Post by Franko10 ™ on Sept 11, 2004 13:10:03 GMT -5
JNR Resources Inc. (TSX Venture - JNN) is a junior resource company currently engaged in the exploration and development of mineral properties in the province of Saskatchewan. The company has 100% ownership of several prospective uranium properties in the Athabasca Basin of Northern Saskatchewan that have been and will continue to be the focal point of their exploration efforts.
The Uranium Industry
Uranium is the fuel nuclear reactors use to generate electricity. More than 400 nuclear reactors operate in 31 countries and account for about 17% of the world's electricity. In parts of Asia and Europe, nuclear capacity supplies up to 80% of the electricity demand. Nuclear power is the only fully developed non-fossil fuel electricity generating option with the potential for large-scale expansion.
Uranium prices have significantly improved since their low point of US$7.10/lb in mid 2000, with prices rising to US$ 10.20/lb. by early 2003. It is likely that prices will continue to rise as excess uranium inventories held by utilities and producers are being reduced. These excess inventories are considered to be in the order of 100 million pounds of U3O8 with an annual draw down of 35 million pounds. Elimination of these excess inventories will tighten supply and spur yet higher prices.
The current world political crisis, with its inherent threat to world energy supplies and prices underscores the need for domestically produced, non-petroleum based electricity. The recent power crises in California and Ontario have sharpened the focus on the fact that North American power usage continues to rise, as it does throughout the world. These factors in conjunction with pressures to dramatically reduce greenhouse gas emissions have prompted the Bush administration to actively support new reactor construction and development in the U.S.
In Europe, it has become apparent that plans to phase out nuclear power plants are unworkable and so, new reactor developments have been begun once again. In Asia, nuclear power development continues to proceed apace. The development of new simplified reactor designs and the improvement in efficiencies of currently operating reactors have dramatically improved the economics of nuclear power and have actually increased the demand for uranium.
The Athabasca Basin
The Athabasca Basin is the largest and richest uranium-producing region in the world. Since 1968, 18 uranium deposits totalling over 1 billion pounds have been discovered in the region. It hosts the world's largest high-grade uranium mine, McArthur River, with a minimum resource base of 461 million pounds grading 23% U3O8. At current prices this represents an in situ value of US $4.7 billion dollars, with a value to the ore of approximately $5,000 per ton. To put these deposits in perspective, if McArthur River was a gold deposit, it would have to contain 13.4 million ounces of gold at a grade of 14 ounces per ton.
Joint Venture
JNR formed a strategic alliance with Kennecott (Rio Tinto) in January 1998. In May 2000, a letter of intent was signed with Kennecott transferring all mineral titles subject to the Property Rights Agreement to the Joint Venture. In total, Kennecott made over $6 million in expenditures on the joint venture properties and developed several very promising targets, of which the Moore Lake property has several. In late 2002, as a matter of corporate realignment and prefaced by Rio Tintos decision to divest themselves of their Australian uranium properties, Kennecott gave notice to JNR of their intent to discontinue uranium exploration. As a result, Kennecott transferred all of its interests in the Athabasca Basin to JNR in consideration of $2 million of work commitments over 5 years. This affords JNR an excellent opportunity, as the work carried out by Kennecott to date has provided JNR with an extensive, high quality, geological database.
Projects
Moore Lake Project
This is located 40 km southwest of the McArthur River mine. In May 2000, JNR announced the discovery of significant unconformity-type uranium mineralization in diamond drill hole ML00-03 (0.442% U3O8 over 9.2 m.) at what the Maverick Zone. Follow up drilling along a newly identified trend associated with the Maverick Zone has resulted in the discovery of high grade mineralisation (0.62% U3O8 over 9.2 m with up to 12% U3O8 over 0.4 m) in 02ML-25. In addition to the Maverick Zone, several regional targets have been investigated on the property some 8-10 km northeast of the discovery hole. The Company has received very encouraging geological and geochemical results from these programs. Several high priority exploration targets on the Moore Lake property remain untested.
Lazy Edward Bay
This area is located along the southern shore of Cree Lake, west of the Key Lake mine. Significant geochemical values and geological features were identified over a minimum strike length of 2 km during the 2001 and 2002 winter drilling programs. Additional, highly prospective targets on the property have yet to be drilled.
Greywacke
JNR (50%) and Shane Resources Ltd. (50%) have entered into an agreement to option the Greywacke (Greywacke North) property, located approximately 90 km northeast of La Ronge, Saskatchewan, to Masuparia Gold Corporation. Previous operators had identified an open ended resource of 88,000 oz of gold on the property. Masuparia has completed several drilling programs on the Greywacke and have up graded the near surface resource to approximately 100,000 oz Au. In addition, these programs have identified economically significant concentrations of gold (0.3 oz/t/1.8 m) at vertical depths of 200 m.
MANAGEMENT
Richard T. Kusmirski, M.Sc., P. Geo. - President & Director
Mr. Kusmirski has over 20 years of experience in North America and overseas, and has actively participated in the discovery of a number of gold, uranium and base metal deposits. He formerly managed Cameco Corporation's uranium exploration projects in the Athabasca Basin.
L.S. (Les) Beck, PhD., P. Eng., P. Geo. - Chairman, Technical Advisory Committee & Director
Dr. Beck is a world-renowned uranium expert with over 40 years of experience and has been a geological and mineral policy consultant since 1993. He is the author of numerous scientific publications, many dealing with uranium deposits in Saskatchewan and was instrumental in the selection of JNR's original prospects.
STOCK & FINANCIAL INFORMATION
(As at August 11, 2004)
Stock Symbol: TSX-V: JNN
Issued shares: 62,156,027
Fully diluted: 72,439,427
INVESTOR RELATIONS
info@jnrresources.com
The Uranium Industry
Uranium is the fuel nuclear reactors use to generate electricity. More than 400 nuclear reactors operate in 31 countries and account for about 17% of the world's electricity. In parts of Asia and Europe, nuclear capacity supplies up to 80% of the electricity demand. Nuclear power is the only fully developed non-fossil fuel electricity generating option with the potential for large-scale expansion.
Uranium prices have significantly improved since their low point of US$7.10/lb in mid 2000, with prices rising to US$ 10.20/lb. by early 2003. It is likely that prices will continue to rise as excess uranium inventories held by utilities and producers are being reduced. These excess inventories are considered to be in the order of 100 million pounds of U3O8 with an annual draw down of 35 million pounds. Elimination of these excess inventories will tighten supply and spur yet higher prices.
The current world political crisis, with its inherent threat to world energy supplies and prices underscores the need for domestically produced, non-petroleum based electricity. The recent power crises in California and Ontario have sharpened the focus on the fact that North American power usage continues to rise, as it does throughout the world. These factors in conjunction with pressures to dramatically reduce greenhouse gas emissions have prompted the Bush administration to actively support new reactor construction and development in the U.S.
In Europe, it has become apparent that plans to phase out nuclear power plants are unworkable and so, new reactor developments have been begun once again. In Asia, nuclear power development continues to proceed apace. The development of new simplified reactor designs and the improvement in efficiencies of currently operating reactors have dramatically improved the economics of nuclear power and have actually increased the demand for uranium.
The Athabasca Basin
The Athabasca Basin is the largest and richest uranium-producing region in the world. Since 1968, 18 uranium deposits totalling over 1 billion pounds have been discovered in the region. It hosts the world's largest high-grade uranium mine, McArthur River, with a minimum resource base of 461 million pounds grading 23% U3O8. At current prices this represents an in situ value of US $4.7 billion dollars, with a value to the ore of approximately $5,000 per ton. To put these deposits in perspective, if McArthur River was a gold deposit, it would have to contain 13.4 million ounces of gold at a grade of 14 ounces per ton.
Joint Venture
JNR formed a strategic alliance with Kennecott (Rio Tinto) in January 1998. In May 2000, a letter of intent was signed with Kennecott transferring all mineral titles subject to the Property Rights Agreement to the Joint Venture. In total, Kennecott made over $6 million in expenditures on the joint venture properties and developed several very promising targets, of which the Moore Lake property has several. In late 2002, as a matter of corporate realignment and prefaced by Rio Tintos decision to divest themselves of their Australian uranium properties, Kennecott gave notice to JNR of their intent to discontinue uranium exploration. As a result, Kennecott transferred all of its interests in the Athabasca Basin to JNR in consideration of $2 million of work commitments over 5 years. This affords JNR an excellent opportunity, as the work carried out by Kennecott to date has provided JNR with an extensive, high quality, geological database.
Projects
Moore Lake Project
This is located 40 km southwest of the McArthur River mine. In May 2000, JNR announced the discovery of significant unconformity-type uranium mineralization in diamond drill hole ML00-03 (0.442% U3O8 over 9.2 m.) at what the Maverick Zone. Follow up drilling along a newly identified trend associated with the Maverick Zone has resulted in the discovery of high grade mineralisation (0.62% U3O8 over 9.2 m with up to 12% U3O8 over 0.4 m) in 02ML-25. In addition to the Maverick Zone, several regional targets have been investigated on the property some 8-10 km northeast of the discovery hole. The Company has received very encouraging geological and geochemical results from these programs. Several high priority exploration targets on the Moore Lake property remain untested.
Lazy Edward Bay
This area is located along the southern shore of Cree Lake, west of the Key Lake mine. Significant geochemical values and geological features were identified over a minimum strike length of 2 km during the 2001 and 2002 winter drilling programs. Additional, highly prospective targets on the property have yet to be drilled.
Greywacke
JNR (50%) and Shane Resources Ltd. (50%) have entered into an agreement to option the Greywacke (Greywacke North) property, located approximately 90 km northeast of La Ronge, Saskatchewan, to Masuparia Gold Corporation. Previous operators had identified an open ended resource of 88,000 oz of gold on the property. Masuparia has completed several drilling programs on the Greywacke and have up graded the near surface resource to approximately 100,000 oz Au. In addition, these programs have identified economically significant concentrations of gold (0.3 oz/t/1.8 m) at vertical depths of 200 m.
MANAGEMENT
Richard T. Kusmirski, M.Sc., P. Geo. - President & Director
Mr. Kusmirski has over 20 years of experience in North America and overseas, and has actively participated in the discovery of a number of gold, uranium and base metal deposits. He formerly managed Cameco Corporation's uranium exploration projects in the Athabasca Basin.
L.S. (Les) Beck, PhD., P. Eng., P. Geo. - Chairman, Technical Advisory Committee & Director
Dr. Beck is a world-renowned uranium expert with over 40 years of experience and has been a geological and mineral policy consultant since 1993. He is the author of numerous scientific publications, many dealing with uranium deposits in Saskatchewan and was instrumental in the selection of JNR's original prospects.
STOCK & FINANCIAL INFORMATION
(As at August 11, 2004)
Stock Symbol: TSX-V: JNN
Issued shares: 62,156,027
Fully diluted: 72,439,427
INVESTOR RELATIONS
info@jnrresources.com