Kalahari Minerals Subsidiary Of Extract Resources Receives Environmental Approval For Husab

Published on Friday January 28 2011
 

ASX- and TSX-listed Extract Resources has received environmental approval for its Husab uranium project and has also lodged a mining licence application for the Namibia project.

The environmental-impact assessment (EIA) and the environmental management plan (EMP) for the proposed mining licence area were lodged with the Namibian Ministry of Environment and Tourism in November.

Extract said that the approval of the EIA and EMP was a necessary step for obtaining a mining licence for Husab, which is the fifth-largest uranium-only deposit in the world.

“Receipt of this environmental approval is a key milestone as we develop the world-class uranium mine at Husab,” said MD Jonathan Leslie.

“We have undertaken extensive specialist environmental studies and we are committed to ensuring our environmental standards adhere to international best practice.”

Extract expects the results for the Husab definitive feasibility study (DFS) in the first quarter of next year, with plant commissioning scheduled for the first quarter in 2014.

The DFS, which was initiated in April last year, was being prepared on the basis of a conventional openpit mine, initially over zones 1 and 2, supplying 15-million tons of ore a year to a conventional agitated acid-leach plant, to produce around 15-million pounds of uranium oxide a year.

The rate of production would rank the Husab mine as the second-largest uranium mine in the world, based on production.

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Uranium Spot Price Hits $70.00 P/Lb New 52 Week High

Published on Wednesday January 26 2011

January 26, 2011–The spot uranium price continued its upward climb this week increasing $3.50 to $70.00 per pound U3O8, the highest level reported since April 2008.

CURRENT URANIUM SPOT PRICE

52 Week High 
US$70.00P/Lb

Uranium-oxide concentrate for immediate delivery traded at $70 a pound in the week to yesterday, UxC said in an e-mailed report today, based on the most competitive offer the Roswell, Georgia-based company was aware of. That compares with $68 on Jan. 18, $66 on Jan. 11 and $62.50 on Jan. 4.

TRADETECH

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Bullish Signal For Uranium Stocks In 2011

Published on Tuesday January 25 2011

The chart of the monthly uranium spot price above shows the current trading dynamic. Note the quite large falling wedge that was building between 2009 and 2010.

Now the price of uranium has broken out of this falling wedge and appears to be in a new uptrend.   Given the nature of the euphoric price peak near 140 that occurred in 2007 I am tending to think that the uranium price in the year(s) ahead will at the very least test this old high.

In elliottwave terms I believe the current leg up would be primary wave 3 up which tends to be the strongest and longest wave.

If we compare the uranium spot price structure above to the gold price it seems as though uranium represents a much better risk reward in that we seem to be in a much earlier phase of the current run up.  

The gold price and the gold mining stocks have travelled so far and so long that the uranium miners and the uranium price seem to pale in comparison.  And in terms of supply demand, the uranium sector does appear to be a niche energy sector play with only a small handful of uranium mining stocks to choose from whereas in the gold sector we already see that there are more than a few hundred gold mining stocks to choose from.

The uranium mining stocks such as Uranium Resources, Inc. (NASDAQ:URRE), Global X Uranium ETF (NYSE:URA), Uranerz Energy Corp. (AMEX:URZ), Denison Mines Corp. (NYSE:DNN), Cameco Corp. (NYSE:CCJ) Paladin (ASX-PDN) also seem like they are in only round 3 of a 10 inning ball game to the upside.  I am basing this judgement on the longer term chart structures of the uranium mining stocks, the long 2 to 3 year bases, and the enormous breakout volume out of these bases within the last 6 months.

So I think it could be prudent to embark on a uranium mining stock accumulation stance for the next year or two as we see the uranium spot price start to ascend higher.

The uranium mining stocks have moved very fast during the last 6 months.  They may be due for a major correction the next month or two, but I am looking to accumulate them on some meaningful correction during the next couple of months.

Of course it is unknown whether or not the uranium price will be able to launch a repeat persistent performance as it did into 2007.  Past performance is no guarantee of future results as they say.

But whether the uranium price travels up in a straight line or more of zig zag pattern seems to be besides the point.  The long term monthly chart above shows that longer term momentum is clearly indicating higher prices.  Uranium prices can stall out but they are likely to maintain forward momentum based on my read of the above chart.

Written By Thomas Carreno From Best Online Trades 

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Paladin Energy Cuts 2011 Uranium Production Outlook

Published on Saturday January 22 2011
 

Uranium-miner Paladin Energy on Friday downgraded its production forecast for the 2011 financial year, after a slower-than-expected ramp-up at its Kayelekera operation, in Mali.

The miner said that it expects to produce between six-million and 6,3-million pounds of uranium oxide (U3O8) in the year ending June, from a previous forecast of seven-million pounds of U3O8.

Paladin explained that the delays in ramp-up during the first half of the financial year, was owing to abnormal downtime, resulting from power and maintenance disruptions.

However, management was “confident that this conservative revision” would be met and installed capacity would be maintained going forward, as operational efficiencies and plant availability improved.

Despite the ramp-up issues, Paladin increased production by 15% to 534 201 lb at the Kayelekera operation in the December quarter.

The ASX- and TSX-listed miner also reported a 4% increase in its Langer Heinrich production, in Namibia, with the operation producing some 932 731 lb of U3O8.

Paladin noted that mining activities at the Langer Heinrich operation had been advanced prior to stage-three initiation, with three working areas expected to supply ore feed in 2011.

With its stage-three expansion, Paladin was hoping to increase the existing plant throughput to 5,2-million pounds a year, up from the current 3,7-million pounds a year.

The construction of stage three continued during the quarter under review and was expected to be completed during the March quarter of this year, allowing production commissioning and ramp-up to proceed.

The project completion, which was initially expected to be done by January, has been pushed back as a result of a delay in the delivery of critical path equipment, including boilers. This has pushed back the mechanical completion of the project by around two months.

Paladin also reported that a bankable feasibility study into a stage-four development at the Langer Heinrich project had been initiated, for the expansion to ten-million pounds of U3O8 a year.

The study was investigating a new plant to be located adjacent to the existing plant, with a total production capacity of around 8,7-million pounds a year.

Further, the potential for a heap leaching or upgrading the below cutoff grade material waste rock, to recover a further 1,3-milion pounds a year, was also being investigated.

The feasibility study was scheduled for completion during the last quarter of this calendar year.

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Lynas Corporations Executive Chairman Nicholas Curtis Speaks To CNBC's Brian Shatcman.

Published on Thursday January 20 2011
A Rare Opportunity In Rare Earths Production

Airtime: Thurs. Jan. 20 2011 | 6:34 AM ET

Discussing China's tight grip on rare earth minerals, with Nicholas Curtis, Lynas executive chairman and CNBC's Brian Shatcman.

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Uranium Spot Price Hits 52 Week High US$68.00 P/Lb

Published on Tuesday January 18 2011

Uranium prices rose 3 percent in the past week and traders are focusing on whether the nuclear fuel will test the $70 a pound level, according to Ux Consulting Co.

Uranium-oxide concentrate for immediate delivery traded at $68 a pound in the week to yesterday, UxC said in an e-mailed report today, based on the most competitive offer the Roswell, Georgia-based company was aware of. That compares with $66 on Jan. 11 and $62.50 on Jan. 4.

“It is taking some time once again for the market to become fully engaged at the beginning of the year,” UxC said. Some sellers are now “content to wait to see if the spot price will break the $70 level,” according to the report.

Uranium prices reached a high of $136 in 2007 before falling to about $40 over the last few years as the rapid expansion of production from Kazakhstan saw supply outstrip demand, according to UxC. The price of the fuel surged 40 percent in 2010 as China increased the use of nuclear power to curb emissions from burning coal.

Holidays in the U.S., Russia and Asia in recent weeks mean the market hasn’t been able to react to this month’s price increases, UxC said.

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Extract Resources On Track With Husab Development

Published on Monday January 17 2011

EXTRACT Resources is making progress on all fronts at the world class Rössing South uranium deposit at the Husab project in Namibia, according to research by City Broker Singer Capital Markets.

Rössing South is currently one of the world’s largest uranium deposits.

Investors on London’s AIM market are likely to have heard about the project through Kalahari Minerals who has a 41,12 per cent stake in Extract.

Kalahari published an update last week, relaying Extract’s fourth quarter results, to its investors.

Charlie Long gave his view on Kalahari in a note to clients.

“The Definitive Feasibility Study remains on track for publication in the first quarter [calendar], whilst the Environmental Impact Assessment and mining licence application have been lodged with the relevant ministries,” Long said.

“We remain confident that between the boards of Extract and Kalahari there is enough experience to take Rössing South to production, although we recognise that the construction of a new desalination plant could still delay proceedings.”

He added: “We will be watching closely for any developments on the desalination plant as we regard the timing of its construction as the most likely source of delay.”

Extract is currently running a massive 17 rig drilling programme. It drilled 72 172 metres in the three months ended December 31 2010.

This took the overall running total to over 570 000 metres. At the moment Extract is focused on ‘Priority 1’ infill drilling at Rössing South’s Zone 1.

“A resource upgrade is guided for the first half of 2011,” Long said.

“We are currently forecasting an update inventory of 375 million pounds, although there is probably upside potential here.”

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Uranium Spot Price Surges Into New Year To $66.25P/Lb,

Published on Tuesday January 11 2011

Uranium prices surged 5.6% in the past week as traders returned to the market, placing a premium on near-term delivery due to concerns about potential shortfalls in production, according to Ux Consulting Co.

Uranium-oxide concentrate for immediate delivery traded at $66 a pound in the week to yesterday, Roswell, Georgia-based UxC said in a report. That was up from $62.50 on Jan. 4.

“Recent developments have placed a premium on near-term delivery,” UxC said, citing concerns about production in Australia for companies including Rio Tinto Group-controlled Energy Resources of Australia Ltd. “While it is true that current supply issues are not as negative as they were several years ago, it is also true that China was not the dominant demand force that it is today.”

China and India are leading the biggest nuclear energy expansion since the decade after the 1970s oil crisis to reduce air pollution and power their economies, triggering a 40% surge in spot prices in 2010. Uranium producers in Australia and Canada forecast demand will increase as countries expand their use of nuclear power to curb emissions from burning coal.

A total of 10 transactions involving more than 2 million pounds of uranium-oxide concentrate equivalent were conducted in the past week, according to UxC.

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