The Apprentice,Here is a summary of the resource upgrade...

The Apprentice,
Here is a summary of the resource upgrade announced by the company in december regarding it's Corachapi uranium deposit. I think you may have you're figures a little messed up.

13 December 2006
Manager of Company Announcements
Australian Stock Exchange Limited
Level 6, 20 Bridge Street
SYDNEY NSW 2000
By E-Lodgement No. of pages: 1
URANIUM RESOURCE UPGRADE SUMMARY
The board of Contact Resources Limited (ASX: “CTS”) wishes to provide a summary of its
“Resource Upgrade” statement released yesterday to ASX. This is to clarify how the grade of
U3O8 quoted in percentage terms relates to amounts of U3O8 in terms of pounds weight.
DETAILS

The current Inferred Resource is stated at 1,031,000 tonnes at an average grade of
0.32% U3O8 using a lower cut-off grade of 400 ppm U.

The reported grade of 0.32% U3O8 represents 3.2 kilograms of U3O8 per tonne (kg/t)
of resource material in the ground.

With 2.2 pounds (lbs) to 1.0kg this grade of 0.32% U3O8 represents 7.0lbs/t U3O8 per
tonne. The Inferred Resource thus theoretically represents 7.2 million lbs of U3O8 in
the ground.

The uranium price is quoted in US$/lb and is currently around US$63/lb. At a
currency conversion rate of US$1.00 = A$1.26 this equates to approximately A$79/lb.

It is emphasised that there are many steps yet to be taken before the company can
consider feasibility studies for mining options. The first is to conduct ‘definition
drilling’ to outline a Measured Resource followed by, or in tandem with, metallurgical
test work, further exploration drilling, engineering studies, a radiation management
program, environmental and community programs and all statutory regulatory
authority requirements.
Yours faithfully,
Allen Maynard
Managing Director

And heres something from the half yearly report!

Resources of the deposit were upgraded during the Half Year to;
A Global Inferred Resource (using no lower cut-off grade) of 3.8Mt at 0.098% U3O8
Within this overall resource (not additional) and using a lower cut-off grade of 500ppm U there is a high grade core of 1.02 Mt grading 0.4% U3O8 .
This equates to 9.16 million pounds (Mlbs) of uranium oxide.
At the current price of A$95/lb U3O8 the CTS equity (80%) has a theoretical value in-the-ground of A$695,000,000!!!!!!!!!

Hope this provides a different angle for you.