Ann: URA Manganese Exploration Update , page-13

from the ASXguru.com website

Mar 22, 2011 0
Uran Ltd (URA) ? Set To Become A Manganese ProducerCategories: ASX Investment Stocks, ASX Speculative Stocks, ASX Trading Opportunities


Uran Limited (URA) is a small uranium explorer that recently acquired a number of manganese projects located in Zambia that are close to being developed to actual production. Since that news was first made in late December of last year, I have been very keen on the emerging story. A number of fellow forum members have followed the stock as well and it has even had a few posts made on asxinvestor.com.au.

You can see from the above chart that up to January, the reaction from the market had been positive ? with highs of 4.2c being reached. But since then the stock has tanked! Lows of 2c were made last week so there has been a significant drop since the highs that were made in January.

Yesterday, the company announced an update to the project and it was highly encouraging in my opinion. Of particular note was the following excerpt from the update:

The economic potential of the manganese is excellent due to the anticipated high grade, low stripping ratio, and low mining dilution.

Capital to start production is low as mined material can be directly bagged and shipped with no further treatment.

The update is poorly presented and difficult to read but taking the time to go through and reading the whole announcement is worthwhile. Actual mining operations are expected to commence in May, so the company is not far off becoming an actual producer.

The market reaction yesterday was to sell the stock down, but today some buyer interest did return. Today, the stock price closed on the day?s high of 3c, and the updated chart shows a bullish trend emerging. I expect further gains in the short term and that is despite our local market being very skittish at the present moment.

Over the longer term I think there is very strong potential for this company but it is a very high risk investment, so please treat it accordingly.