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Message: uec receives mine permit...uranium sector
Bingo & Here We Flow - UEC receives Mine Permit for its Goliad Uranium Deposit
Yesterday (August 29), Uranium Energy Corp. (AMEX-Symbol: UEC) reached the most important of all milestones to be allowed to bring into production its Goliad Uranium Project in the USA with the cost-effective and quickly constructable ISR (In-Situ Recovery) mining method. The environmental authority TCEQ (Texas Commission on Environmental Quality) yesterday already issued the drafted version of the final mine permit – asking the company to comment on the details of the permit. Once TCEQ has received those from UEC, the „Final Mine Permit“ is issued after a mandatory waiting period of 30 days.
In case UEC sends back those comments in early September, the construction of the ISR-mine may begin in early October with receiving the final permit simultaneously, whereas plannings and first steps may already have started yesterday. A uranium deposit can be brought into production with the ISR mining technique quite fast – hence, we expect to see the first yellowcake already in October.
The Goliad deposit is located only 60 km east from the company-owned ISR-facility with the name of Hobson, where the end-product (yellowcake; 70-90% U3O8 plus Ammonium- or Magnesium-Diuranat) is produced and hoarded.
Since the end of 2010, Hobson already refines the output of the company-owned Palangana ISR-Mine (approx. 160 km south of Hobson) whose currently 2 operative ISR well-fields recovered 49,000 pounds of U3O8 (Triuran-Oxide) in the last reported quarter. Until the end of the year, we anticipate an increase in production capacities to approx. 150,000 pounds U3O8 per quarter – thanks to the continous commissioning of further ISR well-fields on the property for which the amount of injection- and production wells must be increased to a total of 160 (approx. 80 each).
In early September, we expect the publication of the new production figures of the last company-quarter that ended on July 31. We anticipate the announcement of a production increase that excels the expectations of most analyst-houses.
The NI43-101 Palangana resource (measured + indicated + inferred) currently stands at some 2 million pounds U3O8. In comparison, the Goliad deposit hosts a resource of almost 7 million pounds U3O8. Exploration drilling is taking place at both deposits to further increase the mineable resource.
Casey Research LLC expects a new and long-term upward-trend of the uranium price shortly as the following readworthy article („An End to Uranium’s Slide?“) fundamentally prognosticates: www.caseyresearch.com/cdd/end-uranium-s-slide
Technically, we expect a new and strong upward-trend of the UEC share-price once the recently reached intersection resistance at approx. $3.40 has been broken as the following chart since March indicates.
The following longer-termed perspective since mid-2009 shows that the share-price consolidated sideways within the a (red-green) triangle formation. As the resistive (red) triangle-leg at approx. $3.40 was broken back then, the so-called breakout began reaching $7.50 until the end of 2010.
Until mid-2011, a so-called classical pullback to the (red) triangle-leg and the (red-green) triangle-apex at approx. $2.75 occurred – whereafter typically the triangle finishes off with a so-called thrust (either a strong up- or downward-trend).
As the price conducted another breakout with a subsequent pullback until early August and rises since then, we anticipate that the thrust has started already having the goal of transforming the resistive high of the strongest breakout ($7.50) into a support in order for a new and sustainable upward-trend to commence.
The added indicators MACD and PPO generated distinct buy-signals in early August as the black curves trades above the red curves again. Further strong buy-signals are issued once both indicators break above its 0-level.
The price development since early 2006 brings into mind that the stock is moving within a long-term healthy (green) upward-trend, whereas it is being traded relatively cheap since having arrived at the lowest (green) trendline at approx. $2.75 recently.
Thanks to the positive news from yesterday, namely that UEC can bring into production a second uranium deposit in the USA and against the background of the anticipated strong production increase of the Palangana Mine until the end of the year, we expect – similar to late 2006, early 2009 and mid-2010 – a multi-month appreciation period having already started recently that may move along the yellow trendlines again.
Thanks to the positive news from yesterday, namely that UEC can bring into production a second uranium deposit in the USA and against the background of the anticipated strong production increase of the Palangana Mine until the end of the year, we expect – similar to late 2006, early 2009 and mid-2010 – a multi-month appreciation period having already started recently that may move along the yellow trendlines again.
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