AXcess News: Next-Gen Nuclear Power Pushing Up Uranium Demand

After President Bush's G8 Summit meeting in St.
Petersburg, Russia, National Security Advisor Steve Hadley told
reporters on Capitol Hill that Russia and China were welcomed as
members of the international project on the development of
fourth-generation nuclear reactors, or the Generation IV International
Forum (GIF).
   The GIF is an 11-member nuclear energy research and development
consortium established in January 2000 to develop innovative nuclear
energy system concepts to meet future energy challenges. GIF members
include Argentina, Brazil, Canada, France, Japan, South Africa, South
Korea, Switzerland, United Kingdom, and the U.S., with the
OECD-Nuclear Energy Agency and the IAEA as permanent observers.
   The high price of oil and world cooperation in the development of
nuclear power plants is resurrecting global demand for raw materials
to power nuclear reactors worldwide.
   The current uranium spot price is around $45/lb, which is a 27%
increase year-to-date, reports Australia's Resource Capital Research
(RCR). This is forecast to reach $54/lb later this year - an increase
of 20% over the current spot price - and $60/lb by May next year,
which is an increase of 33% on the current spot price.
   RCR said that around 180 new nuclear-power reactors are proposed
or planned worldwide. This compares with 441 nuclear-power reactors
currently in operation.
   SXR Uranium One Inc. of Toronto, Canada, announced recently that
it has agreed to pay Rio Tinto Energy America $110 million for the
Sweetwater mill and related uranium properties in the Green Mountain
Wyoming area.
   Neal Froneman, CEO of Uranium One, noted competition for U3O8 is
becoming more intense worldwide as demand increases.
   "Against this backdrop, secure sources of supply and milling
capacity in the United States will become increasingly attractive to
U.S. utilities," he said.
   New York-based Golden Patriot, Corp. (OTCBB:GPTC) recently
announced that it received Government and State approval for a 20 hole
drill program on the past producing Lucky Boy Uranium Mine in Gila
County, Arizona. The Luck Boy uranium mine was one of the first to
ever go into production in Arizona and at current prices, the company
is very optimistic toward its future development.
   Brad Rudman, President of Golden Patriot said, "The Lucky Boy is
one of our most prized possessions and holds the largest growth
potential both short and long term."
   While Rudman would not comment, the exploration company may be
seeking participation in the Lucky Boy's development. The company said
Thursday that it finalized an agreement with a drilling contractor to
begin work at the Luck Boy mine.

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