Some posters are concerned about the low grades of Denny Dalton. A fair question.
To get some perspective, I went back in time before Paladin’s original Langer Heinrich purchase. Doing some old research I came across this report put out by Acclaim Uranium (now Aztec):
“Acclaim Uranium NL has purchased the Langer Heinrich Uranium Deposit, subject to due diligence investigations and approval of the Minister of Mines & Energy for (Aust) $800,000.
In 1980, Gencor the operator manager of the Langer Heinrich Project estimated an "insitu bore-hole indicated ore reserve averaging 0.40 kg U(3)O(8) tonne using a specific density of 2.15 and a lower cut of 0.1 kg U(3)0(8)/tonne" for a total of 22,000 tonnes of contained U(3)0(8). Using a lower cut of 0.3 kg/t U(3)0(8) the deposit was estimated to comprise 27 million tonnes averaging 0.576 kg/t U(3)0(8)" (15,840 tonnes of U(3)0(8)).”
No t all that impressive in the beginning, but look how far Paladin has come with that deposit! Remember the economics lies in the price of uranium. Now $37.50 & going higher! Expect it to be nudging $50.00 by the end of the year. That changes the whole dynamics of grade & tonnage estimates. Then we have more drilling to come which will no doubt enlarge the resource.
Look, this is a spec in anyone’s language, but it has all the makings IMO. Announcements will be coming thick & fast & I expect a fair bit of share action on this one. I have taken a nice position & feel comfortable with the risk/reward.
DYO research, it’s not for everyone, but I'm pumped.
Cheers
PS: Go AGS - You little beauty!!
AEX Price at posting:
0.0¢ Sentiment: None Disclosure: Held
