Uranium awakes The Australian December 13, 2010 12:00AM PURE SPECULATION - Robin Bromby
SOUTH Korea's government has announced plans to build a further 14 nuclear power plants by 2024, adding to the 20 already in operation. There will also be another 13 coal-fired plants and 19 using liquefied natural gas.
So, unless Bob Brown and his followers manage to put a stop to any more uranium mines, or head off the coal and LNG carriers with a flotilla of kayaks, this should mean some good extra business for Australia.
Uranium is shaping up, like zircon, for a substantial supply squeeze in coming years. A sampling of the uranium explorers reveals that it's been a while since many of them made substantial progress, but the sector is awakening.
Over the past week we've seen a flurry of announcements which support the feeling that the recent rise in the spot price has put hope back into the sector, and you can expect other explorers to stir over the next few months.
Here's a sample of the activity.
PepinNini Minerals (PNN) is to drill 10 areas in South Australia looking for uranium, gold and base metals. Uranex (UNX) has reported a new uranium discovery on its ground in Tanzania adjoining the Nyota project owned by Mantra Resources (MRU) where there's a 46,000-tonne resource.
Three rigs will soon be in action to enlarge the Salamanca resource in Spain being explored by Berkeley Resources (BKY), while drilling by Thundelarra Resources (THX) in the Northern Territory has intersected significant uranium and copper at the Allamber project.
Summit Resources (SMM) has produced a resource estimate for its Odin deposit of 4685 tonnes of contained uranium -- only problem, it's in Queensland, the uranium hold-out state. Uranium Equities (UEQ) says it has intersected significant uranium at its Nabarlek project in the NT.
Raisama (RAI) and Monitor Energy (MHL) have high-grade uranium hits at their Kashkasu II discovery in Kyrgyzstan.
Meanwhile, in Namibia, Bannerman Resources (BMN) has issued a highly detailed report on its advanced Etango project from which it expects to extract 48,000 tonnes of uranium oxide over the mine's life. It says the project has been substantially de-risked.
Aura Energy (AEE) has begun more drilling at its Mauritania ground while East Africa Resources (EAF) has raised $3.4m for its two Tanzanian properties. And iron ore explorer Royal Resources (ROY) is now in a uranium joint venture in Colorado.
The uranium announcement flood has only just begun.
