rare to find a uranium project that stacks up, page-2

NKLEX...Glad you mentioned DYL as they have a similiar share issue ....albeit they have 30+ million in the bank and PDN as major shareholder the economics or grades are not as good as PEN IMO based on grades and cut off ....DYL trading at 30c and PEN at 4.1c (PEN have 11 million and a line of credit of 50 million )

PEN IMO has more upside once JORC for Ross and Barber are announced....DYL has the largest Tennements in Australia but PEN have Lance and Karoo up their speeve. The scoping study initially identified a low cost producer


For DYL and other aussie U companies the water supply could be a problem if there is a drought...
did you know that nuclear power is quite low-cost per unit (2.9cents) once the plant is up and running, the costs of setting up a new plant are very high ($4500-$7500 per kw). (That compares to $1900-$5800 for coal, $1300-$2500 for wind, or $4000-$5000 for solar thermal So much so that unsubsidized plants are not economically competitive. Uranium production is expected to reach a peak between 40-50 years from now as the earth is gonna run out of uranium....its NOT a renewable resource. Another thing to consider is the fact that water is used to cool reactors. If theres water shortages (NOT uncommon in Aussie), then sometimes plants have to be shut down (this happened to several plants in France during 2003 heat wave).

PENS positives going forward....wont be long now b4 PEN is re rated....read below!! I LAUGH AT 4.1C AS I THINK IT IS WAY UNDERVALUED AS DO A NUMBER OF OTHERS ...WE WILL BE RECOGNISED IN 2010 ..THAT IM CONVINCED OF

PLEASE take note that the laboratories have confirmed ALL criteria for this project and below is the preliminary scoping study!!! Which also comes b4 PFS and BFS they use the information below. Indicative to this they will fly through due to being a low cost producer (refer to the numbers for the project below)

ISR criteria
.Containmentdeposits must be located between two impermeable layers of clay or shale
2.Permeability -rock or sand must be porous and allow lixivant (the oxygen and bicarbonate solution) to flow through the deposit
good horizontal and vertical permeability
good porosity
low clay content
3.Water Table deposit must be below water table to ensure hydrostatic pressure
4.Leachability-deposit must be readily dissolved with oxygen in an alkali solution
5.Depthpressure increases with depth, allowing more oxygen to dissolve in the lixivant
Laboratory studies and field test work demonstrate that all these criteria are met at the Lance Projects


Lance Projects Preliminary Scoping Study
Revenue$65$98 million
Capex Amortisation$1.3$2 million
Financial cost (10%)$2.7$4 million
Operating Cost$15$23 million
Royalty (6%)$4$6 million
Annual well field capital$5.3$8 million
Total Costs$28.3$43 million
Depreciation$12 million
Gross Margin$55 million
Tax (30%)$13 million
Net$42 million
NPV (10% discount rate)$260 million
IRR70%



CHeers MMM