more to come...

Forgetting the Oil gas for a minute...

lol...just a minute though.

Do people really believe the uranium spin-off will only hold 1,900,000lbs u3o8 resource?

Whilst my preliminary calculations were based on this...becasue it is really all we have to go on...there are certain assumptions one can make.

We are, after all, capable of free thought?

But even with just 1,900,000lbs, a short-life operation is capable of providing $40m per year net profits for at least 4 years...not exactly a waste of time.

Anyway, back to the upside...

Firstly, the stated high-grade resource was prepared at a time when u3o8 was about $10-16/lb...as such, the cut off grades were neccessarily high. With u3o8 prices at $113/lb however, much lower cut-off grades are now possible, which after a simple desk-top study could well see a doubling or even trippling of resource without a single additional drill hole...but plenty of time for this.

Remember...this is what PDN did numerous times as the u3o8 price rose, resulting in significant resource increases without any further holes.

Secondly, notice should also be drawn to language within the announcement..."high grade resource"...the typical ratio in Utah (in this particular region), is for the high grade portion of a uranium resource to be about 10% of the total economic resource. As such, I would not be surprised to learn the eventual minable resource is up to 10 times the stated "high grade resource"...possibly even something in the order of say 15,000,000lbs @ 0.15%?

I wonder if this had anything to do with the ASX's concerns?

We will not know this for sure however until further drilling potentially lifts the confidence levels of existing resource parameters and subsequently brings the whole thing to JORC standards.

Above all else however, the value of this particular uranium spin-off will be their capacity to actually mine the stuff (and get a return for shareholders), sometime this side of hell freezing over...something most of the uranium stocks currently listed on the ASX will never do.

Makes some of the comparisons being thrown around a little pointless when you realise this.

Can anyone name for me another ASX listed uranium company possibly facing production (and income) in as little as 6-12 months?

Cheers!