Miner Announces Doubling Of Indicated Mineral Resources On Wholly-Owned Uranium Property

By: AllPennyStocks.com News

September 18, 2009
As we no longer possess the luxury of a strong economy, it’s important to go back and reassess what our strengths are as Canadians, among them: the vast natural resources the country still possesses, as well as the talents to bring those resources to the surface and to market.

It was just another spark of hopeful news -- in a period when more good news was needed and being reported more frequently – when Montreal-based uranium producer Strateco Resources Inc. (TSX:RSC) said what lurked beneath the surface at its Matoush property in Quebec was richer and more prominent than the company or industry experts initially thought.

Located about 300 kilometres north of the town of Chibougamau in Quebec's Otish Mountains, Matoush, wholly-owned by RSC, was found to house 436,000 tonnes grading 0.78% uranium, containing 7.46 million pounds of the element. The results, announced in mid-September, sent the company’s stock price sharply higher, as we will see.

In announcing the find, company management also told reporters it had increased its 2009 surface exploration program from 30,000 metres to 35,000 metres of drilling. The drilling program is ongoing, with two drills working on the property. Two holes bored by one drill had intersected the mineralized zone over 2.9 metres grading 0.12% uranium, lying characteristically at the contact of the Matoush fault. Another hole was drilled 200 metres further south and intersected a 4.7 -metre section of mineralization grading 0.26% uranium.

The second drill is currently carrying out a 2,000-metre program on the Pacific Bay property, adjacent to Matoush, where Strateco holds an option to acquire a 60% interest.

RSC’s objective in the years to come is to determine the possibility of reaching 60 million pounds of uranium. Apart from the military uses for the material in weaponry, uranium has a flourishing market in nuclear power reactors, as well as in photographic chemicals, in lamp filaments, to improve the appearance of dentures, and in the leather and wood industries for stains and dyes.

Strateco, which has been incorporated since 2000, saw its revenue position shrink in 2008 from the year before, registering $446,000 compared to $964,000 in 2007. Losses were in the $1.9 million range last year, compared to the $523,000 in 2007. Its stock price shot up on September 17, the day of the news about Matoush, by 25% to 99 cents, putting in the middle of a 52-week range which peaked late last September at $1.77, only to collapse to 40 cents in mid-October. But with more going for it than it realized, this company could soon be charging upwards, as a few investors are already finding out.

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