Submitted by
SK
Options Trading
as part of our
contributors program
.
The shares of Mega Uranium Limited (
MGA
) put on 52% on the news that Queensland is set to re-commence
uranium mining. Mega has two projects in Queensland, the Georgetown
Project and the Ben Lomond uranium-molybdenum property are situated
there.
The Ben Lomond project contains an NI43-101 compliant Indicated
Resource of 1.33 million tonnes @ 0.27% U3O8 (7.9Mlbs U3O8) and an
Inferred Resource of 0.6 million tonnes @ 0.21% U3O8 (2.8Mlbs
U3O8).
The Georgetown Property - Maureen Uranium Deposit, located in
the Georgetown area of Queensland, comprises an NI43-101 compliant
Indicated Resource of 3.1 million tonnes @ 0.09% U3O8 (5.95 Mlbs
U3O8) and an Inferred Resource of 0.15 million tonnes @ 0.11% U3O8
(0.38 Mlbs U3O8).
Mega
Uranium have issued the following announcement:
Mega is pleased to report the Queensland State Government has
today announced it will convene a three-member implementation
committee to oversee the recommencement of uranium mining in
Queensland. The Liberal National Party, led by Premier Campbell
Newman, said today's announcement followed sustained public
debate on uranium mining in Queensland, and strong support for
the uranium industry from the Federal Labor Government.
Premier Newman stated, "It's been 30 years since there was
uranium mining in this State, and in that time the Northern
Territory, South Australia and Western Australia have carved out
successful uranium industries that deliver jobs and prosperity to
their regions."
Minister for Natural Resources and Mines Andrew Cripps said
with Queensland's known uranium deposits worth an estimated $10
billion, the industry has enormous potential to support economic
growth, particularly in regional North Queensland.
Mega Uranium Limited is a Canadian-based mineral resources
mining company focused on exploring global uranium properties, with
uranium resources and exploration projects in Australia, Canada and
Cameroon.
Mega Uranium has a 52 week trading range of $0.12 - $0.38, a
market capitalization of $50.75mln; the trading volume oscillates
between 2.67mln and 76,000 shares. The number of shares outstanding
is 267.09mln.
Back in 2007, which is not so long ago, this stock was trading
at around $9.00 which clearly demonstrates just far it has fallen.
However, the tide may have turned and this could be the time to bag
a few shares if you are of the opinion that this tiny sector of the
market has been severely oversold. Many, who bought into the
uranium story earlier, including us, will not be willing to take
another chance in this sector just yet, but it should at least be
kept on your watch list, especially if the demand for uranium picks
up. According to Morgan Stanley, the global uranium market will be
in deficit from 2014 with demand outstripping supply by 6,850 tons
by the end of the decade, even though Japan is likely to move away
from nuclear power in the long term, and China is set to miss by
25% its original target of having 80 gigawatts of new nuclear power
generating capacity in operation by 2020.
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the data provided. Nothing contained herein is intended or shall be
deemed to be investment advice, implied or otherwise. This letter
represents our views and replicates trades that we are making but
nothing more than that. Always consult your registered adviser to
assist you with your investments. We accept no liability for any
loss arising from the use of the data contained on this letter.
Options contain a high level or risk that may result in the loss of
part or all invested capital and therefore are suitable for
experienced and professional investors and traders only. Past
performance is not a guide nor guarantee of future success.