unbelievable uranium story unfolding

The Aussie Uranium Onslaught
2006-11-29
By Keith Kohl

BALTIMORE, MD-The old saying that everything is bigger in the land down under may be more than just marketing hype by beer companies and steakhouses. That's because when it comes to Australia's uranium resources, it's 100% true.
I think Luke put it best two weeks ago in his article Spend Little, Profit Big when he said, "Without a uranium play in your portfolio, you're missing out in tons of cash."


Today I want to talk to you about where you can find the largest uranium resource in the world . . . Australia.


Australia has had a long history of uranium discovery. During his original survey for the new town of Darwin in 1869, George W. Goyder accidentally found a green-colored mineral that he knew was not copper. Goyder could not identify the mineral and it remained a historical obscurity for decades.

That was until 1949, when by a local prospector and farmer, John Michael White, rediscovered the deposit one day while out hunting kangaroos.

This discovery would later be named the Rum Jungle uranium deposit, a name derived from an accident that occurred back in 1871. According to local legend, a bullock-wagon loaded with rum destined for construction gangs got stuck in a patch of jungle on the East Finniss River. The bullockies, unable to free the wagon, untethered the oxen and set about drinking the rum, having one of histories most glorious binges. Thereafter the area was known as Rum Jungle.

Since the Rum Jungle discovery 137 years ago, massive amounts of uranium have been found throughout the country. Today, it's estimated that between one quarter and one third of the world's known recoverable uranium is found in Australia.

Three Down, Two on the Way
Despite having only three mines in current operation, Australia's annual uranium production exceeds 11,000 tons, underscoring the richness of the country's mineralization.

Last year Australia accounted for 22% of global uranium exports, making up 40% of its total energy exports. And they're only planning on increasing nationwide output.

Australia will open two additional uranium mines, the Jabiluka mine in the Northern Territory and the Honeymoon mine in southern Australia, in the next few years. This will signify a potentially vast increase in uranium production.

And it's no wonder the country wants to continue to expand operations. Uranium jumped another $2.50 last week, bringing current prices to $62.50/lb.

MAKE THAT $75 PER LB