Southern Cross Gold Consolidated Ltd. press release
USA Uranium Corp. Acquires Initial Uranium Property
TSX - Toronto Stock Exchange · Australia
LAS VEGAS, May 23 /CNW/ - USA Uranium Corp. (OTCBB:USAU) is pleased to announce that it has accepted the recommendations of its mineral advisors and has acquired a formerly producing uranium-vanadium property, known as the Loa Claim Group, located in the geological area of Utah's largest current known uranium resource.
The Loa Claim Group is the first of numerous acquisitions planned for the Company's uranium exploration and development division. USA Uranium Corp has focused its initial property acquisition program primarily in the uranium-rich area of the southwestern states, including Texas, Wyoming, New Mexico, Arizona, Colorado and Utah. The Company has targeted prime properties for acquisition in areas that have historically proven to yield concentrated uranium resources.
The Loa Claim group occurs within the Henry Mountains Complex that contains uranium deposits in the Salt Wash member of the Morrison Formation. The deposits within the Salt Wash member currently account for nearly 13 percent of the United States uranium production. The Loa Mineral Claim group totals 127 lode mining claims covering an area of approximately 2400 acres. Records for the production years 1956-1965 indicate the uranium ore mined from this area averaged 0.56 percent Uranium and 1.01 percent Vanadium.
The uranium mining resurgence is being triggered by skyrocketing prices brought on by soaring worldwide demand for uranium for the production of clean energy. Currently in the United States, 103 nuclear reactors in 31 states provide clean electrical power to one of every five homes and businesses.
From trading at about $9 per pound in 2001, the price of raw uranium today is selling at an all-time high of over $120 per pound. This tenfold increase in just five years is a result of a renewed worldwide interest and dwindling supplies of this in-demand commodity, according to analysts at the World Nuclear Association.
With the world primed for an impending nuclear renaissance, experts are forecasting that uranium prices may surge another $50, peaking at $170 or even a staggering $200 per pound. This would be well above even the 1970s inflation-adjusted high of $120/lb, when atomic energy was last in vogue.
The price spike in mined uranium is attributable to a shrinking supply of yellowcake as European and Asian countries switch to nuclear reactors for power generation in the face of rising oil prices and global warming.
One of the world's most concentrated energy sources, a single pound of yellowcake, or U308, is equivalent to 31 barrels of oil or 10 tons of coal. A typical pellet of uranium weighs 7 grams (0.24 ounces), and can generate as much energy as 3.5 barrels of oil, 17,000 cubic feet of natural gas or 1,780 pounds of coal. This makes it a clean and efficient source of natural energy.
One of the primary conventional resources of uranium is yellowcake. This is milled uranium oxide, known to chemists as U308. When uranium ore is sourced from the mine, it contains relatively little of the radioactive element -- often no more than one per cent (1%). The yellowcake is put through several milling processes and eventually turned into fuel rods, which are utilized in nuclear power plants to produce electricity without any greenhouse gases.
World demand for uranium will be 185 million pounds in 2013, estimates the Nuclear Energy Institute in Washington. But supply likely will be significantly lower, at about 130 million pounds.
Safe Harbor Statement
This news release contains forward-looking statements within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities and Exchange Act of 1934, as amended. Statements in this news release, which are not purely historical, are forward-looking statements and include any statements regarding beliefs, plans, expectations or intentions regarding the future. These statements involve risks and uncertainties which could cause actual results to differ materially from those in the forward-looking statements contained herein. Such risks and uncertainties may include, but are not limited to, the impact of competitive products, the ability to meet customer demand, the ability to manage growth, acquisitions of technology, equipment or human resources, the effect of economic and business conditions, the ability to attract and retain skilled personnel and factors outside the control of the Company. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements. Although the Company believes that the beliefs, plans, expectations and intentions contained in this news release are reasonable, there can be no assurance those beliefs, plans, expectations or intentions will prove to be accurate. Investors should consider all of the information set forth herein and should also refer to the risk factors disclosed in the Company's periodic reports filed from time-to-time with the United States Securities and Exchange Commission. This news release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.