News: Uranium Equities is leveraged to spot price recovery

Uranium Equities (ASX:UEQ) is well leveraged to further recovery in the strengthening uranium price, which appears to have turned at least a short term corner by rising above US$31 per pound in recent days.

A near term price catalyst could be positive results from a 4,757 metre drilling program targeting high grade prospects on its Nabarlek Mineral Lease and West Arnhem joint venture areas.

This drilling was finalised last month and assays are pending.

Notably, UEQ's joint venture partner for this drilling is Cameco Corporation (NYSE:CCJ) which capitalised at US$7.9 billion.

UEQ has another joint venture with Cameco over the 175 square kilometre Rundall River project which adjoins the Kintyre Uranium Deposit in the East Pilbara.

The Kintyre deposit, owned by Cameco and Mitsubishi Corp (TYO:8058), contains 55 million pounds at 0.58% uranium.

UEQ's Nabarlek Project carries the historically profitable Nabarlek Mine, which produced 24 million pounds at 1.84% uranium, and the surrounding exploration licences, again held in joint venture with Cameco.

During the previous quarter UEQ purchased Arnhem Minerals from Spectrum Rare Earths (ASX:SPX) for $625,000.

This expanded its already dominant ground position in the Alligator Rivers Uranium Field in the Northern Territory, taking is acreage in the province to over 5,000 square kilometres.

The prospectivity of the Alligator Rivers province is highlighted by the recent discovery Cameco Australia at Angularli where intersections included 20.2 metres at 5.2% uranium.

UEQ is capitalised at a modest $5.5 million, and recently raised around $750,000 at $0.01 per share.