Feb 27 Uranium Stocks Update: Urasia Energy (CVE:UUU )

two newsworthy items about Urasia today, one expected, the other very interesting

First Uranium Sales Contract Secured

Urasia Energy Ltd. ("Urasia") is pleased to announce it has entered into an agreement for the supply of uranium concentrates from its Akdala uranium mine in the Republic of Kazakhstan.

The contract is for the purchase of approximately 200,000 pounds U3O8 for delivery in 2006 to a major Western utility company.

As a new producer in the industry, from Central Asia, the Company is pleased to have finalised its first contract with a Western utility, and the first new contract since it acquired its interest in the Akdala uranium mine in November 2005.

Urasia Energy is a Canadian-based uranium producer that offers investorsexposure to lowcost, uranium production and growth. The Company plans tocreate shareholder value by focusing on development and operation of low-cost, in-situ leach uranium projects in Central Asia.

Analysis: no surprises here, basically good news but entirely expected. Stock jumped from $2.79Cdn to $2.90Cdn on an otherwise down day in the markets.

The Moscow Times Feb 28th

Russia plans to pump $10 billion into expanding its uranium resource base over the next 10 years, part of a program to accelerate the country's nuclear energy output, top government officials said Monday.

Spearheaded by the Natural Resources Ministry and the Federal Atomic Energy Agency, the program would increase annual uranium production sixfold by 2020, ensuring ore supplies for existing and new nuclear stations.

If the government does not act, Russian stockpiles of the ore will dry up in less than a decade, said an official from the Federal Subsoil Resource Use Agency, part of the Natural Resources Ministry.

Analysis: you can be sure that the uranium deficit between supply and demand will NOT be made up by any more old Russian warheads when the HEU agreement expires in 2013. Russia wants any and all uranium to herself, period.

To increase future supply, the government would double production at existing uranium mines and start exploration at a number of fields in Siberia and Buryatia. It would also set up joint ventures with CIS partners.

Analysis: CIS = Commonwealth of Independent States. Guess who is part of CIS? Yes, Kazakhstan, holding the 3rd largest uranium reserves in the world. Guess who is mining uranium in Kazakhstan?

Last month, President Vladimir Putin said nuclear power's share of Russia's energy use would increase from 15 percent to 25 percent by 2030. To achieve that goal, Russia plans to build 40 new nuclear reactors in place by 2030.

Analysis: As I've said before, Russia and China are both going to build 40 each. Kazakhstan is right next door to each country. Urasia is a low-cost ISL uranium producer. I'm going to leave it of at that..