By: Tomas Ronolski - AllPennyStocks.com News

Thursday, April 7, 2016

Uranium mining companies have struggled for the last five years as prices have fallen sharply post the Fukushima nuclear power plant accident in Japan in March 2011. The accident led to the shutting down of all nuclear reactors in Japan. Not surprisingly, this had a negative impact on the uranium market and uranium miners. Cameco Corporation (TSX:CCO), one of the biggest uranium miners, has seen its share price drop almost 47% in the last five years. UEX Corporation (TSX:UEX), another Canadian uranium explorer and developer, has lost more than 80% of its value. However, market sentiment has been turning bullish on uranium miners. This is because of the improving outlook for the uranium market. Analysts believe that the uranium market, after years of being oversupplied, could turn into a deficit by as early as 2019.

Given that all of the uranium miners have seen their value erode over the last five years, they are now an attractive proposition given the long-term outlook for the market. One such miner is ALX Uranium Corp. (TSX-Venture:AL). Based in Vancouver, Canada, and formerly known as Lakeland Resources, ALX is engaged in the acquisition, exploration and development of uranium properties in the Athabasca Basin, Saskatchewan, Canada.

This morning, ALX announced that a follow up radon-in-water sampling program has been completed at its Lady Edward Bay Property located at the southern margin of Athabasca Basin. The property is spread over an area of 46,741 acres and is around 55 kilometers west of the Key Lake Mill and historic uranium mine. The property covers many shallow exploration targets.

Exploration on the property at the Bay Trend included 143 radon-in-water (RIW) samples. The samples were collected by RadonEx Ltd. of St-Lazare, Quebec. RadonEx’s Electret Ionization Chamber (EIC) technology has been successful in drill targeting at the Triple R deposit within the Patterson Lake South camp.

The survey resulted in eight highly anomalous one-point samples above 100 picoCuries per litre (pCi/L) including four strong anomalies that are above 200 pCi/L. The anomalous samples are located approximately 200 metres northeast of historical drill hole LE-50, which returned anomalous uranium in the basement rocks (reported at 908 ppm U3O8).

Jon Armes, President at ALX Uranium, said that within the Athabasca Basin, historical results are used to guide exploration hat could ultimately produce a new discovery. Armes further said that at Lazy Edward Bay, given the proximity of the highly anomalous radon samples to historical drill hole LE-50; which was never followed up with drilling along strike, the results of this radon survey demonstrate the significant exploration potential.

Just like the major Uranium miners and explorers mentioned at the top of the article, AL shares have also suffered in price, however since late February, shares have almost doubled as investors start to see value in this beaten down sector.

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