re: Ann: Assay Results Continue to Confirm Hi... Ok, there were...

re: Ann: Assay Results Continue to Confirm Hi... Ok, there were headwinds with the market down 92 on Monday but it just seems the hard data on SHE seems to be overlooked.
Maybe the market has been blind-sided by the conclusions, drawn from the limited historical drilling, which were based on a uranium price under $7 per pound in the 1980 and no consideration of the vanadium present. Vanadium was not a target. If anyone fails to see the ever increasing good news after the report on the 1st of July they would have to be somewhere beyond Saturn.
Daejon is looking like it may make pole dancing seem boring.

First, SHE has an Inferred resource of 65 million pounds grading 320 ppm and all the drilling has been positive.
Then the OPEX, as reported on the 11th April, will be in the lowest quartile of producers when the vanadium credit is applied. That report stated the OPEX could be as low as $14 per pound. With the current Spot Price for uranium at $40 per pound there is a clear air of $26 per pound above production. Unlike a majority of current producers, and regardless of what add-ons are to be included, the resource is profitable at the current Spot.
Then the report on trenching work dated 28th of May confirms high grades of both uranium and vanadium along the ridge at Daejon. It should be noted the current drilling reported on the 30th of May and 1st July is being done from the foot of the hills and continues to return good grades for both metals. Although drilling has yet to confirm the mineralisation is continuous between the trenching work and the current drilling, the geology between the two areas would be truly bizarre if it contained no mineralisation.
The vanadium grades are of the same order as existing stand alone vanadium mines ( but please note: 13,400 ppm is nose bleed altitude) and Korea is a major importer of the metal.
Then, when the Spot Price of uranium rises so does the profitability. Predictions of a Spot Price between $50 and $60 within a couple years means the margin between the OPEX at $14 and the prediction means the margin pulls away to something like $36 to $40 per pound, less add-ons.
While others in the mine development phase have still to find a strategic partner, read capital, SHE is unlikely to struggle to find dance partners within Korea; starting with a very strategically focused government.

The external up-ticks include, Korea is a low sovereign risk rated country. A much better place to be a uranium explorer/mine developer than in our land of whacko jacko nanny state headless chickens who make an industry for themselves by opposing everything new. And dare I say it, a much better risk than much of Africa.

In addition:
Demand for nuclear fuel from countries like China, will be driven up by about 42% between 2014 and 2017 as their programmes develop.
As variously reported, a uranium shortage is coming by 2016 as the sale of ex-weapons materials comes to an end sometime in 2014. Further, the Spot Price will rise as the number of reactors under construction come on line.
Forget the Europeans who have reported closures by sometime after 2020, look at France, the French are realists.
The number of power plants reported under construction, or in a planning, or an advanced planning stage in China alone are more than double those currently operating. Korea has 23 operating reactors, five under construction and another four in the planning stage (See the SHE Annual Report 2012). Further, the AFR reported 13th June that China’s energy mix by 2035 is likely to have renewables contributing well under 5% of the total needs. So, as much as those who oppose everything may dream, renewables simply won’t cut it.

SHE’s 65 million pound Inferred resource is only likely to rise. To assume no mineralisation exists below the ridges and above the current drilling at Daejon is fanciful. But until it can be drilled, thems the rules.
In the meantime the company is trying its hardest to keep the market informed. The facts of market life include a general disinterest from Brokers in small caps; be it laziness or potential indemnity fears lurking outside the ASX 200, who knows. Maybe it is just a combination. No advisor will ever be shot for recommending something in the ASX 100; but I struggle to remember the last multi-bagger inside the ASX 100.
The chartist may say there is little interest because volumes are negligible and the price is in the cellar; that is just a function of stock being tightly held. The largest shareholders are simply not selling.
So when SHE goes off like a hat full of sky rockets, any complaints can only come from intellectual nomads.