SEGUE RESOURCES (SEG) was surprisingly hot after announcing it...

SEGUE RESOURCES (SEG) was surprisingly hot after announcing it
had entered an agreement to purchase the rights to a 50 per cent
interest in the Angela and Pamela uranium prospects, 25km south of Alice
Springs.

The shares soared 73c to a record $1.45 before closing at $1.10.

Surprising because the mineral lease applications and mineral
claim applications are "currently subject to litigation".

Investors usually run for cover when they see the "litigation"
word.

The vendor is McCleary Investments, controlled by Norm McCleary.

"Whilst McCleary Investments believed that it had consent to
enter the land under the Mining Act, in fact the Warden had purported to
refuse consent," Segue said.

"Had the Warden given the consent, then McCleary Investments'
application for mineral leases and mineral claims over the Angela and
Pamela deposit would have priority over any other claims for exploration
licences or other mining tenement applications."

McCleary Investments has initiated legal proceedings in the
Supreme Court of the Northern Territory to overturn a decision of the
Warden refusing to consent.

McCleary Investments contends that the Warden's decision to
refuse consent is of no effect.

*****

No doubt the reason the punters were so excited about Segue (and
to hell with the litigation) is the fact that the published maximum
total resource at Angela is 12,650 tonnes of U3O8 at an average grade of
0.1% U3O8.

Angela and Pamela prospects are located in Amadeus Basin, which
has been previously explored for uranium with over 1000
percussion/diamond drillholes drilled over 23,000m in addition to over
2000 air-core and vacuum holes.