Uracan Resources

Scratching the surface of uranium exploration

Uracan Resources Ltd. was created in 2006 with an aim to capitalize on the future need for uranium resources that are currently declining, both in North America and around the world. At the time, the Uracan management team, including Gregg Sedun, CEO, President and Chairman, had already put together a significant land package in Canada, and looked to establish a business with a strong focus on surface exploration. Sedun explains that the company “went against the grain by not focusing on higher grade, deeper uranium.” 

The management team at Uracan has an extensive combined experience in resources – and this history, Sedun explains, is precisely what separates the company from other mining companies in Canada. “We have an awesome team with such an amazing track record. Uracan is led by people with so much experience, and we have defined ourselves as open pit specialists, which contributes to our success,” Sedun says. As part of a team made up of some of the most successful venture capitalists in North America, Uracan has been able to accrue financing even in the worst of times. “Our ability to raise capital is significant, and to be able to do that the dark days of October shows the strength of our team – which ultimately is what really differentiates us. Uracan is led by people that have created and been around success.”

Sedun also credits much of Uracan’s management strength to their running the former Bema Gold company.

Of course, the land position held by Uracan enables the company to be boastful of their track record. The company concentrates on its North Shore Property, a 1000-square-kilometre land package in Quebec, which had historical work and elevated uranium values. Sedun says the property delivered positive results very quickly. “Uracan has made a dozen uranium discoveries in Quebec – one already has a resource, and two more will in early 2009.”

The company’s North Shore property in Quebec is located eight kilometres north of the St. Lawrence, with power and a major provincial highway running through the property. Drilling continues at the North Shore property year round.   Uracan also has a large, more grassroots land package in Saskatchewan where several pounds of uranium per tonne has been discovered in drill holes.

More targets mean more results
On January 13, Uracan announced the discovery of another new area of significant uranium mineralization in the Costebelle claim group of the North Shore Property. The new discovery is about 100 kilometres northeast of the Double S NI 43-101 inferred resource, which is now almost 20 million pounds. Costebelle has not previously been explored, and therefore represents a new host of opportunities for Uracan.

The company’s property in Saskatchewan has yielded positive results as well. A surface discovery was made at its Pipewrench Lake property, which is about 120 kilometres south of Athabasca Basin.

Sedun says that grassroots researching is what drive the company’s process for uranium exploration: “We’re often able to successfully explore areas because of textbook sleuthing, where one of our geologists goes down into the bowels of the Energy, Mines, and Resources records in Regina and pulls out old maps, and does the hard work: grunt research. Through this method we found a whole host of uranium occurrences that other people missed or ignored.”

In terms of the competitive landscape for Uranium exploration in Canada, Sedun is optimistic for Uracan, and the industry as a whole. “The number of uranium companies has blossomed in the past few years as the price has skyrocketed. There are easily 200 junior uranium companies on the Toronto Stock Exchange. But there are only three or four new uranium producers and three established producers. We’re one of the few juniors who are going to have a large-scale program next year because of our success raising money,” Sedun explains.

Mining-friendly properties
He adds that Uracan is proud to be good corporate citizens: “We are aware of the environmental impact our exploration has on the surrounding areas of our sites. However, Quebec has been named as the number one mining jurisdiction in the world. We are operating in mining-friendly jurisdictions. The only people that live anywhere near our projects are those in the mining business. Also, because we are low grade, the environmental impacts are lessened.”

What’s the key message to investors, according to Sedun? The Uracan story is a success story. “We really see the opportunity for investors. When I think of our story: it’s about our team, size, and logistics. In terms of the logistics: you couldn’t ask for a better place for a mine. It is sparsely populated, and that population already makes their living off a mine. We have the social license to be there, as well as abundant power and infrastructure to work within. We have a well-trained workforce. And of course, results are key: we’re hitting uranium in 90 per cent of our holes. And we’ve only touched 2% of our property. All the exploration we’ve done to date shows us these areas have the ability to be some of the largest deposits out there.”

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