The shares of Mega Uranium Limited (TSX: MGA) put on 52% on the news that Queensland is set to re-commence uranium mining. Mega has two projects in Queensland, the Georgetown Project and the Ben Lomond uranium-molybdenum property are situated there.
The Ben Lomond project contains an NI43-101 compliant Indicated Resource of 1.33 million tonnes @ 0.27% U3O8 (7.9Mlbs U3O8) and an Inferred Resource of 0.6 million tonnes @ 0.21% U3O8 (2.8Mlbs U3O8).
The Georgetown Property – Maureen Uranium Deposit, located in the Georgetown area of Queensland, comprises an NI43-101 compliant Indicated Resource of 3.1 million tonnes @ 0.09% U3O8 (5.95 Mlbs U3O8) and an Inferred Resource of 0.15 million tonnes @ 0.11% U3O8 (0.38 Mlbs U3O8).
Mega Uranium have issued the following announcement:
Mega is pleased to report the Queensland State Government has today announced it will convene a three-member implementation committee to oversee the recommencement of uranium mining in Queensland. The Liberal National Party, led by Premier Campbell Newman, said today’s announcement followed sustained public debate on uranium mining in Queensland, and strong support for the uranium industry from the Federal Labor Government.
Premier Newman stated, “It’s been 30 years since there was uranium mining in this State, and in that time the Northern Territory, South Australia and Western Australia have carved out successful uranium industries that deliver jobs and prosperity to their regions.”
Minister for Natural Resources and Mines Andrew Cripps said with Queensland’s known uranium deposits worth an estimated $10 billion, the industry has enormous potential to support economic growth, particularly in regional North Queensland.
Mega Uranium Limited is a Canadian-based mineral resources mining company focused on exploring global uranium properties, with uranium resources and exploration projects in Australia, Canada and Cameroon.
Mega Uranium has a 52 week trading range of $0.12 – $0.38, a market capitalization of $50.75mln; the trading volume oscillates between 2.67mln and 76,000 shares. The number of shares outstanding is 267.09mln.
Back in 2007, which is not so long ago, this stock was trading at around $9.00 which clearly demonstrates just far it has fallen. However, the tide may have turned and this could be the time to bag a few shares if you are of the opinion that this tiny sector of the market has been severely oversold. Many, who bought into the uranium story earlier, including us, will not be willing to take another chance in this sector just yet, but it should at least be kept on your watch list, especially if the demand for uranium picks up. According to Morgan Stanley, the global uranium market will be in deficit from 2014 with demand outstripping supply by 6,850 tons by the end of the decade, even though Japan is likely to move away from nuclear power in the long term, and China is set to miss by 25% its original target of having 80 gigawatts of new nuclear power generating capacity in operation by 2020.
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