quality uranium at a great price, page-12

likely project economics Guys,

I did a little bit of "digging" today on this one and have the following "inside info" to report back.

The grades UTO seem to be finding are around the 300ppm to 400ppm mark, which is very similar to the grades found at Redport's Lake Maitland piece.

To put those types of grades into context - even if the company decided to go with a 200ppm cut off, that is the equivalent of 1.5g/t gold. Might not sound like much, but when the gold (in UTO's case it is uranium) is located so close to surface, the costs of pulling this stuff out of the ground is nil to fu
Grades of 700ppm equates to about 5g/t gold, so you can see the massive upside if grades can be identified above that 200 to 300ppm level, and if uranium holds its own above $US60/lb.

Now, where it gets interesting is here.

Redport, as we all know was taken over by Mega Uranium (a Canadian Uranium company) who seems absolutely hel! bent on gobbling up as much uranium land in Australia as it can.

Now the Lake Maitland project they bought is located close by to UTO's Dawson-Hinkler, and roughly has the same grades.

Further to that, Mega Uranium has been buying big stakes of Nova Energy, and it wants a claim to the LakeWay and Centipede projects that it has. Now UTO's Dawson-Hinkler is located on the same belt line as Nova's projects. So Mega, by staking its claim to Nova's JORC resource is telling us something.

Once WA mining policy changes, Nova will be building infrastructure to pull its U out of the ground. This is assuming that Mega does not buy them out first.

Now if Dawson-Hinkler is located only a bee's d!ck away from this, would it not make sense for a major (such as Mega for example), to begin sniffing around at staking claim at Dawson-Hinkler also???

utlimately, the economics of Dawson-Hinkler can stand up on their own, but the added presence of Mega, in my mind, makes this a very interesting play.

I will be looking to accumulate holdings on any price weakness with this one. So happy for people to be selling, as it will just give me a chance to buy up cheap.