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Since their inception just a
few months ago, Vancouver-based Athabasca Uranium Inc.
(TSX-V; UAX) has been working diligently toward
achieving their corporate goal of becoming a world-class
uranium mining company. They have taken option positions
on three properties; the McCarthy Lake Project, the Webb
River Project and the McGregor Lake Project - all
located in the famous Athabasca basin of Saskatchewan,
home of some of the highest grade uranium deposits known
to date.
As of early 2011, UAX continues to move forward on two
fronts, acquiring additional property interests and
continuing development of its core holdings. The company
recently announced plans to acquire options on three
properties; Key Lake East, Hodges Lake and Hamilton
Lake.
At the same time, the company is advancing its
exploration and development work at their McGregor Lake
and Webb River properties, specifically including a
2,740 Km heli-borne Z-Tem survey, employing the latest
cutting-edge technology of its kind, designed to
identify discrete conductive vertical anomalies at
depth.
For several years, a powerful, fundamental argument has
been building for uranium resource development and two
factors in particular lie behind the uranium argument.
In the first case, many nations are either embarking on
new nuclear power projects or extending the life of
present ones. Among the important nations which have
publicized such plans in recent years are China, India,
Germany, France and the United States. One of the
driving forces behind such decisions is the fact that
nuclear power production is virtually pollution-free.
In the second case, an important source of fuel-grade
uranium for nuclear power plants has been the conversion
of weapons-grade uranium obtained from the dismantling
of previous nuclear weapons. Virtually all recovery from
this source has originated with the former Soviet Union
nations but the rate of recovery from this source is in
decline as the available supply of decommissioned
nuclear weapons diminishes.
Strong indications have recently emerged that future
demand for fuel-grade uranium is firming. In
mid-November 2010 China confirmed information regarding
its ambitious nuclear expansion program and that news
item sent spot uranium prices higher. Postmedia News
recently published estimates indicating double-digit
increases in demand for uranium production as China
looks for ways to guarantee their future supplies. It is
also worth noting that at almost the same time, Germany
confirmed its plans to extend the life of its present
nuclear power plants by an average of 12 years,
providing further support for the demand side of the
uranium supply/demand equation.
Uranium prices have surged recently in response to
firming demand indications and one source, Macquarie
Group Ltd., was quoted by Bloomberg News Service stating
the price for Uranium Oxide had risen to over $70 per
pound by early February 2011, up from $40 in the second
quarter 2010.
All of Athabasca Uranium’s projects lie along the same
general trend which hosts Cameco Corporation's two major
projects, the producing McArthur River Mine and their
major developmental project, the Cigar Lake Mine, now
scheduled to enter production in 2013.
McCarthy Lake covers 7,584 hectares (18,580 acres) and
lies 40 Km (24 miles) east of Cameco's MacArthur River
Mine and 29 Km (17 miles) SE of the Cigar Lake Mine
along the eastern edge of the Athabasca basin, abutting
Denison's South Cigar Project. A 2007 airborne Tempest
MAG/EM survey was flown over the property to test for
the presence and extent of graphitic zones that can host
uranium mineralization and identified conductive targets
described as "pearls on a string."
The McGregor Lake Project is somewhat larger, covering
18,699 hectares likewise along the eastern margin of the
Athabasca basin and adjoining Denison and Hathor
Exploration properties, lying just 5 kilometers (3
miles) east of Denison's Moore Lake deposit. The company
closed on the first phase of its option in October, 2010
with the objective of ultimately earning a 100% interest
in the project.
During the same month, UAX also closed on the first
phase of its option to acquire the Webb River Property,
covering 5,386 hectares and also located along the
eastern margin of the Athabasca basin. Webb River lies
close to two significant eastern basin uranium deposits;
West Bear and Moore Lake.
Athabasca Uranium is in the process of raising capital
to finance the advancement of their projects. Future
plans include winter drilling programs and the company
is ready to mobilize equipment almost immediately
following successful completion of their financing.
During a recent interview with Athabasca Uranium
President Gil Schneider, we learned that the company
will be employing an exploration process utilizing high
resolution 3-D seismic technology as part of its winter
program. This leading-edge technology has met with
previous success in uranium exploration (Hathor’s
Roughrider discovery) through a relationship with the
University of Saskatchewan's Geosciences department for
the interpretation of data.
Note: A full, in-depth study
will be prepared following a property visit, scheduled
to take place at the earliest opportunity |
