From PEN, thanx to flyboy77:What does RIO do, taking this...

From PEN, thanx to flyboy77:

What does RIO do, taking this situation into account??

ERA has announced in their half yearly that they will not progress their planned heap leach program.

As a result (+ a "grade adjustment" downward clearly), as I read it, a large tonnage of reserves have now been declassified as no longer economic - RESERVES have fallen from 29800t to 16000t.

That is simply massive and must have, in my opinion, an upward effect on both the spot and long term U prices.

Ranger Project Area Ore Reserves
Reconciliation
Tonnes of
Uranium Oxide
Reserves as at 31 December 2010 29,800
Depletion by processing from 1 January to 30
June 2011
600
Contained uranium oxide reduction due to grade
adjustment
6,100
Reclassification from reserves to resources of
low grade stockpiles
7,100
Ranger Project Area Ore Reserves at 30 June
2011
16,000