announced on Oct. 13 last year. The fourth rights award covers the remainder of the Waterval Farm property.

Additionally, Brinkley on Dec. 8 announced that it is expanding its relationship with Blue Nightingale 709, one of its South African Black Economic Empowerment partners. In return for issuing Blue Nightingale 6 million fully paid, newly issued company shares Brinkley has obtained a right of first refusal over any uranium projects in South Africa that Blue Nightingale originates.

“Brinkley’s experience with Blue Nightingale to date has been extremely fulfilling…There are very few uranium companies outside South Africa that have achieved this without cutting corners ... Western Uranium intends to commence a work programme as soon as possible,” Brinkley’s spokesperson told Resource Investor.

The Waterval & Rietkull Farms

Western Uranium with Blue Nightingale 709 applied for prospecting rights in aggregate over five farm properties in the Karoo made up of 22 portions which are considered to host significant uranium resources.

Occurrences of uranium oxide in the Karoo Basin have been located in a broad belt stretching from the Aberdeen district through Beaufort West to Sutherland in an east-west direction. Various historical estimates of the grade and tonnage of the properties of Sutherland and proximate areas were undertaken in the 1970s and 1980s. The Essex Minerals Company explored and drilled in the Waterval Farm area in the late 1970s, according to company information, according to Brinkley information.

Western Uranium owns the freehold on the Waterval Farm which encompasses two of the portions for which the South African DEM granted prospecting rights. The third is located on the Rietkull Farm property, for which Western Uranium has sole ownership rights.

The three portions of the Waterval Farm property comprise the entire 3,601 hectares for which it applied. For the Rietkull Farm property Western Uranium has been awarded prospecting rights over one of three portions, equivalent to 218 hectares of the 7,341 hectares for which it has applied.

With its Waterval and Rietkull prospecting rights confirmed Western Uranium intends to commence airborne reconnaissance, detailed geological mapping, re-sampling of previous drill holes and a new drilling programme at the earliest opportunity, according to a press release.

Said Gerard Holden, non-executive chairman of Brinkley Mining commented, “We are delighted to have completed the execution of these prospecting rights. We look forward to commencing exploration activities immediately for these prospects over which Western Uranium has exclusive access and ownership rights.”

Estimated Resources

SRK Consulting in the Competent Persons Report it prepared by and submitted on 31 May 2006 reported that the Waterval Farm has non-compliant historical mineral resources of between 39,000 and 50,590 tonnes of uranium and molybdenum mineralisation

[pago]

hi shasta,your question,anyone know of a u308 miner with south africa tenements,watch aex tommorrow,cheers pago,

[stolwyk]

$85 spot, according to 2 good H/C sources.


Gerry

[Skol]

I think you'll agree that it's no coincidence that before the tech wreck we had defunct mining companies re-inventing themselves as computer companies and now we have computer companies re-inventing themselves as uranium miners. For me this a contrarian signal but I've decided to hang in a little longer because bull markets always go on longer than you think they will.

Acoording to U308.biz new spot price should be released by midnight Wednesday US time. Doesn't say whether Pacific or EST.

[Skol]

Bang on, $85 it is.

http://www.news.com.au/adelaidenow/s...24-913,00.html

[shasta]

Cheers Pago

Wow $85lb - that'll spark some more interest in the junior U308 explorers!

[spector]

quote:Originally posted by shasta

Cheers Pago

Wow $85lb - that'll spark some more interest in the junior U308 explorers!

Great runs across the board on all my uranium stocks today. Result!

[Seti]

More on the latest spot price...

Record Increase in Uranium Price

VANCOUVER, BC -- (MARKET WIRE) -- February 22, 2007 --

Ux Consulting Company, LLC and TradeTech have increased U3O8 prices US$10 to a record US$85 per pound.

This US$85 spot price marks a new record for uranium confirming research analysts' predictions that mine production continues to fall short of demand, and that inventories being sold into the market reflect the supply-demand deficit.

According to Adam Schatzker of RBC Markets, investors can expect to see the price of uranium continue to rise throughout 2007 and predicts the average price will be US$100 per pound this year.

As of December 2006, there were 435 reactors currently in operation producing 368,246 Mwe of power. There are 28 reactors under construction, 64 planned and more than 158 have now been proposed globally with more added to the every month.

The 435 operating reactors require approximately 180 MMlbs of U3O8 equivalent. 110 MMlbs of U3O8 is supplied by primary production with the balance being made up from secondary sources including mixed oxide (MOX) fuel, national and utility held inventories (both strategic and commercial), Russian LEU exports, recycling programs, Tails assay adjustments, DOE sales and HEU.

Buyers are eager to stockpile supplies at fixed prices, while sellers view the uncertainty about remediation efforts by Cameco Corp. at its Cigar Lake uranium project as an opportunity to hold out for higher prices.

"Uranium is in a super bull cycle, fueled by supply shortfalls amid rising demand as the world increasingly turns to nuclear for clean, commercially viable, long term energy solutions. Today's increase in the spot price is a reflection of the uranium shortfall and provides investors with added confidence in the uranium sector," says Mr. Gomez.

[leonchai]

What will happen to uranium companies in a market wide correction/bear market, like what seems to be happening now?

I am a big believer in the uranium story, and I think that of all the sectors, it would be one of the most recession proof. However, do you think its wiser to hold cash now, rather than try to fight against the bearish sentiments that would affect all shares in a downturn?

I hold ags, smm