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Article: Uranium this Summer's Hot Metal

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Uranium the 'hot' metal for prospectors this summer Last Updated: Jun 3 2005 09:00 AM CDT YELLOWKNIFE - Strong metal prices have prompted a new wave of exploration for many metals, including uranium, across the north. In the Northwest Territories' Thelon Basin, both junior players and industry giants are making plans for this summer. Pathfinder Resources of Vancouver became interested in the area in April. Using exploration information that dates back to the late 1970s, Pathfinder has identified a train of radioactive sandstone boulders that's 20 kilometres long and three kilometers wide. John Gomez of Pathfinder hopes they're indicators of a high grade uranium deposit like those in northern Saskatchewan. "We feel that the Thelon Basin is very similar geologically to the prolific Athabasca Basin which holds among the richest uranium deposits in the world," he says. Gomez says the company plans to walk the area, and perhaps fly it, this summer. So does Cameco, the world's largest uranium producer, which last explored the area a decade ago and still holds prospecting permits there. In Yukon, Cash Minerals is kicking its search for uranium in the Yukon into high gear. The company has the rights to about 75 mineral claims in the Mayo area, which like the Thelon Basin, were tested for uranium in the 1970's and 80's. Company President Basil Botha says they will spend about $1 million drilling a couple of dozen test holes in the area 320 kilometres northeast of Whitehorse this summer. He says the company plans to double its exploration budget for the area next year, depending on the results of this year's drilling. Demand strong Ninety-nine per cent of uranium production is used by utility companies to generate power. Nick Carter, of the Uranium Consulting Company in the United States, predict utilities will be facing a supply crunch. The price of uranium has tripled in the last two years, to $29 US a pound. "Inventories that have overhung the market over the last 20 years or so are finally being worked down and that combined with higher demand levels have probably been the biggest factors," he says.