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One of
the strongest fundamental
supply/demand arguments now being
discussed in the mining world of
late has been the resurgence of both
demand and price in the world of
fuel-grade uranium developments.
Several nations, specifically
including China, Germany, Japan and
the USA have announced plans to
increase reliance upon
pollution-free nuclear power and the
market price of uranium has
responded to these developments by
surging of late,
Vancouver-based Cue Resources Ltd.,
through its 100%-owned Yuty Project
located in the South American nation
of Paraguay, is working diligently
to take advantage of this growing
interest in uranium developments.
Yuty has had a long history of
exploration and development prior to
Cue's final acquisition in
September, 2008 and the exploration
data which has accumulated over more
than 30 years has provided the
company with a valuable library of
information. Based on this
collection of data including 266
previous drill holes plus drilling
by Cue of 218 holes totaling about
28,000 meters between June, 2007 and
August, 2008, the company was able
to issue an NI 43-101 compliant
Partial Resource Estimate in April,
2009 which showed an Indicated
resource of 9.0 million tonnes
@0.042% eU3O8 containing 8.3 million
lbs eU3O8 and an Inferred Resource
of 1.1 million tonnes @0.05% eU3O8
containing 1.2 million lbs eU3O8.
There are four ore zones at the Yuty
Project and most attention is now
centered on developing the San
Antonio Zone which has been the
focus of the majority of previous
exploration work. On November 23,
2010 the company announced it was
commencing the continuation of
drilling at San Antonio. The new
program will consist of 30 holes
totaling approximately 3,600 meters
and is designed to test the western
extension of the main deposit. Three
drill rigs are being employed in
order to meet the projected
completion goal of year-end 2010.
This drill program is a follow-up on
earlier exploration work started by
Cue in 2007.
Cue has been able to obtain a
20-year exploration/exploitation
concession law which was granted by
the Paraguayan government in August
2008 and one notable feature is
there are no restrictions on
exporting product. Given the
anticipated future increases in
fuel-grade uranium demand from
outside nations, this feature could
be of considerable importance to Cue
in coming years.
Cue's near-term goals include
increasing the resource near-term to
over 10,000,000lbs; advancing
exploration to the SW to develop a
further 3-4 million lbs of
resources; and also working to
maximize resource grades.
NOTE:
A full report will be completed
following a property visit to Yuty
at the earliest opportunity. |
