impending mine

Article on Namibia uranium that cites the problems that might arise for some of the coming U308 mines due to the massive increase in infrastructure that is needed. Marenica is referred to as one of the likely impending mines. Reassuring then, that Areva has already placed good infrastructure on our doorstep. It cannot be understated what this existing infrastructure/operations could ultimately do to reduce our OPEX/CAPEX, which could already be as low as $30 ... and it is this that (IMHO) makes MEY one of the most attractive investments in the sector right now.

http://allafrica.com/stories/201005110740.html

Remember, Bannerman's $41 OPEX has punished them in the short term. There is no infrastructure in the vicinity. And there is no major utility/miner on board as yet.

And in Oz, Toro Energy last week pulled out of the Napperby acquisition due to a scoping study that said costs would be prohibitive based on the current 'long term' price of uranium. That resource was only 13.2Mlbs, with indicative terms of the AU$57m deal agreed at a floor price of $4.50/lb in an area where "no significant additional uranium deposits with reasonable grade have been discovered in the region to provide support to the economics of the project."

Marenica, in stark contrast, has a resource of 85Mlbs and growing. Moreover, we have additional prospectivity on our tenements, including primary U308, and the economics of the project is also supported by the existing infrastructure, and the existing resource at Trekkopje (assuming Areva is looking at buying us).

If someone was prepared to cost (at $4.50/lb) a deal on a 13.2Mlbs resource, with no infrastructure, and no evidence of increased prospectivity, it really does beg the question of what someone will be prepared to pay for Marenica's uranium.

90c/lb is a joke.
If scoping delivers low $30s or below, I suspect that we will be the ones enjoying the last laugh.