Uracan Resources New Uranium Discovery
By James West
August 26, 2009
Uracan Resources is
hoping its new uranium discovery in Quebec
reported today will turnaround the company's languishing stock price.
trenching numbers of up to 0.192% (3.84 lbs/ton) U3O8 over 4 meters at its new
high grade Grandroy zone, 7 km north of its 40
million pound Double S deposit in Quebec.
The grades reported today are more than 10x the grade of Double S.
At the nearby
Turgeon Est zone, grab samples ranged up to
0.685% (13.7 lbs/ton) U3O8. The company says a diamond drilling program
will commence shortly on Grandroy and Turgeon Est Zones.
Uracan's share price has
mirrored the uranium price, which has been in a 3 year downtrend - like
most other uranium explorers. This is despite Uracan
developing one of the largest new uranium resources in Canada
at Double S. The grade of this deposit - one quarter to one third of a
pound per tonne uranium - has been one of the main issues for investors. A
low uranium price has not helped.
Uracan's management is
quick to point out that they have the very similar grade as Forsys Metals (FSY-TSX; $4.25) Valencia deposit in
Namibia, Africa, which recently attracted a take-out offer of $7/share.
That bid, from
George Forrest International Inc. (GFI) was finally rejected by Forsys this week after a year of waiting for GFI to
come up with the money for the bid.
and Turgeon Est should bring more investor
attention to the company," says Uracan CEO
Gregg Sedun. "Our team is excited because
of the high grade, and we can drill year round at these zones. We may end
up expanding our planned drill program there."
Sedun would not
comment on any industry attention that Uracan
Uracan is trading
today at 25 cents, up 4 cents.
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