grigor report, page-2

Hi All. Had a bit of a look and the only Grigor`s cooment of late refering to AGS was back in April. See below for the main parts of interest of this article:

Font Size: Decrease Increase Print Page: Print CRITERION: Tim Boreham | April 02, 2008
A POSITIVE for bargain hunters in this abysmal share market is that the uranium sector has retreated from values that were way overheated.

These days, a junior uranium player has to report more than "Olympic Dam-style mineralisation" to enjoy an instant share fillip. Some vendors to a gullible market were doing little more than a few radiometric surveys of mediocre ground between jetting around the world for conferences.

As at mid-March, the leading uranium stocks had lost an average of 65 per cent from their 12-month highs. "Ringleader" Paladin Energy, which commissioned its Langer Heinrich mine in Namibia last year, has halved since its April 2007 peak.

Despite the scepticism, the fundamentals of uranium supply and demand remain as strong as ever. China may be an enthusiastic convert to renewable energy, but its insatiable mid-term energy demand will be met by the planned rollout of at least 45 reactors by 2020.

According to Far East Capital principal and uranium voice of reason Warwick Grigor, uranium is unlikely to return to its peak value of $US135 a pound in June last year, but can also be reasonably expected to trade within $US60-$90 a pound for the rest of the year.

According to Grigor, the market has matured from the "scrambling phase" -- pegging and promoting any vaguely radioactive ground -- to the exploration phase. "Unfortunately there continues to be too much hyperbole coming from companies when they make ASX releases," Grigor told the recent Paydirt2008 uranium confab in Adelaide.

"We are seeing references to discoveries based on selective sampling. We are seeing grandiose statements about high-grade results which are just wrong and misleading."

Grigor's thinking is that rather than flitting in and out of the sector on uranium price movements, punters should focus on the merits of the individual stocks. Credit-tight financiers certainly will be.

Junior Alliance Resources is emerging from the shadows to become the country's fifth uranium producer. Alliance is 25 per cent owner of the Four Mile project in South Australia, which has applied for permission to carry out field leach trials as an entree to full production.

The Four Mile deposit ticks a number of boxes: it's big and rich, with a current resource of 14,430 tonnes of uranium concentrate and a targeted resource of 50,000 tonnes. The joint venture plans to use the processing facilities of the nearby Beverley mine, which will help keep cash costs down to an estimated $US10 a tonne.

Cheers to the true believers

Chicka
ps At least it held up pretty well on such a negative day.