Amazed on dd gold. This is the gold part that's very important for understanding DD:
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Hi Tibbs,
Just digging a little more. This U/Gold scene is new to me.
A section from your Feb 8 post.
¡°Regarding Danny Dalton: Situated in Kwazululand (Natal area) - Not a main gold district. But there are many variables here! IE: Insitu gold is probably not high grade & in the past viewed as uneconomical. But now with gold price & U price so high & going higher, they are now starting to look at even mining the tailing dumps there, with grades of only 0.006% U, & 0.3 g/t AU. If AEX can define a low-grade gold resource & mine uranium as a by-product, then we have a clear winner! ¡°
I went looking for info on U/Gold wrt the Witwatersrand mineralisation which AEX is thought to have.
Gold
Low grade gold ( open cut ) is defined as 1.5 - 3 g/t¡( DD has 2.5g/t¡.looking good )
¡°Today most United States gold production originates from low-grade open pit ore deposits (¡À .04 oz. per ton).¡± ¡¡¡0.04 oz = 1.13 g/t¡( DD has 2.5 g/t )
¡°an average grade of 8 g/t Au, and a similar resource is still in place. In addition, from the 1950s to 70s about 1.5 million tonnes of U3O8 have been produced at a grade of 270 g/t U3O8.¡±
Im assuming the gold ave grade above is a lot higher than DD because most would be underground higher grade.
WRT Uranium,
¡°In addition, from the 1950s to 70s about 1.5 million tonnes of U3O8 have been produced at a grade of 270 g/t U3O8.¡±
Interesting comments ! This is South African U they are talking about.
270 g/t U3O8 translates to 2.7 kg/t¡.DD has 3.5 kg/t¡..looking good.
And as has been mensioned, DD grades are likely to increase with infill drilling¡.but so what if they don¡¯t.
These 1.5 mill tonnes were PRODUCED so obviously DD costs of mining are likely to be favourable.....much increased U price since as well.
AEX have stated DD is a Uranium mine with gold as a bi product¡..I think Im starting to see why. The grades seem to stack up well and costs .....???
Comments anyone ?
***************************************** *MLI is mining the gold tailings from Witwatersrand (where DD is at), of all places!
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Currently, ags have 27 million pounds of U while aex have 22 million pounds. But on top of ags' U, aex have an inferred JORC gold resource of 2.5 million ounces.
Question: how many gold juniors on asx can boast even more than one million ounces of inferred gold?
At US$1500 ($1800-$2000 before 2008 http://www.321gold.com/editorials/tan/tan080806.html) per ounce, 2.5 million ounces have an insitu value of A$5,850,000,000. Pdn currently is capitalised at 2,000,000,000.
Gold standard. As the weekening of the US dollar continues and in face of the fiat money problems, gold is the only logical candidate to be the next reserve currency. Gold exposure may be able to "protect" you more than U can. Both U and gold seem to be in long term uptrend. Gold, U and oil are at a premium in this day and age.
Captial raising: aex currently have more than 2 mil dollars in the purse. They have a lot of shares that they can cash in as Sartori rightly pointed out.
Aex's special mention: aex are employing local people (BEE related) and maintain a good relationship with the local council.
Chartwise: 1. Charts work about 70% of the time at best; 2. Fundamentals are the boss of technicals at all times; 3. If you open the aex chart and look at the last couple of months, you can draw a triangle connecting the two extreme points on each incline. As Satori pointed out, the volumes have dried up. .037 sits right on the bottom line. This triangle and the tapering volumes indicate the the market is waiting for directions. Such a triangle technically can be resolved both upward or downward. Fundamentally, however, and in my belief, there's no other way to go but up and therefore I would regard any downward action as an aberration.
To my knowledge, no individual down or up ramping has ever had more than brief effect on share prices, be it intentional or unintentional.
I believe aex could be worth much more than ags if the inferred jorc resources are confirmed and gold does what the gold fundamentals indicate. I further believe aex is a gold uranium resource more than a uranium gold play.
aex is not a glamour stock because of its plain jane grades. But share prices sort themselves out in the long run (kgtom).
Please crunch your own numbers. My numbers are rough, because share prices are not an exact affair.
AEX Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
