8 INTERSUISSE RESEARCH
Redport Ltd An Australian uranium player
BUY $0.092
ASX Share Code
RPT
ASX Option Code
RPTO
Issued Capital
364.4 million shares
136.2 m June ’07 options
75.6m unlisted options
Market Capitalisation
$40.2 million
Monthly Share Turnover
255.4 million
12-month High / Low
$0.125 / $0.018
Cash Reserves
$4.3 million
Top 20 Shareholders Hold
47%
Major Shareholder
FMR Corp & Fidelity Int 10%
In response to a surge in uranium prices and prospect that current anti-uranium mining legislation will change, explorer RPT has been quick out of the blocks and has assembled a diverse package of uranium assets in addition to other mineral interests. This package includes both high grade unconformity style uranium targets and lower grade secondary uranium enriched calcrete deposits.
KEY POINTS
�� In September 2005 RPT entered into an option agreement to acquire two tenements, now referred to as the Kintyre Rocks project, in the vicinity of Rio Tinto’s Kintyre uranium deposit in the eastern Pilbara region of WA. The project area covers 197 sq km and surrounds tenements held by Rio Tinto and Cameco, the world’s largest, low-cost uranium producer.
�� The Kintyre uranium deposit was discovered by Rio Tinto in 1985 and is considered to be world class, containing 36,000 tonnes of U3O8 with a grade of 1.5 to 4.0 kg/t (0.15 to 0.40%) U3O8. The deposit is an unconformity associated, vein-type uranium orebody. Unconformity related uranium deposits account for 33% of the world’s uranium resources and tend to occur in clusters and include those in the Alligator River Region in the Northern Territory and those in Canada’s Athabasca Basin.
�� The major lithological units and structures present at the Kintyre deposit extend into the tenements being sought by Redport. Uranium exploration in the east Pilbara region has largely been neglected because of difficult terrain and lack of infrastructure. In addition to uranium, the tenements are prospective for base metals and platinum group metals.
�� Subsequently RPT entered into a 50:50 joint venture with Kalgoorlie-Boulder Resources Ltd to explore that company’s Kintyre East uranium project that is located 100 km east of the Kintyre Rocks uranium project. Airborne radiometric anomalies within this area are consistent with those associated with calcrete uranium deposits. In addition, the associated paleochannel system drains a large area of basement rocks which include Rio Tinto’s Kintyre uranium deposit.
�� Redport is earning up to an 80% interest in the Lake Maitland calcrete uranium deposit that is located 105 km south east of Wiluna. The deposit was discovered in 1971 and has been explored by a number of parties in the 1980's and 1990's including a subsidiary of MIM (now Xstrata) and oil company Esso. At a 0.05% U3O8 cut off the resource totals 7.1M tonnes averaging 0.07% U3O8 and containing 5,000 tonnes of U3O8. An initial project area of 70 sq km has recently been expanded by the acquisition of contiguous tenements (100%) to the west and north. A 6,000 aircore drilling program has commenced and will provide information for a JORC compliant resource estimate that is scheduled for completion in March 2006 and will form the basis of a prefeasibility study to be completed in December 2006.
�� The Maitland calcrete uranium deposit consists of one coherent body that is continuous for 6 km north-south and 1.3 km east-west. Mining costs would be low and grade control will be greatly assisted by sharp contacts between ore and waste.
�� Redport (18%) is also involved in exploration for an Olympic Dam style deposit at Herakleion in South Australia with its joint venture partners (Edwards Creek Joint Venture), targeting copper, gold and uranium. The tenements are located in a region which hosts some of Australia's largest copper and uranium deposits including Olympic Dam.
�� To assist with cash flow, Redport has acquired a royalty over Paladin Resources’ Langer Heinrich uranium project in Namibia. The royalty is 12 cents per kg of U3O8 produced and sold. Based on current production forecasts of 1,160 tonnes of uranium per year this amounts to an annual payment of $142,000.
RPT
redport limited
