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Uracan Resources New Uranium Discovery
By James West
MidasLetter.com
Wednesday, August 26, 2009
Uracan Resources is hoping its new uranium discovery in Quebec reported today will turnaround the company's languishing stock price.
It reported trenching numbers of up to 0.192% (3.84 lbs/ton) U3O8 over 4 meters at its new high grade Grandroy zone, 7 km north of its 40 million pound Double S deposit in Quebec. The grades reported today are more than 10x the grade of Double S.
At the nearby Turgeon Est zone, grab samples ranged up to 0.685% (13.7 lbs/ton) U3O8. The company says a diamond drilling program will commence shortly on Grandroy and Turgeon Est Zones.
Uracan's share price has mirrored the uranium price, which has been in a 3 year downtrend - like most other uranium explorers. This is despite Uracan developing one of the largest new uranium resources in Canada at Double S. The grade of this deposit - one quarter to one third of a pound per tonne uranium - has been one of the main issues for investors. A low uranium price has not helped.
Uracan's management is quick to point out that they have the very similar grade as Forsys Metals (FSY-TSX; $4.25) Valencia deposit in Namibia, Africa, which recently attracted a take-out offer of $7/share.
That bid, from George Forrest International Inc. (GFI) was finally rejected by Forsys this week after a year of waiting for GFI to come up with the money for the bid.
"Grand Roy and Turgeon Est should bring more investor attention to the company," says Uracan CEO Gregg Sedun. "Our team is excited because of the high grade, and we can drill year round at these zones. We may end up expanding our planned drill program there."
Sedun would not comment on any industry attention that Uracan is receiving.
Uracan is trading today at 25 cents, up 4 cents.
SOURCE: http://www.midasletter.com/news/09082601_Uracan-resources-new-uranium-discovery.php
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Uranium
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