news article

FYI - gives a good backround


http://www.proactiveinvestors.com.au/companies/news/3642/white-canyon-uranium-remains-under-the-radar-for-now-3642.html

Friday, December 04, 2009

White Canyon Uranium remains under the radar for now
by Andrew McCrea


International uranium developer White Canyon Uranium (ASX: WCU) has capped a year of consolidation, but also ticked off some significant milestones.

For some, WCU might be, "the quiet achiever". Appealingly, for investors, current valuations for WCU do not appear to factor in recent progress made and likely to bear fruit in 2010.

WCU listed on the ASX on February 2008 with three projects (Daneros, Thompson and Geitus). These are historically defined uranium (U3O8) deposits within demonstrated mineralized areas suitable for underground mining.

The deposits are within trucking distance (63 miles) of the White Mesa Mill owned by Denison Mines.

In 2009, WCU obtained the first permit to mine uranium issued in the State of Utah, USA in almost 30 years.

During the period 1948 to 1987, approximately 11 million pounds of U3 O8 and 216,000 pounds of V2 O5 were produced from more than 125 properties within the White Canyon District. In Utah, only the Lisbon Valley District has produced more uranium than the White Canyon District.

WCU has six projects in Utah: Daneros, Lark-Royal, Geitus, Blue Jay, Marcy & Look in the White Canyon District and Thompson in the Yellow Cat District of Utah. With claims over 12,000 acres.

At Daneros, Blanding UT - based on historical “reserves” – projected production is 0.5 million pounds per annum. Mining is underway. Over 5 million lbs was produced from the immediate area historically.

WCU has acquired numerous new mining claims, built offices, facilities and accommodation for the Daneros mine site and has commenced and is close to completing its twin declines for access to and ventilation of the Daneros uranium deposits.

At the Lark-Royal Project, Blanding UT - previous mining was discontinued in 1985. Unmined mineralization is evident in historic level plans, drilling is expected to commence in Q4 2009. This project doubles the landholding in the district.

At Geitus Project, Blanding UT - historical drilling identified significant mineralization – potential for extensions’ drilling expected in Q4 2009.

At Blue Jay & Marcy Look, Blanding UT - Mineralization drilled in 1980s – will add new resource for mining. In National Forest. Drilling expected 2010.

The company has aggressively built its asset base with a 100% increase in landholding since listing.

WCU recently entered into an agreement with Denison Mines Corp (TSX: DML, NYSE AMEX: DNN) to sell all material produced during the development stage of its Daneros uranium mine.

WCU has secured sponsorship from leading Canadian broker Canaccord Financial Inc upon the company listing on the TSX(V) (Toronto Venture Exchange).

Operationally, key management and director appointments in Canada and Australia have strengthened the company's base. The management team in Utah has over 30 years of experience in open pit and underground mining of uranium in Utah.

WCU has an exploration target of 8-10 million pounds of U3O8 comprising 1-2 million tonnes at 0.2 – 0.3% U3O8, with potential to double the Daneros resource base, good infrastructure and favourable mining jurisdiction.

Add into the mix, a market capitalisation of $44 million - for a near term uranium producer with a development stage ore sales agreement with Denison Mines - and the "quiet achiever" tag may soon be an understatement.

If the last six months was about consolidation for WCU, the next six to 12 months shape up as a period of significant activity and opportunity.