pdn comparison uranium deposit test drills PDN's deposit (Langer...

pdn comparison uranium deposit test drills PDN's deposit (Langer Heinrich) was test drilled between 1972 and 1983 covering 27,000m of drilling etc costing $20m at the time (see below ann from 2002).

WME's deposit , Marenica , was test drilled over the same period covering 32,000m (2000 holes) probably costing $15~$20m ...

The key to 'fast-tracking this , is locating all the relevant test results and data which are probably in South Africa somewhere , then these could probably be converted to JORC compliant with a couple of months , with follow up drilling to be done using more modern techniques to expand the resource... and on we go ala PDN ...

SALTY

PALADIN RESOURCES LIMITED 2002-08-02 ASX-SIGNAL-G

HOMEX - Perth

+++++++++++++++++++++++++
Paladin is pleased to announce that it has agreed to purchase the
Langer Heinrich Uranium Deposit located in Namibia, Southern Africa,
from Aztec Resources Ltd ("Aztec" - formerly Acclaim Uranium NL).
This was subject to an intensive 60-day due diligence period.

Paladin will pay Aztec $15,000 and a production royalty of 12 cents
per kilogram of yellowcake product sold and delivered to a buyer.
Cash payment will be made on finalisation of the purchase agreement.

The Langer Heinrich uranium deposit was discovered in 1972 by Gencor
Limited, a major South African Mining House. This is a calcrete type
deposit containing a global resource of 34,000t U(3)O(8) at a grade of
0.055% contained in 7 discrete mineralised zones along a l2km length
within an extensive paleodrainage system. The deposit is located in
the Namib Desert, 80km east of the coastal town of Swakopmund.

Aztec acquired the Langer Heinrich Uranium Project from Gencor in
December 1998. Gencor had explored the Project from 1972 to 1983
drilling some 25,000m of percussion drilling, 2000m of diamond
drilling and carrying out extensive trial mining and test processing
activities. During this period Gencor spent approximately $20m
(adjusted dollars) before mothballing the project due to the
depressed market outlook.

In 1999 a Prefeasibility Study was undertaken jointly by Aztec and
LTA Process Engineering Ltd of Johannesburg to examine the technical
and commercial viability of commencing a mining operation on the
Langer Heinrich Uranium Deposit. Work by Aztec included incorporation
of the previous Gencor project results, infill drilling of one of the
high grade zones of the orebody and limited metallurgical testing.
The Prefeasibility Study indicated that further work was strongly
justified to evaluate the possibility of establishment of an open cut
mining operation producing approximately 10,000t (average grade 0.11%
U(3)0(8)) uranium oxide (yellowcake) over a 10 year mine life. The
viability of such an operation has yet to be fully tested by a
Bankable Feasibility Study.

During its term of ownership Aztec spent approximately $2,300,000 on
the Langer Heinrich Project and although prefeasibility results were
very favourable, in 2000 they announced the Project was being shelved
due to the low price of uranium oxide prevailing at that time
(US$7.00 per pound).

Subsequently Aztec have undergone a major change of both direction
and management with emphasis in other mineral resource projects
requiring them to divest their uranium assets.

The Paladin Directors have elected to acquire the Langer Heinrich
Project for the following reasons:

* The improving market outlook worldwide for the use of nuclear
energyfor production of electricity due to both economic
competitiveness of this technology and benefits it has in reducing
global warming greenhouse gases places Paladin in a stronger position
with access potentially to a further 10,000t of uranium.

* Uranium Oxide spot price continues to improve (up 35% in 12 months
and now testing the critical US$10.00 per pound barrier). Market
analysts are predicting substantial increases in the price of this
commodity in the mid-term.

* The Langer Heinrich Project in combination with its Kayelekera
Uranium Project in Malawi will give Paladin control of the two most
advanced uranium projects in Africa.

* The two uranium projects in conjunction with the African database
it owns will give the company a very strong resource portfolio on the
African continent and will provide attractive alternatives for future
corporate development.

A 4 month period has been set aside during which Paladin will
completely re-analyse all previous work and conclusions made by
Gencor and Aztec on the Langer Heinrich Project to determine an
appropriate technically focussed and cost effective Bankable
Feasibility Study program. The Company firmly believes that this
re-analysis will allow significant optimisation to occur with the
objective of producing a more streamlined basis for determination of
project feasibility.

Attractive loan fund opportunities are available from the Namibian
Government for the development of resource projects. The acquisition
of Langer Heinrich with the very low purchase price, when combined
with Paladin's significant uranium expertise and improving market
conditions, makes the Langer Heinrich Project a highly attractive and
potentially very rewarding proposition.


J Borshoff
MANAGING DIRECTOR