Regards, Jim Muckerheide
By Tim Wood
NEW YORK (ResourceInvestor.com) -- UEX Corporation [TSX:UEX] saw its market value soar more than 78% in a couple of hours, and on staggering volume of 4.7 million shares. A superlative drill hole intercept at the Shea Creek joint venture drove the stock, which had until recently been a laggard among its uranium seeking peers.
With the price of uranium oxide well entrenched just below $30 per pound, up almost five fold since 2001, stocks associated with the mineral have been on a tear. As a result, and because uranium deposits are so common, dozens of not-so-new projects are coming online to take advantage of the boom. So far little harm has been done with all boats floating higher on the rising price tide.
The Shea Creek project, under option from COGEMA, a subsidiary of French integrated uranium giant AREVA [PSX:CIE], reported that drill hole SHE-114-5 intercepted 27.4% U3O8 over 8.8 metres, including 58.32% U3O8 over 3.5 metres.
That’s a glory hole if ever there was one, and it was complemented by Hole SHE-114-5 also intersecting meaningful uranium, including 1.08% U3O8 over 2.2 metres and 5.48% U3O8 over 1.8 metres.