Mining uranium exploration press releases for useful news
The rise of nuclear energy, a second act if ever there was one, has given the price of uranium a shot in the arm. In western states in the U.S. interest in uranium mining is growing and with it comes another growth industry - the production of press releases about the uranium mining industry. In an effort to separate the truly interesting from the merely informational, I'm posting my running notes on uranium mining in western states, albeit with a one-month delay. The notes are organized in terms of bi-weekly updates for each month.
The choices of the subjects are a combination of what I find in the press release pile and what looks interesting to me and for readers. I'm focusing mostly on western states that are "west" of the 100th meridian, but this isn't hard and fast. The states of interest are WY, CO, UT, TX, NM, AZ, & NV. For this reason I'm calling this series, which will appear monthly, the "western lands uranium gopher."
I am supplying the available stock symbol for firms which you can look up on any of the major free web finance sites such as Yahoo or Google. Of course this information is not investment advice and the standard disclaimer that would bore even a regulatory lawyer is included here by reference. That said comments are welcome.
Western States Uranium News
*** Early January 2008
Australian firm invests in U.S. uranium sites
Atom Energy (ASX:AXY) of Perth, Australia, will acquire the assets of Mustang Energy, an unlisted uranium company with properties in three project areas in the U.S. The Mustang properties cover unpatented mining claims on federal lands in the Colorado plateau area in the four corners area. The acquisition will involve a stock swap and assumption of claims from Utah vendors via a combination of cash payments and stock valued for a combined total of $0.7 million.
As a result Atom Energy will acquire 100% interest in 104 claims in Utah 15 miles from the Shootaring Mill owned and operated by Uranium One; a 50% interest in 56 claims at the Green Dragon uranium mine; and, a 50% interest in 46 claims at the Bull Mountain mine.
* * *
Eagle Hill acquires two Arizona uranium exploration properties
Eagle Hill Exploration Corp. (TSX:EAG) is negotiating two separate agreements to acquire two Arizona uranium exploration properties in Coconino and Mohave Counties.
Eagle Hill will acquire 100% of the Rimshot Uranium Project in exchange for stock valued at $2.4 million. Eagle Hill will acquire 100% of the Lombardo claims in exchange for stock valued at $210,000 and cash payment of $300,000.
The Rimshot Project covers 379 claims. The Lombardo Project covers 90 claims.
* * *
Wave Uranium acquires Arizona claims
Wave Uranium (OTCBB:WAVU) announced it has acquired 100% interest in 10 claims known as the Wilson Creek Property in Gila County Arizona. The firm also announced it has recorded 153 claims on Federal lands in Gila County, Arizona.
The Wilson Creek area was first explored and mined in the 1950s. More recently, it was explored by Wyoming Minerals Corporation, a division of Westinghouse. It estimated the reserves for their Gila County holdings at nearly 4.5 million pounds of U3O8 probable, nearly 12 million pounds possible and more than 39 million pounds speculative. The seller and the terms of the acquisition were not revealed.
* * *
Trans America Industries sets joint New Mexico ventures with Neutron Energy Inc.
Trans America Industries (TSX:TSA) working in partnership with Neutron Energy Inc., (NEI) a privately held uranium exploration and development company, has successfully closed a financing of $10,593,000 at $1.50 per share, bringing its total cash position to approximately $15.6 million.
NEI is planning to concentrate on three property areas, the Frosty-Ox, the adjoining ZAC claims and East Roca Honda. The drilling programs are estimated to cost approximately $2.2 million.
TSA holds 10,750,000 shares of NEI and retains the right to earn a 50% interest in the Ambrosia Lake Project which will be the subject of a major exploration program in the coming months.
* * *
Mesa County, Colorado, approves uranium mine
Despite some public controversy, and a four hour long public hearing, the Mesa County Commissioners on Dec 18 unanimously approved a conditional use permit for an underground uranium mine five miles south of Gateway, CO. Gateway is on the Colorado-Utah border about 220 miles west of Denver and 35 miles southwest of Grand Junction.
Energy Fuels Resources (TSE:EFR), which will develop and operate the Whirlwind Mine, said initially it will mine up to 200 tons of ore per day. The ore will be trucked to the Blanding, Utah, mill.
Energy Fuels Resources also said it will build its own mill in Pinion Ridge in western Colorado. In a recent presentation to the Northwest Mining Association Convention, Energy Fuels Vice President-Corporate Marketing, Gary R. Steele, said the rapid development of the Piñion Ridge Mill site can be attributed to licensing authority of the Colorado Department of Public Health and Environment (CDPHE), instead of a federal nuclear regulatory commission.
Steele said Energy Fuels is confident of mill start up in 2010. Located in Montrose County, Colorado, the 1,000 ton-per-day mill will have both uranium and vanadium recovery circuits. It is located on 880 acres or private land owned by Energy Fuels, which Steele estimated is large enough for more than 30 years of tailings disposal. The estimated resource at the mine is 657,000 pounds of uranium and 2.17 million pounds of vanadium.
* * *
Powertech gives and takes heat for proposed Weld County ISR mine
Powertech USA (TSE:PWE) responded to opponents of its proposed 6,000 acre ISR operation in northern Colorado with full page advertisements in December in three of the region’s newspapers. It’s message is that it will be a responsible steward of the environment. Powertech also published a copy of its letter to the Ft. Collins, CO, city council which voted earlier this year, without a public hearing, to oppose the uranium mine.
Powertech spokesperson Richard Blubaugh wrote that the action was “premature and unwarranted.” He said the council’s actions were based on “erroneous assumptions about uranium mining.”
Richard Clement, Powertech CEO, said he was surprised by the opposition which he said has “mischaracterized” the proposed operation. Clement pointed out the mine will inject $300 million into the local economy over the next ten years.
Ft. Collins City Councilwoman Lisa Poppaw, who sponsored the resolution against the mine, said her measure was designed to send a clear message that uranium mining is not welcome in Ft. Collins. The controversy may spill over into the Colorado State Legislative session this winter. Several northern Colorado legislators said they plan to review current laws to make sure they are adequate to permit uranium mines.
Powertech is currently in the permitting phase and plans to begin operations in 2010.
*** Late January 2008
Uranerz gets Pumpkin Buttes property
Uranerz Energy Corp. (AMEX:URZ) has acquired an undivided 81% interest in NAMMCO mineral properties covering 75,000 acres in the Pumpkin Buttes uranium mining district of the Powder River Basin, Campbell County, WY. Uranerz has tripled its holdings and now controls 108,982 acres (170 square miles) of mineral properties in the area.
Uranerz also entered into an agreement with United Nuclear, a company owned by the sellers of the NAMMCO properties, to operate a joint venture under the name "Arkose Mining Venture." NAMMCO will contribute a 19% working interest in the property.
Uranerz will deploy five drilling rigs to explore sites with historical geological data for the Nichols Ranch, Doughstick and Collins Draw areas.
In December the company submitted applications to federal and state agencies to construct and operate an ISR facility on the Nichols Ranch property.
* * *
Wave Uranium records claims in Utah, Arizona
Wave Uranium (OTC:WAVU) announced it recorded claims in Arizona and Utah, but was also hit by an anonymous "pump & dump" stock scam that was initiated by unknown third parties.
Wave Uranium, based in Las Vegas, NV, announced it has recorded 153 claims on federal lands in Gila County, AZ. The uranium deposits at Dripping Spring were first explored in the 1950s and later by Wyoming Minerals Corp, a division of Westinghouse. In the late 1970s Westinghouse estimated holdings of 4.5 million pounds of U3O8.
Wave also announced the registration of 1,327 claims in a 43 square mile areaq in Grand County, UT. The claim encompasses the Mineral Canyon mining district. No production data were made available regarding the claims.
In late December Computerworld reported that pump-and-dump scammers had developed sophsiticated videos to dupe consumers. Symantec Corp., an Internet security firm, said that one of them targeted Wave Uranium's stock.
Jitender Sarda, a Symantec analyst, said the video was 30 seconds long with sharp images, crisp sound, and the use of a false stock analyst commenting on Wave's stock. "The video looked like legitimate TV," he said. The video touted Wave's recent claims filed in Arizona and Utah. Until recently, most Internet-based pump-and-dump schemes relied on spam email. Also, over-the-counter uranium stocks have been frequent targets of pump-and-dumps schemes via anonymous postings on Internet discussion boards. Sarda said the significance of the high quality video is that represented a new level of sophistication in seeking to commit stock fraud.
Wave Uranium did not comment initially on the Computerworld report though the firm later denied any involvement in the scheme. Security researchers said the video may have been the work of Russian hackers who used compromised personal computers to send out the link to the video.
For the period 12/24/07 through 01/18/08 the stock remained at $2.00/share in the over-the-counter market except for a brief drop to $1.65/share over the three day period 01/09/08-01/11/08. It returned to $2.00/share on 01/14/08. Public trading of the stock began only recently in October 2007.
*** Side notes on "pump & dump" arrests
Pump-and-dump schemes often target over-the-counter stocks and can be profitable for the promoters assuming they don't get caught. On Jan 3 the Detroit Free Press reported that notorious Michigan spam king Alan Ralsky, his son-in-law, and nine others have been indicted in Detroit on charges of violating federal anti-spam laws.
The Michigan U.S. Attorney's office said the 41-count indictment said Ralsky and others used unsolicited e-mail to pump up the price of largely worthless stock in Chinese companies and sold the stock reaping huge profits and leaving Internet subscribers who purchased it holding the bag.
Ralsky had bragged to the newspaper in 2002 that he made millions from his spam operation and that he would never be caught. Prosecutors described Ralsky, 52, as one of the most prolific spammers in the nation. In the summer of 2005 alone, prosecutors said, his operation generated $3 million.
* * *
Bluerock shares up in Denison Deal
Shares in Bluerock Resources ((TSXV:BRD) rose 15% after the announcement of a deal with Denison Mines (TSX:DML) for sale of ore and a toll milling agreement. The deal is for a three-year agreement that allows for production and processing of 60,000 tons of uranium ore in 2008 and 100,000 tons in the two following years. Assuming the ore yields an average of four pounds U3O8/ton of ore, at $90/lb the deal is worth $93.6 million for the three year period.
Denison CEO Michael Collins said Bluerock is the first uranium company to negotiate a ore purchase and toll milling agreement at the White Mesa Mill located in southeastern Utah. The agreement affords Bluerock the opportunity to deliver uranium ore for immediate purchase and cash flow.
The ore will be mined from several of Bluerock's properties on the Colorado plateau. The firm has four projects - J-Bird Mine, which is under active development. It will be the earliest site for production. Three other mines are advancing with permit applications and production decisions pending. They are the Tramp Mine, Sunbeam Mine, and Cone Mountain Project. The J-Bird mine consists of 25 mineralized claims and is located west of the historic Uravan Uranium belt in Montrose County, CO.
* * *
Yellowcake acquires Colorado claims
Yellowcake Mining (OTC:YCKM) announced it has acquired 185 claims from American Nuclear Fuels covering 3,700 acres on the property known as the Beck Project, which is composed of 12 known deposits. The transaction includes a payment of $6 million and exchange of 2.77 million shares of stock. On 01/18/08 the stock closed at $0.98/share down from a historic high of $2.80/share in July 2007.
According to a company statement, prior exploration of the property indicates it has resources of 4.7 million pounds of U3O8. A nearby property produced 200,000 pounds of U3O8 in 1980 according to USGS documents reviewed by Yellowcake.
The Beck property is the second project for the firm following its development of the Juniper Ridge project in Wyoming. In March 2007, the company entered into an option and joint venture agreement with Strathmore Minerals Corp. on the Juniper Ridge Project properties located in Wyoming. Yellowcake has the right to earn an 80% interest in the property.
In February 2007 the firm raised $6 million and has 51 million shares outstanding.
* * *
Strathmore updates agreement with American Uranium
Strathmore Minerals (TSX:STM) updated its agreement with American Uranium Corp. (OTC:AUUM) for American to increase its exploration and development expenditures from $5 million to $12.75 million to earn a 22.5% interest in the Pine Tree Reno Creek project in Wyoming.
Last November American announced it has acquired a geological exploration database and paper records from Power Resources Inc. (ASX:PWW), a Cameco subsidiary, covering 1,100 drill holes.
In 2008 the joint venture between American and Strathmore will initiate permit applications and engineering design for an ISR facility.
American Uranium raised $6 million in August 2007 and has 45.6 million shares outstanding. On 01/18/08 the firm's stock closed at $1.10/share down from a historic high in July 2007 of $1.75/share.
Strathmore Minerals closed on 01/18/08 at $1.95/share down from a historic high in June 2007 of $4.40/share.
* * *
Powertech loses project manager for Centennial ISR
Powertech Corp. (TSX:PWE) continues to take heat from the public who are opposed to its proposed ISR operation in Nunn, CO, about 20 miles northeast of Ft. Collins. Vitriolic opposition to Powertech's proposed ISR caused the project manager to quit in frustration. Over 6,000 people have signed local petitions opposing the mine.
The company said in a press release on Jan 11 that Lane Douglas will be replaced by Terence Walsh who was previously the President and General Manager of ARCO's Thunder Basin Coal Company located in Campbell County, WY. Mr. Douglas will continue as a consultant to Powertech.
Meanwhile, several Colorado lawmakers announced they would seek new legislation to limit ISR mining in the state. Rep. John Kefalas, (D-Ft. Collins) said the bills would protect groundwater supplies in areas near the proposed mine. He was joined by Rep. Randy Fisher (D-Ft. Collins) The Denver Post reported that both men made their announcement at a media even on the steps of the state capitol surrounded by screaming anti-nuclear activists.
Powertech officials initiated a series of public meetings in Weld and Larimer counties to show residents the ISR mine would be safe. They previously pointed out that groundwater in the sandstone formations where ISR mining would take place would have high alpha readings and dissolved mineralization that would make it unfit as a potable water supply for any domestic purpose.
"The regulatory process requires us to study the geology for five quarters, to ensure the nature and safety of our proposed project," said Richard Blubaugh, vice president of environmental, health and safety resources for Powertech.
Powertech, which is a Canadian firm, also opened new offices in Wellington, CO, near the proposed mine site to promote communication with the public, and in a Denver suburb to put mine engineering design work closed to the site. The firm hired Michael Beshore as Powertech's Senior Environmental Coordinator. He is a geologist by training, education, and experience. He will work out of the Wellington, Co, office.
* * * Early February 2008
Powertech faces legislative challenges
Powertech Uranium Corp (TSX:PWE) isn’t a fly by night company. With exploration and development underway at projects in Colorado, Wyoming, and South Dakota, the Canadian firm ought to be well on its way toward reaping profits from the new uranium price increases of the past year. Well, things are not going according to plan. In Colorado the firm’s Centennial project east of Ft. Collins has run into a buzz saw of opposition from environmental groups who freely admit they want to shut down all ISR uranium mining statewide or at least have 100% guarantees on pollution control. Things are less intense at the Dewey-Burdock project which straddles the Wyoming and South Dakota border. However, Powertech has also run into the same lack of understanding that the groundwater in the area slated for ISR operations is already unfit for use by people or livestock and has been receiving deposition of dissolved uranium for eons.
In Colorado, two legislators submitted two bills that would effectively shut down ISR uranium mining in the state. Rep. John Kefalas (D-Ft. Collins) proposed a bill, H.B. 1161, that would require uranium miners to restore groundwater affected by ISR mining to pre-existing conditions. Rep. Randy Fischer (D-Ft. Collins) wants mining companies to show, H.B. 1165, that the technology exists to clean up all pollution that results from mining. Ft. Collins residents attending a symposium on uranium mining last week echoed the intent of the proposed legislation calling for “100% certainty” on all pollution related matters for ISR uranium mining.
The Colorado legislature postponed a vote on the controversial bills based on opposition from the mining industry and several firms including Powertech. At a legislative hearing on Jan 31 Stuart Sanderson of the Colorado Mining Association said the proposals were “impractical and unprecedented” and that they were not consistent with federal regulations. He pointed out that Colorado already has a regulatory framework in place to cover uranium mines. Powertech President Richard Clement said the bills were too far reaching and for all intents and purposes would ban ISR mining in Colorado.
Kefalas and Fischer found themselves on the receiving end of bipartisan complaints from other legislators they had not been consulted before the bills were introduced to this session. The Rocky Mountain News published an editorial noting that critics of the ISR project have failed to provide a satisfactory answers to questions about the bills.
Things are moving along at the Dewey-Burdock project. In January 2007, the Company received an exploration permit from the South Dakota Board of Minerals and Environments to complete 155 drill holes on this project. Powertech reported a NI 43-101 inferred resource of 7.6 million pounds of uranium within the project area, averaging 0.21% eU3O8.
Richard Clement, President & CEO, stated, "we are very pleased with the results to date of our drilling program at Dewey-Burdock. This drilling program has confirmed historical drill information and has demonstrated the potential to expand the resources within Powertech's property." At least the guy has one thing to cheer about.
* * *
Uranerz Energy Corp. (AMEX:URZ) announced that it has completed the acquisition of an 81% interest in the NAMMCO mineral properties, covering over 75,000 acres in the Pumpkin Buttes uranium mining district of the central Powder River Basin of Wyo. The cost of Uranerz’s 81% share is $24.8 million according to the firm's filing with the SEC. Uranerz has effectively tripled its property position in the Powder River Basin and now controls a total of approximately 108,982 acres or approximately 170 square miles) of mineral properties in the area.
In connection with the closing of the transaction, Uranerz has entered into a joint venture agreement with United Nuclear, a limited liability company owned by the sellers of the NAMMCO properties to operate a joint venture under the name "Arkose Mining Venture".
United Nuclear will acquire a 19% working interest in the Arkose Mining Venture for which it will pay $5.8 million according to a filing with the SEC.
Uranerz will be the manager of the joint venture and plans to operate up to five drill rigs on the NAMMCO properties to implement an aggressive exploration program based on historic geologic data compiled by the NAMMCO Sellers and on Uranerz's exploration knowledge and expertise in the Powder River Basin.
Part of the initial drilling program will be targeted to explore resource and mineralization extensions near or adjacent to at least three Uranerz projects known to have uranium mineralization: Nichols Ranch, Doughstick and Collins Draw. In December 2007 Uranerz submitted applications to the federal and state regulatory agencies for licenses and permits to construct and operate in-situ recovery ("ISR") uranium facilities on the Company's Nichols Ranch and Hank projects.
At market close on Feb 1 Uranerz stock was near its 52-week low of $2.11 at $2.81/share (52-week high of $7.65).
* * *
USA Uranium (OTC:USAU) said it had completed acquisition of a 75% interest in the LaSal West mineral claims in Utah. The property consists of 111 BLM claims over 2,200 acres. The property includes the Bluejay Mine, the M-6 mine, and the Balsley mine. Previous production from these mines from 1 million tons of ore included 0.35% U3O8 and 1.5% Vanadium.
The terms of the joint venture require the firm to issue 4 million shares. At market close on Feb 1 the firm’s stock traded at $0.75/share (52-week high $1.40) making the deal for their 75% share worth $3.0 million. The selling party and others in the joint venture were not disclosed. Presumably, the other part holds a 25% share worth $1 million.\
* * *
Utah Uranium (OTC:UTUC) announced the signing of an agreement to purchase a 100% interest in the "Wild" claims, located north of Hanksville, Utah. The Wild claims consist of 23 mineral claims located within the Henry Mountains in Utah. The company is acquiring the claims from Christian (Ted) Murer P.Geo, a prospector and geologist. He assembled the Wild claims, as well as the previously purchased Pinto claims, using the same data and methodology.
The Wild claims consist of 23 mineral claims located within the Henry Mountain Syncline of East Central Utah. The Company has recently completed a 10 hole, first phase drilling program on the Pinto claims, and is awaiting government approval for the 20 hole Phase two drill program. Historically, there were a number of drill holes made on the Wild property by Continental Oil Company in 1969. As part of their activities, down-hole logging was performed on these holes, revealing radioactive mineralization in 11 holes.
Cost of the acquisition to the Company includes the issuance of a total of $275,000 and the issuance of 600,000 shares within the following time frame: 100,000 shares and $75,000 on signing; 250,000 shares and $100,000 by January 15, 2009; and 250,000 shares and $100,000 by January 15, 2010.
At market close on Feb 1 the firm’s stock traded at $0.42/share (52-week high $1.98). The initial value of the first payment is $117,000. The total value of the deal will depend on the firm’s performance and stock price for the next two years.
* * *
Wave Uranium (OTC:WAVU) announced it has begun field work on mining claims and state leases around Mineral Canyon, Utah. The properties cover 27,000 acres of claims in Grand County and 6,456 acres of state leases in Grand and Emery Counties. Geologic mapping was completed in November 2007. Drilling will begin in Spring 2008.
* * *
Dumont Nickel (TSX:DNI) has expanded its field work at the Marysville, Utah, property in the U-Breva uranium zone. The exploration zone comprises 15 square miles of mineral properties in Clifton-Gold Hill mining district.
Approximately 1.1 million pounds of U3O8 were produced from the Marysvale Mining District, during the 1950’s-1960's, from various mines located mostly in its eastern portion (the Central Mining Area). Historic grades typically range 0.1%-0.2% U3O8, with higher grades ranging 0.2%-0.4% U3O8, to as high as 1.1% U3O8 reported from an underground cut at the historic U-Beva Mine located on Dumont’s claims.
At market close on Feb 1 the firm’s stock traded at $0.06/share (52-week high $0.32).
* * *
Buckingham Exploration (OTC:BUKX) exercised its option with Proteus Mining (privately held) to acquire 419 unpatented claims near Canon City, Colo. The terms are a payment of $215,000 and three million shares of stock. At market close on Jan 25 the firm’s stock traded at $1.00/share (52-week high $1.30) making this portion of the stock portion of the deal worth $3 million. An additional payment of $2 million will be made in phases on completion of certain milestones in the agreement.
The deal makes Buckingham one of the largest holders of mineral rights and uranium exploration claims in this area of Colorado. The claims are now grouped into 6 separate properties, with each property consisting of a varying number of uranium claims. The acquired claims are hosted in the Oligocene Tallahassee Creek Conglomerate, the Eocene Echo Park Formation, and Wall Mountain Pass Formations. Each claim covers a land surface area of 20 acres.
Most of the claims are located within close proximity (50 mile radius) of the Cotter uranium mill located in Canon City. The mill suspended operation in 2001 and is currently in the process of refurbishment. It is expected reopen in 2010. Virtually all of the properties have been previously owned, drilled or worked on by one of the major uranium companies that operated in the area during the last uranium boom that took place in the late 70s and early 80s. These companies include: Union Carbide, Cypress Mining, Urania, Westinghouse and Cotter Corporation.
Neutron Energy (privately held) submitted an application to conduct exploratory drilling near Seboyeta, N.M. George Byers, VP said the firm has 25 years of data, but wants to conduct the drilling to verify the information.
He’s cautious about the regulatory environment in New Mexico. He told the Cibola County Beacon, “No one in the Mining & Minerals Department (of the state of New Mexico) has approved a uranium mining permit. This is going to be a learning process for all of us.” He ruled out ISR mining because the claim it holds isn’t receptive to this process.
The firm received support in the legislature on an action from Sen. David Ulibarri (D-Cibola) which passed a resolution supporting resurgence of mining in the area. It asked several state agencies with jurisdiction over the mining permit to collaborate to remove barriers to uranium production in the state.
* * *
Bayswater Uranium Corp (CDNX:BAY) announced it has entered into an agreement to acquire the remaining 10% carried interest in six uranium properties, three located in the Athabasca Basin region of Saskatchewan and three located in southwestern Nevada.
The 10% carried interest was held by Bullion Fund Inc. an Alberta corporation, acting as agent for the owners. U.S. properties included in the agreement are the Carol R Mine (24 claims) and Holiday Mine (20 claims) located in Mineral County, Nevada and the Green Monster Mine (80 claims) in Clark County, Nevada.
Bayswater initially acquired a 90% working interest in the properties as a result of the amalgamation with Northern Canadian Uranium Inc. which closed in December, 2007. Under the terms of the purchase agreement, Bullion will sell its 10% working interest to Bayswater for $125,000 cash payable on the closing date and $225,000 worth of stock based on the closing share price. On Feb 1 the stock closed at $0.59/share near its 52-week low of $0.54/share (52-week high $2.47/share). At the current share price the deal will require 381,355 shares of stock.
In terms of the Nevada properties the Carol R property is centered on the historic Carol R open pit uranium mine, which produced uranium in 1955-56. Historic reports indicate uranium minerals occur at a reported 0.94% U3O8. The property was drilled in 1972 and historic reports state that significant inferred uranium resources were identified.
The Green Monster property surrounds 4 patented mining claims, not held by the Company, that cover the historic Green Monster mine. The Green Monster mine produced significant lead and zinc, which contained reported elevated uranium content. A 5 ton bulk sample from the mine, collected in 1951 reportedly contained 1.09% U308 with individual samples containing up to 10.5% U3O8.
The Holiday Mine contains structural and intrusive hosted uranium mineralization that will be evaluated during the upcoming field programs.
* ** Late February 2008
Magnum Uranium (CVE:MM) has started drilling the Big Hank Exploration Project in the Salmon-Challis National Forest. The firm will drill 21 exploratory holes from 30-to-100 feet deep. It is the first uranium exploration work to take place in Idaho in quite some time. The area has been heavily mined in the past for other minerals. The Yankee Fork was a famous gold mine and the Thompson Creek molybdenum mine is downstream. According to Magnum 7,000 tons of uranium were removed during the 1950s and early 1960s. The firm said it’s initial survey indicated a “large and significant uranium anomaly” in the area in sandstone embedded in old stream channels.
Friends of the West, an environmental group, called the exploration “totally irresponsible” and said it would harm migrating salmon. The Idaho Conservation League said it would take a wait and see approach and respond only if a mine looked like it would be established as a result of the prospecting.
In other news Magnum announced it had completed ahead of schedule the terms of its joint venture with Energy Metals Corp. ( a subsidiary of Uranium One) on a 6,000 acre property in the San Rafael district in Emery County, Utah, and on the 360 acre ‘Wild Buck’ property in Converse County, Wyo. Magnum now owns 80% of the two properties. Magnum completed $1.0 million in expenditures in drill programs on the two properties and issued 600,000 shares of stock. It subsequently issued an additional 250,000 common shares. Preparation of an NI 43-101 report is in progress.
On Feb 15 Magnum stock closed at $0.72/share against a 52-week high of $1.64/share this time last year. At this price the newly issued shares of common stock would be worth $612,000. In May 2007 the firm closed a private placement raising $3M CDN for 2.86 million shares of stock at $1.05/share.
* * *
Vane Minerals, (LSE:VML), a U.K. company, stepped into a huge controversy after receiving a permit from the U.S. Forest Service to explore for uranium just outside the Grand Canyon National Park. The firm received approval from the government to drill at seven sites one of which is three miles from a popular tourist lookout over the canyon’s south rim. The Kanab National Forest Supervisor approved the drilling using a “categorical exclusion” from environmental impact analysis because the exploration will have a duration of less than a year and might not lead to a request to mine the area.
Matthew Idiens, an executive for the mining company, said at least seven mines have been active in the area in the past and as a group have yielded 24 million pounds of uranium. He said full reclamation of any new mining would involve closing up new shafts.
Barbara McCurry, a spokesperson for the Kanab Forest, said the government has little choice with regard to the drilling request under the 1872 mining law. She told the New York Times, the impact of exploratory drilling is “pretty minimal.”
The mining activity near the Grand Canyon may become a poster child for efforts to reform the 1872 law. Dusty Horwitt, an analyst for the Environmental Working Group, told the New York Times the Kanab Forest’s actions will generate support for efforts to get legislation approved in the House moving in the Senate.
Vane Minerals stock closed Feb 15 on the LSE at $12.50 near a 52-week low of $11.67.
* * *
Powertech Uranium (TSX:PWE) completed its field activities and chemical analyses from its drilling and coring program for the controversial Centennial project in northeast Weld County, Colo. The drilling program, authorized under a permit from the Colorado Department of Natural Resources confirms the presence of uranium deposits on the 5,700 acre site identified by the Rocky Mountain Energy Company in the late 1970s. A recently-completed NI 43-101 compliant technical report outlined two key uranium deposits with total inferred resources of 9.7 million pounds U3O8. Powertech also said the drilling confirms high horizontal permeability of the Fox Hills sands which will facilitate the movement of oxidizing solutions to contact uranium in the formation.
Powertech has been under pressure from environmental activists in nearby Larimer County to stop the project. However, this week Larimer County Environmental Advisory Board declined to make a determination the proposed ISR operation would cause pollution problems. Mike Erickson, a member of the board, told a local newspaper the board does not have data that says how likely the potential would be for the mine to harm water, soil, air, and affect the economy. The board’s report, which has no regulatory effect on the mine, said, “The board is not able to quantify the likelihood of such risks but merely identify them.” The Colorado Medical Society, and several local environmental groups, have issued statements saying they fear a worst case scenario. Larimer County Commissioners will meet on Feb 25 to consider whether to issue a statement on the proposed mine.
Powertech Stock closed on Feb 15 at $1.13 against a 52-week low $0.83 on Feb 11.
* * *
Bluerock Resources (TSX:BRD) signed an agreement with Uranium Mineral Services Corp. to purchase assets associated with the Pine Ridge Uranium Mine in the La Sal District in southeastern Utah for $1.8 million. The asset has historic production of 540,000 pounds U3O8 (ore grade 0.17%) and 2.7 million pounds V2O5 (ore grade 0.85%). Blue Rock said it would commence production at the mine in 2009.
On Feb 15 the stock closed at $0.75 compared to a 52-week range of $0.28 (Aug-07) – $0.94 (Nov-07). As of April 2007 the firm had 19 million shares outstanding with 17% owned by insiders and 21% by institutional investors.
# # #
That was the week that was
