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Randgold Acquires Uranium Interests |
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Redport Limited has acquired a 100% interest in the
Lake Maitland Uranium Project and Mundong Well Uranium Prospect. Lake Maitland is an
advanced stage uranium project containing a resource in excess of 7,800 tonnes of U308
located in the Bronzewing-Wiluna gold mining belt of Western Australia.
Malcolm Mason, Executive Director of Redport, said: “The Lake Maitland
acquisition greatly increases Redport’s uranium resource base and with the uranium
price hitting a 25 year high it significantly enhances our leverage in the uranium
sector.”
The uranium spot price continues to rise and is currently trading
at US$33.50 per pound reflecting prospects for increased future demand. Oil and gas prices
have risen to a point where power generation economics strongly favour nuclear power. There
is growing political support for an increase in the use of nuclear power, to limit global
warming since nuclear power generation emits zero carbon emissions.
The fast
growing Chinese economy is expected to increase the size of its nuclear industry by three
fold and analysts now predict that uranium prices will continue to rise with UBS recently
upgrading its uranium price forecast by 40% for 2006 and 33% for 2007 to US$40/lb U3O8.
Redport has acquired all of Fox Resources Limited’s interests in the Lake
Maitland Uranium and Mundong Well uranium projects for a cash consideration of A$750,000.
Redport now owns both uranium projects outright. The parties have also agreed to finalise
the acquisition of tenements in the Yandal and Ashburton region with an amount of A$140,000
payable to Fox at completion.
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