can't see ann., page-2

yellowcake,

As I am learning TA. Can you please explain a dead cat bounce to me. Nice article posted on the ext site, don't know what's doing over there.

This one has huge potential, and this potential will be released in time (needs one little catalyst which has something to do with states presiding governments' policy), once realised strap in coz it's going to the moon, who knows maybe out of this galaxy, powered by this wonderful energy source that everyone is craving.

Any of you TA believers please let me know. I am starting to believe that there is order within chaos and this order needs to be timed.

The turps is really starting work, going to grab another and do some more research.

Thanks in advance.

Enjoy the article

aussie joe



Subject re: article on minsite????
Posted 10/02/06 20:12 - 43 reads
Posted by longclaw
IP 203.213.xxx.xxx
Post #138607 - in reply to msg. #138592 - splitview

not aware of a story on minesite only ref I can find is
relater to rpt with a mention made of Acclaim Exploration

Feature Story Date: October 07, 2005

Redport Could Be First Out Of The Blocks When Australia Changes Its Policy On Uranium Mining


Last weekend Our Man In Oz fired a single barrel at an Australian listed uranium explorer called Redport for its announcement that it had taken a stake in the Kintyre uranium project. It certainly got Redport’s shares on the move, but the actual announcement looked a shade disingenuous as the deal was for a large block of land surrounding Rio Tinto’s dormant uranium project of that name. As a result he had Redport down as an address pegger – in common with at least half of the 47 Australian listed companies claiming to be exploring for uranium. In fact the story of Redport stands out in this company like a kingfisher in a tree full of crows and it is a man called Malcolm Mason that is responsible for this.

Malcolm Mason has been involved in uranium for many a long year and it was he who put together the deal whereby Paladin Resources acquired the Langer Heinrich uranium project in Namibia which is due to start production next year. Langer Heinrich had been discovered by Gencor in 1973 and had gone through several hands before being mothballed. Paladin bought it from Aztec Resources in that state in 2002 for just A$15,000, plus a future royalty of US12 cents/kg. The timing was brilliant or, in the words of John Borshoff, boss of Paladin “it was a made in heaven situation”. Now Paladin is due to start producing at a rate of 1,180 tonnes of U3O8 with a scheduled mine life of 11 years based on ore reserves of 22.4 million tonnes grading 0.07% U3O8. Operating costs were estimated at US$14.18/pound with an expected start up date of September 2006.

Knowing where all the bones were buried, Malcolm Mason bought the royalty for Redport from Aztec in June of this year and payments should start in the 2007-8 financial year. The price was 5.5 million shares in Redport and for that it is expected to generate an annual payment of A$142,000 /year. It may not seem a lot, but Langer Heinrich is expanding so the value is going up and it will be the first new income from uranium paid to an Australian listed company for many a long year. How long Australia will maintain its ‘no new mines’ policy regarding uranium is anyone’s guess, but there have been a number of positive moves of late. Firstly the Federal Government has overridden the Labor Party in the Northern Territory, taking control of uranium mining. Second, South Australia, a Labor state, is welcoming uranium explorers. Third, Bob Carr, the recently retired Premier of New South Wales, has called for a uranium debate. And fourth, Labor members in Western Austalia are now calling for a review of the policy.

The newspapers are on the case and voters are reported to be changing their minds. The moment the policy is changed Redport will be first out of the starting block as it is earning an 80 per cent in the Lake Maitland uranium deposit 105 kms south east of Wiluna in Western Australia. This is an amazing deposit interest as it is already defined to JORC standards and the base of uranium mineralisation is never more than 5 metres deep. The mineralised zone is 1-3 metres thick, 300 to 500 metres wide, about 6 kms in length and has potential to increase the grade and tonnage by defining better the high grade core with infill drilling

Lake Maitland is a surficial calcrete uranium deposit very similar to Langer Heinrich. It was discovered by Carpentaria Exploration back in 1970 and was explored by a number of companies in the 80s and 90s including MIM and Esso. In 1998 it was acquired by a company called Acclaim Exploration, a deal which was probably considered eccentric at the time given the Australian policy and the price of uranium, but Malcolm Mason, the man behind Acclaim, knew what he was doing. The deposit is so simple to mine and has no aboriginal claims, so could be brought into production on the back of a pre-feasibility study as this will answer any metallurgical questions. This study should be finished before the end of next year so Redport will be in pole position once the flag drops. It has an inferred and indicated resource of 15.1 million tonnes grading an average of 0.52 kg/t U3O8 and containing 7,860 tonnes of U3O8 or 17 million lbs. Redport is spending some money on upgrading the inferred resource to measured and indicated, but the company does not throw money around. At this stage it has not even got an executive director so the burn rate is very low.

Apart from Kintyre and Lake Maitland the company has two other uranium projects, Mundong Well is a vein type deposit, which is comparatively rare, and no resource has yet been defined. Redport has a similar joint venture arrangement as at Lake Maitland and will explore for high-grade uranium zones within this known vein system. The second project, Angelo River, is located in the Pilbara near Paraburdoo. Historical diamond and percussion drilling in 1981 resulted in the estimation of a modest resource which is not JORC compliant. There is potential for mineralisation at depth and along strike to the southeast where Redport controls about 30 sq kms of prospective ground.

Redport also has an interest in the Edwards Creek gold copper jv in South Australia, an 80 per cent interest in the Mt Clement gold project south of Paulsens with a small JORC compliant resource, and the Yandal gold project close to Lake Maitland. The company is after uranium, however, so not much money will be spent on these. In fact it should be no surprise if they are spun-off or sold. Malcolm Mason gives a strong impression that he is stalking a very big uranium deposit and wants to keep as much powder dry as possible. The property at Lake Maitland, where drilling is taking place, has just been extended, but he has something else on his mind. Watch this space.



Companies featured in this Story
Redport Ltd (ASX-RPT)
Aztec Resources Ltd (ASX,AIM-AZR)