Western lands uranium gopher for 11/16/08

Mining media reports and press releases for useful stuff.

This is an edited version of an article originally published in Fuel Cycle Week, V7N303 on 11/12/08 by International Nuclear Associates, Washington, DC

Bluerock Resources Ltd. (TSX:BRD) announces it has received payments totaling $78,000 for shipments of ore from the J-Bird Uranium Mine. The firm's previously announced suspension of U.S. operations will continue while it works to raise capital for operations to allow for continued development and production.

The company has also renegotiated the terms of the final purchase of the J-Bird Uranium Mine with the vendors. In order for Bluerock to complete the acquisition of 100% of the J-Bird Uranium Mine the company paid $57,000 on Oct 31 to be followed by a payment for the balance of $100,000 on January 30, 2009. In addition, the company will be required to utilize the vendor's drilling company to fulfill a $200,000 drilling contract by August 31, 2009 or alternatively pay $100,000 to the vendors by August 31, 2009.

Ur-Energy (TSE:URE) Adopts a poison pill – The firm’s board of directors said it has adopted a “stockholders’ rights” plan in the event of a takeover bid, but denied that that any takeover bid was pending or expected in the near future. The plan would be set in motion if any investor acquired 20% or more of the firm's common shares without prior approval of the board of directors. If a hostile takeover event took place, the plan would allow current shareholders to buy the stock at a 50% discount from the market price. The plan applies to the firm's stock listed on the Toronto Exchange. It isn't clear whether the plan also applies to the firm's stock listed in the U.S. (AMEX:URG). The stock was approved for listing on AMEX in June 2008.

Currently, the firm has 93.24 million shares outstanding on the Toronto Exchange with a stock price at market close on Nov 7 of $0.69 yielding market capitalization of $64.3 million. A 20% share would be equal to $12.9 million. A 50% discount of the current stock price would deliver shares to a buyer at $0.35 share or at a cost of $350,000 per one million shares. Acquisition of 20% of the company would cost a buyer $6.5 million for 18.7 million shares.

It is also conceivable the firm could be taken over by one of its current stock holders which would defeat the purpose of the plan. Something stimulated this action by the company, but what it is will remain a mystery unless a buyer emerges sometime in the future.

Bayswater (TSE:BAY) packs it in for the night for U.S. properties. Given current market conditions, the company is significantly reducing overhead and project expenditures. The firm expects to reduce U.S. expenditures to zero during the current downturn.

The firm said these measures will enable it to stay operational for several years and to retain its management team. The company's working capital is approximately $7.5 million of which approximately $1.2 million consists of flow-through funds that will be spent by the end of December 2008.

Bayswater's annual cash burn rate, including property maintenance costs, which is currently about $3.8 million, is being reduced to approximately $1.5 million. The focus will be on the firm's uranium projects in Canada.

In the U.S. the firm has what it calls "advanced stage projects" in Montana, Wyoming, California, and Nevada, but none have produced NI 43-101 compliant reports for these properties.

The stock closed on Nov 7 at $0.07 against a 52-week high of $1.30.

Strathmore (CVE:STM) dumps Nu-Mex. The company has terminated its joint venture agreements with Uranium International Corp. (formerly Nu-Mex Uranium) (OTC:URNI) on the Nose Rock and Dalton Pass uranium projects in New Mexico as a result of it not being able to comply with the terms of the agreements. Strathmore retains its 100% interest in both properties.

Uranium International Corp. had agreements with Strathmore Minerals Corp. to earn a 65% interest in each of the two projects based on their joint-venture development. For the six-month period ending Aug 31, according to URNI's SEC filing, current assets were $23K and current liabilities were $530K. The firm's CEO and CFO resigned during the past six months but retained their seats on the board due to their stock holdings.

An NI 43-101 reports was published for the Nose Rock property last August. The report estimated a combined indicated and measured mineral resource of just over three million lbs of U3O8. The Nose Rock Uranium Property, located in McKinley County, totals approximately 5,060 acres and consists of 102 lode mining claims and six State of New Mexico mineral Leases. The property is located on the northern edge of the Grants Mineral Belt of northwestern New Mexico.

Uranerz Energy Corp (AMEX:URZ) announced exploration drilling status for 2008 on its 100% held properties and for the Arkose Mining Venture, a joint venture between the company (81%) and United Nuclear, LLC (19%). The two project areas are adjacent to each other in the Powder River Basin, Wyoming.

A total of 498 uranium trend and delineation holes were drilled utilizing five drill rigs and two electric log probing units during the period of July to October 2008.

The purpose of the 2008 Uranerz / Arkose drilling project is to find previously unknown or little-known uranium mineralization trends and to delineate known trends, which will provide data for permitting and eventual production operations in favorably identified areas. During this update period, approximately 7.0 miles of uranium roll front trends were investigated.

Approximately 3.5 miles of the 7.0 miles of trends had favorable uranium mineralization. Uranium mineralization ranged from less than 0.01% eU3O8 to 2.65% eU3O8. A cut-off grade of 0.03% eU3O8 has been established for Uranerz and Arkose projects. Approximately 39% of the 498 holes drilled during this update period met or exceeded the minimum cut-off grade.

Lawsuit over LES water permit – An environmental group based in Albuquerque, NM has filed a complaint with the state Court of Appeals over a discharge permit for the $1.5 billion uranium enrichment plant under construction in Eunice by Louisiana Energy Services.

Citizens Against Radioactive Dumping is objecting to a decision by the state Water Quality Commission last April. The state Water Quality Commission in April upheld the New Mexico Environment Department's decision in favor of the permit for the Louisiana Energy Services facility. The group claims the commission disregarded comments that the permit application was incomplete.

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