Assuming 500,000t we are looking at a mine payback of 10 months, with a op cash flow of $23.7m. The value measure per share would be then 21.6 with a PCF multiple of 0.7 with a commodity price of US$220/mtu.
At 1m tonnes this could be massive for the the share price. Good luck all.
Hoping the U assays will pri_ck up a few more ears.
She's a good one.
But....Hell Mary!
The yellowcake road winds back to Mary K Robin Bromby January 04, 2007
STAND by for another phase of the uranium frenzy - this time in northwest Queensland. Goldsearch ignited it, and now another exploration junior, Deep Yellow, has added fuel to the fire with its announcement yesterday that it had joined the crush looking for uranium around Mt Isa. Expect, too, to hear the name Mary Kathleen, as the historic uranium mine is invoked by companies pegging tenements anywhere in the neighbourhood.
Mary Kathleen, which lies about halfway between Mt Isa and Cloncurry, was discovered in 1954. A year later, Rio Tinto formed a company to mine Mary Kathleen to supply Britain's Atomic Energy Authority.
It operated in two bursts, 1958-63 and 1975-82, producing a total of 8882 tonnes of uranium.
As with any market craze, it is unclear who has what in terms of finds in the Mt Isa-Cloncurry belt. Only one local explorer, Summit Resources, has come up with significant established uranium resources (about 34,000 tonnes) at its 50 per cent-owned Skal and Valhalla deposits close to Mt Isa.
Summit is in partnership with Paladin Resources after that company paid $174 million to buy Valhalla Uranium, which held the other half of Skal and Valhalla. The only other established deposit is held by Canada's Laramide Resources, its Westmoreland project 350km northwest of Copper City holding 20,900 tonnes of uranium.
The rest is all speculation.
But one thing can be said: while the Mary Kathleen mine itself has been depleted, there is every chance the region could become a significant uranium province.
This story was ignited only last week when frantic trading in Goldsearch stock began, even though the company said it was unaware of anything that would have set traders going. Results are expected from samples later this month, and the company has said only that those samples indicated grades above 0.005 per cent - and that is a very low grade.
But the stock nearly doubled in price when the market reopened on Tuesday.
Then Deep Yellow came out yesterday morning saying it had acquired six uranium tenements in the Mt Isa district. So it was off to the races with that stock, Deep Yellow climbing 9.5c to 56.5c.
Deep Yellow is also in joint venture with Matrix Metals in the latter's various uranium prospects close to Mary Kathleen. Drilling began on those in November.
The great swath of Queensland running from north of Mt Isa through to Cloncurry has only in recent years been opened up by smaller explorers, much of the area having been locked up for years by the former MIM. It was thick with uranium explorers in the late 1970s and early 1980s, and with some big players including BP, Esso, the then CRA (now Rio Tinto) and Belgium's Union Miniere.
They all pulled up and left when the uranium price collapsed. Now that Goldsearch and Deep Yellow have taken off, the other uranium players in the area - Universal Resources, Monaro Mining and Paradigm Gold - will also be watched carefully by traders.
Universal Resources has tenements that lie within 4km of the Mary Kathleen mine site, and on which CRA did some exploration in the 1970s. That exploration recorded rock chip samples up to 6.18 per cent uranium.
Universal began exploration on that ground last month.
Paradigm has picked up ground that was prospected by Energy Resources of Australia in 1978 when samples graded up to 0.03 per cent uranium. ERA went no further, as it was focused on its huge Ranger deposit in the Northern Territory.
Monaro holds tenements north of Mary Kathleen.
It picked these up in September through an alliance with their owner, Mohan Varkey, who was credited with the discovery of the Nabarlek uranium deposit in the Northern Territory and then went on to help find Cigar Lake in Canada.
There are currently only 44.1m shares on offer with a fully diluted structure of 64.1m and remember that both ERA & CRA have drilled right there with PDM receiving the historical data.....and everyone knows the Cloncurry area don't they regarding possible gold and copper targets?
"Among the better-performed uranium stocks in recent times are Paradigm Gold which has gained 223.5% over the past month since announcing a switch into uranium."
* 12 metres at 1.54% WO3 and 428 ppm Mo from 6m in WRP037; * 8 metres at 1.80% WO3 and 138 ppm Mo from12m in WRP039; * 4 metres at 1.0% WO3 and 176 ppm Mo from 23m in WRP040; * 11 metres at 0.40% WO3 and 0.16% SnO2 from 30m in WRP026; and * 3 metres at 0.27% WO3 and 0.44% SnO2 from 23m in WRP016.
Plus:
A tin-rich halo surrounding the tungsten mineralisation has been identified, boosting the potential of the White Rock deposit. High-grade tungsten as scheelite is accompanied by molybdenite, which could also be recovered as a credit.
Credit....scoping feasibility, 12 months.
Also, further exploration tenements for uranium in QLD are pending while Blue Bush and Jack Tim U trenements are soon to be finalised for native title. These are also due.
More importantly, the uranium assay results from their first "reconnaissance" visit are due anytime now. They stated the U assay resuts will be announced "shortly on the 05/04.
It will be any day now if not tomorrow.
I know...I am continuing...but:
White Rock's location means it's close to infrastructure, keeping down capital costs and allowing a probable 10-month capital payback time once in production.
Queensland Ores will be producing tungsten this year, King Island Scheelite has serious Chinese money bankrolling its project and both Thor Mining and Vital Metals have drilled resources.
Check the variation in market caps.
and perhaps more IMPORTANTLY is:
That the Vanadium oxide in the limestone is intriguing.
Carnotite is a bright to greenish yellow mineral that occurs typically as crusts and flakes in sandstones. Amounts as low as one percent will color the sandstone a bright yellow. The high uranium content makes carnotite an important uranium ore and also radioactive. Carnotite is a relatively uncommon mineral, yet common enough to be an important ore of uranium and vanadium. Uranium and vanadium are two extremely strategic metals.
08/03; Several of the recent samples were found to contain trace to minor amounts of a bright yellow secondary uranium mineral, believed to be carnotite, from within microfractures in the limestone.
Assays are awaited for these initial samples and are imminent..that is soon, tomorrow, next week. LOL
I give up. LOL
If you cannot join the dots...you should also give up.
Both businesses will seperate like an aneoba as the management is both proven, transparent and somewhat brilliant.
Focus is everything but increasing wealth for shareholders can also be as paramount. Corporate incentives are huge to increase the SP atm.
Won't take long and will be underwritten.
PDM is probably one of the more clever plays on the speculative end of the ASX atm and should be in the 60s IMO on known facts, little alone speculation...and I am conservative. More importantly we have both inferred and indicative:
A JORC mineral resource of 150,000 tonnes grading 0.9% WO3 (indicated and inferred) has been calculated at White Rock, where mineralisation remains
....open.
Paradigm is targeting a deposit of at least 1 million tonnes grading 1% WO3, which the company believes could generate strong future cash-flows.
Dots.
Compare market caps to YTC, WLF, THR...even the undiluted MKY.
For heaven's sake. LOL
This one could be it IMO.
1. Transparency 2. Boutique funds on board 3. Brilliant metals in exploration and proven indicative reserves. They are confident in 1m tungsten. Call them. 4. Tight register. 5. Directors have ample incentives for SP increases through direct and indirect holdings. 6. Tiny market cap with few shares on offer. No reborn shell here. 7. URANIUM soon through Cloncurry and Mary Kathleen.
My god.
IOD Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
(20min delay)