AEE - Aura Energy

bigt said:

Appears they are applying for tennements in Sweden...interesting...there is apparently some very good ground in scandanavian countries, prospective for U.

(If I read their last ann correctly).

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bigt said:

Well, another one out of my portfolio. Was waiting for the results to sell, now I'm out for the time being. I think this will fall some more, now that the results are formal, and not particularly great.[/QUOTE

Now that AEE has reported the scintilometer tests on its recent drill program I have done a very basic "back of envelope" assessment on this mornings report. About 2 x 3 kms of the U zone carries around half a pound of u to the ton over a width of .75 meters and this can be extracted by digging an open pit about 3-5 meters deep over this area. Extrapolating these numbers into pounds of U we get roughly 8-10 million pounds of U worth about A$50 ton or an equivalent gold grade of around 1.75 grams per tonne. In dollar terms this equates to gross revenues of around A$800 million to one billion dollars over the life of the project. To dig the stuff up all u need is simple tractors and dump trucks that u might find around any good nursery and soil supply center. So development and production costs will be very low as the U is contained in relatively very soft material (deposited on the bed of an ancient lake and river mouth). There is a secondary zone that is about the same tonnage but rough grade is about one quarter of a pound and there are a number of higher value zones that run outside the area drilled.

Another interesting little factoid is that in the first round of drilling the scintilometer readings were much lower than the final lab assays. See hole WAC27 which gave a probe reading of .8m @ 371 ppm and the lab assay at 1 meter of 528 ppm which is rougly a 50% higher reading. IMHO this stock has plenty of legs and the uninformed are selling. Mega U might just get another gift handed to them if they keep selling.

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