Last year things looked bleak to some extent in the energy sector, what with the royalty trust debacle in Canada, oil prices falling toward the January 2007 low, etc. Yet takeovers have featured good prices paid for companies, even in what one would have thought was a "depressed" oil & natural gas area. I don't know who Energy Metals is dickering with but we got another $5 increase this week in uranium oxide, $120 to $125, and going forward I expect a lot of sweet packages for us shareholders as consolidation in the uranium sector proceeds.
We shall see.
Doug
Unsung Uranium Explorer Posts Impressive Drill Results
By Jon A. Nones
24 May 2007 at 07:21 PM GMT-04:00
St. LOUIS (ResourceInvestor.com) -- Last week, Uracan [TSX-V:URC] announced significant assay results from the first portion of its winter 2007 diamond drilling program at the North Shore Property in Quebec. Grades were low and investors barely noticed the news. Management believes the market will overcome the low-grade stigma and catch on soon.
“The market will soon come to understand that low grade ores are economic and minable,” said Tom Garagan, VP of Exploration for Uracan. He said analysts he’d spoken too “understand the lower grades.”
Two drill holes (SS-07-22 and SS-07-23) encountered significant thicknesses and near surface uranium mineralization, despite lower grades, on the Lac Turgeon claim group.
Hole SS-07-23 intersected 124 metres of 0.025% U3O8, or 0.55 pounds, including 29 metres of 0.04% U3O8, from surface to 125 metres open to depth. Hole SS-07-22 hit 96.7 metres grading 0.013% U3O8, or 0.29 pounds, including 13.5 metres of 0.024% U3O8, from 27.3 metres to 124 metres open to depth.
The holes were spaced 200 to 400 metres apart on the company’s 900-square-kilometre land package. Drilling to expand and possibly connect the holes will recommence once spring ice break up is complete later in May.
North Shore
Uracan Resources owns 100% of the North Shore uranium properties on the north shore of the St. Lawrence River in south-eastern Quebec, Canada. To date, a total of 7,587.1 metres in 58 drill holes has been completed on the property.
Management believes the abundant low grade uranium showings on the property give it potential to host a Rössing-style deposit of 300 million tonnes grading 0.03% U3O8.
Rössing is one of the largest open pit uranium mines in the world operated by Rio Tinto [NYSE:RTP]. The deposit is the fifth largest producer of uranium and accounts for 7.7% of the current total world uranium production.
The province has attracted dozens of junior and major uranium players such as Cameco [NYSE:CCJ; TSX:CCO], Denison [AMEX:DNN; TSX:DMC], Strateco [TSX-V:RSC], International Kirkland Minerals [TSX-V:IKI] Entourage Mining [OTCBB:ETGMF] and Uranerz [AMEX:URZ]. However, Uracan is the first company to consolidate the area.
According to the Quebec Geological Survey, there is a historical potential uranium resource of 93 million tonnes of 0.025% U3O8 for 51 million pounds. There are no active uranium mines yet in Quebec, but Garagan said he was confident about obtaining appropriate permitting.
Pipewrench Lake
In addition to North Shore, Uracan owns 100% of the Pipewrench Lake Property located in the Wollaston Domain in Saskatchewan, approximately 120 kilometres south of the prolific Athabasca Basin.
Canada’s Athabasca Basin is the source of approximately 30% of the world’s uranium and home to Cameco’s McArthur River, Rabbit Lake and Cigar Lake; as well as Areva’s Midwest and McClean Lake.
Thus far at Pipewrench, the company posted results of up to 0.281% or 6.19 pounds U3O8 in grab samples and 0.086% or 1.89 pounds U3O8 over 1.7 metres in chip sampling. A $1.5 million exploration program is planned for 2007, and drilling is anticipated to begin in late Q3 2007.
Share Structure Analysis
Since RI last covered Uracan, the stock has risen nearly 150%. But since the drill results last week, shares have gained only 20 cents, trading now at C$1.09.
Garagan said the results were released on a day that most uranium stocks fell. Denison Mines fell 4%, EMC dropped 2% and Uranerz gave up 3%, just to name a few.
The company also just arranged a non-brokered private placement of four million units at a price of 95 cents per unit to raise proceeds of C$3.8 million, which could have put a pause on immediate share upside.
Each unit will consist of one common share and one-half common share purchase warrant, pushing outstanding shares up to about 53.3 million and fully diluted shares to about 62 million.
At today’s share price of C$1.09, the company still has a modest float market cap of $58 million.
Sweeet 
