Interesting, very interesting...MRU Mantra Resources - flagship...

Interesting, very interesting...

MRU Mantra Resources - flagship project Mjuku River in Tanzania. Resources are as follows (EXT in parentheses for comparison):

Measured 39.9 Mlb @ 442 ppm (EXT: nil)
Indicated 25.6 Mlb @ 433 ppm (EXT: 257.0 @ 480 ppm)
Inferred 35.9 Mlb @ 395 ppm (EXT: 110.3 @ 400 ppm)
Total 101.4 Mlb (EXT: 367.3)

Pre-feasibility study indicated annual production at 3.7 Mlb pa (EXT: 15 Mlb pa) for 12 years (EXT: 20 years) at an extraction cost of $25.05/lb (EXT: $23/lb), with an initial capital expenditure of US$298m (EXT: US$1,000m).

Current market capitalisation at close of 14 Dec 10 is A$987m (EXT: A2,218m including recent announcement of issue of ~7m shares to KAH), which makes the price per pound of uranium A$9.73 (EXT: A$6.04).

Both MRU and EXT are completing DFSs; EXT's is due in 1Q 2011 and MRU in 4Q 2010.

This should be very good news for EXT; the resources are similar in quality and extraction costs, and the timelines are close. EXT clearly has much greater resources and also greater potential to expand those resources. A takeover of MRU - if this is what it is - would provide a useful benchmark to price EXT.