Sarasota, Fla. (PRWEB) March 2, 2006
Piggybacking Paladin Resource’s (TSE: PDN) lightning quick success in bringing its Langer Heinrich uranium deposit into production in Africa’s mining friendly country, Namibia, Forsys Metals (TSX: FSY) hopes to repeat that winning formula with the company’s nearby Valencia uranium deposit. Forsys Chief executive Duane Parnham told StockInterview.com, “We think we have a situation whereby we can fast-track a pre-feasibility stage by conducting some limited amount of verification drilling and geo-tech drilling and then make a formal decision to move immediately into a bankable feasibility stage.”
Forsys Metal’s Valencia uranium deposit is located 35 kilometers along geological strike from the Rossing uranium mine and approximately 40 kilometers north of Paladin’s Langer Heinrich deposit. The Rossing uranium mine has been in production for more than 30 years, has produced between 2,000 and 4,000 tonnes/annually, and may soon expand its production capability. Paladin’s Langer Heinrich deposit, scheduled for commissioning in September 2006 has begun pre-selling future mining production, and in January announced two contracts of more than 2 million pounds of uranium oxide.
Forsys Metals reported that earlier work completed by Goldfields Namibia outlined an historical resource of greater than 20 million pounds, which it hopes to verify with more recent drilling and then proceed to the feasibility stage. Chief Executive Parnham told StockInterview.com, “This is a granitic uranium deposit (uranium mineralization in granite), that is geologically similar to the Rossing.” Uranium production at the Rossing mine surpassed 3,500 tonnes in 2004. Using current spot uranium prices as a hypothetical yardstick, such production might be valued in excess of $250 million. Paladin’s contracts of 2 million pounds for each utility it has earmarked its future production might exceed $120 million. Production costs to mine the uranium at the Langer Heinrich were reportedly as low as $13/pound. Spot uranium prices, according to UX Consulting, recently rose to $38.50/pound.
The entire interview with Chief Executive Duane Parnham may be viewed at the internet news website: http://www.stockinterview.com/forsys.html
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Please Contact: Julie Ickes, Editor
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