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To: ms.smartest.person who wrote (1033)	4/26/2006 9:28:38 PM
From: ms.smartest.person	Respond to of 3198

Uranium price tipped to reach $100/lb David McKay Posted: Wed, 26 Apr 2006 [miningmx.com] -- NEARLY two billion people don’t have access to electricity. In fact, roughly half of Africa’s fuel requirements are satisfied by biomass (burning wood). But that’s going to change, according to the World Nuclear Association (WNA). The WNA forecasts a 40% jump in worldwide electricity demand over the next five years, with some of the increase stemming from China and India. It believes nuclear power could reduce the strain on fossil fuels, estimated to have a life of about 300 years, to bridge that gap. Though estimates vary, planned new nuclear facilities range between 30 to more than 150 before 2050. That’s one reason the price of uranium oxide, crucial in the production of nuclear power, has shot through the roof. From about $10/lb several years ago, uranium oxide now costs about $38/lb. Sprott Asset Management says that the price could increase well in excess of $100/lb, according to an interview with StockInterview.com, an Internet publication. However, Sydney-based Resource Capital Research says the price could increase to $50/lb, mostly driven by “...end users in the power generation market urgently trying to secure supply into the future”. It’s for that reason there’s an almightily scrap to find uranium oxide resources. One uranium exploration company with the ability to supply to the growing deficit is SXR Uranium One (Uranium One), a firm with South African, Australian and Canadian uranium assets listed on the Toronto Stock Exchange. Speaking at the BMO Nesbitt Burns conference earlier this year, Uranium One CEO Neal Froneman said that the company had reached critical mass in South Africa, where it hoped to begin producing 2 million lbs/year of uranium oxide from its Dominion mine by first quarter 2007. But it was also seeking consolidation opportunities in North America. With total measured and indicated reserves of 30.5 million lbs in its portfolio, future production from Uranium One is a drop in the ocean of the supply deficit. Over the next decade, US utilities will on average need to buy 36 million lbs/year of uranium oxide to keep their nuclear power plants running, equal to a new Uranium One mine every year, according to Resource Capital Research. It’s significant that Lonrho Africa, which was unbundled from its mining assets in 2000, bought a stake in a uranium exploration company. There are many other miners like it hoping to jump on to the uranium bandwagon. Homeland Uranium, which is seeking a listing on the Alternative Investment Market and possibly a secondary listing on the JSE, is one new entrant. Simmer & Jack Mines is a gold development company with exploration in uranium. Wits Gold, due to list in Johannesburg this month, has applied for a prospecting licence for its uranium properties. According to resource Supply Research, about four uranium producers supply 56% of the world’s uranium and two of them about 35% (Cameco and Cogema). “Once the world’s largest uranium producer, the estimated recoverable reserves in the US now ranks but eighth in the world, with 4% of known global reserves,” StockInterview.com reported. “Those 125,000 tons would supply 250 million pounds of uranium, far less than the unfilled maximum requirement for US utilities over the next decade.” This article is a printout from Miningmx.com miningmx.com

To: ms.smartest.person who wrote (1033)	4/27/2006 9:26:33 PM
From: ms.smartest.person	Read Replies (1) \| Respond to of 3198

&#8362 David Pescod's Late Edition April 27, 2006 CONNACHER OIL & GAS (T-CLL) $3.70 -0.20 NOVA URANIUM (V-NUC) $2.75 -0.20 One thing the market just doesn’t have patience for...and that’s delays. There are a couple of stories we’ve kind of liked that have been plagued with them of late. Connacher Oil & Gas has been one of our favorite plays over the last 18 months or so and it has done incredibly well for us. But with no news out of the EUB on a decision to go forward on their project, this delay is causing more than a little consternation. Needless to say, when there are delays, there is always fear creeping in, and one suspects until the fears are put to rest and progress resumes, stocks go lower. We caught up with Dick Gusella today who has got to be one tired hombre. He was supposed to be vacationing in Hawaii, but the last two weeks there has been anything but a vacation. He has got to be fatigued from all his travels to Argentina, Peru and elsewhere around the world for Petrolifera Petroleum (PDP) plus their demands of building Connacher into the company that he has—with the purchases of a refinery, and so forth. Most important is the oil project that is the key for this whole development. Today all he’ll tell us is that talks are at a very advanced stage and they hope for a resolution in the near term with both parties. There is a native group and Paramount Oil & Gas currently opposing Connacher at the EUB hearings and I suspect the day that they announce that there has been a resolution to whatever problems exists, will be a happy day for Connacher shareholders. Meanwhile, Nova Uranium is probably going to exemplify what is going to happen to a lot of uranium players. Once again, delays. First there were two to three weeks of unbelievably heavy snow that wouldn’t allow drilling equipment and crews on site on their Mount Laurier property in Quebec. Then they finally get drilling and find the people and skills needed aren’t around. They have to search and have a two week delay to find trades people that can cut the core. Now, while Don Moore tells us that they are currently drilling the 15th hole and should be starting the 16th (finishing Nova B and starting on Nova A). The new delay that is going to plague the uranium business is that assay labs have such a back up, that just when Nova is going to have the results is still open to debate. Moore is hoping that it will be within two weeks...but that’s a line you’ve heard before. It has been decades since anyone has cared to drill and hunt for uranium projects because there was little market for the goods. Everyone was refining old nuclear weapons and uranium prices were but a pittance. Now the reverse is true and try and find labs that can tell you if you’ve got some uranium in your core. There aren’t that many and those that can, have huge line ups. Meanwhile, we’ve gone from four or five uranium explorers to around 250 and I guess one could expect waits for almost all of them when they finally do get working. S&P/TSX CAPPED INDEX: It’s an ugly day out there today and the question is...is this the start of a correction we’ve been mumbling about? It’s been weak for a couple days now. But still, for those who follow the energy index, high profile Josef Schachter of Schachter Asset Management Group has his new monthly report just out and it might have hit your desks today. The issue features “The Energy Bull Market Party is On” and he suggests “Enjoy this up leg in the S&P/TSX Energy Index to 425+ into Summer 2006”. He writes, “From the US$59.20 level in mid-February, we have now reached US$72 and expect to see even higher levels for oil prices as we see the hurricane season and gasoline demand lift prices toward US$80/boe. On top of this remains the ongoing supply disruption in Nigeria, Chad, Venezuela, Iraq, etc. Any additional supply losses could cause prices to lift even higher than our forecast. The risky gamesmanship of Iran could be one such event”. As far as his top picks for the month, we notice his favorite for the internationals is Oilexco (OIL), a story that we’ve mentioned more than a few times and for the domestic arena, Delphi Energy (DEE) which I’m sure you’ve noticed just the other day, two analysts—Fred Kozak of Haywood and Jim Welykochy of Genuity Capital both have commented on favorably. For those who want a read, contact Sandra at sandra_wicks@canaccord.com. AN OPEN PIT DIAMOND MINE IN RUSSIA The scale of open pit mining can sometimes just boggle the mind. But of all the presentations we’ve seen, this is probably one of the more intriguing. It is an open pit diamond mine in Siberia and the scale of it is just enormous. We don’t know who to thank for sending this slide show, but if you want to take a peak at it, just e-mail Sandra at sandra_wicks@canaccord.com. We promise, you will find it interesting!