OK...here we go!BHP just sold Yeelirri to Cameco for US$3.00...

OK...here we go!

BHP just sold Yeelirri to Cameco for US$3.00 Lb.(See BHP ann. 27 August and DYOR).But that was a high cost deposit to mine.

According to industry sources, many of the major players are paying US$7-$10 per pound of quality in ground resource.Again DYOR.

On to CXU.

So far they have a resource of approx. 5 Mlbs as a very low cost to produce reserve.In fact production costs are estimated to be between $10-$16 per pound,similiar to Olympic Dam,in fact, the lowest costs of all major world uranium deposits.

So assume an inground value of $10lb we multiply 5Mlb by 10 to get an inground value of $50 Million or 32 cents per share.That's what we have got!

But the exciting thing is that CXU have stated that they are targeting a resource of 25-35 Mlb(DYOR)......So let's do the arithmetic.

25Mlb+5Mlb=30Mlb times $10=$300 Million or $1.93 share

35Mlb+5Mlb=40Mlb times $10=$400 Million or $2.58 share

This is the possible value for the inground resource,if proven up, and excludes all other assests.Although the inground resource is only a target at this stage,by the way the share price is quickly appreciating it looks as though,based on excellent drill results to date,that the conversion of target to reserves is a forgone conclusion.

So,bottom line,is we still have the possibility of a 4/5 bagger in front of us,as a very minimum,with much more upside once production begins.

Using these very rough,back of envelope analysis,fit for an internet chat forum,is the only reason I can see for the rapid share price appreciation,so DYOR,and please post your views.