(Excerpted from Premium Report 5-31-16)
Uranium continues to drop to breathtaking 5 year lows despite being the
most crucial clean and carbon free energy source. However, these low
prices can be cured quite quickly by a black swan and I am positioned for
this sort of move. Attention should be paid to the restructuring of the
deal between Cameco and Kazakhstan. Kazakhstan is the world's largest
uranium producing nation but as I have always written is not a secure
supplier of this strategic clean energy metal and at any time could make
moves to squeeze foreign operators like Cameco or Areva possibly
nationalizing their assets. The Government is being hurt by low
uranium prices and these producers are cutting back due to the low price.
This means Kazakhstan is putting pressure even on the lowest cost producers
in the world. Uranium investors must watch developments in Kazakhstan as
nationalization fears could spark a major rebound in uranium developers and
producer in much safer places such as North America.
Keep your eyes on Energy Fuels (UUUU or EFR.TO) which is a pure play
American uranium company focussed on conventional and In Situ Recovery.
They have contracts in place with major nuclear power companies and is the
leading pure play uranium producer in the US. They just announced that
they consolidated the Roca Honda Project and now control 100% of one of the
largest and highest grade uranium deposits in the US.
Stephen P. Antony, President and CEO of Energy Fuels stated: “...The Roca
Honda Project is an important component in our strategy of combining
large-scale optionality and leverage to improving uranium markets, with
lower cost production from our Nichols Ranch Project, alternate feed
materials, certain of our Arizona Strip conventional properties, and our
pending acquisition of Mesteña Uranium, LLC...”
See the full news release by clicking on the following link:
Additionally, I want to revisit a company I highlighted to you a few times
called Plateau Uranium (PLU.V or PLUUF) who published a PEA this past year
on their big uranium resource on the Macusani Plateau in Peru. The company
should maybe now be called Plateau Uranium and Lithium as they published an
initial lithium resource after the PEA.
Ted O’Connor, CEO of Plateau Uranium commented: “Although we are a
uranium-focused company, recognizing the presence of lithium and
establishing this large initial lithium resource within only a small
subset of our defined uranium resource base is significant. Lithium has the
potential to add substantial value to our already robust uranium project
as a prospective by-product following uranium extraction. We have only
included lithium resources contained within four of the uranium deposits
considered in the PEA...We will be evaluating a program to analyze a
number of our other uranium deposits for lithium.”
See the full news release by clicking on the following link:
The news from Plateau showing uranium and lithium mineralization has
generated additional interest in this area. Fission 3 Corp (FUU.V or
FISOF) award winning explorers just announced a summer exploration program
on its project which is on the same corridor as Plateau Uranium's project.
The drilling will look for high grade uranium and lithium near surface.
Ross McElroy, COO, and Chief Geologist for Fission 3, commented, "This
upcoming drill program at Macusani is a very exciting next step and will
represent the first drill holes to be drilled on the property. Mapping and
prospecting has not only discovered numerous uranium in bedrock anomalies
on the Llama trend, with peaks assaying as high as 24.48% U3O8, it has
validated the model that the same mineralized trend that hosts
shallow-depth uranium and lithium resources on adjacent projects appears to
be present on our claims. Our Macusani project represents an important
project with high-grade uranium mineralization and excellent drill ready
targets in a highly prospective new uranium district in Peru, where the
infrastructure is well-established and exploration costs are low."
See the full news release by clicking on the following link:
I believe these uranium/lithium assets could be quite valuable as these two
metals are both critical for clean and carbon free energy. We could see a
major transition from fossil fuels to clean energy sources such as
nuclear and renewables.
Disclosure:
I own securities in these three featured companies Energy Fuels, Plateau,
Fission 3 and they are all paid advertising sponsors on my website. This
should be considered a conflict of interest as I could benefit from
price/volume increase and have been compensated. I have purchased
securities in open market and/or private placement. See full disclaimer and
current advertising rates by clicking on the following link:
http://goldstocktrades.com/blog/featured-companies-on-gold-stock-trades/
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