Uracan Resources Ltd. Winston Updates Uracan Resources by 24hgold

Mots clés associés : Canada | Dollar | Uranium |

The price of uranium seems set for a turn around. After peaking last year at over $140, the spot price dwindled down to a recent bottom of $57. It was only a matter of time before the price caught up with market fundamentals.

Today the spot price is at $60 and we should see a 50% increase in the price over the coming months as new nuclear plants start to come online. This year India will start up three nuclear plants followed by another six start ups in India, China, Russia, Japan and Canada next year.

Aside from increasing demand, producers also have to realize a decent profit. Cameco, the world�s biggest uranium producer reported that the cost to produce a pound of uranium in Q1 was about $45 whereas they averaged a $40.85 selling price. Their future contract prices by necessity must be higher.

In light of still very good fundamentals, those companies who are proving up potential economic deposits will outperform their peers in the stock market.

Uracan Resources (URC, TSXV)

Bottom Fishing Alert- This stock is undervalued!

19.96 M Pounds of U3O8 Compliant Resources Announced

Good news from the Uracan camp this week. They have just announced a NI 43-101 compliant inferred uranium resource of 19.96 million pounds. This fact alone should push their share price up by about a dollar � yet the market hasn�t cottoned on yet. Currently the stock is grossly undervalued and is a prime bottom fishing opportunity!

The objective of Uracan at their North Shore Property is to prove up a large, near surface, low cost, open pit uranium resource. The management believes that they have a potential Rossing-style deposit here. The Rossing mine operated by Rio Tinto is also a lower grade deposit of only 0.02% to 0.03% U3O8 but is the fifth largest uranium producer in the world generating 7.7% of the world production.

The new resource calculation outlined in this initial inferred resource at the Double S Zone includes drilling up to December of 2007 based on 51 drill holes. The resource number is calculated using a cut off of 0.009% U3O8, which provides 74,215,000 tonnes averaging 0.012% U3O8 or approximately 19.97 million pounds of U3O8.

Interestingly, the grade Uracan has indicated, 0.012%, is the same as what Uramin had in 2007 when they got bought out by AREVA for $2.5 billion or $8 per share.

Taking a look at some comparable uranium companies who also have compliant reserves, it is clear that Uracan is undervalued. The Canaccord brokerage firm has a detailed listing of company�s with compliant uranium resources and their respective market cap�s per pounds in the ground. On average, each pound in the ground is valued at $6.40.

Given Uracan�s nearly 20 million pound resource (which is still growing), Canaccord�s average valuation price would give URC a $128 million market cap or about $1.70 per share. The stock is now trading at around 50 cents.

With these initial NI 43-101 numbers in hand now brokerage firms and other analysts can start initiating some coverage.

However news of new discovery in Saskatchewan yesterday at the Portage Zone could add some added excitement to the stock in the weeks ahead. Uracan announced that they drilled 41.7 feet of 2.83 pounds per ton U3O8 just 30 meters from the surface and 64 feet of 1.66 pounds per ton U3O8 just 75 meters from the surface.

That�s a really good start for a new discovery!

North Shore Uranium Property Update

Uracan has drilled an over 70 new holes over 2008. New mineralized zones within the Double S trend have been found 3 kilometers to the northwest of the main Double S zone. These new areas are called the Middle Zone and the TJ Zone. In addition the known mineralized zone at Lac Petit, 2 kilometers to the northeast of the Double S Zone, has been increased.

Another new discovery was made 5 kilometers to the southeast of the Double S Zone in the John Beetz area. Several new zones were found here ranging in widths from 5.6 meters to 14.2 meters with grades of 0.01% to 0.02% U3O8.

All these new mineralized zones may add to the current resource numbers. There are still numerous other showings and occurrences remain to be drill tested, and significant portions of the North Shore Property have had little or no significant exploration carried out yet. This bodes well for improving the resource calculations in months ahead and in turn, improving the share value of the company.

This summer drilling will continue on the Double S zone to further define and expand the known mineralized trend which is open along the strike and at depth.

Uracan is an undervalued buy for growth.

Hathor Explorations (HAT, TSXV)

The First Drill Hole of the Summer Season Hits 69.2 Meters!

I�m sure some Hathor investors thought that the exploration excitement would be over for the year as drilling is now taking place from dry land. Not so. With the drill angled at 45 degrees they were able to intersect 69.2 meters of uranium mineralization which sits under the lake! This new hole, called MWNE-08-30, was a 15 meter step-out extending the strike of the Roughrider discovery zone to the north east.

The drill core was tested using a gamma ray scintillometer. 19 zones of the mineralized core, ranging from 0.1 to 3.4 meters were classified as highly radioactive. Generally the lab results will find corresponding higher grades of uranium to match the scintillometer readings so there is good reason for optimism. Results are pending from the lab.

Now what�s really interesting is that the main target still hasn�t been tested. At the point where the uranium bearing rock meets Athabasca unconformity is where you would generally find the highest grade of uranium. (An unconformity is a buried erosion surface separating two rock masses or strata different ages.) This target is centred about 90 meters east-northeast of the discovery hole MWNE-08-12.

When this target is finally tested, you better hold onto your HAT.

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