Fronteer Development Group (FRG) put in a great day rising $0.69 to trade at $9.37 as we write. Fronteer is a play on both gold and uranium so this stock benefited from the rise in gold and also from a news release regarding Aurora Energy Resources Incorporated (AXU) in which it holds a 42.3% interest.
The news release from Aurora updated their uranium deposits in coastal Labrador as follows:
A Measured and Indicated resource of 83.9 million pounds of U3O8 (uranium); and An Inferred resource of 49.8 million pounds of U3O8.
This news release is important as the new uranium resource base has surpassed the companies annual target, by 39% in just over 12 months.
There are also four newly estimated nearby satellite deposits called Rainbow, Nash, Inda, and Gear. Which have the potential for significant, Michelin-style growth.
Dr. Mark O'Dea, Aurora's President and CEO went on to say that;
"Our goal for 2007 was to deliver a resource of 130 million pounds, We have exceeded our resource target for the third consecutive year. More importantly, we have succeeded in demonstrating that Aurora's new uranium district hosts a true pipeline of projects that have major growth potential, which will help sustain a long life, world-class mining camp. We are moving to develop these important resources as efficiently as possible, using industry best practices in geology, engineering, metallurgy, environment and health and safety."
All good stuff if you are a uranium bug, all we need now is for the price of uranium to get back into the swim and this stock should fly. If you want to read the whole article just click this link.
Taking a quick look at the chart we can see that the stock price has popped above its 50dma, gaining $2.00 this month. Also note that the STO is high but the RSI and MACD look to have a little more to run.
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Have a good one.