Agoracom Blog Home

Archive for the ‘Crosshair Exploration’ Category

Update – Crosshair Explorations

Posted by Peter Grandich at 8:36 AM on Monday, September 7th, 2009

A Uranium Company With An Outstanding Vanadium Resource

I often write about Crosshair in terms of their near-term uranium project in Wyoming and the uranium and gold projects in Labrador and Newfoundland.  Lately, however, vanadium has been making headlines which makes me think that this seems like an appropriate time to remind everyone that Crosshair not only has an expandable uranium resource in the Central Mineral Belt (CMB) of Labrador, they also have an outstanding vanadium resource.  Last August, the company released the results of their updated NI 43-101 resource estimate for the CMB in Labrador which not only significantly increased the uranium resource, but also brought the total vanadium resource to 27.56 million pounds of V2O5.  In fact, the vanadium resource is actually much larger.

Vanadium – making headlines

Over the past few years, vanadium has become irreplaceable in several industries, such as aerospace, aviation and construction, due to its unrivaled ability to strengthen steel.   In September of last year, Discover Magazine wrote an article titled, “The Element That Could Change the World.”  The article discussed a growing interest in the use of vanadium to advance battery technology.  Vanadium Lithium Ion batteries are beginning to make the electric car industry a reality, but even more interesting is the possibility of storing renewable energy using the Vanadium-Redox battery.

We already know that global energy demand is growing, but at the same time so is the awareness for the need of this energy to be clean!  The nuclear industry provides an obvious solution to this problem, however in some places solar and wind power can also be useful.   The problem you run into with solar and wind power is that they are both unpredictable.  The solution…Vanadium!  “…what is needed is a battery that can store enough energy to pull an entire power station through a rough patch, can be charged and discharged over and over, and can release large amounts of electricity at a moment’s notice.  Several promising battery technologies are already in early-stage commercialization, but the vanadium battery may have the edge in terms of scalability and economy,” (Discover Magazine, September 29, 2008).

An Expandable Resource

Although Crosshair’s CMB project in Labrador is considered a uranium project, the company has also discovered a significant amount of vanadium in the area.

Some drilling highlights include:

  • 0.215% V2O5 over 46.85 m for Hole ML-57
  • 0.605% V2O5 over 11.85 m, including  0.305% V2O5 over 7.35 m for Hole ML-163
  • 0.162% V2O5 over 224.0 m, including 0.206% V2O5 over 42.5 m for Hole ML-181

After speaking with management regarding the updated vanadium resource, a total of 27.56 million pounds of vanadium, I learned that not only is the resource expandable, but as it stands now, the resource could be expanded without further drilling.  Let me try and explain this based on what management told me.  Because the focus of the project has been uranium, the only sections of drill core that were included in the resource estimate were those that showed significant uranium.  This means the vanadium resource is based solely on what is contained within the uranium resource, but it’s actually much larger. For example Hole ML-181 averages 0.162% vanadium over 224 m but less than 20 m of the hole was actually used for the resource calculation.  The balance, over 200 m, was not included in the resource estimable, but would have definitely added a significant amount to the total vanadium found in the area.

For a comparison, let’s consider Uranium Star’s vanadium project in Madagascar.  Although the company has not completed an NI 43-101 vanadium resource estimate yet, they have produced some great drill results which are in fact comparable to Crosshair’s.

Drill results from Uranium Star’s 2008 drill program:

  • 0.41% V2O5 over 21.3 m, including 0.51% V2O5 over 15.2 m for Hole TH-08-11
  • 0.4% V2O5 over 44.2 m, including  0.77% V2O5 over 13.7 m for Hole TH-08-27

And remember, we’re comparing these values to the vanadium resource that is contained within Crosshair’s current uranium resource.  I’m interested to see how the values compare once Crosshair has expanded the vanadium resource estimate to include all sections of the drill core!

Imagine a project that could be economically viable based strictly on its uranium content.  Now throw in an outstanding vanadium resource and you have a truly unique project with huge potential!

Bottom Line

The bottom line is simple – yes the past year has been difficult to say the least but as things begin to turn around, you need to look for companies that have worked hard to position themselves strategically, and I believe Crosshair is one of these companies.  The CMB project hosts not only 17 million lbs of U3O8 but also the potential for a huge vanadium resource, currently at 27.56 million lbs of V2O5.  The company has a very prospective gold property in Newfoundland, which already has an initial 43-101 resource estimate of 89,500 contained oz of Au, expandable in all directions.

And lastly, their flagship project, Bootheel.  News regarding the uranium sector has been steady and although the last few months have been a bit slow, summer is typically weak so look towards the fall when both demand and the spot price are expected to rise.  With the initial NI 43-101 resource estimate on the Bootheel uranium property in Wyoming complete with enough uranium to go into production and the permitting process for the project already underway, the company is in a great position to reap the rewards of a strong fall season.

Crosshair Exploration and Mining – Back in the Game!

Posted by Peter Grandich at 10:01 AM on Thursday, August 13th, 2009


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.

Update 1100:AM DST

Posted by Peter Grandich at 11:00 AM on Thursday, June 11th, 2009

I’m almost caught up after just a week away from the office. It’s a tough job but somebody has to do it-lol

I want to say it was an absolute pleasure meeting so many blog followers at the Vancouver show. Your words of encouragement were very special to me. I always felt a sense of responsibility to my readers but after you meet so many personally, you come away with even more a desire not to screw up. Thanks again for all the kind words there and here on the blog.

There’s not much to update as yours truly has curled up into a fetal position-lol. I’m very content holding all metals related positions as I think we’re not even close to the explosive stage for precious metals and feel we’ve seen the lows for base metals.

I explained in Vancouver that after 25 years in this business and losing more money than I ever thought I would make as a youngster, I’ve learned to take profits, especially when they come much faster than expected. That’s why I advised taking profits in oil-related recommendations.

Since I’m basically a speculator/gambler, I’ve learned when you swing for the fences its best to have plenty of swings. Profits allow more swings.

I also feel quite comfortable holding my short treasuries and U.S. Dollar positions for the long term.

I’m extremely bearish on the belief that the U.S. economy can return to any real economic growth for years to come. Yes, a recovery is likely but what good will flat growth be anyway? It’s my belief that a multi-year trading range can develop between the lows around DJIA 6500 and 10,500 on the upside. I think the play is to await some a run to the top of the range before going short. If we simply go back towards the lows again I will once again consider the long side depending on the then current fundamental and technical outlooks.

In regards to the few open buy positions and Grandich Clients, here are my latest views:

Taseko Mines – Please see most recent comments

Continental Minerals – Buy up to $1.20. Stock appears to be consolidating recent gains.

Nevsun Resources – Would be a break out on a close above $1.60

All remaining positions in model portfolio are holds.

ATW Gold – The market seems to be realizing that they’re on the threshold of becoming a significant producer and still have excellent exploration potential.

Apella Resources – Still waiting on new developments.

Bravo Venture Group – Soon to be drilling again and the Homestake project is the homerun swing.

Crosshair Exploration – Has lifted off lows thanks to renewed interest in Uranium.

Donner Metals – The Rodney Dangerfield of juniors has finally received a little respect. Here’s to it continuing.

Farallon Mining – The name change says it all. It’s now a producer.

Hawthorne Gold – It too is set to drill and we wait in anticipation of good news.

Knight Resources – Another kick at the can this summer. Here’s to a big kick!

Northern Dynasty Minerals – Is consolidating recent run and is a buy if it gets below $7 again.

Oromin Explorations – Management continues to drill for gold and not investors. This may hurt now but pay off in the future.

Silvermex Resources – Is under review and I hope to have an update out soon.

Sunridge Gold- Just had an update today.

Timmins Gold – Onward and upward towards production now with financings all in place.

Uranium Market Making a Comeback

Posted by Peter Grandich at 5:03 PM on Friday, May 15th, 2009

Uranium Spot Price on the Rise

The uranium spot price has risen for its fifth week in a row.  Now sitting at $51.00/lb, as reported by UxC on Monday, May 11, the question becomes, “Is this a sign of the uranium market finally making a come-back, or will the price once again retreat?”  It is possible that the short-term spot price could continue to be somewhat volatile over the next few months, but based on the increase in activity from both utilities as well as China’s initiative to begin stockpiling, I anticipate that the gap between the spot price and the long-term price can begin closing significantly.  In the medium to long-term, you can anticipate to see a true comeback in the uranium price as demand continues to out-strip supply.  As uranium prices continue to rise, stocks should react in kind and based on Crosshair’s recent activity and their price reaching above $0.35 on Wednesday, we may already be beginning to see this affect take place.

The Wait is Almost Over

Since successfully completing the business combination with Target Exploration and Mining on March 31, 2009, Crosshair’s (CXX-TSX) team has been working on compiling data from over 600,000 feet of drilling in order to complete an NI 43-101 resource estimate for the Bootheel Uranium Project.  I’m happy to say I’m told that this highly anticipated report is nearly complete and should be released soon!  Although the project has a historic resource of nearly 11 million pounds, the company has only completed confirmation drilling on about 60% of the area resulting in an anticipated potential inferred resource of 4 to 6 million pounds.  Not only is this potential well above the minimum mining threshold for this part of the world but the company also believes that with additional drilling that they can not only capture the remaining 5 to 7 million pounds of the historic resource but also plan to expand upon it.  With a project like Bootheel that has near-term production potential and could be mined using in-situ recovery methods, Crosshair’s plans to advance this project towards production are beginning to take shape.

For more details on the Bootheel project, please visit the project page on Crosshair’s website: http://www.crosshairexploration.com/s/Shirley.asp

Making Some Progress in Labrador

Just over a year ago, the Nunatsiavut Government placed a three year moratorium on uranium mining within the Nunatsiavut’s self-governed Labrador Inuit Land (LIL) in the Central Mineral Belt of Labrador.   The moratorium is scheduled to be lifted in March of 2011 and I’m told the Nunatsiavut Government is on track in establishing a lands administration system, developing an Environmental Assessment Act and developing environmental protection legislation.  One of the main concerns that the Nunatsiavut Government had was in regards to the tailings study and the time has come for some good news out of Labrador.   Aurora Energy Resources Inc., now a subsidiary of Fronteer Development Group, recently announced that it plans to hold a series of community information sessions on the tailings management options for its Michelin Project.  The goal is simple – choose a tailings management option with helpful feedback from the community that will satisfy the company’s need to store the tailings in a safe manner with minimal environmental impact.  This appears to be also great news for Crosshair since this was the main reason the moratorium was established in the first place.  This should be one giant step forward in having the moratorium lifted.

Golden Promise – Moving Forward

In addition to the good news on its uranium projects, Crosshair recently completed the acquisition of a 60% interest in the Golden Promise Gold Project in Central Newfoundland, with an option to acquire up to a 70% interest.  This gold project is host to a composite vein system of gold deposits and is highlighted by the Jaclyn Main Zone, which contains a preliminary NI 43-101 resource estimate of 89,000 contained ounces of gold at a 1 g/t Au cutoff.  This zone, which is open for expansion, has only been intersected over a minimum strike length of 800 m and to a depth of 265 m so far, which explains why one of the company’s top priorities for the project includes additional diamond drilling to extend and further delineate the zone with the objective of increasing the current NI 43-101 gold resource.  Also included in the company’s plans to advance this gold project is a bulk sampling program in order to determine a more representative gold grade for the Jaclyn resource.
For more details on the Golden Promise project, please visit the project page on Crosshair’s website: http://www.crosshairexploration.com/s/GoldenDiv.asp

Bottom Line

With a newly acquired near-term uranium project in Wyoming and signs that things in Labrador may finally be making some good progress, the upturn in the uranium market could not have better timing.  Once the company completes the NI 43-101 resource estimate on the Bootheel project, they’ll be in a good position to begin permitting this summer.  With the addition of a great gold project, not only does Crosshair have a number of great projects moving forward, but they also have enough cash to last well into next year.

Crosshair and Target Update

Posted by Peter Grandich at 9:18 PM on Thursday, March 12th, 2009

At the beginning of January 2009, I wrote about the proposed Crosshair Exploration and Target Exploration merger and so far everything has gone as planned.  The Target Shareholders meeting will take place on March 23, 2009 and all indications point to the merger being approved.  This comes as great news to both companies as the merged company will have the required capital to earn-in fully into a uranium asset that is located within an existing uranium producing region and that has a timeline to production.

This flagship project is located in southern Wyoming and Target is currently compiling data from over 600,000 feet of drilling in order to complete an NI 43-101 resource estimate for the end of April 2009.  Target has drilled less than 60% of the historic resource area (11 million pounds of uranium) and they consider the drilled area to have a potential of 4 to 6 million pounds with the remainder of the historic resource open for capture with additional drilling.  This potential is well above the minimum mining threshold for this part of the world and once the resource is completed, the market will have a better understanding of the potential of this project.  The company will then begin prefeasibility studies and permitting.  Once a prefeasibility study has been completed, the project is slated to be producing uranium in as little as four years.

In addition to working on the uranium project in Wyoming, Crosshair/Target are planning to carry out a significant program on their gold projects in Newfoundland.  I’m expecting more news in the coming weeks.  With the completion of the merger, the uranium resource estimate and the gold program, Crosshair/Target are slated to have a series of news events in the coming months.

Peter Grandich Interview in The Energy Report

Posted by Peter Grandich at 8:16 PM on Thursday, February 5th, 2009

READ Article This is a different article from a few days ago

Grandich Client Update

Posted by Peter Grandich at 12:52 PM on Saturday, January 10th, 2009

Anooraq Resources (ANO-AMEX) – The completion of the acquisition is expected shortly. I believe this should bring a big bump up in the share price. The rise in platinum prices won’t hurt either. Stay tuned.

ATW Gold (ATW-TSX-V) – Like many of the emerging gold producers, ATW is beginning to generate a lot of attention as they move towards production in March.  I have high expectation for 2009.

I’ve put together a quick summary of the company’s progress in Australia to date.  A full corporate update, which will include the updated mine plan and production schedule for Burnakura, is scheduled to be released by the end of the month.   Brent Butler and his team have made considerable progress at both the Burnakura and Gullewa mine sites:

On the exploration side, ATW has had continued success with the drill bit: consistently hitting high-grade intercepts during their fall program:

-      16.0-metre intercept, grading 9.79 grams per tonne gold.

-      23.7-metre intercept, grading 16.0 grams per tonne gold

-      15.6-metre intercept, grading 13.7 grams per tonne gold

Refurbishing of the plant at Burnakura is nearing completion, with the elution circuit for gold recovery and the gold room being the only items remaining to be completed. Recently, the crushing circuit and mill were commissioned with great success.  A video of the crusher has been posted on the company’s website www.atwgold.comm

A new zone within mining distance of the underground workings has been discovered; drilling has yet to fully define this new zone but the results to date will be included in ATW’s new mine plan.

The underground mining contractor has been selected and management tells me they are pleased with the proposed cost for delivery of ore to the plant.

An IP survey and gravity survey were completed on the Gullewa Project.  Interpretation of these surveys show that the current 750,000 oz Deflector Deposit could continue for an additional 1500 meters.  Gullewa should add another dimension to ATW’s story when it is drilled this spring.

Moving ahead in 2009, I believe that ATW can benefit from the easing of fuel prices and labor costs in Western Australia, giving the company some breathing room in their projected cash operating costs of $700 AUD per gold ounce.  The economics at Burnakura continue to be robust, with the price of gold in Australian dollars recently hitting $1200.  The transition from explorer to emerging gold producer can create significant value for shareholders in 2009.

Bravo Ventures Group (BVG-TSX-V) A brand new client. I hope to have a full report out shortly. (more…)

Crosshair and Target – Come Together, Right Now

Posted by jojo at 5:36 PM on Wednesday, January 7th, 2009

During the last quarter of 2008, I spoke about an expectation of mergers and consolidations in the junior resource market. Crosshair Exploration and Target Exploration announced on January 6, 2009, that they have entered into a Letter Agreement to merge.  This comes as good news to both companies considering it gives Crosshair an additional uranium asset that is both outside the Central Mineral Belt of Labrador and inside an existing uranium producing region, while providing Target with the necessary capital to continue to advance its flagship Bootheel project in Wyoming towards production.

Growing Demand

Although recent months have seen most sectors (and especially the junior exploration and mining sector) take a serious beating, it shouldn’t end up being a permanent situation.  The spot price of uranium has increased by about 20% since the end of October and although it levelled off during the holiday season while activity dropped, it is expected to continue its upward trend in 2009.  With a continually growing demand for uranium, and the supply side seeing several companies putting their projects on hold, Crosshair and Target appear well positioned with a project that is near-term and appears to have low capital and operating costs.

A Great Project

In June 2008, Target began drilling on their Bootheel Property in the Shirley Basin, Wyoming.  Not only is Wyoming a uranium-mining-friendly state, but it has already produced close to 200 million pounds of uranium and currently has two producing ISR (In-Situ Recovery) mines with several more in the permitting stage.  Because Bootheel is located in an area where the uranium is hosted by sandstones in roll-front settings, the company should be able to use ISR mining techniques which are a more environmentally-friendly and less expensive way to mine uranium.

Bootheel is also slated to be producing uranium in as little as four years.  This relative short timeline is due in part to the fact that an ISR mine can be constructed far more rapidly than a conventional mine and also because you only need approximately 5 million pounds in the ground to go into production.  With a historic uranium resource of nearly 11 million pounds, Target possesses a project that has strong potential. With the cash that Crosshair can supply, this merged company promises to be one of the survivors that makes it through these tough times.  For more details on the project, please visit the project page on Target’s website: http://www.target-mining.com/s/ShirleyBasin.asp.

Keeping Busy

Crosshair currently controls just over 17 million pounds of uranium in the Central Mineral Belt of Labrador.  In March of this year, the Nunatsiavut Government passed legislation placing a three-year moratorium on uranium mining within the Nunatsiavut’s self-governed Labrador Inuit Land (LIL).  Although all of the company’s principal assets fall outside of LIL, “it has affected market sentiment and this cannot be ignored,” says Mark Morabito, President and CEO of Crosshair.  With this new acquisition, the company will not only increase its overall uranium resource base, but will also control a project located in a region already producing uranium.  And make no mistake about it, one day the Central Mineral Belt should be back. Crosshair has a firm hold on its assets there with much of the licenses good through 2017.

Deal Details

The merger will occur on the basis of 1.2 common shares of Crosshair being issued for each outstanding share of Target.  Crosshair will issue approximately 14.6 million shares for 100% of the outstanding Target shares representing 15.4% of Crosshair’s shares outstanding.  The transaction remains subject to regulatory approval for both companies as well as shareholder approval for Target and is expected to be completed by the end of March 2009.

Bottom Line

The merger works for both companies.  It will create a uranium exploration and development company with a timeline to production.   Crosshair will acquire an excellent project in a highly sought after area for much less than it would be spending to explore for uranium. Target will have the money to fully complete its earn-in and the much needed 43-101 resource to put the Bootheel project on the path to production.  Although several uranium deposits have been put on hold or are being shut down, it is actually a good time for these types of deposits (ie. ISR), since they are much cheaper to get up and running and also much cheaper to operate.  This new company has the money and the project to be one of the few to make it through these rough times.

Please Note – TEM and CXX are clients of Grandich Publications See disclosure

Found a Great Website For Uranium Information

Posted by Peter Grandich at 8:04 AM on Sunday, October 26th, 2008

As I stated on BNN Friday night, I believe uranium is bottoming and want to establish some positions in related equities over the coming weeks. I discovered a very worthy website just on Uranium. Go to http://uraniumminer.net/

I’m off to the New York Jets versus Kansas City Chiefs game (Yawn-boring). I have a prediction regarding the Dallas Cowboys. Two more losses in a row and T.O. totally losses it. I made a promise to a great friend in Vancouver I will not negatively comment on the Vancouver Canucks for the rest of the year. That may be tougher for me than looking at my resources portfolio. Pray for me-lol

Peace Be With You!

 

Peter

My Interview on BNN “Market Call Tonight”.

Posted by Peter Grandich at 10:01 PM on Friday, October 24th, 2008

For those of you that missed my Friday night BNN interview, or for my American friends that don’t catch BNN, please find enclosed a link to my BNN Interview.

This is a two-part interview.  Wait for the video to go to second part when part one is finished.