something to chew on

PKT - General:

- Multipurpose drill rigs: PKT own their own multipurpose drill rig and are just about to buy another. Both rigs are capable of reverse circulation, diamond drilling and a number of other types of drilling. This provides complete self-sufficiency for the drilling program about to start – an enviable position in the current climate.

- Institutional investors: Limited presentations have been made to date, but already have good support from 2 or 3 of the main players in Australia. One of them was buying up last week from their Adelaide branch, which had not previously weighed in on PKT. Hmmm, about the same time field work at Lake Surprise (SA) was well underway?

- Company name change: On the agenda, but not top of the list. It will happen in due course.


PKT – Lake Surprise (SA):

- This project is the main focus for PKT at the moment.

- From PKT Announcement (30/04/2007: pp 19 – 20 of 30): Green radiometrics are re-processed data, originally obtained by the SA government via aerial survey. This method only detects the presence of uranium or similar minerals (in any concentration) within about 10 inches of the surface. Any more than about 10 inches of soil cover and you lose the surface signature. So this tells us that surficial uranium is present right throughout the tenements. It doesn’t tell us anything about concentration or what it looks like at depth, where the highest concentrations are usually found… at the water table / redox front.

- From PKT Announcement (30/04/2007: pp 15 – 17 of 30): Scintillometer readings give some clue to concentration. The following formula is a very rough, but commonly used yard stick for drawing a correlation between cps and ppm: Assayed ppm equals about 25 – 30 % of scintillometer cps. For example, using this method a scintillometer reading of 1,000 cps would roughly equate to about 250 – 300ppm in most cases. From limited ground surveys previously conducted, the highest published scintillometer reading was 3,800 cps. Using the ‘bushy’ method above, this would indicate about 1,000 ppm for this cps reading. I wouldn’t be surprised to learn that significantly higher readings were taken during the current fieldwork, which is winding up this week…

- From PKT Announcement (30/04/2007: pg 16 of 30): Large amounts of visible outcropping carnotite at the surface. Surficial uranium detected by instruments is not uncommon. Widespread visible uranium at the surface is much less common. The most common uranium mineralisation at surface occurs in the form of carnotite, which is a secondary oxidised uranium and is the most important type of uranium mineralisation (in the economic sense) in this type of deposit – e.g. Paladin’s Langer Heinrich project in Namibia.

- All of this surficial oxidized uranium had to come from somewhere – most likely from a much more concentrated basement.

- We may not see super-high grades of uranium, but when you have such a huge volume, you don’t need it to be high-grade. All you need is for it to be of economic grade and you will have a very valuable resource.

- Native title: 2 indigenous groups cover the tenements. Meeting with one later this week. Meeting with the second on June 17. Drill rig on stand by and ready to go. All going well, drilling could commence before the end of June.

- Initial drilling will likely be to depths of 30m – 50m. Should an economic resource be proven down the track – extraction will be by shallow, open pit leaching – fast and cost-effective.

- An X-ray fluorescence (XRF) machine will be on site during drilling to provide instant analysis of drill cores. Most consider this technology to be about 70 – 80% accurate against assays. Readings can be used in reporting, which should be quite regular once drilling is underway.

- Dr Brian Senior (photo geologist) has spent almost his entire 40-year career in the Eromanga Basin and rates PKT’s land as amongst the best he has ever come across.

- Byron Deveson (62 yrs) is PKT’s gun geochemist. Much published and well respected in the mining industry. A key figure in the development of PKT.

- Now that we have over 100 companies in Australia stalking uranium… experienced, high-calibre personnel are hard to come by. PKT appears to have the right minds involved.


PKT – Springvale (QLD):

- From PKT Announcement (30/04/2007: pg 25 of 30): Interpreting the Gamma Spectrometry image: Taken by satellite. Red and yellow areas show a surface signature for uranium, etc (SURFACE ONLY). The red and yellow colours follow the current position of the Hamilton and Georgina Rivers – which currently drain uranium from the north. As a current river / flood plain system, it has no soil cover and the uranium surface signature is obvious from the satellite imagery.

- The Toolebuc Formation has a known west-to-east dip. So if uranium has been draining along the current river systems and some of this uranium has been moving underground, down dip from west to east… where is the uranium likely to be most concentrated underground (under cover) at the redox front / water table? Directly to the east of the current drainage… which is precisely where PKT’s tenements are. Uranium doesn’t show up in the PKT tenements on the satellite image because it probably has 20 – 30m of topsoil covering it.

- The Toolebuc Formation is a continuous (not a confined) roll front – so again, it is expected that the mineralisation may cover a very large area: “600km2 strong uranium anomaly”.

- I imagine when the presentation first came out, many would have skimmed through looking for ppm figures, only to be disappointed to see “U3O8 - 23.6 to 41.3 ppm”. This figure was taken from the surface (oxidized / low grade layer above the redox front / water table). It is generally held that the redox front will be 15 – 20 times that of the surface concentration. You do the math.

- Vanadium and Molybdenum. Intermin Resources of nearby Julia Creek recently published a Resource Estimate for their Alisona Prospect of 4.82 Billion Tonnes at 0.27% Vanadium and 223g / t Molybdenum. Some at PKT believe that their tenements at Springvale could contain more than this.


… Just some of the reasons why I think PKT will prove to be cheap at current levels.