Thanks mate. To continue further.
Having looked at the DFS and uranium resource announcements, we have a cut off grade at 175ppm U3O8?
If this is the cut off grade then according to the table attached, only 3.1M tons has been "proven" in total, with 5M tons "probable". Out of the 56.9M total resource. -
so is the remaining 56.9-8.1=48.8M pounds "useless"? I know theyre re-testing some areas where they believe the ppm was incorrectly read as it was chemically assessed. By the looks we have included the "probable" resource into our DFS as its using the total of probable (5M) + proved (3.1M) = 8.1M pounds U3O8?
So, my question is, how are we going to essentially 4 x our U3O8 (175ppm cut off) reserve from 8M - 35M with these drilling results? Since the 8M already includes a lot of "probable" resource.
To me it appears the poster on twitter is quite happy to throw around large exciting numbers when reality is quite different? e.g 35M resource upgrade and a $70 spot price. I am certainly HOPEFUL that this will happen, however is this actually likely to occur? If we dont see an upgrade from an 8M pound reserve then the idea of scaling up from 800,000 pounds/annum to 3M p/annum is then made redundant.
With the amount of drilling and the resource being so shallow I am optimistic in regards to a resource upgrade, but in reality what is the actual potential here. Because our current NPV post tax over 10+ years with 8M reserve isnt too exciting at $60/pound.
This post may seem negative, but its not. I am simply asking questions to deepen my understanding here. I still like the project, the vanadium resource, the team, the top 20 holders, Haggan potential, gold spin off etc etc.
Apologies if this is a dumb question. I am just looking for some insight from someone more familiar with AEE or with uranium mining in general.
Goodluck
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