Pele Mountain Sells Highland Gold Project, To Focus on Rare Earths and Uranium Project

Pele Mountain Resources Inc., a Toronto-based mining firm, announced on Tuesday it has entered into a binding concurrence to sell its Highland Gold projects to a wholly-owned additional of Prodigy Gold Inc. for $1.8-million.Pele Mountain Resources Inc. opted to sell its Highland Gold projects to focus on its Eco Ridge Mine rare earths and uranium project.

"The divestiture of Highland will allow Pele to better focus its efforts on advancing growth at our Eco Ridge Mine Rare Earths and Uranium Project. Prodigy is well located to add value at Highland and to maximize Pele's ongoing interests in potential future production during our continuing royalties on the Project. We wish Prodigy every success in its efforts to increase the Magino Gold Mine and the surrounding area as well as Highland," Al Shefsky, president and CEO of Pele Mountain Resources Inc., said in a statement.

Golden Goose Resources Inc., the wholly-owned additional of Prodigy, apart from the purchase and sale agreement it entered with Pele Mountain Resources Inc., will as well acquire from Pele Gold for $25,000 its interest in a license agreement between Pele Gold and Cedar Falls Forest Resources.Cedar Falls Forest Resources holds licensed assured rights to Pele Gold in the lands situated in the township of Abotossaway, district of Algoma, Ontario.

Chinese power group eyes uranium companies

A Chinese state-owned power company has set its sights on two uranium companies, making a £632m offer for London-listed Kalahari Minerals that if completed would trigger an offer for Australia-listed Extract Resources.China Guangdong Nuclear Power has bid 243.55p for Kalahari, an investor in a Namibian uranium project, representing a 16 per cent premium to the Aim-quoted group’s share price over the past six months.

Kalahari’s board recommended the latest offer from the Chinese group, which is trying to secure supplies of nuclear fuel as the country embarks on the world’s biggest reactor-building programme.Earlier this year, CGNPC tried to buy Kalahari but its 290p offer was disrupted by falling uranium markets after the nuclear disaster at Fukushima in Japan as well as an adverse ruling from the UK’s takeover panel.

Kalahari is an investment company whose sole asset is a 43 per cent stake in Extract, which is developing the Husab uranium project in Namibia.Australian securities laws require bidders to extend their offer to all shareholders if they buy a stake of 20 per cent or more in an Australian company.

Chinese bet on Extract's uranium

An expected $2.2 billion bid for uranium explorer take out Resources by a Chinese state owned nuclear power company is being labelled as the boldest show of hold for the sector since the Japanese nuclear disaster in March.

The takeover speculation was spark after Guangdong Nuclear Power reopened talks with Extract's biggest shareholder, which hold nearly 43 per cent of the share register, according to a media statement in the UK over the weekend.

Australian-listed Extract's intended Husab uranium project in Namibia is the focus of Guandong's intentions it is a 15 million pound a year mine that take out says will be one of the world's three largest uranium mines take out placed its shares in a trade halt after it had climbed 82 cents, or 10.2 per cent, to $8.86 following an hour of trade

Toro Energy's three new uranium tenements could add 4m pounds to resource base

Toro Energy (ASX: TOE) has finalize legal documentation with MPI Nickel Pty Ltd that formalises conditions for the purchase of three key mining tenements contiguous to the Centipede deposit at Toro’s advanced Wiluna Uranium Project in Western Australia the "Millipede" uranium tenements could add 4 million pounds uranium to the company's reserve base.

Toro is currently working on a JORC Resource update for the Wiluna Project and the company expects the three new tenements will comprise a portion of the revised consolidated resource when it is on the rampage at the end of this month.

On 17 February 2011 Toro announced it was acquire a project called Millipede from MPI. deliberation for the tenements includes a A$4.5 million cash payment to MPI and 2% Net Smelter Return (NSR) style royalty in favour of MPI on construction in excess of 4.5 million pounds (Mlb) uranium (U3O8) from the tenements.

Resource Star 30% uranium resource boost to 6Mlb at Livingstonia in Africa

Resource Star (ASX: RSL) contain boosted by 30% the uranium resource to 6 million pounds at the Livingstonia Uranium Project combined venture in Malawi. The Resource is; 8.3 million tonnes at 325 ppm eU3O8 for 6.0 million pounds of U3O8 (or 2,700 tonnes).What is so significant about the upgrade is just 1500 metres of drilling extra around 1.4 million pounds of uranium. More significantly, the company has generated a great increase in the high grade core of the deposit.

Multiple horizons of sandstone-hosted uranium comprise been defined, with possible fault controlled trends where the stack zones merge to supply near-continuous mineralization, The best meeting point to date from LBPE 103 is; 33.95 metres at 338 ppm eU3O8.

Resource Star will now assume an integrated geological study of past data and a desktop conceptual development study to finalise strategy for the next round of drilling and testwork.Supporting this extra work is that the independent review completed that there is excellent potential to recognize additional resources.

Australian uranium developers could service global provide weakness

The world is intense more uranium than it can produce and could expression a global shortfall of 400-million pounds a year by 2018, Australian uranium explorer Marmota Energy said on Friday. Chairperson Bob Kennedy said that Australian uranium developers should move to expand a pipeline of uraniummines in order to increase their possible to service that supply weakness. The continued urbanisation of China and India in particular, would drive require in the future, for a wide variety of commodities, with uranium predictable to feature prominently in the mix.

“Shortfall in supply is likely to result with the drop off in uranium exploration globally due to the belongings of the recent global financial crisis. It will be unlikely that this deficit will be met, leaving significant chance for further spot price rises, as has been seen over recent months,” Kennedy said. He told shareholders at the company’s annual universal meeting that Marmota was “well located” to secure leverage from the supply demand imbalance, particularly as the spot price sustained to firm. The company’s flagship uranium project is the Junction Dam greenfield detection on the border between South Australia and New South Wales.

The company was currently assessing the suitability of results from the Junction Dam forecast to determine a preliminary incidental resource, and would start phase three of its drilling programme in March next year. Another Australian uranium developer, Toro Energy, lately said that the country had the possible to be the world’s main uranium producer in the next decade, surpass Kazakhstan and Canada as the main suppliers. Toro Energy MD Greg Hall stated that former eastern bloc countries, which explanation for more than 40% of global primary uranium supply, would not be capable to satisfy future demand, mainly from Asia-based power utilities.

Uranium prices to increase 19% in 2011

Uranium prices will average US$52.25/lb next year, on behalf of an advance of 19% compared with 2010, according to a new report by Morgan Stanley. The mid to longer term price rises can be credited to an increasingly tightening demand-supply balance. Spot prices for uranium oxide this year through mid October average US$43.78/lb and for 2012, the company’s analyst Peter Richardson and Joel Crane predicted it could rise to as a lot as US$60. This year’s average is 6% below last year’s level and approximately 30% lower than the 2008 average. “The steady, two-year erosion in uranium prices has translate into difficult mining breakeven points, particularly for latest uranium projects,” the analysts said.

The fall in prices has made the world ever more dependent on Kazakh output, which reached 14.02Mt last year, efficiently knocking Canada of the top spot, according to the World Nuclear Association. Moreover, with new nuclear reactor capacity coming online in the stage up to 215, demand for fuel is expected to rise by 24%. And growth potential lies ahead for the longer-term as well as over the next decade, an extra 147 nuclear plants are planned to come online, according to Morgan Stanley. Their fuel necessity is estimated to be around 32,900t of nuclear fuel. It is envisage that most of this order will have to be met by mines as secondary supplies from recycled Russian warheads may cease as an international conformity expires in 2013.

Uranium SA triples uranium source in South Australia

A tripling of its resource estimate to 10,400 tonnes of enclosed uranium oxide has been publicized by Uranium SA Limited for the Company’s flagship Mullaquana Uranium Project, south of Whyalla on South Australia’s Eyre Peninsula. The new JORC Inferred Mineral Resource approximation comprises 38.7 million tonnes of mineralization estimated to contain 10,400 tonnes of U3O8 at an average grade of 275 ppm eU3O8. The average thickness of mineralized intersections is 11.85 meters with the mineralization beginning at little more than 50 meters below surface. It is only the Company’s second resource estimate for Mullaquana and follows a wide round of infill drilling at Mullaquana’s Blackbush Prospect.

The enhanced source announced today compare with the May 2009 maiden JORC Inferred Resource of 12Mt at an average grade of 224 ppm for 2,700 tonnes. Mr Russel Bluck MD of Uranium SA said that “This is the most important outcome for the project to date and is particularly so as the resource envelope contains areas of higher grade textile while remaining open in several directions. We plan to continue to gradually update the resource estimate with more drilling as areas of higher grade mineralization have the potential to move to higher resource classifications.”

Mr Bluck said that the new approximation also helped move Mullaquana towards the beginning of a field leach trial for the in situ recovery of uranium. Today’s result is in line with our before flagged exploration objective of having above 20,000 tonnes of uranium mineralization in drilled list within the Mullaquana project areas by late this year through to early next year. He said that certainly, the growing inventory of potentially economic mineralization give the Board a high level of assurance that the Mullaquana Project will continue to evolve from a Greenfields discovery into a uranium asset of Australian and international significance.

Aussie firm eyeing Nam nuclear fuel

Namibia could soon become one of the region's hubs with regard to the mining of nuclear fuel mineral and nuclear fuel processing. Namibia has key and strategic reserves of uranium, an important part in most nuclear fuels, and the country has this year seen a wave of sponsor interest in uranium deals, particularly from Indian and Russian firms. In a current statement, AIM-listed and South African-based firm, North River Resources Plc said that its NRR Energy Minerals Ltd unit had settled to subscribe US$800,000 so that Extract Resources Ltd and NRR Energy will each hold 50 percent in Extract Namibia, which has rights to explore for nuclear fuel minerals.

At the beginning of 2010 NRR had indicate that was working to fast-tracking its asset portfolio, with exacting emphasis on the Dordabis copper and Namib lead zinc projects, which acquired the majority of its assets from Kalahari Minerals in November 2009. Although Kalahari Minerals' core operations were not focused on uranium production, NRR had indicate that they were creation progress, in what were non-core projects under the previous ownership. Said North River administration director David Steinepreis earlier in the year: 'We have been forcefully assessing existing data, whilst also reviewing the best options to advance these projects, which may or may not involve partnership agreements.

We are utilising our strong on-ground presence, and maintain a prepared development plan that is aimed at delivering value to shareholders.' The nuclear fuels development could help to ease the Southern African country's energy shortage, if its authorities are prepared to invest in nuclear energy. NRR has since indicated that it would be targeting other potentially feasible mineral projects in the SADC region, although potential acquisitions must meet severe investment criteria. In Mozambique, North River is assessing data generate from the Mavuzi gold-uranium project. Historic data from a British Geological Survey is believed to detail Rare Earth Element possible in the Mavuzi area. 'North River continues to review gaining opportunity in southern Africa to complement its existing portfolio of gold, base metal and uranium assets,' said NRR.

Uranium Miners required 25 percentage Price Advance for Expansion Incentive, Rio Says

Uranium must rise 25 percent to give mining companies an incentive to start or develop projects outside of top producer Kazakhstan, said Clark Beyer, managing director of Rio Tinto Uranium Ltd. His comments relate to uranium-oxide concentrate’s “long- term” price, defined as release in more than 24 months by Ux Consulting Co. The price is $60 a pound, UxC said Sept. 20 in its latest weekly report, compare with a 2010 low of $58. “You need probably a $75 price to incentivize a lot of the latest projects around the world,” Beyer said yesterday in an interview. “It is certainly a helpful sign that things are picking up, but as yet we have not seen much movement in the long-term price.”

Kazakhstan, which now accounts for almost a third of world uranium production, more than tripled its output of the radioactive part over the past five years, according to figures from the World Nuclear Association. Output fell in that span in Canada, the second biggest manufacturer, and in third- ranking Australia, according to association data. “There are a lot of projects on the drawing board that will have trouble receiving into production or will be delayed” at current prices, Beyer said. “Almost all of the supply development of the past five years has been in Kazakhstan. If it is going to be anywhere else, in Africa, Australia and Canada, we will possibly need to see stronger prices.”

UxC expects between 40 million and 45 million pounds of uranium to trade this year on the spot market, where mainly purchases are for delivery in up to three months. A record 54 million pounds was buying and sold last year, accounting for about 33 percent of global reactor needs, according to the Roswell, Georgia-based consultant. Uranium for urgent delivery has climbed 19 percent to $48 a pound from this year’s low in March, UxC’s latest report shows. The “long-term” price “is actually the more important indicator when it comes to supporting new project development, rather than the spot price,” Beyer said.

Uranium Energy Corp. (UEC) Moves Toward primary Uranium Production

When U.S. based exploration and development company Uranium Energy Corp issued their earlier mid-year investor report, the company clearly outlined the progress newly made and where they hope to be by the coming year. In early June, UEC initiated wellfield development and creation at Palangana production area #1 in South Texas, with 110 injection and production wells to be drilled, cased, and completed. Concurrently, they also in progress drilling the disposal well for this first wellfield, which is now complete. The equipment, tanks, and pipes for the ability are already being installed. The site will feed the UEC’s recently acquired Hobson processing plant, which is nearby, fully licensed, and ready to process uranium.

The Hobson central dispensation plant is prepared to process the first truckloads of resins into uranium oxide, with the first deliveries expected as early as November. UEC also announced its first NI 43-101-capable resource at Palangana. The independent Technical Report gives for a resource of 2.2 million pounds U3O8 in all categories. Based on very successful tool throughout the year on several zones at Palangana, UEC is confident of expanding this defined resource before the end of this year. In addition to the main progress at Palangana and Hobson, UEC has received the crucial disposal well permits for the Goliad ISR project in Goliad County, Texas. The final production permits for Goliad are predictable later this year.

There is believed to be 6.9 million pounds of in-situ uranium in all category of resource at Goliad. This is in addition to 1.3 million pounds at the company’s Nichols project and a 1.5 million pound historical reserve at the company’s Salvo project, both in Texas. All of these ISR uranium projects are in close immediacy to the company’s Hobson processing plant, part of UEC’s regional operating strategy in Texas. UEC is well support for all of this, with zero debt, and approximately $22 million in cash. With Palangana now scheduled to commence in-situ revival later this year, UEC will become one of only eight uranium producers in the world, and the only company in North America, in a point to start major near-term production of uranium.

Extract capital upgrades uranium project

The promote will make it one of the top five uranium deposits in the world. The emerging uranium miner says the size and grade of the latest resource confirms Rossing South as one of the most important uranium discoveries made in the past decade. Managing director Jonathan Leslie said the enlarge in the resource from the original discovery in February 2008 showed the project had "an amazing trajectory". "The main purpose is to confirm up the resource so we can get into mining, but it's also important to make people aware that the whole prospectivity of that area is enormous and is now a world class ranked deposit in terms of size," he told The Australian.

"The project has been progressively moving up the ranking list and we expect it to go on." Extract announced yesterday that indicated capital showed 257 million pounds of uranium oxide at zones one and two of the deposit, which is division of its Husab uranium project in Namibia. It added that the overall deposit was upgraded 37 per cent. The company said the increased resource also recognized the deposit as one of the highest-grade, granite hosted uranium deposits in Namibia. Rossing South neighbours mining giant Rio Tinto's huge Rossing project, which saw the mining major take a 15 per cent stake in Extract in 2008. Extract's stock is tightly held, as Rio also holds an curiosity in Kalahari Minerals, whose main investment is a 41 per cent interest in Extract.

Japan's Itochu also secured a 10.3 per cent stake in the rising miner last month, which upped the trading house's interest in the mine, as it also has a 14.9 per cent bet in Kalahari Minerals. Extract was also the centre of market conjecture last month that it could lose the right to mine the massive put, after Russia and Namibia signed a five-year uranium co-operation agreement. Following the signing, it was recommended in Russian news agencies that Russia's state-owned nuclear company Rosatom had applied to develop Rossing South and would be ready to spend $US1 billion ($1.1bn) on uranium development in the country.