a little something form mr tibbs at ss

I have been doing a little research into Paladins purchase of Langer Heinrich U deposit

They got it from Aztec for a song, as we all know, in 2002. Aztec had shelved the project in 2000 when the spot price for U was $7.00 p/lb. They had purchased it from Glencore who had done mozza work on this, spending $20M on the project. When Paladin took over, U was worth $10.00 p/lb & the deposit had 11,000 t of measured & inferred U.

Then I went through the announcements as the price of U went up. In Feb 2003 with U @$13 p/lb & the cut-off reduced to 300 ppm, the resource had jumped to 24,820 t.

And the U price kept rising! August 2004 @ 300 ppm they now had 32,300 t

Then in Aug 2005, with U price higher they reduced to a 250 ppm cut-off. Now total resources up to 43,000 t.

So, from an initial 11,000 t @ $7.00 p/lb - higher U prices allowing a lower cut-off give us over 43,000t

Moving to AEX. We have a very similar story unfolding:

Massive work done by Southern Sphere (along with Anglo Amer Corp & Atomic E Corp)
They spent $millions on 4200m of Diamond drilling & 8500m of percussion drilling, plus much more. With low very low U price they sold the project to a local company which subsequently mothballed it (ala Aztec)

Now we need to remember: The Denny Dalton resource estimate & mining report was based upon the then current U price of $5.00 p/lb! And therefore as in the case with Langer H used only higher grade material. In Paladin's case, every few months, as the U price increased they increased their reserve estimate .... Now to 43,000 t (granted there was some extra drilling performed, but not that much & only after some time). The basics behind this is that previous uneconomical tonnage could now be included in the estimate!

Where does that leave AEX? I have been pouring over this for 2 days now & am starting to see a very similar scenario (to Paladin) developing! Further drilling is being planned to "shore up" the resource & to move up some of the “inferred” resource to "measured" status, as per JORC definition. Based on what I have read of both projects, I am very confident that we will see the resource estimate jump to between 20 & 30,000 tonnes. Plus dont forget there is gold mineralization as well! This would be a HUGELY economic project considering the geology is of a surface nature.

Just some similarities:

* Both had large early exploration: AEX - Anglo/Am (Southern Sphere) --- Paladin - Gencore
* Both projects then bought by smaller companies then shelved due to low U price
* AT time of purchase: AEX 11,025 tonnes U (JORC inferred) ----- PDN 11,000 tonnes (2000 measured, the rest inferred)

Now look at Paladin!

What an incredible opportunity AEX have. If they do this right, & a few things go there way, this is a dead cert to become a 10 x bagger minimum. I am accumulating both FPO's & options & then putting away for my retirement.

Cheers to all