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« Laramide Resources Limited | Main | Fronteer: A quick update »

Mega Uraniun: A place in the sun

For exciting prospects in the Uranium arena look no further than Mega Uranium Limited. This mining company has uranium resources in Australia in the order of 23.6 million lbs. So we can establish that this is no shell company looking for a part to play. Beware; this market sector is producing investment opportunities faster than it is mining uranium.

With a solid asset in the bag we can now take a look at Megas' exploration activities and try and ascertain a brief glimpse into the future.
Apart from Australia, Mega is active in Argentina, Mongolia, Bolivia and Canada. As an added kicker Mega also has a position in Maple Minerals, which has interests in base and precious minerals exploration properties in Canada. Maple Minerals also has a copper-nickel exploration project in Guinea, West Africa. Our interest is in the Uranium element of the company however the other mineral elements of this company’s composition are also very interesting.

We then ask the question, has the management got the aggressive ambition to pursue other opportunities in terms of acquisitions. Well, they did purchase Uranium Mineral Ventures, the Georgetown Project in Queensland, Australia, Future Metals and Energy Limited, Hindmarsh Resources, along with partial rights in other exciting prospects. Good they are showing us what they made of through their actions, which beats the socks off a good story with no substance.

Charts are always worth some examination as they tell a story just like any other picture. The chart below shows that Mega Uranium has had a considerable rise in recent times. This begs the question; is it too late to jump on board? Well for one reason or another we have failed to acquire this stock in the past. We watched it hit $10.0 and thought that we had missed it completely. However, a correction has come our way with the stock dropping to just under $6.0. But it didn’t breach its 200-day moving average and has shown a strong recovery since rising to approximately $8.0 as we write.

We do find it strange that this uranium miner dropped so much as its underlying asset; uranium has not corrected and continues on its merry path upwards. Not to worry, this is our opportunity to buy and we are happy to buy at these levels.

I lived and worked in Queensland many moons ago, I also played football there for a team called Southport Warriors, and so I know a little about the Aussie psyche. My bet is that they won’t let politics get in the way of a good money spinning deal and when the go-ahead arrives for uranium mining to commence, there will be some frantic action for those mining companies who already have a place in the sun.

27 July 2006

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Reader Comments (5)

"In Queensland Australia where I once lived and worked it is against the law to mine the old yellow cake at the moment."

What does this matter? Australia is still the biggest producer of uranium. It's not like Queensland is a major producer. What are we not understanding?

February 12, 2007 | Unregistered CommenterReilly Burke

Queensland is not a major producer due to the fact that it is against the law to mine uranium there.
However they have significant deposits of uranium.

Queensland’s known uranium deposits include:

Ben Lomond an estimated recoverable resource of 4760 tonnes of uranium around 50km west of Townsville; lease owned by subsidiary of Maple Minerals Corporation of Canada

Valhalla an inferred resource of 25,500 tonnes of uranium around 40km north of Mount Isa; lease is owned by Summit Resources. (Also in the Mount Isa region, Summit manages and jointly owns the Skal resource of 5000 tonnes and owns and manages the Anderson’s resource of 4400 tonnes)

Westmoreland a series of deposits spread over about 50km straddling the Queensland-NT border
around 400km north of Mount Isa; inferred resources are about 21,000 tonnes; Canadian company Laramide Resources owns some of the leases.

It is only a matter of time before uranium mining is made legal in Queensland and when that happens companies like Mega Uranium and Laramide Resources will benefit hugely and you should see dramatic increases in the stock price.

February 12, 2007 | Unregistered CommenterBob

Actually, Canada is the largest producer of Uranium, although Australia appears to have the biggest known deposits.

February 18, 2007 | Unregistered CommenterG Miller

Thanks, both Canada and Australia are such vast places that we really don't know which country has the most of anything!

February 18, 2007 | Unregistered CommenterBob

In Queensland, Australia, it's not so much that it is against the law to mine uranium (it is) it is that there is currently a three-mine policy throughout Australia. Only 3 uranium mines are allowed to operate, maximum. This is due to the Labor Party being in power in the various states of Australia; to date, the Party policy is against uranium mining, ostensibly to protect the coal miners. But most political pundits expect the Labor Party to change that stance at their April conference. If they do, SXR Uranium One is the next miner to walk thru the door at their Honeymoon mine. They have recently received export permits for the next 10 years, which is akin to receiving a mining permit. Once the Labor Party changes it's policy...

February 18, 2007 | Unregistered CommenterBob

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