RESOURCE UPGRADE ESTABLISHES RÖSSING SOUTH AS THE 6TH LARGEST GLOBAL URANIUM DEPOSIT
Highlights:

•Resource upgrade moves Rössing South into the top 6 global uranium deposits by contained metal.
•Zones 1 and 2 Indicated Resource increased to more than a quarter of a billion pounds (257M.lbs) U3O8: a ten-fold increase in Indicated Resource from the previous resource statement (ASX release 22nd July 2009).
•Inferred Resource of 110M.lbs U3O8, including Maiden Inferred Resource from Zones 3 and 4.
•37% increase in Total Resource size from previous resource statement (ASX release 22nd July 2009).
•Confirmed as the largest in-situ and highest grade granite-hosted uranium deposit in Namibia.
•Extensive exploration potential within Husab Uranium Project still to be tested with an extensive drilling program continuing.
•Resource now defined to support completion of Definitive Feasibility Study (DFS).

The size and grade of the new resource confirms Rössing South as one of the most significant uranium discoveries made in the last decade, and establishes it as the largest in-situ and highest grade, granite-hosted uranium deposit in Namibia. The increased resource underpins the Company’s next milestone, which is the completion of the Definitive Feasibility Study (“DFS”), and takes Extract another step forward from a successful explorer to becoming a major uranium producer.

Mineralisation is still open in zones 1 and 2 and there are still areas yet to be tested, with the company only having explored 8km of a 15km target zone.

I’ve delayed adding this image to the blog until I thought that the trend was becoming steadier….

Interestingly the Global Uranium Fund (GURAF) isn’t looking very strong.

I wonder if the shift in the image is more due to the USD outlook?

PALADIN Energy has signed an agreement with China Guangdong Nuclear Power to explore uranium sales deals.

The uranium miner said the memorandum of understanding will also include a possible expansion of joint venture relationships between Paladin and Energy Metals, of which CGNPC holds a 69 per cent stake, without providing more details.

Energy Metals has a 54 per cent stake in the Bigrlyi uranium prospect in Australia’s Northern Territory. Paladin owns 41 per cent of the prospect.

The statement also said the Chinese group could participate in Paladin’s growth strategies.

Looks like there is a run on the ASX listed Uranium juniors…

14/07/2010

Summary of Extract Resources- ASX: EXT

Sadly the Australian Uranium share index doesn’t look at all encouraging.

At the moment after breaking through the 2009 support trendline (see the image below) the index is looking at a lower low. Link shows the last 12 months chart

I wonder if it is possible that we will see a re-run down to the 08 lows?

I’d like to see an up-tick before buying into our Uranium plays….

The link below shows the year to date….
http://australianuranium.com.au/australian-uranium-graph.html

China Seeking Long Term U3O8 Supply Contracts
BY RUDI FILAPEK-VANDYCK - 29/06/2010

It would appear that China has emerged as the potential saviour of uranium prices this month. Industry consultant TradeTech notes how buyers have taken the view that spot U3O8 prices have probably seen their bottom this year and that higher prices from here onwards should be expected.

The switch in market view appears to have come on the back of indications that Chinese buyers are seeking to secure long term supply contracts. The Chinese market emergence comes at a time when the US Department of Energy (DOE) has again entered the market to sell the final lot of inventory being sold in 2010 to fund cleanup efforts at the Portsmouth enrichment facility.

In the past, whenever the DOE offered uranium for sale, prices and overall market activity have tended to weaken.

The DOE is inviting bids for just over 250,000 tonnes of uranium in the form of UF6. TradeTech reports bids are due no later than July 2, with delivery to occur on August 6, 2010.

TradeTech estimates over 500,000 tonnes in uranium equivalent changed ownership last week and a further 200,000 is expected to have changed hands on Monday or Tuesday.

The uptick in overall market activity has caused a minor rise in the consultant’s weekly spot price indicator; from US$40.75 to US$41/lb (up US25c).

TradeTech’s mid-term price indicator has remained unchanged at US$50/lb, its longer-term indicator has remained at US$60/lb.

I will publish the Australian and Global share index data in the evening or early am.

Europe Crisis Hits Uranium
BY GREG PEEL - 25/05/2010
http://www.sharecafe.com.au/fnarena_news.asp?a=AV&ai=16792

Uranium sector consultant TradeTech has lowered its weekly uranium spot price indicator from US$41.25/lb to US$40.75/lb this week.

The drop is a disappointment given sellers had been hoping clearance of the big US Department of Energy sale order, which had been overhanging the market but was satisfied last week, would open the market up to some healthier trading levels.

There was indeed an immediate price jump, TradeTech reports, but this gave way later in the week such that Wednesday’s prices were US$1.00 above Friday’s prices. TradeTech takes an average of transaction prices to determine its weekly indicator.

Last week saw eight spot price transactions totalling one million pounds but none in the term market.

TradeTech suggests the price decline was prompted by a combination of factors including some sellers’ need to raise cash, the availability of inventory insensitive to price, and general nervousness surrounding the European debt crisis and weaker euro.

With Europe hanging as a cloud over everything at present, it seems the uranium market is also in the shadows.

Investments In The Nuclear Energy Industry Declined Marginally In 2009
Global investments in the nuclear energy industry witnessed a decrease of 5%, reporting $145.7 billion in 2009 compared to $152.9 billion in 2008. The difficulty in raising finance, start-up expenses, coupled with the global economic downturn led to an overall investment decline in 2009. However, the number of deals increased from 724 deals in 2008 to 822 deals in 2009. Read More

GlobalData’s “Nuclear Energy Annual Deals Analysis 2010” report is an essential source of data and trend analysis on the mergers and acquisitions (M&A) and financings in the nuclear energy market. The report provides detailed information on M&As, equity/debt offerings, private equity (PE), venture financing and partnership transactions registered in the uranium mining and processing, equipment and services, and power generation markets in 2009. The report provides detailed comparative data on the number of deals and their value in the last four quarters subdivided by deal types, segments, and geographies. Additionally, the report provides information on the top private equity, venture capital (VC), and advisory firms in the nuclear energy industry.
The data presented in this report are derived from GlobalData’s proprietary in-house Nuclear Energy eTrack deals database and primary and secondary research.