sweeden projects, page-3

Loulouhaha

1BT of Uranium certainly is an attractive proposition. Not many entities have the rights to holdings of this magnitude. As far as I can see Aura is not one of them. I have pasted an extract from an Aura news release below.

“Aura’s Storsjön Project adjoins Continental Precious Metals’ (TSX: CZQ) Viken
Project, which has a published resource of 1.05 billion pounds U3O8 grading 0.017%.
This size of resource makes Viken the second largest published uranium deposit in the
world after Olympic Dam.”

The information above relates to an adjoining tenement and is likely an inferred resource.

You can dig a hole next door to Fort Knox but this does not mean you will find Gold. I understand this analogy is simplistic however the fact remains that being adjacent to a find means little.

Initial data would indicate that TSX do appear to have a winner. If this is the case why wouldn’t they rapidly expand their holding to include the adjacent tenement? The release also gives mention to BHP and Olympic Dam. As you know BHP is the largest miner in the world. Mining is a small circle and it would be difficult to believe BHP would not have been aware of this tenement long before you and I and AEE. Why have BHP not secured this tenement?

It is easy to misinterpret the Aura news release. It is misleading and irresponsible. The statement above should be followed with clarification that Aura has no substantial evidence to suggest their tenement has any product at all. Unfortunately this type of release is not uncommon for this company.

I have attached below an extract of another Aura release written by analyst Warwick Grigor

“Exploration in Uranium is Bound to Disappoint
What is notable about the uranium exploration sector
is that very few companies are actually doing
meaningful exploration. There is copious talk of
radiometric anomalies and selective surface sampling
but most companies have not tested the targets with
the rotary lie-detector yet. Many issues await
explorationists in the sector more than most people
appreciate.
Whilst we are re-stating the obvious here, for many
experienced players, there is merit in reminding
investors of the cycles that are too often ignored.”


I may be missing the point with the reference to the latest 3B. As I have stated before any additional float to raise further capital that is not accompanied with a substantial increase in share price is an indication of failure not success.

The article by Drillers and Diggers is very good. There have been many such articles in past years. My initial interest in Uranium stock came about as a result of comments from Al Gore about the environment and possible solutions. Uranium is one of many solutions and it certainly is not the most popular. Many governments including our own are heavily investing in clean coal technologies.