Investors Chasing Uranium Mining Stocks, Again: A Favorite Emerges

Fifty years ago, uranium fever hit Wall Street. It is then only a few years after a Navajo shepherd in New Mexico, named Paddy Martinez, discovered "yellow rocks" on his property, it is wrong for them at first zlato.Lavina $ 1950 (more valuable than those we have today) poured into mutual funds and uranium mining stocks, sending the value of their astronomical levels. Get ready for deja vu all over again, as Yogi Berra once said. Trend spotter, James Dines, editor of the Dines Letter, believes uranium mining stocks could become just as warm or warmer than the Internet stocks 1990th (Editor's Note: ".'re Buying panic in uranium." StockInterview.com interviewed James Dines July 20, 2004, when the prognosis Since then, the point of uranium (U3 08) prices have nearly doubled in the last 35 years, Dines successfully predicted mega trends in gold, internet, palladium and uranium price movements). And now investors are chasing uranium mining stocks again.

look at the leader, Cameco (NYSE: CCJ), which is a money manager Robert Mitchell called the "Saudi Arabia of uranium," shows three years to get more than 700 percent. Over the past few years, traded in Australia Paladin Resources, skyrocketed to more than a dime below $ 2/share ($). The recent Forbes magazine cover story, entitled Going Nuclear, analyzed uranium's recent price surge, "One reason is the price of uranium should keep escalating is that producers just starting to ramp to meet the high demand. Utilities globally need 180000000 pounds of uranium annually, but this time only £ 108000000 from countries ."

Why the sudden jump? Morgan Stanley institutional report, published in December 2004, explained that through the 1990s, uranium oxide prices stayed low because surplus uranium came into the market of weapons decommissioning. This surplus inventory worked its way through tržište.Analitičar Morgan Stanley forecast "deep supply-side shortage" of uranium, citing that new mining production has not yet come online medication deficit. In one year forecast, the uranium deficit is expected to grow to nearly 20 million pounds this year (in excess of 6 million pounds in 2003), and then jump on top of a deficit of more than 35 million pounds in 2006. Deficits of more than £ 30 million anticipated for 2007 and 2008. According to analyst at Morgan Stanley, $ 50/pound possible in the spot price for uranium oxide, known in the trade as "yellowcake ."

Mining Bulletins grace Strathmore Minerals

What does this mean for the uranium stocks? Higher rates should be provided as more investors, mutual funds and hedge funds search out the best returns. Although most of the investment dollars are likely to chase Cameco's price is higher, the percentage of robust gains in the stock May have been a highlight. In general, the new money looking for well-capitalized junior mining stocks with solid uranium projects in its portfolio. One of those most often recommended for mining newsletter writers, Strathmore Minerals Corp., trading on the Toronto Venture Exchange (symbol STM.V). Prominent among the Strathmore project are in-situ leach mining operations proposed for Wyoming and New Mexico, and an aggressive exploration program in the world's richest uranium areas, Saskatchewan's Athabasca Basin (home to uranium mining giant, Cameco ).

In September, letter writer Lawrence Roulston of Resource options recommended Canadian-based Strathmore Minerals (TSX-V: STM), writing, "the company systematically adding value to projects likely to be significant in the short term, especially those with short-term production potential. "Also in September, resource World contributing editor, Alf Stewart, wrote," The two deposits, Strathmore is developing were 'cherry picked "from inventory of Kerr McGee, the largest private investigator uranium before in this industry for grinding halt in the early 1980s. As these properties largely drilled off, Strathmore may be considered more than a uranium development company of the researchers. "This past June, money manager Adrian Day recommended uranium stocks in the research report, writing," So I am focusing on four main areas of uranium, with one or two buys in each ... top research companies that are commodities and are likely to lead to production traits. Strathmore Minerals, with technically strong management, lots of features, and strong balance sheet, is arguably the best ."

New Uranium Discovery in Athabasca Basin?

Here is one reason why investors may anticipate stronger strong rally in Strathmore stock prices over the next twelve months: In the 16th November reports ([http://biz.yahoo.com/bw/051116/ 20051116005591.html?. v = 1]), Strathmore Minerals announced a discrete conductor, more than 30 miles long, after he completed airborne geophysical survey companies Davy lake property in the north central part of the Athabasca Basin. According to company reports, "a conductor's profile response indicates a deep and in places, broad source ."

almost all the major unconformity uranium deposits known in the Athabasca Basin are directly associated with fault structures associated with graphitic conductors. Deposits as a key Lake, Cigar Lake and McArthur River were found by drilling electromagnetic guide located within magnetic lows.

In an interview with Jody Dahroug, the Edmonton-based Dahroug Geological Consulting Ltd., said StockInterview.com, "early indications are that this conductor is similar to other known uranium deposits, graphitic conductors with magnetic lows." Sljestvici 1:00 to 10:00, Dahroug rated the Davy Lake conductor ten. "It was a long conductor, cut by structures, with deep depth and associated late fault," said Dahroug. "This is a good guide that is still deep, and this is typical of those reported to be associated with known uranium deposits." Dahroug described how MegaTem II airborne geophysical survey was able to determine the conductor as shallow as 600 meters and running deep to 1200 meters. Dahroug comparisons to other uranium deposits in the Athabasca Basin. "Sue deposits near McLean Lake is associated with an electromagnetic conductor that is approximately 2.6 km long," he said. "Based on our work in the Waterbury Lake, we have identified 8 km long conductor associated with the Midwest Deposit (s)." P2 "conductor at McArthur River is approximately 13 kilometers. This feature was first identified in 1984 by Deep ground EM survey . Shea Creek deposits, located south of Cluff lake, are associated with about 25 kilometers of conductors, known as the Saskatoon lake conductor. "Dahroug added: "These deposits are found at depths similar to what we expect at Davy Lake."

What is probably most significant is Strathmore's gamble, exploring much of the eastern Athabasca Basin, approximately 300 kilometers from the eastern Athabasca Basin, where major discoveries are made. "It is virtually unexplored," said Dahroug with excitement in his voice. "It was really a virgin land." While there is ample evidence suggesting multiple uranium deposits in the Athabasca Basin, other junior exploration companies looking at the shallow eastern basin, which is not likely to be given economic uranium ore. One pundit sour question some of the current research activities in the Athabasca region, "Are they really re-flying the old because it is already flying a hundred times, or are they just releasing old data to save money?" Dahroug pointed out that uranium seems to be running for much deeper than the recent discovery, as he believes Davy Lake property may be true for Strathmore Minerals in the north central part of the Athabasca Basin.

Important features of many Athabascan uranium deposits are cross-cutting fault zones. Dahroug confirmed the Davy Lake conductor a priority zone malfunction sinistral (left-sided) fault halfway along its length. According to Dahroug, there is a "conductor extension which crosses fault from west to east and 'flows' out into a small sub-circular magnetic low." As with many Athabascan uranium deposits, which tend to be located between the overlying sedimentary units and underlying basement rocks, Davy Lake conductor fits the bill. Strathmore Mineral president, David Miller, told StockInterview.com, "said the 50-plus kilometer geophysical anomaly appears to indicate a basement conductor." However, Mr. Miller tempered joy in the air, "geophysical anomaly does not make a body of ore. These exciting initial results will be monitored with infill geophysical lines, followed by ground geophysics, followed by shallow drilling, looking for changes. When we have narrowed the target exercise, we will pull in the big rigs and test conductor in the breach. "Dahroug remains excited about the Davy lake conductor, and said:" it is clear that this represents an excellent exploration targets for unconformity type uranium deposits.

What does all this mean? This could explain why Strathmore Minerals and can be on the way world-class uranium discovery as further exploration more clearly defines how valuable those newly discovered guides can become. Meanwhile, Strathmore's New Mexico and Wyoming properties (amounting to potentially several million pounds of uranium resource) are in the preparatory phase of the permit process. As the spot uranium price inches forward widely accepted short-term target above $ 40/pound, several Strathmore Mineral properties may become instantly more valuable to the utility company, which will one day take of uranium oxide to fuel its nuclear reactors.

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