ARGENTINA'S THIRD NUCLEAR POWER PLANT NEARS COMPLETION

Atucha II Nuclear Facility

BUENOS AIRES, Feb. 9 (UPI) -- Amid deepening economic woes, Argentine consumers have been told they can look forward to more stable electricity supplies from the country's third nuclear power generation plant before the end of this year.

Argentine power consumption has gone up with industrial growth and extension of modern amenities to the country's burgeoning middle classes. But supply has not kept pace with demand, and blackouts and outages in the capital are endemic, costing hundreds of thousands of dollars in lost productivity and perishable foods and other merchandise.

The recent power and water shortages in neighboring Venezuela caused widespread concern in Argentina, which also experienced frequent outages. The government of President Cristina Fernandez de Kirchner played down their severity, but her critics said the shortages pointed to government failures.

The shortages in Venezuela were blamed on chronic drought, but opposition critics of President Hugo Chavez also cited mismanagement.

In Argentina, criticism has centered on inadequate modern amenities in the outlying rural areas due to poor infrastructure and bureaucratic neglect.

Officials insist the impact of outages has been minimal. Opposition critics say the government takes little account of power breaks in the outlying areas of Argentina and refers only to blackouts in the capital.

News of new electricity supply likely to join the national grid was announced by Planning Minister Julio De Vido, who said work had been advanced on the commissioning of the new nuclear power generation plant.

The statement contrasted with his announcement in April 2009 that work on the Atucha II plant could not be finished before 2011.

Argentina's nuclear power generation program dates back to the 1970s but was mired in controversy and environmental and factional politics. Argentina's former military dictators saw nuclear power as a military option and even attempted uranium enrichment and missile production. As a result, the end of the military regime in the 1980s led to the nuclear program being abandoned altogether.

Argentina relaunched its nuclear power program nearly three years ago, as the government could argue for its urgent need amid worsening conventional energy supplies.

The rising prices for oil and gas also enabled the government to make a convincing case for nuclear power. Currently Argentina imports gas from Bolivia and liquefied natural gas from Trinidad and Tobago.

The Atucha II plant is expected to generate about 700 megawatts of electricity, but it is two decades late. Argentina's first nuclear power plant, the 360-megawatt plant Atucha I, came on stream in 1974, and the second plant, the 650-megawatt Embalse, began operations a decade later. However, nuclear power still accounts for no more than 5 percent of Argentina's electricity grid.

De Vido said plans were under way to speed up the commissioning of the Argentine-Paraguayan Yacyreta hydroelectric plant this year. Once finished, the two projects will add 2,000 megawatts to the national power grid, he said.

The completion of the Atucha II nuclear power plant and the hydroelectric plant will increase Argentina's total power generation capacity by about 10 percent, De Vido said.

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Australian Uranium Explorer Northern Uranium Discovers Prized Heavy Rare Earth Elements

Rare Earths

Rare earths are a particular class of elements in the Periodic Table that were once difficult to extract and purify. They are used in many high-technology applications including magnets, rechargeable batteries, electronic displays, lasers, superconductors, catalytic converters, smart bombs, and wind turbines. China supplies about 95% of world production. Given the strategic importance of rare earths, China has been stockpiling them and restricting exports. A Chinese government report has recommended an outright ban on exporting the scarcest of these elements.


NORTHERN URANIUM - NTU

Northern Uranium (ASX: NTU) has followed up December discoveries of significant rare earth elements targets at its 100%-owned Gardiner-Tanami project, with today's news of high concentration of heavy rare earth elements (HREE) in the mineralization.

Heavy REE's have a significantly higher market value on a per pound basis than the more common light REE's.

NTU identified unusually high concentrations of HREE in hydrothermal quartz-xenotime mineralisation in the Browns Range Dome area at Gardiner-Tanami.

NTU has targeted rare earths exploration as a significant focus in 2010 at at the Gardiner-Tanami project, bordering the Northern Territory and Western Australia, in tandem with the company's core uranium project.

The results of an age-dating study pointed to the possibility of large scale HREE ore-deposit potential in the area.

The company's HREE discovery represents an interesting value-adding component for NTU investors and shareholders.

Executive chairman Kevin Schultz said that a further study of the HREE bearing mineralisation at the company's tenements showed that at current REE prices it has extremely high in-ground value.

In fact, analysis to date indicated it has an estimated in-ground value of US$1,270 per tonne.

Xenotime (a yttrium and rare earths bearing phosphate mineral) was first identified in the western Browns Range Dome area in the 1980s by Japanese nuclear energy organization PNC Exploration while exploring for uranium.

PNC named the area of quartz-xenotime mineralisation “Area 5 Prospect” and one of the larger quartz-xenotime veins gave extremely high grade results up to 16% yttrium, 0.2% uranium, 0.5% light Rare Earth Elements (LREE) and 12% HREE.

Then in 2009, previously unknown quartz-xenotime mineralisation was encountered by NTU - 4km to the northnortheast of Area 5 Prospect during Northern Uranium’s uranium exploration program.

These newly discovered hydrothermal xenotime-quartz stockworks, referred to as “NNE Prospect”, are similar to the Area 5 occurrences. Xenotime concentration was recorded as being up to 3-4 wt-%.

Interestingly, the rare earths and Yttrium distribution from assay results of the quartzxenotime mineralisation at NNE Prospect at typical current market prices for rare earth metals, demonstrates NTU's HREE's at Browns Range compares favourably with other major global REE deposits.

The Browns Range Dome area could conceivably become an important new province for highgrade Yttrium-HREE mineralisation.

NTU will proceed with the HREE exploration program, in conjunction with the 2010 uranium exploration programm including review and re-processing of airborne mapping data and airborne radiometrics.

An extensive rare earths target zone has been identified by NTU at the project.

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Owning Uranium Producers Could Be A Long-Term Energy Strategy

Companies such as Paladin Energy look to be takeover targets as the construction of more nuclear power plants gets the green light.

About 15 per cent of the world's electricity is generated by nuclear power plants.

To produce this electricity, the plants require uranium.

The thesis: Accumulate shares in uranium suppliers.

The rationale: The number of nuclear reactors worldwide is likely to double by 2030. According to World Nuclear Association data, as of Jan. 1, the number of reactors currently under construction or approved totals 295 while the number proposed stands at 327.

Industrialization and population growth in emerging countries are creating huge new demands for energy. China alone has 57 nuclear plants under construction or approved, and another 120 proposed.

Attitudes are also becoming more favourable toward nuclear power. It is a low-cost alternative to coal and natural gas in the generation of electricity, yet emits virtually no greenhouse gases. Moratoriums are consequently being lifted and power plants are going ahead. Of note:

* After ending its moratorium, the U.K. green-lighted 10 new power stations in December. (Source: Nick Hodge, managing editor of Alternative Energy Speculator)
* The U.S. government provided loan guarantees in 2009 to build nuclear reactors, “America's first new nuclear power plants in 30 years.” (Source: Salida Capital report, Uranium Shortages Looming?)
* The 2008 withdrawal of a 34-year ban against exporting uranium to India allows the country to buy uranium and expand its program. (Source: Scotiabank economist Patricia Mohr in the latest Scotiabank Commodity Price Index report).
* About 40 per cent of uranium supply comes out of stockpiles built up from dismantling nuclear weapons and recycling fuel. This finite source means mining companies face additional requirements to increase production.

The time frame: Uranium prices on the spot market slipped to $45 (U.S.) in December, below the year-earlier level of $53 (U.S). Ms. Mohr attributes this weakness, in part, to a U.S. Department of Energy's decision to release a portion of U.S. uranium inventories to pay for a clean-up at a uranium-enrichment plant.

Softness in prices is expected to persist in the near term, especially with utility requirements at a low level of 4.5 million pounds in 2010. However, utility demand should ramp up to 18 million pounds in 2011. With a pickup in strategic buying by China and India, Ms. Mohr expects significant price improvement by late 2010 or early 2011.

Some investment opportunities:
Saskatchewan's Cameco Corp. (CCO-T29.96-0.19-0.63%) is the world's largest producer of uranium. Its extraction costs are among the lowest. Once de-watered, the Cigar Lake deposit will be huge and high grade like Cameco's other main deposits. David Baskin of Baskin Financial Services recently named Cameco a top pick on the Business News Network (BNN).

Junior companies that have found, or are developing, large deposits of uranium are acquisition targets for larger producers or users in countries eager to secure supplies. Canadian miners in this category include Forsys Metals Corp. (FSY-T4.10-0.09-2.15%) .

An exchange-traded fund, the Market Vectors Nuclear Energy Fund (NLR-N21.78-0.15-0.68%) , has significant exposure to uranium producers, claims Don Dion of Don Dion Money Management in Williamstown, Mass. Then there is Uranium Participation Corp. (U-T5.88-0.01-0.17%) , a holding company that invests in physical inventories of uranium.

Spotlight on Paladin Energy: Since May, shares in Australia's Paladin Energy Ltd. (PDN-T3.54-0.06-1.67%) have hovered close to $4 (Canadian) on the Toronto Stock Exchange. During this time, as stockchase.com shows, five investment managers chose the company as a top pick on BNN.

Paladin Energy has good growth prospects at current uranium prices – thanks to low costs and a new mine coming on stream. Indeed, it “has the best growth profile in our coverage universe,” note CIBC World Markets Inc. analysts Ian Parkinson and Matthew Gibson in a recent report. Their 12- to 18-month price target is $6.10.

Company documents state that Paladin raised $374-million (U.S.) in a private placement in September. This injection strengthens its balance sheet and allays concerns regarding the repayment of $250-million in convertible bonds due 2011.

As Andrew Willis recently reported in the Globe and Mail, several analysts consider Paladin Energy to be an attractive takeover target for Cameco (which has $2-billion of cash in its coffers after selling its stake in Centerra Gold Inc.). Other suitors may appear too.

The risks: Although many reactors are under construction, new designs and technologies are likely to reduce the amount of uranium needed to operate each one. Moreover, new mining technologies and processes could lower the cost of extracting uranium.

There are long lags in the construction of nuclear plants. And it will take many years before stockpiles of uranium are depleted. Uranium could be more of a long-term story stretching over the next decade or two, with ups and downs along the way.

Although safety measures have improved, there could be a reassessment of nuclear power if serious accidents were to occur, such as the one that happened at the Three-Mile Island plant in the 1970s – or in the disposal of radioactive waste. Another trigger could be signs that the proliferation of nuclear weapons was getting out of hand.

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Rising US$ Supports Australian & Canadian Uranium Sectors

$Canadian - $Australian - $U.S.

7 Day Chart January 24th - January 30th - 2010

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White Canyon Uranium Signs Toll Milling Agreement With Denison Mines Corp.

US-focussed Uranium producer White Canyon Uranium (ASX: WCU) has executed a toll milling agreement with Denison Mines Corp. (TSX:DML, NYSE AMEX:DNN).

Denison will process all material produced from White Canyon’s owned and operated Daneros uranium mine in Utah.

White Canyon has confirmed that based on the conditions in the toll milling agreement the Daneros mine is viable even at current spot prices.

The agreement has a three year term with an optional two year extension and commences in January 2010.

The earlier than expected execution of the Toll Treating Agreement concludes the Company’s participation in the Ore Purchase Programme with only the first ore lot sold to Denison.

Denison used samples from the first ore lot to conduct amenability tests and derive the processing variables necessary for the completion of a Toll Milling Agreement.

Under the terms of the agreement, White Canyon will transport material produced to Denison’s White Mesa Mill for processing of up to 55,000 tons per annum.

The Company will pay to Denison the costs to mill its ore, a capital charge plus a toll milling fee per ton of ore, which will be partly linked to the long-term uranium price.

Processing will be scheduled by Denison and first processing of Daneros ore is expected in H1 2011 allowing White Canyon to meet expected delivery dates in H2 2011.

Initial production is expected to be sourced from the Daneros mine, which is located approximately 100kms from the White Mesa complex and has been the source of material provided to date for analysis to derive critical processing parameters in determining this toll milling agreement.

Additional production is expected to be sourced from the Company’s Lark Royal, Geitus, Blue Jay, Marcy Look and Yellow Cat projects, which are also in close proximity to the White Mesa Mill.

The total tonnage will be negotiated at the completion of each 12 month production period for the subsequent full production year dependent on mill availability.

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