URANIUM-STOCKS: A Contribution from Australia
Print This Post
|
Email This Page:
Topic: Other — February 24th, 2007
After the Aussies whipped our beloved cricket team we were in two minds about publishing anything from ‘down under’ but we have relented.
Here at uranium-stocks we have not done a great deal in terms of research into Australian uranium stocks so contributions from Australians are very much appreciated. We take the view that the more information we have the better our decisions should be. Hopefully everyone benefits.
This is an excellent website i must say for sharing information.
I am coming from an Aussie perspective. There are two companies that i have as standouts apart from BHP with Olympic Dam expansion.
One company that many may not be aware of simply because it is listed on the ASX (Australian Stock Exchange)
AGS.ax - Alliance Resources Limited.
They own 25% of the Beverley 4 Mile Mine in South Australia
Quasir/Heathgate own the other 75%.
What makes this one a standout is the original high grade readings from the drilling. The name 4 - mile is the lenth of the reef with a very large part of the mine still unexplored. We are currently awaiting the Jorc compliant release which will be the first stage towards production.
Once the Jorc is known the resource will then be rerated according to further drilling which is currently happening now. Heathgate will be spending $14mln over the course of this year to increase the Jorc. AGS is free carried during the exploration stage. It is still very much open in a couple of areas which makes this a very exciting discovery.
If the discovery proves to be as rich in grade and quantity then i would say it may be highly likely that they will be aiming to be listed on the TSX. Thats only speculation from my part.
The second one that i have only recently acquired is a small uranium company called Uranium King Limited - UKL.ax
What caught my eye with this one was the name. At first, i thought, “What a gimmicky name”. Didn’t even bother to read the prospectus. However, i checked my watchlist and noticed that UKL had gone up nearly 100% within a few months. Thats when i started to investigate the name as well as the tenements. I would assume you are all familiar with Charlie Steen (The Uranium King). The three main projects they have is Rio Puerco project and Church Rock in New Mexico 4.5 mln ibs. and the Lowboy/Apex project in Nevada 1.5mln lbs. Jorc inferred 6mln Pounds. The major shareholders 55.2% Metco. They have also acquired the Smith Claims to their list. They are also investigating obtaining further permits in New Mexico.
One of the goals is to commence production late 2008.
Cheers markcoinoz
So there we have it.
24 February 2007
Commonwealth Could Overturn State Law On Uranium Mining in Australia
US Sub-Prime Problems Surface Down Under!
Russia signs uranium agreement with Australia
Australia to turn to nuclear power?
Queensland Premier Beattie Hits Back At Federal Uranium Threat
|
|
Re: Uranium King UKL.AX. The market capitalisation is about US$70 million. The underlying value is about 6 million pounds of uranium in inferred resources. Inferred is very much a euphemism for maybe. So one is paying close to US$12 per pound of unproven in-ground resources at the present stock price. This is madness. The stock price could rise from here according to the ‘Greater Fool Theory’, but readers might look elsewhere for a sound uranium investment.
Comment by dcpc — February 24, 2007 @ 7:11 pm
Thanks for the clarification.
Comment by Uranium Stocks — February 24, 2007 @ 7:26 pm
“Denison Mines [TSX:DML] has signed an agreement with Pathfinder Mines Corporation, a subsidiary of the AREVA Group, to acquire 5 uranium deposits located in the Arizona Strip district in northeastern Arizona for $5.5 million plus a 1% royalty.
The historical resource estimates at the Pathfinder deposits are 1.3 million tonnes at an average grade of 0.28% U3O8, containing an estimated 7.1 million pounds of uranium.”
This should give many investors pause. Denison is prepared to pay less than $1/lb for a decent grade of uranium deposit. At about 6 pounds per ton, that rock is worth roughly $500/tonne with uranium at $85/pound. It is a historical resource, so should be thought of as uncertain, rather like ‘inferred’ resources. It is time for a reality check in the sector, as moose pasture is bid up to crazy prices.
Comment by dcpc — February 27, 2007 @ 7:40 pm
Certainly food for thought!
Comment by Uranium Stocks — February 27, 2007 @ 8:18 pm
Please help me find thicker for australian uranium Co.
Crocker well-mount
Thanks
Comment by Stanley Bilotas — January 4, 2008 @ 9:17 pm