value comparison

Interesting that Cameco are paying $414m for BHP's Yeelirrie deposit, which they estimate have some 115 - 145m pounds of U. They called it a "best of class" U deposit.

"DAVID MARK: BHP Billiton has taken another step away from resources development in Australia, and uranium in particular. It's agreed to sell a large uranium deposit in Western Australia.

The global miner is selling its Yeelirrie uranium deposit to Canadian company Cameco for about $414 million. BHP says it doesn't want mines that are focused solely on uranium. Cameco says it's unlikely to gain state government approval for Yeelirrie or its other deposit at Kintyre before the next election. As for that election, Labor has said if it wins, it won't approve any new uranium mines.

David Weber reports.

BRIAN REILLY: Yeah, look, it's, uh, what we would call "best of class"; there are very few uranium deposits that are undeveloped at this size. The resource is somewhere between 115 and 145 million pounds, so in our business, in the uranium sector, that's a significant deposit and we would put this in a best of class deposit."

http://www.abc.net.au/pm/content/2012/s3577004.htm

Pen has this in the USA with the best cost structure (ISL) for mining. Does that make this deposit a similar value?

Plus we have the posibility of a similar resourse in SA.

Double that to get approx $800m - about 10 times our current MV.

Food for thought.

Cheers