uranium, page-7

Have stumbled across this peice of research, its a bit dated ie 5 months old but may be of interest to a few, obviously price targets or valuations are not going to include the resource upgrade.

Regarding the resource upgrade we should see indictaed resources coming on line rather than just inferred which has a fair bit of significance.

We are also awaiting the finalisation of a process flow sheet this quarter aswell which is a bit more news.

Not sure if I mentioned a dual listing is on the cards in either London or toronto.

Analysis of Tables

The above tables allow the calculation of an enterprise value for GGG based on comparisons with other companies in the rare earth and uranium spaces. For example, if it is decided that GGG had more hurdles to overcome than Lynas in the rare earth arena with a lower head grade, you may wish to calculate the GGG rare earth enterprise value at say $50 per tonne,similar to Arafura. If you wished to discount GGG on the uranium front for political uncertainty, yet acknowledge the infrastructure benefits, you may be happy to attribute the industry average for explorers of $3 per pound, which is still well below recent acquisition prices. This combination would result in an enterprise value of $795 million, or $2.34 per share fully diluted.
While the above example is for illustrative purposes, it emphasises the huge potential upside in the GGG share price.
Please note that this attributes no value to the NaF, and does not take into account the expected increases in the size of the resource.

Dual Listing
It still remains the intention of the company to seek a secondary listing in either London or Toronto, and the company has been in extensive conversations with leading brokers on both sides of the Atlantic. Much will depend on the development of relationships with strategic
partners as to where GGG seek to dual list.

Pre-Feasibility Study

Following the two highly successful exploration campaigns and rapid resource growth, the Company has launched a pre-feasibility study on the Kvanefjeld multi-element project. This was further justified by the strong show of support from Greenland’s parliament in late 2008.
Owing to the increasing profile of the Kvanefjeld project, the Company has successfully engaged some of the most highly regarded consulting groups in the minerals industry.
Coffey Mining Pty Ltd has been engaged to carry out mine studies and develop mine plans. Coffey Natural Systems will be managing environmental studies, which are already
well advanced. GRD Minproc has been engaged to drive process development and plant design.
Key personnel from the studies undertaken by RISO (Danish Atomic Energy Agency) on the Kvanefjeld project in the late 1970’s and early 1980’s, including the project
manager, have also been engaged. The pre-feasibility study is scheduled for completion by late in Q3 to early Q4 2009.

The pre-feasibility study will encompass several key milestones, including the development of a process flow sheet that will map out the processing route to extract the commodities of interest from the Kvanefjeld ore. Previous work by RISO identified a way to successfully extract uranium. However, given the emerging economic and strategic significance of specialty metals the Company has taken a multi-element approach with other process routes
being evaluated to maximise the recoveries of several commodities, which serves to strengthen the economics of the project. The process flow sheet is well advanced due to
beneficiation and metallurgical testwork carried out in 2008.

Current Resources

On 26 August the company announced a major REO and NaF resource increase containedwithin the 334 million tonne resource shell. Currently the resources at Kvanefjeld include 215 million tonnes of ore @ 1.21% REO and 201 million tonnes of ore @ 1.1% NaF. Contained
metal equivalent is 2.6 million tonnes of REO (the second largest known occurrence in the world), 2.21 Mt of sodium fluoride, and over 101,000 tonnes (223 million lbs) of U3O8 at 302 ppm.
The REO and NaF resources are constrained at this point by incomplete chemical assays and will be further improved as the remaining core from the 2007 season is processed.

The in-ground value of the JORC compliant inferred resource is therefore over $40 billion at current prices with REO representing about 75% of the value. The value of the uranium at current spot prices is about $14 billion.


Directors

Company Chairman Michael Hutchinson has had a distinguished career, serving as a director on numerous publically listed companies. Mr Hutchinson has been a longstanding
director of the London Metal Exchange (LME), and brings a strong understanding of the global minerals industry, as well as being highly visible to the global financial markets.

Former Chairman, and now Non-Executive Director Dr Hans Kristian Schønwandt was integral in the formation of the current mining law in Greenland and was instrumental in GGG
securing the Kvanefjeld project, as well as providing insight into the regulations of operating
in Greenland. Dr Schønwandt had a very good understanding of the geology and mineral resources of Greenland, and specifically the Kvanefjeld multi-element deposit.

Managing Director Roderick Mcillree has a diverse background having trained and worked as a geologist in Australia and abroad, before undertaking financial studies, and working as a mining analyst and corporate advisor.

Technical Director Malcolm Mason conducted the early feasibility study for the Langer Heinrich uranium project in Namibia (now an operating mine).

Executive Director Simon Cato oversees compliance and corporate governance and was the listing manager at the Australian Stock Exchange for 25 years.

Mr Shaun Bunn is managing the pre-feasibility study, and has been involved in numerous feasibility studies and the development of diverse mining projects including nickel laterite, vanadium and gold mines.