yeah there are a few but i think that the fact that other people around them have operations doesn't really make that much of a difference to CTS. Uranium supplies aren't that sparse at the moment sure the spot price is high but realistically there aren't more reactors been built or proposed to be built than there are reactors due to be decommissioned. The U market is nowhere near as strong as the iron ore market is and CTS's grades just aren't that good.
I think the U op's that will make good returns in the near term are those with high grades and in established areas. That been said though that doesn't mean you can't make a profit trading CTS these days all you need is a fav ann or two or a bit of spec rumours and you can make dollars.
I just don't believe CTS will be a U miner anytime soon and would require improvements in things outside of its control to turn its deposit into an operation.
Hi Gents,
I don't usually post, but there is SO much factually incorrect information in above post that I feel I need to set the record straight:
1. I think that the fact that other people around them have operations doesn't really make that much of a difference to CTS.
CTS' tenements are surround by Solex Resource's (TSX) tenements which have been coming up with some decent hits. I am not a geologist but I highly doubt that the mineralisation will somehow stop or dilute just precisely on CTS' land. It could but to dismiss this factor out of hand is unwise I believe.
2. Uranium supplies aren't that sparse at the moment.
Current deficit between supply and demand is about 70m lb of U308 per year with supply problems in existing mines (Ranger, Cigar Lake). PDN is the first U308 mine to open in over 20 yrs and the nearest new contenders will start operations in 2010 at the earliest.
3. Realistically there aren't more reactors been built or proposed to be built than there are reactors due to be decommissioned.
India has recently ran out of U308 for their reactors. The Amercians are approving new plants to be built and the Chinese just signed a $14b deal to built 2 reactors from Areva.... the tip of the iceberg in my opinion if China is seriously about meeting its future energy demand via clean sources. By the way the initial amount of U308 required to start a reactor is about 300t or 675,000 lbs.
4. I think the U op's that will make good returns in the near term are those with high grades and in established areas.
Rossing, one of the world's largest uranium mines, operate on a cut-off of 100ppm or 0.01%. Uramin recently taken over by Arvea in a $2.5b transaction works off 70ppm. Most of the Nambian hopefuls with completed PFS or BFS are in a similar situation.
5. MHL's grades cr@p over CTS.
From what I can tell, MHL's uranium project in Kyrgz is at infant stages and based upon the company's 6 Aug announcement, "sampled grades are 0.03%-0.04% and upgrade to 1.4% in some areas". Aren't these grades similar to CTS' results?
Apologies for the long post.
Cheers