Saturday, July 31, 2010

Bannermans Latest June 2010 Quarterly Report Highlights

Bannerman's Quarterly Activities Report for the Period Ended 30 June 2010

During the June 2010 quarter, Bannerman continued to advance the Definitive Feasibility Study ("DFS") on its 80%-owned Etango Project in Namibia, reported positive results from near-Project exploration and drilling activities, and stepped up dialogues with a number of potential strategic development partners.


-- Two Radon cup exploration surveys undertaken across 120km2 of the Etango licence identified numerous prospective and previously undrilled
anomalies. Drilling results are expected in the coming months.

-- Drilling into one of the Radon anomalies at Ondjamba, 2km to the east ofthe Etango deposit, returned numerous broad resource grade intersections within 100 metres of surface, indicating the potential for a satellite deposit. Further drilling continues.

-- Infill drilling within the Oshiveli area of the Etango deposit returned
broad higher grade intersections from close to surface, indicating improvements to the resource model in this area. A new resource estimate
for the Etango Project is due in late September.

-- A mining review based on the updated resource model is progressing well with an expected increase in estimated mineable resources and decrease in estimated mining unit costs.

-- Metallurgical testwork continues to confirm fast leach times and low
acid consumption, as well as indicating +90% recoveries at significantly
coarser grind sizes than previously tested.

-- A DFS update encompassing the above work is scheduled for release to the market in the December quarter.

-- Appointment of former Rio Tinto senior executive and Rossing Uranium CEO, Dr David Smith, as Chairman of the Board.

-- Cash reserves at quarter end of A$16.6 million
(31 March 2010: A$20.4


Wednesday, July 28, 2010

Four Mile Uranium Project - Final Scoping Study

ALLIANCE Resources says a scoping study into its Four Mile uranium project in South Australia indicates the project would provide a significantly greater return as a standalone project producing around 5 million pounds per annum.

The company has received the final scoping study report prepared by Como Engineers and Adelaide Control Engineering in relation to the capital cost estimate for the design, procurement and construction of an in-situ recovery and uranium processing facility including related infrastructure at Four Mile as well as estimating the ongoing operating costs of the facility.

The study identified capital costs for the plant and infrastructure as well as operating cost estimates for a number of scenarios, including a 3Mlbpa standalone ISR plant, a 5Mlbpa standalone ISR plant, a 7Mlbpa standalone plant, a 3Mlbpa satellite ISR plant and a 3Mbpa standalone resin-in-pulp plant.

Alliance said the scoping study estimates of capital and operating costs indicated the project offered a significantly greater return if developed as a standalone project with a 5Mlbpa production rate.

The standalone project at 5Mlbpa was estimated to have a capital cost of $168 million and operating cost of $21.73 per pound uranium oxide.

The company is commissioning an optimization study for the design, capital and operating cost estimates for a 5Mlbpa standalone plant.

According to the study, the operating costs for the 5 Mlbpa and 7Mlbpa standalone plant options of $21.73/lb and $19.62/lb respectively were less than the operating costs for the 3Mlbpa standalone and satellite plant of $26.35/lb and $31.33/lb respectively, representing further savings.

Alliance holds a 25% participating interest in the Four Mile JV through its wholly owned subsidiary Alliance Craton Exploration.

The news comes after Alliance filed proceedings in the Melbourne Federal Court of Australia earlier this month against its Canadian joint venture partner and 75% project owner Heathgate Resources and its wholly owned subsidiary Quasar Resources.

It is seeking damages and the restitution of its 75% interest over the Four Mile exploration licence.

Quasar previously committed to a decision to mine based on its own feasibility study that recommended the 3Mlbpa satellite plant for Four Mile connected to the existing Beverley operation which would cost $98 million and have operating costs of $38.80/lb.

While the study met Quasars obligations under the JV agreement, it did not provide enough independently verified information for Alliance as a publicly listed company.

Alliance commissioned an independent scoping study to determine and verify whether Quasars proposed mine development program and budget was fair and equitable.

Using numbers from Alliances standalone scoping study, it estimated a 3Mlbpa operation would have a price tag of $131 million at operating costs of $26.35/lb.

Alliance also estimated that the undiscounted payback for the additional capital required for the standalone plant, based on the difference in operating costs compared to the Quasar model, would be 11 months.

Earlier this year, resources at Four Mile increased by more than 16% to 9.8 million tonnes grading 0.33% uranium oxide for a contained 71Mlb of uranium oxide with 5.7Mt from the Four Mile West deposit (indicated and inferred), and 4.1Mt from Four Mile East (inferred).


Deep Yellow Limited Expands JORC Resource Estimate At INCA Uranium Deposit In Namibia

Perth, July 28, 2010 Deep Yellow Limited (ASX:DYL)

Is pleased to announce an upgrade and expansion of the Mineral Resource estimate at its INCA uranium deposit in Namibia. INCA is part of the Omahola Project controlled by DYL's wholly-owned subsidiary Reptile Uranium Namibia Pty Ltd (RUN).

On 22 April 2010, DYL announced the initial Indicated and Inferred Mineral Resource estimate in accordance with the JORC Code at INCA of 16 million tonnes at 400 ppm eU3O8 for 6,366 tonnes (14 Mlb) eU3O8 (as part the Omahola Project). This initial resource estimate was derived from an area approximately 500 x 500 metres. This area is now referred to as the 'INCA Main Resource Area'.

Since the time the initial resource drilling was completed, additional deep reverse circulation (RC) holes were drilled, diamond tails were completed on select holes, and downhole directional survey data was collected and processed. This new information was provided to The MSA Group of South Africa (MSA) to allow MSA to complete an updated Mineral Resource estimate within the INCA Main Resource Area. This updated Mineral Resource estimate has increased total resources at INCA by approximately 17% to 17.1 million tonnes at 436 ppm eU3O8 for 7,429 tonnes (16.4 Mlbs) of U3O8 at 200 ppm cut-off.

In addition to increasing total resources, the updated Mineral Resource estimate also upgrades the classification of a large quantity of Inferred Resources to Indicated Resources. The initial Mineral Resource estimate (22 April 2010) contained 6.0 million tonnes at 392 ppm eU3O8 for 2,300 tonnes (5.0 Mlbs) of U3O8 at 200 ppm cut-off and the updated Mineral Resource estimate contains 10.9 million tonnes at 414 ppm eU3O8 for 4,516 tonnes (10.0 Mlbs) of U3O8 at 200 ppm cut-off, thereby doubling the quantity of U3O8 classified as Indicated Resources in accordance with the JORC Code.

As announced to the ASX on 20 May 2010, results from continued drilling outside the INCA Main Resource Area have extended the main area of mineralisation from approximately 500 x 500 metres to approximately 1,500 x 500 metres and have identified further extensions of mineralisation to the north, east and south. Drilling, geological interpretation and structural interpretation continue, and a further update to the Mineral Resource estimate, to include the extended areas of continuous mineralisation, is expected by the end of the September quarter.

The Omahola Project consists of the INCA deposit and the Tubas Red Sand (TRS) deposit. The updated Mineral Resource estimate at INCA and the previously announced TRS Mineral Resource estimate (ASX - 22 April 2010) have served to increase the combined Mineral Resource estimate for the Omahola Project to 31 million tonnes at 311 ppm eU3O8 for 9,646 tonnes (21.3 Mlbs) eU3O8.

Tuesday, July 27, 2010


Published Tuesday July 27 2010

It was good to a see a big night on the Canadian Uranium front with some evidence of a major shift in sentiment.

I've put together a list below of the major Uranium Plays that had the biggest moves within the TSX.

TSX Uranium Performers Taken from Monday's End Of Day Trading July 26 2010:

See Below

Overall there was 13 Uranium stocks that rose in excess of +20%
Another 12 that rose in excess of +10%

IMO Now is the time to get back into Australian Uranium Plays, as it's the early stage that gives the best rewards.

Wednesday, July 21, 2010


BHP Billiton produced 712 tonnes of uranium oxide from Olympic Dam, significantly down on the previous year.

The company said it had fixed the key Clark Shaft, responsible for conveying 75 per cent of underground ore at the mine, the company said in its June quarter update.

The Clark Shaft outage since October 6, 2009, caused a 43 per cent dip in full year uranium production to 2279 tonnes from 4007 tonnes previously, the miner's production report for year June 30 said.

Copper production also was down, 11 per cent to 1.08 million tonnes, due to Olympic Dam's outage, industrial action at Chile's Spence, mine lower grades at its Peruvian sites and closure of its Pinto Valley mine in the United States.

Olympic Dam in South Australia is the world's largest uranium deposit, fourth largest remaining copper deposit and fifth largest gold deposit.

On a positive note, petroleum and iron ore both hit production records petroleum at its third consecutive record, up 15 per cent to 158.6 barrels of oil equivalent (boe) with the "successful delivery" of growth projects in the Gulf of Mexico and Australia.

Iron ore production rose 9 per cent to 125 million tonnes.

With iron ore prices strong amid demand from China, BHP Billiton also said West Australian iron ore achieved its tenth consecutive annual production record.

But the company "continues to be cautious on the short term outlook for the gobal economy", it said.

"Uncertainty surrounds the near term propects for growth in the developed world as governments adjust fiscal policies following a period of significant stimulus and subsequent increase in sovereign debt levels," the company said in a statement.

The company also warned of volatile demand for commodities with China reducing its growth to more sustainable levels.

"BHP sees these measures as normal continuation of China's economic management policies," it said.

BHP Billiton shares are trading ahead of the overall market, up almost 2 per cent to $39.04, a rise of 74c at 11.30 CST, in response to its production update.

Monday, July 19, 2010


CEO John Borshoff
Paladin Energy

Australian uranium miner Paladin Energy had second quarter production of 1,442,851 pounds of uranium oxide, or U3O8, up 110% on the second quarter of 2010, the company said Monday. Financial year 2010 production was up 60% over the prior year, coming in at 4,316,126 lb U3O8, Paladin said. Financial year 2010 ended June 30. Paladin has two operating mines--Langer Heinrich in Namibia and Kayelekera in Malawi.

Most of the increased production came from the Kayelekera mine, which has been ramping up and went into commercial production in the second quarter. Sales for the second quarter were 855,000 lb U3O8 generating revenue of US$49.1 million, representing an average sales price of US$55.50/lb, the company said. Sales for FY 2010 amounted to 3,726,000 lb U3O8 generating revenue of US$202 million at an average sales price of US$54.21/lb; when the average spot price for the same period was US$43.99/lb, Paladin said.

The company said it has concluded a new medium term contract with a major Asian utility for the delivery of approximately 1.5 million lb U3O8 between 2011 and 2015 on undiscounted market price terms subject to an appropriate floor price and market risk-sharing ceiling price conditions.

Paladin did not disclose additional details about the deal. Paladin said it expected to produce 7 million lb U3O8 in FY 2011, which runs July 1, 2010 to June 30, 2011.


Here's an insight of CEO John Borshoff
Paladin Energy

In 1991, when his West German employer withdrew from the dying Australian uranium industry, John Borshoff acquired the company’s databases and used them to found Paladin Energy. When Paladin listed on the ASX in 1994, the geological, metallurgical and environmental data gave the company enormous credibility.

John sees the years following Paladin’s listing as "character building". To survive in a period where funding for resources, and particularly uranium, was almost impossible, Paladin diversified its activities into software and IT companies.

In 2002, Paladin purchased the Langer Heinrich Project in Namibia for A$15,000 and John waited patiently for two years until funds became available to grow his company. In January 2004, he was able to start building two uranium mines in Africa – the world’s first new conventional uranium mines in 20 years.

Developing a uranium mine in Malawi was particularly difficult. The mine was the largest private investment in Malawi’s history, which would increase GDP by 10%. But the government had no precedent or framework to deal with the complexity of establishing this type of project, and John had to placate numerous, divergent interest groups.

Despite the challenges, both mines proved successful. Today, Paladin remains the second largest pure play uranium mining company in Australia and Canada and the eighth largest mineral resource company in Australia. The company has a market capitalization of $2.6 billion and employs 500 people. In addition to developing a strong pipeline of projects in Australia, John plans to expand Paladin into Africa, North America and Asia, taking advantage of the nuclear revival he expects in future decades.

Sunday, July 18, 2010

Uranium: An Undervalued Asset Waiting for a Catalyst

James J Puplava CFP from speaks to the
"Original Uranium Bull" James Dines, and also Robert Mitchell & Keith M Barron PhD

Click Images To Access Audio
Saturday 17th July 2010

Friday, July 16, 2010


RIO Tinto's uranium subsidiary, Energy Resources of Australia, says production this year could be at the lowest in nine years.

Problems have arisen because of high rainfall and a pit wall slip, forcing the miner to buy some ore to fulfill contracts.

ERA said yesterday full-year production was expected to be between 4300 and 4700 tonnes of uranium, which was up to 18 per cent lower than previous guidance of about 5240 tonnes. It attributed the change to being unable to access higher-grade ore after a slip late last year at its Ranger mine, which is in Kakadu National Park.

If output is at the low end of the range, it would be the lowest since 2001, when the miner produced 4203 tonnes. If production is 4700 tonnes, it would be the lowest since 2002.

But ERA said it would still meet sales contracts. "Sales are expected to be somewhat in excess of 5000 tonnes, with commitments met by way of inventory management, flexibility of shipments to customers and a small volume of secondary purchases," the company said.

Shares in ERA, which is 68.4 per cent-owned by Rio, fell 68c, or 4.6 per cent, to $14.05 yesterday.

ERA's second-quarter production was 1828 tonnes of uranium, down 44 per cent from the previous quarter and 7 per cent from a year earlier.

Credit Suisse analyst Matthew Hope said while the lower production had been well flagged, he was lowering his first-half net profit forecast for ERA by $8 million to $40m.

"However, we expect a strong recovery to $126m in the December half, giving $166m for the year," Mr Hope said.

ERA said it expected to make a final decision this quarter on developing an exploration decline at its Ranger 3 Deeps project, where it has a resource of 10 million tonnes of ore with an average grade of 0.34 per cent uranium dioxide.

Monday, July 12, 2010


Alliance Resources Ltd subsidiary Alliance Craton Explorer Pty Ltd (ACE) has begun Federal court proceedings against its joint venture partner at South Australia's Four Mile uranium project, Quasar Resources Pty Ltd

Alliance alleges that Quasar, with Heathgate Resources, from whom Alliance is also seeking damages, failed to disclose information relating to the project's prospectively.

Quasar and Heathgate are both owned by the US-based General Atomic Technologies Corporation.

In a statement to the Australian Securities Exchange, the miner said it is still committed to the Four Mile project, which it expects to rank among the Western world's top 10 producing uranium mines.

Following an independent scoping study, Alliance's board has begun an optimization study on construction of a stand-alone processing plant at the mine, the company said.

Today's ASX Announcement


Some interesting legal wording used within Today's Federal High Court action against their Joint Venture partner

Ab Initio
Latin: from the start; from the beginning.
A proposition in law that a court's jurisdiction, a certain document which purports to affect legal rights, or an act which purports to affect legal rights, is or was nul and void from the start, from its beginning, because of some vitiating element.

Typically, documents or acts which are Ab Initio cannot be fixed and where jurisdiction, a document or an act is so declared at law to be Void Ab Initio, the parties are returned to their respective positions at the time of the Ab Initio event.

Indeed some interesting actions await !

Sunday, July 4, 2010


The oil disaster in the Gulf and concerns over global warming could spur greater interest in building nuke plants. That means new options for investors to explore.

Nuclear energy has been rising on America's agenda for years because of growing concerns about the environmental damage and national-security risk from using too much fossil fuel.

But the massive BP (BP.N) oil spill has made nuclear power look even more attractive -- a potential environmental silver lining from the Gulf of Mexico disaster.

Certainly, memories of the 1979 Three Mile Island nuclear accident and the 1986 Chernobyl meltdown make it difficult for many to embrace nuclear energy. But new plants have compiled strong safety records.

Most critically, nuclear plants don't produce carbon emissions -- which means old fears about potential meltdowns have to compete with environmentalists' efforts to fight global warming.

A key takeaway for investors in this: We'll likely see greater interest in nuclear plants from U.S. utilities if polluted shorelines along the Gulf of Mexico boost support for policies that nudge America away from fossil fuels.

"We're pretty bullish on nuclear energy," said Don Wordell, who manages the RidgeWorth Mid-Cap Value Equity Fund (SMVFX). "It's environmentally friendly, and it is low-cost on an ongoing basis." As a play on this theme, he owns shares of Fluor (FLR.N), which helps build nuclear plants. Other companies in the space, such as Shaw Group (SHAW.O) and McDermott International (MDR.N), would also get more business from a bigger build-out of nuke plants.

Utilities that have a lot of nuclear energy in their production mix -- or plan more -- would also get a big boost from an environmental-policy shift that taxed carbon. Unlike competitors more dependent on coal, these utilities' costs wouldn't go up as much in a carbon-tax scenario.

Exelon (EXC.N), Southern (SO.N) and Scana (SCG.N) are three utilities with a decided tilt toward nuclear energy compared with coal, says Roger Conrad, the editor of a top-ranked investment newsletter called the Utility Forecaster. He thinks all three look attractive, in part for this reason. There are also a couple of exchange-traded funds that let you invest in the industry.

What about uranium? Don't be tempted to buy into Cameco (CCJ.N), Uranium Energy (UEC.N) or other producers of the nuclear plant fuel as a play on more plants. The reason: Lots of new supply coming online soon will hold down uranium prices, says Tom Winmill of the Midas Fund (MIDSX).

The big problem for nuclear
One big challenge with nuclear power has always been that plants are so darn expensive, and most of the cost has to be paid upfront. A single plant runs at least $4 billion, says the industry-backed Nuclear Energy Institute, or NEI, and it can cost twice that much. It takes about 17 years for a utility to pay off the investment, says Revis James, the director of the Energy Technology Assessment Center at the Electric Power Research Institute.

That's a long wait in a stock market where quarterly earnings are key, and many investors merely "rent" stocks for a few months rather than invest for the long haul.

But in time, the payoff for utilities with nuclear plants can be huge. Because after construction costs are recovered, nuclear energy is far cheaper than coal once fuel and maintenance are the main costs. "They are a great deal, once you get them done and paid for," says Buzz Miller, the executive vice president of nuclear development at Southern, which operates six nuclear plants built in the 1970s and 1980s and plans to build two more. "A nuclear plant can last 60 to 80 years."

The difficulty for utilities is those first 17 years, James says. This helps explain why China, where upfront costs matter less because of heavy government involvement in the industry, has been charging ahead. In contrast, private-sector U.S.-based utilities are much more reluctant to build nuclear plants.

Worldwide, there are 53 nuclear plants under construction, 137 plants on order or planned and 295 projects under consideration, according to the NEI. In contrast, the U.S. may add four to eight new plants to its 104 by 2017.

Environmentalist opposition has been a hurdle as well and remains strong in some circles. Concern about the impact of a wider meltdown than Three Mile Island's -- and what to do with the waste nuclear plants produce -- remains strong. It wouldn't take much for the "No Nukes" rallies to fire up again.