China's Battle for African Uranium

by JAMES FINCH

As reported by the Wall Street Journal, Sunday night’s revelations that China National Nuclear Corp (CNNC) may strengthen its ties to UraMin

could represent a broader picture than an ordinary acquisition of a near-term uranium producer.

There is an ongoing global war for energy security, which appears to be politically inspired. China and Russia are the main opponents, especially in Africa, but have rivaled each other, over the past several years, in Central Asia. The goal for both nations is not only energy security but political influence and alliance over their targeted territories.

On May 12th, Russia, Kazakhstan and Turkmenistan signed a declaration to upgrade and expand transport pipelines along the Caspian Sea coast directly to Russia. The project relies mainly upon the vast Turkmen gas reserves. This is part of Russia’s growing monopoly of Central Asian gas. Although Europe was shocked by Vladimir Putin’s new arrangement, the Chinese were flabbergasted.

We’ve been following developments in Central Asia, and had reported upon milestone events in both of our uranium publications, and again (with far greater details) in our soon-to-be-released Investing in China’s Energy Crisis.

After more than two decades in power, Turkmen strongman Saparmurat Niyazov passed away this past December. In April 2006, Niyazov had signed a framework agreement on oil and gas cooperation. By August, Niyazov had announced a pipeline, designed to pump gas to China, would be opened in 2009. The deal died with the dictator, it appears.

A few weeks ago, a spokesman for China’s National Reform and Development Committee announced China was unlikely to reach its natural gas target of a 10-percent portion of the country’s energy portfolio by 2010. Increasingly, Russia has shut China out of Central Asia in obtaining long-term, multiple energy sources.

Aside from South America, where China has strengthened the country’s ties with Venezuela and others, Africa is a prime hunting ground for China’s future energy security. China has established a strong foothold in the Sudan for petroleum. But, Africa is rich in uranium deposits.

According to a report published by the International Atomic Energy Agency in 2005, Africa has 18 percent of the world’s known recoverable uranium resources – about six percent less than Australia and one percent more than Kazakhstan. We began coverage on both Namibia and Niger, after Russia sent a delegation to Egypt to discuss the nuclear renaissance. At the time, our research pointed to Africa, particularly those countries, as ripe for future uranium production. Chinese prospectors raced to Niger within weeks after our initial coverage.

During 2006, Namibia became saturated with numerous exploration plays hoping to capitalize on the country’s uranium resources and relaxed environment. Consequently, the Namibian Minister of Mines and Energy closed the country’s exploration window. Since then, Niger has become a new hunting ground. We expect this country to become just as saturated as Namibia has been.

China is eager to capitalize upon the continent’s uranium resources before Russia outmaneuvers them as has been accomplished in Central Asia.

According to an email we received from TradeTech’s Gene Clark, after presenting at the China Power & Alternative Energy Summit on May 18th, he told us China’s official target for nuclear power capacity was ‘40 GWe by 2020 and another 18 GWe in the following five-year plan.’ This confirms China’s aggressive plans to acquire sufficient uranium to reach this capacity, and would be foolish to rely on just Australia.

Typically, China has built its energy portfolio through numerous deals across multiple regions. This past October, Yang Changli, vice president of China National Nuclear, said it would seek uranium not only from Australia, but from Canada, Kazakhstan, South Africa and Namibia. In an interview Yang gave during the 15th Pacific Basin Nuclear Conference, he said, “China won't rely on any single supplier of uranium because of energy security considerations.

Namibia is the First African Focus of Uranium Politiques

On May 14th, Russia’s second-largest bank Vneshtorgbank and Russia’s state-run nuclear exporter Tekhsnabexport announced they were considered a joint venture to operate in Namibia through licenses they directly hold and through investments in other companies which have obtained licenses in Namibia.

In March Russian Prime Minister Mikhail Fradkov announced his country was prepared to building nuclear plants in Namibia. Neighboring South Africa had previously warned Namibia to expect reductions in energy supplies. Namibia is dependent upon South Africa for electricity and has forecast an energy deficit of 300 megawatts within the next three years.

On May 10th, Russia and Kazakhstan signed an agreement to set up the International Uranium Enrichment Center, anticipated to come onstream by 2013. As part of this announcement, Sergei Kiriyenko, head of the Federal Nuclear Power Agency, said, “Any country can become a member of the center by signing an intergovernmental agreement granting it guaranteed access to uranium enrichment services.” We conclude Namibia may wish to participate in this arrangement.

Enter CNNC on Sunday night. The Chinese company’s deputy general manager for uranium procurement announced to Bloomberg News that CNNC and UraMin will start ‘more formal’ talks this week.

UraMin is a prime acquisition candidate for the Chinese because of its uranium prospects in both Namibia and Niger. The company also has holdings in South Africa and the Central African Republic.

We are now facing a new era of uranium politics or rather ‘Uranium Politiques.’ And there is good reason for this to escalate. Yesterday, the U.S. Energy Information Administration issued ‘International Energy Outlook 2007.’ The report announced, “World marketed energy is expected to grow by 57 percent between 2004 and 2030.”

The most rapid growth in energy demand is anticipated in non-OECD Asia. The majority of this energy demand growth would come from China and India. This was the reference case – the middle ground of growth.

Also on Monday, leading Russian nuclear expert Yevgeny Velikhov, head of the Kurchatov Institute, told reporters at a news conference that the recent surge in uranium prices “may still grow by another order of magnitude.” He believes the uranium price will continue to rise as global uranium demand soars while supplies remain tight. “The global energy market is very turbulent,” Velikhov said. “The uranium price can hit any mark at a time of crisis.” Ironically, both crisis and turbulence have come about because of the Asian and Russian scramble to lock-up the uranium resources of entire countries.

The energy battle in Africa is good news for the two front-runners in Namibia: UraMin and Forsys Metals. We’ve called this a horse race, over the past several months. Both endeavor to become the ‘next miner’ following Paladin Resources in this country.

Yet, both companies are vulnerable to acquisition efforts by Russian or Chinese companies. Or either could be acquired by one or more majors hoping to build up their uranium reserves. In the case of Rio Tinto, acquiring one or both could mean expanding uranium operations in this country.

Acquisition Candidates

Just as the announcement by Energy Metals Corp, regarding a potential sale of the company, fueled weekend speculation as to the ‘next’ takeover candidates, the same could occur this week with African acquisition candidates.

One might be misled into believing China would focus on Niger, where the company has built a foundation, and Russia’s focus would remain in Namibia. However, in a state visit to China this week, Namibian Defense force chief exchanged views with Guo Boxiong, Central Military Commission vice chairman, on promoting relations between the two countries.

In February, Chinese President Hu Jintao visited Namibia to sign an economic deal with Namibia giving the country a grant of US$4.3 million and an interest-free loan of the same amount. Reportedly, some of the money would be used to boost group tourism from China to Namibia. This is the same tactic China has utilized in courting relationships in South America to help develop natural resource deals.

With US$1.2 trillion in foreign currency reserves, China is exercising its financial biceps. In March, the country formed the Huijin Fund as the state’s investment arm. Up to US$400 billion have reportedly been placed in this fund for investment purposes. On Sunday night, the Huijin Fund invested US$3 billion to purchase a stake in about 9.9 percent of the Blackstone private equity firm. Our research suggests the fund is likely to strongly invest in natural resources.

On this basis, we can not rule out a simple carving of Africa. We don’t believe China will quietly step back and focus the country’s uranium acquisition efforts in Niger, permitting Russia to concentrate on Namibia and South African uranium.

In Niger, we covered two ‘early days’ prospective uranium juniors over a year ago. North Atlantic Resources acquired a uranium permit in the 1900-square kilometer Abelajouad in this country. This past April, the company increased its holdings to nearly 3,000 square kilometers. In late April, Northwestern Mineral Ventures announced uranium mineralization in assays from rock samples after a first-pass reconnaissance on its In Gall and Irhazer uranium properties. Both would need to further explore their properties before attracting serious interest from the Chinese.

However, in Namibia both UraMin and Forsys Metals are actively progressing toward mining uranium on their properties. Either could be the first, but we believe both should become winners in the uranium bull market. Because China has carefully aligned with UraMin, or at least shown an inkling to do so, we suspect Russia might begin to look more carefully at Forsys Metals. This is purely speculation based upon our premise of ‘uranium Politiques.’ We do not have any ‘inside track’ on this matter.

Fortunately, we had the opportunity to chat with Forsys chief executive Duane Parnham late last week. His company had announced the completion of the pre-feasibility study on the company’s Valencia uranium deposit in Namibia. We missed the company’s conference call, but were allowed the opportunity to discuss his company’s prospects and future plans during a telephone call.

The company’s pre-feasibility study was prepared by Australia-based Snowden Mining, which used the guidelines of Australia’s JORC code. Subsequently, the Valencia uranium mineral reserve was classified as Probable Reserves. These were calculated at 24 million pounds U3O8.

We asked about production. “We are now modeling 2.4 million pounds per year,” Parnham told us. He expects to payback in less than two years. With Forsys as with all near-term producers, some early conversations have begun about pre-selling the company’s uranium production after production has commenced.

His company’s news release talked about six month of stripping during the initial part of the operation so we started there. “We’ll start when we get a mining license and then looking at production.” When will the company complete its ongoing environmental assessment? “We are hoping to have an environmental decision by year end,” Parnham told us. “We are hoping to have enough data to apply for a mining license in early 2008. If that’s successful, then obviously the decision to go forward will be made at that time.”

For the time being, the company plans to expand its resource. “The pre-feasibility is just the first snapshot of the situation,” he said. “We are finding the pit optimization study is only looking at a very small portion of the overall resource.” Does that mean the resource is actually larger, then? “It’s a heck of a lot bigger,” he told us. “It’s just a function of how much data you have available to punch into the model. Then, how much does the model give you back? The evaluation process is ongoing. You’ll probably see a change in the pit design very shortly because we have the ability to move more resource into the reserve category.”

We talked about his company’s horse race with UraMin. How does it look? “Neck and neck, toe to toe,” Parnham said. “I think it shows there’s opportunity in Namibia, and that’s good that there are a number of us working for a common goal.”

Finally, we asked what has emerged as the key question: Is Forsys a ripe plum for the picking. He offered both sides of the coin. “Where the real opportunity lies is putting a property into production,” he responded. “The operation isn’t all that difficult so it’s not a deposit that our expanding team couldn’t put into production.” And then Parnham left the door open. “Anything can happen. It’s an open market, and we are a public company. But, we are certainly geared toward putting this into production.”

And from what we’ve seen among the recent, significant consolidations, those companies who have commenced production, and those closest to production, are the prime acquisition candidates. Why should companies developing projects in Africa become the exception instead of the rule? Especially when two super powers are both eagerly trying to establish stronger uranium footholds in this continent.

COPYRIGHT© 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to StockInterview.com and other publications. His focus on the uranium mining and nuclear fuel sector resulted in the widely popular “Investing in the Great Uranium Bull Market,” which is now available on http://www.stockinterview.com and on http://www.amazon.com

Related Articles - China, Africa, Uranium, Namibia,

Atomic Minerals Drills for Uranium in Colorado, Looks to Acquire in Tanzania

by ANDREW BURGER

It stands to reason that governments around the world are looking to expand their use of nuclear energy in coming years given the potentially catastrophic effects of

climate change and the current international focus on reducing carbon dioxide greenhouse gas emissions. More than 130 new nuclear power plants are under construction worldwide and the World Nuclear Association forecasts that demand for uranium will grow between 25% and 50% per annum over the next 13 years.

Uranium ore prices have begun rising again this past month, breaching US$90/lb., after having fallen back and settled around the US$80/lb. level after skyrocketing up to US$138/lb. in June this year from lows around US$7/lb. that lasted decades and prompted mine closings and the curtailment of exploration programs. Lately it’s been sharp run-ups and volatility in oil and gold prices that have attracted the focus of energy and mineral resources investors and the media.

Energy and uranium market fundamentals haven’t changed, however. The base case reference scenario for the US Energy Information Association’s International Energy Outlook 2007 is based on worldwide electricity demand increasing 2.4% per year, from 16,424 billion kilowatt-hours in 2004 to 303,364 in 2030, most of it non-OECD nations. Coupled with ever greater resources being devoted to mitigating climate change and significantly cutting back global greenhouse emissions, junior uranium explorers such as Vancouver’s Atomic Minerals Ltd. (TSX.V:ATL) are raising capital and gearing up to follow through on ambitious acquisition and development plans.

From Southwestern Colorado… Listing on the Toronto Venture Exchange in June, Atomic Minerals owns 932 claims covering 19,250 acres and has signed a Letter of Intent to purchase an additional 1,585 acres on what it considers to be a prime, untapped area for uranium ore prospects: the Dolores Anticline, a large, asymmetrical northwest-trending fold in southwestern Colorado’s Dolores and San Miguel counties.

Located within the Paradox Basin and Uravan Mineral Belt some 30 miles from southeastern Utah’s Lisbon Valley, this area in the Four Corners region was the scene of a uranium boom in the 1950’s after an initial discovery by “Uranium King” Charles A. Steen led to the development of a number of mines. In total, these have produced more than 80% of the uranium mined in Utah—in excess of 103 million pounds.

Atomic management considers Dolores to be the last saltwater anticline in the southwestern US with excellent uranium ore prospects. A recently completed NI 43-101 report confirmed that the claim area, which is approximately 30 miles away from Denison Corp.’s White Mesa Mill, has the potential to host a uranium deposit and Atomic has put together exploration plans for a US$2 million Phase Two drilling program to further explore and define the potential resource.

The Salt Wash Member of the Morrison Formation of Late Jurassic Age and the Moss Back Member of the Late Triassic Chinle Formation in and near the Uravan Mineral Belt in San Miguel, Montrose and Dolores Counties, Colorado have produced economically significant amounts of uranium ore. Drilling programs on the Dolores Anticline conducted by Hunt Oil and Newmont in the 1970s indicated that the uranium ore-bearing Moss Back Member of the Chinle Formation is present in the area.

Atomic on November 15 announced that it had begun drilling on a first transect of a planned 30,000 feet for the Summit Point and Box Canyon Exploration Projects in San Miguel County.

“Our initial drill hole at Summit Point will be looking for the mineralized zone of the Moss Back member of the Chinle Formation. Upon completion of this hole, we will be working along the flank of the Anticline with the next eight holes. Our rotary drill rig is running 24 hours a day, and this first hole of up to 2100 feet should be completed by Friday morning.”

Additionally, the Dolores Anticline was drilled by both Hunt Oil and Newmont in the 1970s. Drill logs from this wide spaced drilling indicate that the favorable Moss Back Member of the Chinle Formation is present in the area.

Atomic also owns 119 claims spanning 2,460 acres known as the Troublesome Creek property where a potential resource estimated as high as 6-7 million tons U308 grading between 0.08 to 1.14% holds out the possibility of in situ leach processing of uranium channels. Similar potential, as well as mining an unconformity type uranium deposit, exists at the Little Wolford property, where Atomic has filed for a state lease covering 640 acres. Rounding out Atomic’s Colorado holdings, the Beaver Creek property consists of 27 claims spanning 540 acres adjacent to a Newmont exploration project that has reported grades of 0.35-1.33% U308.

…to Southwestern Tanzania Atomic has also cast its net farther afield. It has signed a Letter of Intent with Tanzania’s Geo Can Resources for an option to acquire up to a 100% interest in a land package totaling approximately 1.3 million acres located in the United Republic of Tanzania.

The LOI for the option covers ten licenses and seven parcels of land with known occurrences of uranium in southwestern Tanzania, as well as three “key” parcels in the Ruhuhu Basin, part of the Malawi Extension where 60 kilometers away in Malawi Perth-based Paladin Resources Ltd. (TSX:PDN) is developing its Kayelekera uranium ore project.

Atomic’s agreement with Geo Can Resources on the shores of Lake Nyasa, also known as Lake Malawi, extends into southern Africa’s Karoo Basin system, a deposition region known to contain significant sandstone-hosted roll front uranium deposits of the same type found on the Colorado Plateau and the world-class Mi Vida Mine near Moab, Utah that are mined by in situ leaching methods.

Current estimates for Paladin’s Kayelekera project in neighboring northern Malawi holds measured and indicated resources of 14,000 tonnes U308 and an additional 2,000 tonnes inferred. Paladin completed a Bankable Feasibility Study for Kayelekra early this year, has met environmental regulations and is investing US$185 million to develop a mine site. Production is expected to commence late in 2008 and expand up to 1270 tonnes per year.

Australia’s Western Metals (ASX:WMT) on Oct. 22 reported that ongoing drilling and trenching at its Mtonya project continues to discover high-grade uranium mineralisation over a 7 kilometre trend including 1.2 meters at 7,723 ppm U308 and 0.8 m at 1,035 ppm at the Grandfather prospect. Western Metals plans to spend A$3.5 million on exploration in Tanzania over the next 15 months.

Uranium Mining, Business & the Environment Tanzania has set a goal for the mining sector to grow from a current 2% to 10% of GDP by 2025, deputy minister of mining and minerals William Gereja has been reported as saying. Uranium ore may join gold and diamonds as one of the country’s top mineral exports if additional exploration and resource definition work pans out as well as is anticipated. Tanzania is Africa’s third-largest gold producer, ranking behind South Africa and Ghana.

"This is good news," Gereja told a reporter from Voice of America’s Kenya bureau at the end of July. "Uranium is used for many industrial uses in the world and we expect that uranium in our country, Tanzania, would make us benefit a lot. We expect to raise revenues from this uranium mineral."

Security and environmental health and safety are always issues when it comes to uranium.

“We have passed all environmental and Arc studies needed as per the BLM in Colorado. In Tanzania, we are in the midst of doing the equivalent for the same requirements. The main thing to look at in Tanzania is not only the land but also the many jobs this will create,” Atomic Minerals’ Chris Brown told Resourcex Investor.

Tanzania, as well as other African countries, has been a favored transit point for smugglers. In 2005 Tanzanian customs officials discovered a large shipment of uranium from Kinshasha bound for the Iranian port of Bandar Abbas. Four Tanzanians, including a government economist, were arrested in Tanzania in 2002 after 110 kilograms of uranium in plastic containers were found and seized.

The Tanzanian government is working to clamp down on both smuggling and corruption. The deputy minister of mining and minerals has said that laws and safeguards will be enacted if and when uranium is mined and produced to prevent it from falling into the wrong hands.

In terms of foreign miners doing business in Tanzania, “The Mining Act of 1998 legislated a clear exploration and mining regime that guarantees against nationalization and expropriation with a fair, predictable tax regime. A Chubb Group World Risk Survey in 2006 had Tanzania in the 10 lowest investment risk countries,” according to Western Metals.

This article is intended for information purposes only, and is not a recommendation to buy or sell the equities of any company mentioned herein. It is based on sources believed to be reliable, but no warranty as to accuracy is expressed or implied. The opinions expressed in the article are those of the author except where statements are attributed to individuals other than the author, in which case the opinions are those of the individual to whom they are attributed.

Related Articles - atomic, business, mining, finance, investing, drilling, exploration, uranium, tsx, atl, tanzania, mineral,

Bio Diesel Equipment That Offers High Quality Performance

Author: Muna wa Wanjiru

Bio diesel equipment is required to produce the fuel. And there is some small scale equipment that will make our bio diesel preparation much easy.

Bio diesel equipment is long lasting and offers high quality performance. This equipment has the capability of producing bio diesel from various oils like soya oil, rice bran oil, palm oil and so on. The large equipments use continuous flow technologies so that you can operate the machine without any interruption.

You can get safest bio diesel processing equipment from EZ bio diesel company products. The installation procedure is simple. It includes premium quality filter which filters the by products and waste materials from the bio diesel.

Modular bio diesel equipment can be used in extracting bio diesel from waste vegetable oils or even fresh vegetable oils. You can take up to 400 gallons of oil per batch. These equipments are cost effective. You have to spend little on electricity bill. These are high quality products and so they will need less maintenance.

Small and medium sized bio diesel processing equipment pieces are ideal for home brewers. They require less space and you can install them easily. You need not require any lump sum investment. The cost of these equipment is considerably low.

There are varieties of bio diesel processing equipment. You can select one according to your budget and requirement. The fully automated equipment is designed to occupy less space. This equipment includes pre heaters. The purification process is carried on separate cylindrical container. So you need not use any filtration medium. Glycerin discharge is removed by the equipment separately. For this it has provision called Auto glycerin removal.

The automated bio diesel processors are easy to use. You can use the push buttons to operate. The automated equipment comes in two varieties. They are partial automated processor and fully automated processor. In fully automated machine you just add the ingredients like vegetable oil and then switch on the button. That's all. This is very easy and you will not need any knowledge to operate the machine.

The fully automated bio diesel processor even does not require you to transfer the contents to wash tank. It has built in monitoring controller and fault protection capacity. It is made up of high quality stainless steel. The machine is custom made and is prepared with sufficient care.

Other machines include several other processes like turning the valves, mixing chemicals, setting timers and other number o work required. You will have to use number of employees in this process. But the fully automated bio diesel processor is simply easy. Just press the button and walk away from there. You need not even set the timer. Once the process is completed it will alarm you.

Bio pro 190 is a fully automated bio diesel processing equipment that you can operate simply like a washing machine or mixer. The fault protection mechanism helps you to detect any faults in the mixture. SO you can stay free now. Washing the machine is a troublesome process. But in Bio pro 190 you just remove glycerin and press wash button. The machine will automatically wash itself. It is user friendly as it is easy to use and operate.

Article Tags: Bio Diesel Equipment

Article Source: http://www.articlesbase.com/

Uranium Mining Revival in New Mexico through Solution Mining

By James Finch

“We've got to get quickly on a track to energy independence from foreign oil, and that means, among other things, going back to nuclear power,” U.S. Senator John McCain (R-AZ) recently told Fox News. U.S. Sen. Pete Domenici (R-NM) invited Louisiana Enrichment Services (LES) to build a gas-centrifuge uranium enrichment facility near Hobbs, New Mexico. The facility is currently undergoing the permitting process. Southwest Research and Information Center’s Annette Aguayo told us the group planned to begin working on stopping that project. Some environmentalists remain behind the times.

Other environmentalists, who led before, are leading again.

James Lovelock, the spiritual guru of the world’s environmental movement, sometimes called the “Father of the Green Revolution,” because of his research and widely embraced warnings on DDT and CFCs, wrote in Reader’s Digest, (March, 2005), “The figures show that many people’s fears of nuclear energy are unreasonable.” Dr. Lovelock also said “the Greens are plain wrong to oppose it.” In May, 2004, Lovelock wrote, “Nuclear power is the only green solution.” New Mexico is primed for a uranium revival, not with conventional mining, but with ISL operations. The in situ leaching method, also known as solution mining, is environmentally friendly. Because it is low cost and does not contaminate the environment in ways that uranium mining did in the 1950s, many uranium companies plan to use this safer method for mining uranium in New Mexico.

In a conversation, late last year, with Grants Chamber of Commerce and Mining Museum employee Barbara Hahn, a deep resentment resounded in her voice when talking about the collapse of the uranium mining business in the 1980s. Grants (NM) was a boom town, during the 1970s uranium boom, when spot uranium prices climbed, and stayed above $40/pound. “Grants replaced the lost mining jobs by opening prisons,” she told us. “Now, others bring us their prisoners.” Ms. Hahn believed only 35 percent of the uranium had been extracted from the Grants Mineral Belt. “Most of it is still there,” she added. According to a McLemore and Chenoweth geological report, a resource of 558 million pounds (279,000 short tons) might still be extracted. The question in the 1980s as it is today revolves around the spot price of uranium.

The higher the spot price of uranium, the more economic it can be to mine. As the price of uranium rises, then the quantity of an economic resource increases. At $30/pound, the U.S. Energy Information Administrated reported the state of New Mexico held 84 million pounds of uranium oxide, grading 0.28/ton, as of Dec 31, 2003. However, at $50/pound uranium, that quantity would jump to 341 million pounds. The spread on the gross value of the uranium assets between those price levels is nearly $15 billion! As the spot price escalates, the economic reserves grow.

Said William Sheriff, Director of Corporate Development for Energy Metals (TSX: EMC), “Our long-term, big, big projects are going to be in New Mexico. Long term, we think New Mexico is going to be quite valuable to us.” He explained his company’s plans are to first develop production centers in Texas and Wyoming, before developing ISL operations in The Enchanted State. Sheriff added, “Nothing in New Mexico in terms of the first five years, but that’s not to say we’re going to sit idly by. We’re going to be aggressively pursuing these. The only thing we’re going to be pursuing is ISL production.” Based upon the company’s extensive acquisitions in Wyoming, New Mexico and elsewhere, Sheriff threw down the gauntlet at Cameco and Cogema, whose ISL operations in Wyoming contribute the largest share of U.S. uranium production, “We intend to become the largest ISL producer in the United States.”

David Miller, President and Chief Operation Officer of Strathmore Minerals, (TSX: STM; Other OTC: STHJF), believes, "The ISL production method will continue to grow in the United States, but we will also see a return to conventional mining and milling in the western states." In addition to their Wyoming uranium properties, Strathmore hopes to move forward their Church Rock uranium property on the heels of Uranium Resources’ (OTC BB: URRE) permitting on Section 17, held by their HRI subsidiary. Basically, all three companies are friendly neighbors in the area. There is evidence they frequently talk among themselves, comparing notes. The three uranium juniors appear to be the current major players in New Mexico for ISL uranium mining.

Ron Driscoll, one of the co-founders of Quincy Energy, which has been acquired by Energy Metals, said, “It will get interesting when the oil companies get involved again.” It is probably early for the oil giants to rush back into uranium. In the last uranium boom, many of the major oil companies were leaders in the uranium exploration and mining. Kerr-McGee Nuclear was the number one private sector uranium producer in the world. Other major oil companies involved in uranium mining and exploration included Mobil, Phillips, Conoco, Exxon, Chevron, Amoco and others. Another of the recently arrived uranium juniors, Max Resources (TSX: MXR) also plans to drill at the other end of New Mexico, in Socorro County (about 100 miles south of Albuquerque). MXR’s property was once drilled by OxyMin, a subsidiary of Occidental Petroleum, during the 1980s, before the price of uranium fell off a cliff.

Perhaps, one major company will emerge in New Mexico, consolidating the others, or some of the others. “There’s a huge number of small uranium plays in the North American market that need critical mass,” Neal Froneman, CEO of Uranium One (TSE: SXR) recently told a South African newspaper. “Consolidation will drive our business in the US and Canada, where we think it’s tactically smart to be.” Uranium One was itself a consolidation between Toronto-based Southern Cross and South African-based Aflease. Froneman concluded, ““It makes sense to have a major presence in North America in order to supply the (U.S.) utilities that will need to be built.”

“The geology for this area, with regards to ISL uranium operations, could help make New Mexico an important supplier to U.S. utilities, possibly before the end of this decade,” Strathmore’s David Miller agreed. “I would not be surprised at all if there were more uranium to be found in New Mexico than is currently estimated. That’s why companies have exploration programs.” From a state, which has produced over 300 million pounds of uranium, and which may have between 300 million and 600 million additional pounds of uranium, New Mexico will be a prime target for uranium companies as long as the price of uranium continues to rise. Will uranium crash and burn, as it did in the 1980s? After accurately predicting the spot price of uranium would double in a StockInterview feature in June 2004, Miller recently told StockInterview, “I wouldn’t be surprised to see the price double again.”

COPYRIGHT © 2007 by StockInterview, Inc. ALL RIGHTS RESERVED.

James Finch contributes to StockInterview.com and other publications. StockInterview’s “Investing in the Great Uranium Bull Market” has become the most popular book ever published for uranium mining stock investors. Visit http://www.stockinterview.com

Article Source: http://EzineArticles.com/?expert=James_Finch

Uranium Facts For The Natural Resource Investor

By: Charles Weber

Investing in uranium is looking toward the future. With fossil fuels fizzling out, the world needs reliable sources of energy. The price of uranium has moved surpisingly fast over the last year with the scare of oil and natural gas shortages. Also, analysts report a severe uranium shortage over the next ten years. Lets take a look at what uranium is and how it is/will be used. I have always heard "buy what you know", so hopefully you will know a little more about uranium after reading.

Uranium can be found abundantly on the planet. Uranium is formed when stars explode, expelling the heavy element. Uranium-238, the most common form of uranium found on earth has a half life of 4.5 billion years, which explains its large quantity (around 99% of the world’s uranium). Uranium-235 makes up a little more then half of the remaining 1%. Uranium-234 makes up small amount left.

The most important form of uranium is uranium-235, which possesses some very useful characteristics. Uranium-235 can undergo “induced-fission”. Induced fission is when a free neutron is used to bombard the element, causing it immediately to destabilize and split. During this reaction a large amount of heat is given off. This heat, through various means, can be harvested into power. This is process is commonly called nuclear fission. Over 400 nuclear fission generators exist in the world today in major countries such as the US, China, Russia and Germany. Nuclear power planys fired up in 1959. The number is growing dramatically as countries are expanding their power grids. Demand for uranium and uranium enrichment increases as more nations decide to add nuclear power to their power creating arsenals.

Discuss with your investment advisor the pros and cons of adding uranium stocks to your portfolio. I have several precious metal and natural resource mining stocks in my portfolio which have done well over the last year. I am definitely going to add a uranium mining company to my list of stocks.

About the Author:

Charles Weber is an upcoming writer who researches various topics. Content should be taken as information and not investment advice. His website with more information about natural resource investing can be found at http://www.naturalresourceinvesting.com . Must include link.

Article Tags: nuclear, power, uranium

Read more articles by: Charles Weber Article Source: www.iSnare.com

New Mexico Uranium: Who Are The Serious Players?

By: James Finch

Several uranium development companies have set their sights on New Mexico. Two are actively involved in permitting their properties for production. One was the first to be issued a drilling permit in about a decade; another awaits a permit in order to drill the company’s property. Another is an 800-pound gorilla in the nuclear fuel cycle. Three others have properties or continue to assemble a land package in New Mexico. The following is a brief review of the projects of these uranium development or exploration companies, currently holding property or moving forward.

The front runners include Uranium Resources, Strathmore Minerals

and General Atomics. Companies moving forward include Laramide Resources and Western Uranium. Companies to also watch include Energy Metals, Max Resource Corp and Powertech Uranium. Each has various plans to advance their projects and should be reviewed on their merits.

Uranium Resources Inc.

Uranium Resources is the top front runner in New Mexico. The company has devoted a great deal of time and money to permit its Church Rock property. In an interview with Craig Bartels, president of HRI (a wholly owned subsidiary of Uranium Resources), he told us, “We hope we can begin construction at the property in 2007.” The company has cleared numerous hurdles, posed by local environmentalists, having successfully won every legal battle to date. Its parent company produces about 1 million pounds annually in Texas. Earlier this year, Uranium Resources announced a proposed joint venture on the company’s Church Rock property with Japanese conglomerate, Itochu Corporation.

Phillips Petroleum made the Church Rock uranium discovery in the 1950s, and later sold the project to United Nuclear (UNC). UNC constructed a mill and mine to the northeast. One HRI property, at Crownpoint, was developed by Mobil Oil as an In Situ Recovery (ISR) project. Earlier work at Crownpoint was done by Westinghouse and Conoco. Phillips developed HRI’s uranium property at Nose Rock; Kerr-McGee did the original uranium drilling at Roca Honda. Uranium Resources holds about 185,000 acres in the southern San Juan Basin of New Mexico.

Through the uranium depression, Uranium Resources was the “lone man” in New Mexico. Now times have changed. “It is great having other companies coming in here now,” said Bartels. “There is so much uranium, and the national attitude has changed so dramatically over the last year, that there is an actual excitement as to what can be done now.” Bartels looks forward to the success of the company’s first uranium projects in New Mexico, on the western end of the Grants Uranium Belt. He explained, “Using a pretty typical recovery rate of 75 percent for ISR, recovery would be about 4.9 million pounds on Section 8, and 6.3 million pounds recovered at Sec 17.” Bartels told us he has been advertising for employees in the northwestern New Mexico newspapers.

Strathmore Minerals Corp

Strathmore Minerals Corp controls a number of advanced uranium properties in New Mexico. The company’s most advanced efforts have been proceeding with the permitting phase on its Church Rock property. To date, the National Instrument 43-101 resource calculations on two properties, the Church Rock and Roca Honda deposits, total nearly 50 million pounds in measured indicated, and inferred categories. Historical uranium calculations on other Strathmore properties in New Mexico, which are non-compliant by National Instrument 43-101 standards, indicate there may a similar amount in addition to what has been reported. Strathmore Minerals President and Chief Operating Officer David Miller told us via email, “It is Strathmore’s intent to become the premier uranium producer in New Mexico.” The company has approximately C$40 million in the bank to advance its projects.

The company has followed the lead of Uranium Resources in the Church Rock area. Miller told us, “There are two ISR projects in various stages of permitting in the Church Rock area, which Strathmore started a year ago.” The company has issued news releases updating investors on its permitting progress in New Mexico. In February, the company announced it was on schedule and under budget in permitting its Church Rock uranium property. A mid-April update announced Strathmore was developing its mandatory corporate programs in the permitting process and was advancing toward the licensing phase of its In Situ Recovery process. Dependent upon when Uranium Resources receives its final approval to commence its nearby ISR project, Strathmore Minerals should quickly follow with its project. Please see final section of this article about the company’s Roca Honda project.

General Atomics

Meet the 800-pound gorilla. Not only is General Atomics in the front end of the nuclear cycle with a uranium mining subsidiary, it is a privately held company whose interests are widespread across the nuclear fuel cycle. GA is its acronym, and the one used in this industry. Founded in 1955 as a division of General Dynamics, GA has over 20 locations worldwide, manufacturing a variety of high technology products for commercial and government applications. For example, its aeronautical affiliate manufactures unmanned aircraft, surveillance and radar imaging systems.

GA covers a good part of the nuclear fuel cycle. In Australia, through Heathgate Resources, the company owns and operates the Beverly ISL mine. Its ConverDyn affiliate converts U3O8 into UF6 (uranium hexafluoride), which is the step preceding uranium enrichment. Another affiliate, the Cotter Corporation, holds various uranium properties and a licensed mill near Canon City, Colorado.

General Atomics also owns the largest uranium resource in the United States through its affiliate, Rio Grande Resources Corporation. The crown jewel of the company’s uranium holdings are found in the Mt. Taylor deposit. Before the project was placed on standby in 1989, more than 8 million pounds of U3O8 were produced. The deposit occurs at 3000 feet below the surface with ore grades ranging between 0.15 percent and 2 percent U3O8. During the mine’s production, grades average 0.5 percent. Mt. Taylor reportedly contains an in-place resource of more than 100 million pounds of U3O8. GA is reportedly evaluating the deposit for an ISR operation.

Laramide Resources

Laramide Resources has made a strong footprint in Australia, but it also moving forward with its New Mexico uranium property. The company’s La Jara Mesa deposit is located about 12 miles outside Grants, within the San Mateo Mountains, near Mt. Taylor. Homestake had previously operated a mill in the district. Work was first commenced in the La Jara Mesa area in the 1950s. Homestake drilled 86 holes between 1967 and 1971 and abandoned the property after only a few high grade intersections. After the property changed hands in the 1970s and 1980s, a discovery hole was drilled in 1980. Power Resources (now a Cameco Corp subsidiary) drilled more than 500 holes. Homestake again re-entered the project in 1983 and completed metallurgical tests on the drill core. Homestake also completed a mining plan and feasibility study on the Dena Rich deposit, but stopped all work after the uranium price crashed.

In a conversation with Laramide Resources Chief Executive Marc Henderson, he told us, “The La Jara Mesa property may be the key piece of the puzzle,” referring to the Ambrosia Lake district. “It has the easiest production scenario and the easiest access,” Henderson said. The company’s website reports the project has a resource of approximately 7 million pounds of U308 (not compliant with National Instrument 43-101). The U.S. Forest Service is now awaiting public comments on the proposal by Laramide to drill ten test holes, about 600 feet deep, to confirm exploration findings from the 1980s.

About the Author:

James Finch contributes to StockInterview.com and other publications. To read the entire article series on New Mexico Uranium, please visit StockInterview.com

Article Tags: property, resources, uranium

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