Uracan Doubles Uranium Resource

Uranium Price Seen Improving Over Next 48 Months

By James West
MidasLetter.com
Tuesday, March 10, 2009

Raymond James mining analyst Bart Jaworski thinks the spot price of Uranium is on its way to US$80 a pound - a scenario many in the Uranium business think is likely. That's very good news to uranium explorers like Uracan Resources Ltd (TSX.V:URC), who recently announced the doubling of its in situ inferred resource to 40.7 million pounds of Uranium.

Uracan now has three zones with resource calculations on its North Shore Property in Quebec , all within a couple kilometers, and all right at surface:

• At the TJ Zone , a total of 7.0 million pounds of U3O8 has been outlined grading an average 0,011% U3O8
• At the MZ zone, 13.7 million pounds of U3O8 has been outlined at 0.012% U3O8

Management used a 0.009-per-cent cut-off, the same as they used in July last year when they announced their initial NI 43-101-compliant inferred resource of 74.2 million tonnes at an average grade of 0.012 per cent U3O8, containing 19.96 million pounds of uranium at the Double S zone. This inferred resource estimate was based on diamond drilling completed during 2007.

The wholly owned North Shore property covers approximately 1,000 square kilometres, 285 kilometres east of Sept-Iles, Qu�bec. Infrastructure is excellent with paved highways, power lines, and deep water potential within the project area.

While the grade is low relative to its Athabasca Basin peers in Saskatchewan, it's actually a very common grade in the rest of the world. Many of the new Namibian production and development projects are the same grade as Uracan.

Its near surface orientation and growing size could see it as either a producer or acquisition target should uranium consumption increase worldwide. There are plenty of arguments in support of that.

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