The question I have over the 1.9M lb resource is what cut off...

The question I have over the 1.9M lb resource is what cut off grade was used during the original exploration.

Given the historical nature of the resource and the likelihood that the cut off grade applied for economic reasons was very high in the past with the low price of U, I find the 1.9M lb of U at 0.3% of some interest.

Just remember that Paladins resource is at 0.07%! much lower grade, but much larger (at present).

With the price of U at unprecedented levels, the exploration could focus on expansion of the resource at a significantly lower cut off grade. This could significantly expand the size of the resource imo.

Also remember that PDN's resource did not start life at the same size as it is today. In fact, over the last 3 years it has been upgraded on a number of occasions as the cut off grade applied is lowered. With U at $113/lb and mining to commence in 6 mths, the company has substantial opportunity to take full value from the u boom which has got at least 3 years to run, backed by no non sense economics (supply & demand). Irrespective of the futurs trading due to commence on nymex or any other short term issues, the U market is seriously short in supply, an issue that can only be remedied through new/increased supply. Unlike all other commodities, if this demand is not met, power stations will be turned off. Simple as that.

There, the new venture will be in a unique position amongst the junior U companies. Being able to mine the resource already in hand within 6 mths, while drilling like buggery to expand the footprint of the tenement in the meantime.

Certainly not a grand slam on the current size of the deposit, but time to market and potential upgrades are the massive positive in this announcement imo.