Uranium Mining In Arizona Breccia Pipes –High Grade And Safe

The uranium industry has made a dramatic turnaround in the past three years that even the most optimistic economist was not willing to predict during the uranium downswing of the 1990s. Uranium reached a 30-year low in February 2001 of $6.50/lb. By the end of February 2006 it had soared to $38.50/pound. This nearly 600% increase in the uranium spot price within 4 years dwarfed the increase in gold price that has barely mustered a 100% increase. The initial slow rise from $6.50 in February 2001 to $10.75 in April 2003 (fig. 1) was primarily driven by the decrease in the value of the dollar. Since then several factors have contributed to the soaring price: (1) The awakening of many to the simple fact that uranium supply has not met demand for several years and that the world’s stockpiles are being drawn down, (2) How sharply this fragile supply can be impacted by disasters at the world’s major uranium production facilities, such as a) the flooding of the McArthur River Mine in the spring of 2003, b) fires at Olympic Dam, c) the potential that Rossing, with an annual capacity of 4000 tonnes uranium might close by 2007, (3) the withdrawal of Tenex from the HEU (highly enriched uranium) feed agreement, and (4) the announcement by the Chinese of their intent to build 30 new nuclear reactors.