more uranium in namibidia? or radioactive thorium?

Forest: Daily Resource report.

http://www.kitcocasey.com/displayArticle.php?id=37

Oil markets gained a bit of breathing room yesterday as the price dropped nearly $2 on afternoon trading, the fifth straight daily fall. The loss came after gasoline prices fell 5.5 percent on news from the US Energy Department that national gasoline production jumped to its highest level of 2005 last week. The fall in gasoline prices was the largest single-day decline since December 27. It was also reported that American oil refineries operated at 93.7 percent capacity last week, a level not usually seen until May when driving season gets underway.

OPEC has also apparently helped ease tightness in oil supply, with increased production from the group’s nations reportedly boosting US inventories 9 percent above levels seen at this time last year. And OPEC apparently isn’t stopping there. The Wall Street Journal yesterday quoted an unnamed official from the group as saying that Saudi Arabia is willing to pump oil at full capacity if needed to meet world demand. The Saudis could reportedly up production to 11 million barrels daily from a current 9.5 million. Currently, oil is trading at $53.85.

In other petro-news, ExxonMobil (XOM) confirmed this week that it has been selected by the government of Abu Dhabi to take place in final negotiations for development of the nation’s offshore Upper Zakum oilfield, which could potentially produce 1.2 million barrels per day. According to Platts, if negotiations are successful the company would take a 28 percent stake in the joint venture responsible for operating the field.

The fall in oil prices helped lift the dollar as fears abated that high energy costs will crimp the US and global economies. The buck headed for its fourth consecutive weekly rise against the euro and the yen, aided by comments from St. Louis Federal Reserve official William Poole, who said in a speech at Webster University yesterday that the Fed needs to be “more vigorous” in raising interest rates to limit inflation. Currently, the dollar is trading at $1.2826 under the euro. (Up-to-date currency prices)

A number of major analysts weighed in yesterday with their thoughts on the future of the dollar as part of a Bloomberg survey. Deutsche Bank provided the most bearish outlook, saying that the buck will drop to $1.43 against the euro by year-end. Merrill Lynch foresaw a $1.36 dollar, while UBS predicted $1.40. Morgan Stanley made the bull case, saying the dollar will rise to $1.26 by year-end.

Gold drifted lower on the dollar’s strength, losing over $1 on New York trading to fix at $425.70/oz. Overnight, the metal has declined further to a current $424.90. Silver also drifted lower and then ended the day by plunging nearly $0.10 to close at $7.04/oz. Currently, it has shed two more cents to $7.02/oz.

For a second day yesterday base metals were up, with zinc gaining one-tenth of a cent on news that Chinese exports of the metal fell 29 percent year-on-year in January and February. Currently, zinc is trading at $0.6065/lb. Copper gained a cent to a current $1.5516/lb; nickel added $0.15 to $7.405/lb; and lead was up 1 cent to $0.4565/lb.

In other base metals news, BNamericas reported that the Panamanian government is considering restarting one of the world’s largest copper projects, the Cerro Colorado. The porphyry deposit reportedly contains 1.4 billion tonnes of ore at an average grade of 0.78 percent copper (click here for rock value calculator). “We are trying to evaluate this project quickly in order to put it into operations as soon as possible taking advantage of the metal's current price,” mining chamber director Gustavo Pinilla told the news service. Panama is currently looking at reforming its mining code to speed up the processing of mineral claims, among other things.




Finally, there was word yesterday that one of the most recent success stories in uranium exploration may not be all it seems. AllAfrica.com reported that a “uranium discovery” in Namibia made by Australian-listed Reefton Mining may in fact be the result of a false geophysical reading.

Reefton’s stock soared recently after the company announced it had encountered four radiometric anomalies near the producing Roessing uranium mine. The news service, however, quoted several geologists who speculated that the readings are probably caused by radioactive thorium, and not uranium. It was noted that the area is in fact a study site where geology students often go to learn to spot false uranium readings.

That’s what’s happening… until tomorrow!"