Uranium Stocks: Titan Uranium – Development, Exploration, Consolidation

Titan Uranium – Development, Exploration, Consolidation

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Titan Uranium (CVE:TUE) continues to grow by focusing on three elements: development, exploration and consolidation. Titan is moving forward with the formerly operating Sheep Mountain Uranium project in Wyoming. Sheep Mountain has a probable reserve of 14.2 million pounds of uranium oxide. Titan’s exploration activities continue in Wyoming, Utah and the Thelon and Athabasca Basins where Titan is working with partners Mega Uranium (TSE:MGA) and JOGMEC (Japan Oil, Gas and Metals National Corporation). Titan also continues to consider merger and acquisition opportunities after acquiring Uranium Power Corp. in 2009.

What we like about Titan Uranium!

• Key relationships with JOGMEC and MGA
• Economic deposit at formerly producing mine
• Pipeline of exploration projects for future development

Chief Properties:

Sheep Mountain

Titan owns 100% of the Sheep Mountain uranium deposit in Fremont County, Wyoming. A preliminary feasibility study has recently been completed.

The Sheep Mountain mine hosts a NI 43-101 compliant probable reserve of 14.2 million pounds U3O8 (6.4 million tons at an average grade of 0.111% e U3O8). The mine is a past-producer of uranium and the preliminary feasibility study will provide the necessary documentation required to amend the present mine permit. The company plans to develop the project with both conventional underground and open pit mining, followed by heap leach extraction of the uranium with a solvent extraction recovery plant producing up to 1.5 m pounds of U3O8 per year.

On October 1, 2009 the company commenced a preliminary feasibility study on the project. The results of this study were announced on April 12, 2010, and are highlighted below:

• Preliminary Feasibility Study estimates are based on estimated capital and operating costs for a 1.5 million lb./yr uranium mine using conventional open pit and underground mining methods and heap leach recovery;
• The financial model is based on the long term uranium price of $60.00/lb. as projected by The Ux Consulting Company March 2010;
• Probable Mineral Reserve of 6,393,000 tons at an average grade of 0.111% e U3O8, containing 14,186,000 lbs e U3O8;
• Initial mine life: 11 years
• Estimated capital cost: $116 million including allowances for contingency, risk and escalation;
• Estimated operating cost: $28.67 per pound recovered;
• Estimated pre-tax Net Present Value (NPV) at a 7% discount rate: $101 million;
• Estimated pre-tax Internal Rate of Return (IRR): 25%
• Estimated pre-tax payback period: 4.5 years

Athabasca Basin

Titan has 23 properties totaling over 1.2 million acres in Sascatchewan’s Athabasca Basin including properties adjacent to Cameco and AREVA. Titan is working to explore this area with partners Japan Oil, Gas and Metals National Corporation (JOGMEC).

The Border Block project is the subject of a Letter of Agreement between Titan and JOGMEC. JOGMEC can earn a 50%  interest in the project by funding  $6 million in exploration over four years. JOGMEC has elected to accelerate funding by providing an additional $500,000 during the second earn-in period which ended March 31, 2010.

Thelon Basin

Titan entered into an option agreement with Mega Uranium Ltd. in April 2007 whereby Mega has the option to earn a 51% interest in Titan’s properties by contributing Cdn $5 million over two years. Mega has since fulfilled that commitment and the JV is in the process of being finalized. Titan is the operator of the project.

Management

Brian Reilly, B.Sc., M.Sc., M.B.A., P.Geo. – President, CEO and Director

Mr. Reilly brings over 25 years of exploration and mining experience to Titan. He spent eleven years working in the uranium industry with AREVA, most recently serving as Vice-President of Human Resources and Industrial Relations. Mr. Reilly started with AREVA as District Geologist in the Thelon Basin and worked as a Mine Geologist in the Athabasca Basin before advancing to the position of Director of Corporate Affairs. Mr. Reilly spent two years based in France as part of AREVA’s international business development team. A graduate of the University of Saskatchewan’s MBA program, he began his career as Project Geologist with Ontario’s Ministry of Northern Development and Mines.

Chris Healey, B.Sc., P. Geo. – Chief Operating Officer

Mr. Healey has over 40 years experience in the natural resources industry, specializing in uranium exploration and extraction. Prior to joining Titan, Mr. Healey was the President and a director of UPC and the Chief Operating Officer and director of Cue Resources Ltd. Mr. Healey is also a director of Monster Uranium Corp. and Ansell Capital Corp. Mr. Healey is a former senior employee of Cameco Corporation, where he managed its US operations and was also involved in the discovery and development of two of the largest high grade uranium deposits in the world. Mr. Healey is a past president of the Geological Society of the Canadian Institute of Mining, Metallurgy and Petroleum.

Kelly McShane, B.Comm., M.P.Acc., C.A. – Chief Financial Officer and Corporate Secretary

Mr. McShane is a Chartered Accountant and holds a Bachelor of Commerce degree and a Master of Professional Accounting degree from the University of Saskatchewan. Mr. McShane served as Titan’s Controller before being appointed CFO in May 2009. Prior to joining Titan, Mr. McShane provided audit, tax and financial advisory services while working with national and regional chartered accounting firms.

Donald Ching, B.A., LLB – Director

Mr. Ching is a retired businessman who sits as a corporate board member for several organizations and businesses and acts as a consultant on various projects. Mr. Ching was the President and Chief Executive Officer of AREVA Resources Canada Inc. from January 2005 to December 2007 and prior to that was the President and Chief Executive Officer of SaskTel. Mr. Ching has also served as the President of Crown Investment Corporation, as a managing partner in the law firm of Mitchell Taylor Romanow Ching (now Woloshyn & Company) and as Executive Vice President of the Potash Corporation of Saskatchewan. Mr. Ching is a member of the Saskatchewan Bar Association.

Arni Johannson, – Founder and Director

Mr. Johannson is the founder of Titan and brings 20 years experience in the Canadian capital markets to our board. His focus has been to build assets and senior management teams in companies he is invested in while executing a defined business plan. In addition to Titan, Mr. Johannson was involved with the start-up of several companies including Canadian Nexus Ventures, a private investment firm where he serves as President, and cofounded The Fortress Group (Fortress Paper – TSX:FTP – www.fortresspaper.com ). He also serves as a director for a number of public companies including Mega Uranium ( TSX:MGA – www.megauranium.com ).

Rahoul Sharan, B.Comm., C.A. – Director

Mr. Sharan has over 18 years of finance and accounting experience and is a member of the Institute of Chartered Accountants of British Columbia. Prior to joining Titan, Mr. Sharan was the Chairman of the Board of Uranium Power Corp. Prior to joining UPC, Mr. Sharan was a partner of the S&P Group, which specializes in investment financing for venture capital projects, real estate development and construction. Mr. Sharan is also the President of KJN Management Ltd., which provides a broad range of administrative, management and financial services.

Richard Patricio, LLB – Director

Mr. Patricio is the Executive Vice President, Corporate Affairs for Mega Uranium Ltd. and is responsible for merger and acquisition activity, corporate transactions and overall administration. Prior to joining Mega Uranium Ltd., Mr. Patricio practiced law at a top tier law firm in Toronto and worked as in-house General Counsel for a senior TSX listed company. Mr. Patricio is a lawyer qualified to practice in the Province of Ontario.

Rodney Koch, B.Sc., P.Geo. – VP Exploration

Mr. Koch has over 35 years of experience in exploration and mining and brings an extensive background in geophysics to the Titan team. Prior to joining Titan, Mr. Koch was the Chief Geophysicist for Areva Resources Canada Inc. He also worked for the Saskatchewan Mining Development Corp. (now Cameco Corp. (TSX: CCO)). Mr. Koch was involved in both the Shea Creek and Kiggavik uranium discoveries in the Athabasca and Thelon Basins, respectively.

Gregory Adams, B.Sc. – VP  Development (USA)

Mr. Adams is a highly experienced uranium geologist with over 35 years of professional and technical experience managing exploration and development functions. During his career in uranium exploration, development and production, Mr. Adams has worked for Exxon Minerals Co. U.S.A., Everest Minerals Corp., Nuclear Electric of Great Britain, and Power Resources Inc. (a Cameco Corporation subsidiary) as a senior geologist and exploration manager. Mr. Adams has an extensive background in both conventional and in-situ recovery uranium mining operations.

Dr. Ping Dong, M.Sc., PhD., P.Geo. – Senior Geologist

Dr. Dong brings over 20 years of experience to Titan. He formerly worked as the Senior Exploration Geologist at Claude Resources Inc. (TSX: CRJ) where he was involved in the discovery and delineation of more than five gold deposits in northern Saskatchewan. Dr. Dong began his career as a geologist with the Geological Survey of China where he specialized in geological mapping and hydrothermal deposits investigations.