takeover, page-12

No one has proved yet that sub 200 ppm new mine can be economical and successful.

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I could be wrong, but wasn't Beverley in Adelaide a successful solution mine at around 180ppm average grade? You Aussies will know more about that than me.

And this:

Where Does History Say Investors Should Look For The Next Uranium Buyout?

August 2009 - uraniumseek

There have been few buyouts of uranium juniors despite the majors like Cameco, Denison and Areva sitting on large amounts of cash.

To guess rightly in the future, we first need to look at history. I see three themes behind the very few buyouts in the uranium sector big size, low grade, and location.

The junior uranium companies who have been purchased all produced low to very low grade uranium. Forsys Valencia deposit is only 120 parts per million (ppm) U3O8, though they have 61 million pounds of it. In 2007 Areva bought Uramin Resources for its Trekkopje deposit, which was about 150 ppm.

Even the new producers in the world, like Paladin Energy and Uranium One, have grades of less than 1% U3O8, and often 1/10th of 1%. Almost all the worlds new uranium production since 2005, when the uranium price moved up and the sector attracted investment, has been less than 0.5% U3O8.

Size is also a factor. Valencia has 61 million pounds and is still open.

And the location theme is simple Namibia.

The uranium deposits these companies are developing are all simple, low cost earth moving operations. With all the technical problems that world leader Cameco has been having with Cigar Lake, the deep, high-grade model has not given investors much joy.