Interesting article RSC Otish MountainsFri Sep 22, 9:20 AM
https://ca.news.yahoo.com/s/22092006/6/n-business-giants-eye-high-uranium-grades-strateco.html&printer=1
Giants to eye high uranium grades - Strateco
Fri Sep 22, 9:20 AM
LONDON (Reuters) - Strateco Resources has found high uranium grades at its Canadian Matouch project that should be of interest to mining giants as demand for uranium pushes prices higher, President and CEO Guy Hebert said on Friday.
"I think we can see uranium going to $70 per pound -- maybe in two years," Hebert told Reuters in an interview, adding that he believed strong demand from nuclear power stations would underpin future prices.
With a rise of nuclear reactors using uranium as fuel, prices for spot uranium, also known as U3O8, have nearly doubled over the last year to $53.25 per pound, up from around $7 in 2000.
Strateco Resources's Matouch project in the Otish Mountains in Quebec is seen to be one of the highest grade uranium exploration sites in the world, Hebert told Reuters.
"The average grade in a uranium mine is three pounds per ton, but our project has grades of around 20 pounds per ton," Hebert said.
The Matouch project commenced its drilling program in March 2006 and 17 holes have been completed, with an additional 30 planned.
Some of the drilled holes show grades between 0.74 percent U3O8, which is equal to 15lbs/tonne, and grades of 1.54 percent U3O8 or 31lbs/tonne, the firm's presentation showed.
On average, most uranium projects see grades U3O8 varying between 0.05 to 0.20 percent.
The firm is not looking for organic growth or to start production of the site.
"The strategy of our company is really to develop this project and to be taken over by May next year," Herbert said.
The firm will invite interested parties to visit the site in March or April in 2007, Hebert said.
"All the large uranium producers like Cameco , Cogema and BHP Billiton keep on eye on our project and have expressed interest, but we are not ready to let it go yet," Hebert said.
The Toronto- and Frankfurt-listed junior exploration firm said Cameco, the world's largest uranium producer, had acquired property immediately south of Matoush.