©2007 Red Rock Energy Inc.
URANIUM PRIMER
Industry Overview

Demand for Uranium
The demand for U308 is directly linked to the level of electricity generated by nuclear power plants. The World Nuclear Association (WNA) reported that worldwide uranium fuel consumption attributed to fuel reactors in 2004 was 173 million pounds. Sprott Asset Management recently published a report entitled “Investment Implications of Abrupt Climate Change” which generated a number of interesting points:

  • Global electricity demand is projected to double by 2030 to 31,500 billion KWH from current levels of 15,391 Billion KWH
  • Total fuel costs of a nuclear power plant in the OECD are typically about a third of those for a coal-fired plant
  • Nuclear Plants emit 0.025 Kg CO2/KWh where as natural gas emits 0.58 and coal 1.04
  • Currently there are 441 nuclear power reactors in operation and another 27 under construction
  • In 2000, uranium/pound was $7.00
  • Current nuclear electricity production is 17% of global total with Green Peace founder Patrick Moore pushing for 60% by 2030 would increase the number of nuclear reactors operating in the world to 2,697 requiring 1.3 billion pounds per year as compared to our current mine production of 100 million pounds per year

Another recent news release by CIBC World Markets estimates uranium to reach $70/pound by the end of 2007 and reported that 80 new reactors are under construction or approved worldwide with more than half being attributed to Asia.

Supply of Uranium
Uranium is supplied from primary production (the mining of uranium ore), and secondary sources such as the drawdown of excess inventories, decommissioning of nuclear weapons, re-enrichment of depleted uranium tailings, and used reactor fuel that has been reprocessed.


Radioactive fracture in trench (HAB area)
WE ARE NOT JUST LOOKING FOR URANIUM
WE ARE LOOKING FOR MORE URANIUM