Crosshair announced this morning the results of their NI 43-101 resource estimate for their flagship project, Bootheel. The NI 43-101 resource estimate for the Bootheel project was prepared by Scott Wilson RPA and reports a total resource of 4.34 million pounds of uranium (an indicated resource of 1.44 million tonnes grading 0.038% U3O8 for 1.09 million pounds of uranium and an additional inferred resource of 4.40 million tonnes grading 0.037% U3O8 for 3.25 million pounds of uranium oxide).
I spoke with management regarding the resource estimate results and I would like to share a few interesting points about the project:
1. Yes, this resource estimate does appear to exceed the minimum mining threshold for uranium mining in this part of the world, but it doesn’t stop here. The Bootheel Project has a historic resource of nearly 11 million pounds of uranium and so far the company has only carried out confirmation drilling on less than 60% of that historic area. Additionally, the company actually expanded the historic resource area by approximately 400 feet with drilling in 2008, which means that not only can the company still capture the remainder of the historic resource, but there is actually potential to expand upon it.
2. Another point worth mentioning is that a resource estimate of 4.34 million pounds of uranium oxide not only suggests that Crosshair has enough uranium to go into production, but it also puts Crosshair as one of the leading companies in the area. There are in fact several other projects in the area that have already begun permitting with less than 3 million pounds in the ground.
3. Lastly, now that the initial resource estimate is complete, the company is ready to proceed with permitting and a scoping study, as well as additional drilling to further build and expand the resource.
Uranium Spot Price – Expected to Rise
As I stated in my May 15th blog, the uranium short-term spot price, as reported by UxC, has shown quite a bit of volatility over the past few months with the price sitting at $51.00 on May 18th then dropping a week later to $49.00 before picking up again to a whopping $54.00 on June 22nd, and then once again dropping to a summer low of $47.00 on July 27th before hitting $48.00 recently. Although the spot price did hit $54.00 in June, it is generally quite typical for summertime to be seasonally weak and we should expect to see both demand as well as the spot price pick up again as we move into the fall. In terms of the long-term uranium market, I stick by my previous prediction: Demand continues to out-strip supply and the medium to long-term outlook for uranium remains very bullish.
Bottom Line
The results are in and I’m pleased to report that Crosshair is back in the game and looking good! As one of the top players in the area, Crosshair possesses some of the necessary qualities for success: an initial resource estimate that not only meets the minimum mining threshold but also has the potential to increase, a project in an area that uses ISR mining techniques and the possibility of using one of several satellite mills, as well as a strong team anxious to take this company to production.
This fall can prove to be an interesting time in the uranium market, and I believe that Crosshair remains one of the top companies to watch! And don’t forget about the 17 million pounds of uranium that Crosshair controls in Eastern Canada and their very prospective gold project, also located in Eastern Canada.
Thanks Peter for the insight on what you thought of the NI 43-101 results. I am glad these long anticipated results are finally out and CXX can move forward with this project. Let’s see how the markets like this news.
Ryan
Thanks Peter, I thought yesterday’s rally was a fake out. What do everyone think?
The bulls are definitely in control of oil…not sure if I’m going to hang in with the short oil trade…hod is a poor vehicle from what i see so far.
The stock mkt lately reminds me of a story where the hillbilly wanted to get rid of his wife. A friend told him to love her to death, anyway the friend stopped by a couple weeks later and the hillbilly was sitting in a chair, feet in pan of warm water and shivering all over. So how is your wife he asked, oh she is down on the bottom forty plowing was the reply, she dosen’t know she is almost dead.
Some guy from vrtrader just called for the dj to add 1000 points….market doesn’t seem to want to give any correction up….unreal
TGB Targets raised – Disclaimer: I did not verify the following myself but did read it on another site (at least the trend is going in the right direction!)
R James raised target from $3 – $3.50
BMO raised target from $2.50 – $3.25
Canccord raised target from $2.80 – $3 CDN
Check our Uracan, URC! 40 Mlbs and counting. Will be one of the biggest gainers in the uranium sector, no doubt.
does anyone on this blog read or subscribe to the James Dines letter. Since his disasterous calls not to take obscene profits from the highs of the Uranium stocks, i have not heard much about his present dialogue.
Challie;yes I subscribe . He now chases rare earth metals . Is still very bullish on uranium but without giving a time line for recovery. Note Peter is also bullish. I only partly agree There is no supply shortage. Obamah has just agreed a new deal with the Russians over missiles that will flood the market with uranium . .The world nuclear association president has estimated that 600,000 tons of enriched uranium is held by Russia and the USA, i.e. enough to supply all the world`s nuclear reactors for about ten years .It is true there is a shorfall in mining but the stockpiles more than balance things out . Uranium One`s chairman has said a uranium price of over $80 is required for it to be viable for junior miners to commence mining.Nymax futures one year out are around $55. Ten years out might see a recovery to 2007 levels . Hope Peter sees this and comments for you