Wars are being fought all over the world over control on natural resources. Attention is focussed on Eastern Europe and the Middle East particularly Iraq. I am greatly concerned that not enough is being done by the U.S. to secure critical materials of heavy rare earths needed for cruise missiles and our latest military technologies.
We still rely completely on China despite their export cuts and warnings to the West to mine and refine your own rare earths. Heavy rare earths are increasingly needed in permanent magnets crucial for some of our defense technologies.
China has been warning the world for years that they will cut exports. The U.S. can't be reliant on another country for these basic elements. One day we could wake up left out in the cold and naked if we don't start getting our act together.
Don't believe the naysayers who say rare earths are hype or that they are plentiful and abundant. Many of the heavy rare earth development projects are just too costly to bring into production in a timely manner. Investors are also beginning to realize the Molycorp (MCP) and Lynas (LYSDF) will not solve the heavy rare earth shortage as they are light rare earth projects.
The Alaskans understand the importance of strategic metals. I have maintained my bullish attitude on Ucore (UURAF) for its advantage of having the highest grade heavy rare earth project in the U.S. and incredible geopolitical support. Ucore just released news that Alaskan Governor Sean Parnell approved the financing of Ucore's Bokan Project near Ketchikan.
Senate Bill 99 which was passed unanimously in the legislature was signed by the Governor in a highly publicized meeting with many government officials and business leaders. Ucore may be the US chance to secure the heavy rare earths instead of being left at the mercy of the Chinese.
Southeast Alaska could see a big boost to its economy should Ucore's Bokan come into production. The signing of this bill is a huge accomplishment by Ucore and a sign that some politicians in the US understand the importance of this project. The bill would allow Ucore to finance the infrastructure and construction costs up to $145 million by the State.
Ucore has broken above its 200 day at $.27 and 50 day at $.29 as savvy investors may be realizing the significance of de-risking the asset financially and technically.
Ucore recently announced that they awarded a $2.5 million drilling contract that will start in mid July. This is needed for the upcoming feasibility study and it is exciting to see Ucore rapidly advancing this rare asset derisking the asset both financially and technically. This may be the first predominant heavy rare earth mine in the United States.
See my recent interview with Ucore CEO Jim Mckenzie by clicking here...
Disclosure: I am a shareholder of Ucore and Ucore is a website sponsor. Be aware of any conflict of interests. Please do your own due diligence. This is not a solicitation to buy or sell stock. For entertainment purposes only.