90 dollar now, page-2

*********URANIUM SPOT NOW $90.00 P/LB *********

ANOTHER BIG WEEK AHEAD FOR THE URANIUM BULLS


Nov. 1 (Bloomberg) -- Uranium rose 7 percent this week after Cameco Corp. delayed a project and Uranium One Inc. and Paladin Resources Ltd. cut production forecasts.

Uranium oxide concentrate for immediate delivery, used to make fuel for nuclear power plants, rose to $90 a pound, from $84 at the end of last week, Denver-based pricing service TradeTech LLC said yesterday. The metal has jumped 20 percent in a month.

The advance ``gained momentum as news of production shortfalls made its way into the market,'' TradeTech said in a report. That ``prompted sellers to withdraw from the market.''

Production delays will worsen a uranium shortage that in June helped propel the price to a record $138 a pound. The shortfall in supply has already forced producers including Cameco and AngloGold Ashanti Ltd. to buy material on the spot market this year to meet contracts.

Uranium miners produced 103 million pounds of the metal last year, equal to about 65 percent of world demand. The rest came from government stockpiles and material extracted from decommissioned nuclear weapons.

Cameco said yesterday it will delay the start of its Cigar Lake mine to 2011. The mine was originally expected to account for about a 10th of world output from this year. It is the largest untapped source of uranium and flooded in October 2006.

Uranium One, owner of South Africa's biggest uranium deposit, on Oct. 30 cut its 2008 production target by 38 percent because of a shortage of sulfuric acid needed to recover the metal from mines in Kazakhstan.

Paladin, the Australia-based company producing uranium in Namibia, said Oct. 26 it will produce 650,000 pounds at the Langer Heinrich mine in the second half of this year, a third less than expected.


My Current LONG TERM Uranium Holdings PDN DYL AGS BLR SNU MHL *OXR* & TSX MGA