Utah Uranium is a natural resources company focused on acquiring, exploring, and developing uranium properties in the US. The company is committed to acquiring historically producing underground uranium mines and highly prospective new uranium projects in addition to vanadium projects. Currently Utah Uranium has acquired mineral rights to 10,255 acres of leased or staked mineral uranium properties directly and through joint venture interests.
All of the Company’s properties are near the Henry Mountains Complex, which is one of the largest known uranium resources in the Colorado Plateau District. Furthermore, Ted Murer, an exploration geologist who conceptualized and discovered the complex’s first mine, has assembled Utah Uranium’s Pinto claim using the same data and methodology as the Tony M Mine and the Bullfrog Mine.
The stable rise in demand for electricity, growing concerns over global warming, and the depletion of fossil fuel resources have all led to an increase in demand for alternative energy sources such as nuclear power generated by uranium. Demand for electrical power has been projected to approximately double between 2004 and 2030, growing on a 2.6% average per year from 17,408 thermal watt hours to 33,750 thermal watt hours.
The research bureau concluded, “The Company’s property neighbor, Denison Mines Corp, has potential uranium reserves estimated at 24 million pounds and has generated modest revenues of $48 million year-to-date in 2007. Denison Mines Corp was recently trading at a 36 times Price/Sales multiple to 2007 revenues. Based on the above peer analysis, and considering also the Company’s early development stage, we are initiating coverage of UTUC with a Speculative Buy rating and a $2.10 price target. Our market capitalization target of $80 million for UTUC represents approximately one-fifth of the estimated value of the Company’s uranium resources.”
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