Monday, June 13, 2011

Why Bear Creek Mining (BCM.v) is rallying this morning and why Vena Resources ( could rally soon, too

Bear Creek Mining (BCM.v) has been nastily beaten up these last few weeks but is enjoying a decent relief rally bounce this morning, probably due to the roadblock being lifted in the Carabaya region (where its world-class Corani project is located) yesterday evening (read more about that here).

The protests in Carabaya aren't really about mining and more about the plans to build a big hydro power station in the Inambari area of that region, a massive power plant that would drown a sensitive ecosystem's worth of valley. So this morning we have news on that aspect too and that's where the potential for a rally in Vena Resources ( comes into play. Peru's national daily La Republica reports plans to scrap the Inambari power station and replace it with a nuclear power plant instead. Guess where the U would come from for that project, folks? Yup, just down the road (literally) at Macusani, the place where Cameco and Vena have their JV exploration program, already have a multi-million Lbs U resource under 43-101 compliance and look like adding substantially to said resource later this year when the new and good looking drill results are factored in.

DYODD, cos I'm long (but more for its Azulcocha zinc mine, less for this U that's suddenly looking like a decent asset adding bonus prize again)