Sunday, September 24, 2006

Sep 24 Uranium Stocks Update: sxr Uranium One (TSE:SXR)

Several weeks ago, SXR.TO was raised to "speculative buy" from "hold" by Graeme Currie at Canaccord Adams in Vancouver. The analyst cited strength in the uranium market, his firm's bullish outlook for uranium demand and the limited number of companies expected to commercially produce uranium in the next three years.

In addition, five days ago, plant commissioning commenced at the Dominion Uranium Project, one quarter ahead of the Corporation"s previously anticipated schedule.

Neal Froneman, CEO of SXR Uranium One, commented: "Dominion is moving smoothly towards start-up of production. The commencement of plant commissioning is a significant milestone and I am pleased to see that the team has been able to meet this milestone one quarter ahead of schedule. We remain confident that we are well on track to achieve our objective of hot commissioning in the first quarter of 2007."

Impressive. SXR's three months ahead of schedule, even better than Paladin's one month ahead on Langer Heinrich. Watch out for SXR as it seems hellbent on acquiring another North American uranium junior this year.


SXR Uranium One's flagship project in South Africa, with project payback expected to be five years from the start of construction. In addition, Dominion is now proven to have at least 31-million pounds of uranium oxide (U3O8) after the completion of the first-phase feasibility study, and work is now underway to prove more of the estimated 300 million lbs of uranium oxide in Dominion. The average operating cost for the first phase is expected to be $14.50/lb of U3O8, net of gold by-product credits; originally the cost was supposed to be higher but due to the high uranium oxide price, SXR Uranium One plans to mine lower-grade ore as well.


Post a Comment

<< Home