About five weeks ago ERN started a 10,000m RC drill program over area 1. They are drilling out the "historical core" (5 holes already reported) and extensions. Drill rate is about 100-120m per day so they would be over a third of the way thru this first phase. ERN plans to assay about twenty of these holes by mid July and then present the results to the market. I assume the idea is to drill out the known resource and eventually quantify it to current JORC resource standards (assuming that the grades are viable).
Two massive and economic u deposits nearby carry average grades of 130 & 140 ppm and are valued at A$750 million and about A$2 billion. Operating costs to produce one pound of U is US$22.00 from them.
ERN market cap is about A$37 million and they will probably drill their Erongo u targets most of the current year. IF they come up with similar grades and size like the Valencia deposit nearby at 140 ppm / about 4.5 ozs per tonne they should increase market cap by a factor of twenty.
So far they have (1) truly massive u anomalies (2) about five or six defined very large targets (3) historic drilling on a substantial u target (4) currently identified similar grades on a very small part of one target that are similar to their billionaire neigbors.
I backed up the truck this morning. Good luck to all longs.
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