Company News
Bancroft Sees Optimistic Long-Term Future for Uranium Thursday
May 22, 7:00 am ET
SCOTTSDALE, AZ--(MARKET WIRE)--May 22, 2008 -- Bancroft Uranium Inc. (OTC BB:BCFT.OB
- News) ("Bancroft" or the "Company") today comments on
what the Company perceives as an optimistic long-term trend for the uranium
market. As the prices of oil, natural gas and other hydrocarbon energy sources
soar, nuclear power is becoming one of the few options for the supply of clean,
reliable energy in the world today.
Oil prices traded above $129 a barrel recently after hitting another record high as supply concerns mounted, selling for about twice what they were just a year ago. Prices have been propelled by worries about insufficient supply, soaring global demand and a sliding US dollar that has made oil cheaper for many overseas buyers. Industry observers in recent days have also pointed to especially strong demand for diesel in China, where power plants in some areas are running desperately short of coal and certain earthquake-hit regions are reliant upon diesel generators for power.
Bancroft sees a long-term future for the price of uranium as it continues to be one of the most viable alternatives to fossil fuels. Today, there are some 439 nuclear power reactors operating in 30 countries. In 2006 these reactors provided 2658 billion kWh, about 16% of the world's electricity. 34 power reactors are currently being constructed in 11 countries, notably China, South Korea, Japan and Russia. With this scope of on-going construction, supply factors should soon affect the uranium market.
Only 64% of utilities' annual requirements are supplied by mine production with the balance made up from secondary sources or stockpiled uranium held by utilities. These stockpiles are reported to be largely depleted. The perception of imminent scarcity drove the "spot price" for un-contracted sales to over US$135 per pound U3O8 in 2007, but it has settled back to $70-80 as of early 2008. Most uranium however, is supplied under long term contracts and the prices for new contracts have in the past reflected a premium above the spot market.
The long-term view for uranium pricing is dominated by demand fueled by future growth of new power plant requirements and the stagnant state of world mining production which needs to expand significantly. As Canada is a world leader in the safe and efficient production of uranium to meet the world's energy needs, Bancroft is poised to become a part of this important industry with the development of the Monmouth Uranium Project.
For inquiries from the public and media concerning the Monmouth Uranium Project please contact Greenspirit Strategies at 1-877-54 GREEN or 1-877-544-7336. For shareholder and investor information please contact investor relations at 1-866-860-2995.
ABOUT BANCROFT URANIUM INC. (OTC BB:BCFT.OB - News)
Bancroft Uranium Inc. is an exploration Company which intends to develop Uranium assets in North America. Bancroft's initial asset, the Monmouth Uranium Project is envisioned to have the potential of a low cost, open pit uranium producer located close to infrastructure and end product buyers.