By a News Reporter-Staff News Editor at Energy Weekly News -- MICHELIN URANIUM PROJECT, Canada (100%) The winter field work programme has commenced at Michelin . The camp was opened in preparation for drilling start up in the last week of January. Drilling will involve two rigs concentrating on infill work at the Michelin and Rainbow deposits. The winter conditions will also be utilised for geophysical ground surveys over areas not accessible in summer (e.g. lakes and swamps). MANYINGEE PROJECT, Western Australia (100%) As announced on 13 January 2014 , a revised Mineral Resources estimate for the Manyingee Deposit conforming to both the JORC (2012) code and Canadian National Instrument 43-101 has been completed. The results include an Indicated Mineral Resource of 15.7Mlb U3O8 and an Inferred Mineral Resource of 10.2Mlb U3O8 , both at an average grade of 850ppm U3O8 , using a 250ppm and 0.2m minimum thickness cut off. Compared to the previous Mineral Resource estimate announced in 1999 (reported at a 300ppm U3O8 cut off), the updated 2014 Mineral Resource estimate shows a minor reduction in contained U3O8 for the Indicated portion of the Mineral Resource and an increase in the Inferred portion of the Mineral Resource. Despite the change in disequilibrium factor used to determine uranium grades, resulting in a reduction in the Indicated Mineral Resource material grade, the overall grade of the deposit has increased due to revised geological modelling and estimation techniques. LANGER HEINRICH MINORITY INTEREST SALE Strong interest from a variety of parties to sell a minority interest in Langer Heinrich continues. Paladin offers a unique platform in the uranium supply sector generating competition from the nuclear industry for an association both for current production and future growth. Paladin has confidence in an outcome which will alleviate shareholder concerns regarding debt, noting the next tranche of Convertible Bonds is not due until November 2015 . MARKET URANIUM OUTLOOK Amidst moderate transactional volume levels, the Ux spot price moved in a narrow range between US$34.50 /lb U3O8 and US$36.25 /lb U3O8 during the quarter. Activity continued to be extremely limited in the longer-term market, with the Ux term price flat over the quarter at $50.00 /lb U3O8 . During CY13, construction began on ten reactors located in Belarus , China , the United Arab Emirates and the United States , bringing the total number of reactors in active construction to 71, nine more than immediately prior to the Fukushima accident in March 2011 . In September, the Russian government announced its official nuclear new build programme consisting of 24 new nuclear reactors is scheduled to be operational by 2030. The Turkish government announced that the initial reactor at its Akkuyu Nuclear Power Plant is scheduled for operation in 2020 and that governmental approval for the country's second nuclear project, Sinop, is anticipated by June of this year. Persistent low uranium prices have resulted in a number of production cut-backs and deferrals of planned expansions. In early November, Kazakhstan's state-owned uranium production company, Kazatomprom, placed all output expansion projects on hold pending an improvement in the uranium market. The Russian uranium production company, ARMZ, announced that the Honeymoon ISR Mine in South Australia would be placed on care-and-maintenance status while ceasing all new capital investment in new Russia -based uranium projects. In the United States , Energy Fuels announced that it was deferring the development of its Canyon Mine in Arizona while also deferring the production at the Pinenut Mine . Leach tank failures at both the Rossing Mine ( Namibia ) and the Ranger Mine ( Northern Territory ) have resulted in reduced operations in Namibia and a production halt at Ranger, both facilities operated by Rio Tinto affiliates. Investment analysts specialising in uranium including Cantor Fitzgerald , Cormark Securities , Raymond James and ScotiaBank have recently underscored the looming market imbalance in uranium demand and supply and the crucial imperative for higher sustainable incentive prices of at least US$70.00 /lb, to support new supply, virtually twice the current spot uranium price level. These independent analytical conclusions are in complete agreement with Paladin's long-standing perspectives on the uranium market. Declaration The information in this Announcement relating to exploration and mineral resources is, except where stated, based on information compiled by David Princep B.Sc who is a Fellow of the AusIMM. Mr Princep has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves", and as a Qualified Person as defined in NI 43-101. Mr Princep is a full-time employee of Paladin Energy Ltd and consents to the inclusion of this information in the form and context in which it appears. Keywords for this news article include: Production, Manufacturing. Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC
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