uranium stock undiscovered

Buyers are now moving into CRE...there has been talk of a uranium spin off similar to TOE.
This company has a swagful of possible uranium tenements.
Strange thing though is they haven't announced anything to the market about their uranium assets.
When they do this stock is going to run hard, especially if they spin off their assets.

read below, this post was done by T4P months ago before the boom




Laverton: gold

Possibly the most prospective undeveloped resource in the Laverton area, their total resources currently stand at 1.37m+ ounces with reserves at 200K+…fragmented into several satellite deposits, all in relatively close proximity to each other, most of which are still open in many directions. The upside potential is significant.

The previous BFS, which only included 4 of the 10 main resources, was prepared on the basis of a spot gold price of AUD$575/ounce…we are now sitting at AUD$630.

Since the original BFSs they have also bought back the $30/ounce AngloGold Ashanti royalty, which should result in significant upgrades to project economics. An updated BFS is due in Novemeber.

They also have a 1mtpa processing plant on site, currently on care and maintenance, which will require minimum cap ex…just $5m for the 1mtpa scenario…or $9m to upgrade to a 2mtpa throughput scenario.

Laverton: nickel

A recent desk-top study has shown their Laverton tenements to be highly prospective for nickel sulphide mineralisation…with the Department of Industry and Resources records showing that the ground has been “ineffectively tested during the past 40 years”…a nickel JV partner would seem an obvious path here.

Recent discoveries at Collurabbie (FCN/BHP) show the potential of the Eastern Ultramafic belts which continue into CRE’s ground.


China:

CRE own 70% of the Xinjiang Tianau Mining Company (a cooperative JV between CRE and Xinjiang Geology and Mining Technology Development Company). The last 18 months or so have been spent obtaining various approvals and in the formation of the JV company. They now appear to be ready to commence on the ground activities…I am expecting an announcement to such effect near-term.

Their China ground consists of 3 main projects, all of which are located in the highly prospective Xinjiang Province of Western China, and lie on major metallogenic trends which host some of the worlds largest gold and gold-copper deposits such as the giant Muruntau deposit (170 million ounce), Bakyrchik (12.5 million ounces gold) and Kumtor (23 million ounces gold) to the west in neighbouring Uzbekistan, Kazakhstan and Kyrgyzstan and Ivanhoe’s Oyu Tolgoi copper gold deposits (24 million ounces gold and 21.0 Mt copper) to the east in Mongolia.

Forrest Gold Project (earning 70% interest):

The Forrest Project is located 10 kilometres south southeast along strike from the Arxi Gold Mine (4million ounces) on the same trend as the Towerbeck and Gold Mountain gold deposits. Significant geochemical gold and copper and geophysical anomalies occur at the intersection of the Arxi-Gold Mountain trend and the gold localising, NW and NE trending faults.

Wulaste Copper Gold Project (earning 70% interest):

Wulaste has the geological and geochemical hallmarks of a major gold-rich copper porphyry system. Concentric large-scale co-incident gold, copper, molybdenum and arsenic occur around a barren intrusive core.

Norte Gold Base Metal Project (earning 60-80%):

Several large, high grade gold in soil anomalies have been defined at Norte with peaks at 22ppm gold. Trenching results such as 8m at 3.5g/t Au over one such anomaly have confirmed the gold potential of this district. Other gold soil anomalies and associated structures remain untested. "There is excellent opportunity to outline a volcanogenic massive sulphide related gold and or base metal deposit"

Uranium: soon to be listed spin-off company

The NT areas are located at Mt Woolner, Rum Jungle, Calvert Hills, Tennant Creek and Alice Springs…they also have Ethel Hill (Laverton, WA) which is also considered prospective for uranium.

Woolner Dome:
There are only three known Archaean granite domes situated on the northern margin of the North Australian Craton. Two of these, Rum Jungle and Nanambu, are flanked by a number uranium deposits such as Ranger-1, Jabiluka and Rum Jungle, which are significant by world standards. The third dome, Woolner, is situated between the other two, but is hidden by a 40m thick blanket of sediments.

Surprisingly, very little exploration has been carried out in this area.

Rum Jungle:
This was the NT’s first uranium discovery and Australia’s first large scale uranium mine, producing 3,530t of u3o8 at head grades ranging from 0.28 - 0.41%

Rum Jungle covers 5km strike of the granite-dolomite-shale contact zone, which hosts the Rum Jungle U-Cu deposits. The area surrounding the granite lies under shallow soil cover, which it is felt would have concealed the uranium concentrations from previous explorers using airborne radiometric survey data.

Tennant Creek:
Previous work carried out by CRA identified and drilled a uranium anomaly hosted in granite. Initial spectrometer readings from core logging lead to the selection of a target to the north of a particular anomalous water assay from a drill hole assaying up to 16,400ppb U.

In spite of drilling a further 12 holes, no definitive source for the uranium anomalism was ever determined.

Calvert Hills:
This area contains the Westmoreland Conglomerate, which hosts numerous recorded uranium occurrences in the Northern Territory and Queensland along strike from the project area.

A diamond drill-hole drilled by Afmeco in 1981 confirmed the presence of the unconformity between the granite (potential source) and favourable stratigraphy for uranium enrichment (sediments) at a relatively shallow depth.

Alice Springs:
This area lies 42km’s to the east of Alice Springs on the north-east flank of the Amadeus Basin and next to the Arltunga/Paddy’s Jump Up U/Cu vein occurrences with assays up to .38% u3o8 and 1% Cu.

Uranium exploration in the Amadeus Basin began in 1972 targeting sandstone-hosted deposits similar to those in the USA. Work carried out until the early eighties delineated 2 resources to the south-west of CRE’s ground; Angela and Pamela, but they were put on care and maintenance after the introduction of the Three Mines Policy in 1983.

Ethel Hill:
Located 40km north-west of the Mulga Rock Uranium deposit, which has a published resource of 10.8mt @ 0.12% u.

The area remains poorly explored and is considered prospective for uranium roll-front style enrichments.

LOL…all up, I guess it’s not bad for just $30m if you ask me.

Even fully diluted for the listed options and convertible note conversion, their market cap is still a tiny $44m...$13m of which will be cash!

Another important point, which is probably not so obvious from recent announcements, is that recent upgrades to Laverton, including the royalty buy-back, should result in the production of additional ounces per year...as I see it, they are now probably looking at something closer to 90-110K ounces per year versus the 60-80K previously suggested (2 mtpa scenario).

Even these higher figures might prove conservative given gold is currently trading at AUD$630/ounce.

As I have previously mentioned, margins now look like coming in around the $190-$240 per ounce mark, resulting in a surplus of something like $19-$24m annually....or an EPS of 8.2c - 11.3c.

Using a multiple of just 5 (which is low considering the resource upside for Laverton) and you get a price range of 41c - 56.5c….and that’s just for Laverton

As for the rest of the company, using the above figures, cash will be worth 6.3c per share, the Uranium assets at least 5c per share and China perhaps another 5c per share again…China in particular could be a company maker on it’s own.

That’s a high side value near 72c.