A Dead-Serious Warning on Uranium

Rockstone Research's Mining Analyst Stephan Bogner (Dipl. Kfm., FH) just published an article on uranium, its fundamentals and price outlook along with insights on junior and senior mining companies active in the Athabasca Basin of Canada.

To read the full article please visit:

http://seekingalpha.com/article/1880931-no-dead-cat-bounce-a-dead-serious-warning-from-uranium

or:

http://www.resourceinvestor.com/2013/12/05/uranium-sees-no-dead-cat-bounce-but-a-dead-serious

Excerpts: 

According to a recent publication from the American Chemical Society, a study performed by the NASA Goddard Institute for Space Studies and the Columbia University Earth Institute of New York came to the conclusion that more than 1.8 million human deaths have been prevented by world nuclear power production from 1971-2009.

On average, 76,000 deaths were prevented globally every year from 2000-2009 thanks to using nuclear power. A mean of 117,000 deaths per year were prevented alone in Germany between 1971-2009, yet Germany announced plans to shut down all reactors by 2022. 

...

Thomas Drolet in an interview with The Energy Report on December 3, 2013:

"I think we're going to have more investment in Canada, more mines being developed, especially in the Athabasca area… 

Lakeland Resources Inc. (TSX.V: LK) is a very well managed company backed by solid investor groups. The company has what looks like a series of very good properties up on the north rim of the basin that have been explored before. Lakeland may have a very good resource to operate… But surely the Lakelands of this world will come up as they make real progress. I believe value will be driven, as always, by real results…

Zimtu [Capital Corp. (TSX.V: ZC) holds a large stake in Lakeland and other junior mining companies] has an interesting business model in that it has a collection of companies that it has taken various positions in and nurtured, when required, with good people and marketing savvy. Zimtu scours various countries for investments and nurtures a stable of companies. I think the Zimtus of this world are a good thing for juniors to have backing them at early stages."

With a minimum of $1.2 million work program in 2014, Lakeland Resources Inc. will have one of the largest drill programs in the Athabasca Basin in the upcoming year funded by their new partner Declan Resources Inc. which company is committed to spend a total of $6.5 million over the next 48 months.

In addition, Declan will grant Lakeland a 2% Net Smelter Royalty on commencement of commercial production; 1% of which can be purchased by Declan for $1 million. After Declan has earned its 70% interest, Lakeland's 30% interest in the property will be carried until Declan completes an initial NI43-101-compliant resource estimate for the property.

This latest partnership in the Athabasca Basin has increased chances of discovery without equity dilution. The Declan team proved expertise in discovering deposits, such as the Rainy River deposit in Ontario with resources of +8 million ounces of gold which was recently acquired by New Gold Inc. (NGD) in a deal valued at $310 million.

Lakeland is backed by renowned Dahrouge Geological Consulting Ltd.which company was instrumental in staking and developing the Roughrider deposit in the eastern part of the basin. Jody Dahrouge was also part of the team that identified and staked both Patterson Lake North and South deposits in the southern part of the basin.

On October 23, it was announced that John Gingerich, a prominent professional geoscientist, took a seat in the Advisory Board of Lakeland. He worked for Eldorado Nuclear (now Cameco) spending most of his time between Fond du Lac and Stony Rapids covering the ground that is now held by Lakeland.

Lakeland and Declan will have more news to report shortly on corporate developments as well as the results of the fieldwork that has been completed at their Gibbon's property in the northern part of the basin: RadonEx, boulders and ground resistivity surveys. 

...  

Peter Zihlmann summarized well of what Marino G. Pieterse, publisher of The Uraniumletter International and one of the most respected experts on the uranium market, wrote in an article titled "Uranium - Ripe for a Recovery" for the Mining Journal on August 23, 2013:

"While France receives 75% of its electricity from nuclear energy, Belgium 51% Sweden 38%, South Korea 30%, the United States 19% and the UK 18%, China receives only 1.9% of its electricity from nuclear, India 2.2%, Brazil 3% and Russia 8%. These countries, focusing on non-greenhouse clean electricity sources, offer a strong growth potential…At this time, China is for more than 70% dependent on coal, it plans to quadruple its nuclear energy output by 2020 and triple or quadruple output again by 2030…China currently produces almost 14 GWe through its 17 reactors, which supply about 2% of the country's electricity. It expects to produce 58-60 GWe of capacity by 2020 (28 reactors under construction), possibly 200 GWe by 2030 (171 reactors planned or projected) and 400GWe by 2050. China will need more than 27,000 tonnes (60 million pounds) U3O8 per year by 2030 compared to the US using almost 20,000 tonnes (44 million pounds) U3O8 per year to produce 99 GWe from its 100 reactors." (Source: http://www.goldletterint.com/documents/pdf/MJ_article_23Aug2013.pdf)

To read the full article please visit:

http://seekingalpha.com/article/1880931-no-dead-cat-bounce-a-dead-serious-warning-from-uranium

or:

DISCLAIMER

The author holds shares of Denison Mines Corp. (TSX: DNN) and Lakeland Resources Inc. (TSX.V: LK) and may sell those any time without notice, whereas neither Rockstone Research Ltd. nor the author was remunerated by these companies to produce or publish this content. Please read the full disclaimer at http://www.rockstone-research.com/ as none of this content is to be construed as an "investment advice".